COVID-19: Practical guidance for our rural and farming clients #25

HMRC’s online payment plan service has upped the threshold from £10,000 to £30,000 and, as of 1 October, taxpayers using self-assessment can spread the cost of their tax bill into twelve monthly payments.

Included in this scheme, taxpayers will be able to repay:

• deferred payment on account bill from July 2020,
• any outstanding tax owed for 2019 to 2020 and;
• the first payment on account bill for this current tax year.

If you do want to set up your own self-serve Time to Pay arrangements, you need to meet the following requirements:

• you have no: outstanding tax returns | other tax debts | other HMRC payment plans set up
• the debt needs to be between £3,000 and £30,000 (increased from 10,000)
• the payment plan needs to be set up no later than 60 days after the due date of a debt.

Be aware that those utilising the Time to Pay scheme will be required to pay any interest on tax owned.  Interest will be applied to any outstanding balance from 1 February 2021.

If you have any questions please do get in touch with your Old Mill adviser.

The Job Support Scheme has been expanded to cover businesses that, because of restrictions set by the government, are legally required to close their premises.

Because it relates to premises rather than businesses then it should cover employees’ divisions of a larger business that has other premises which are permitted to remain open.  This would include diversifications such as farm shops or bed and breakfasts that have been forced to close while the main farm operation continues.

The government will pay two thirds of employees’ salaries to protect jobs over the coming months and cash grants will be increased to up to £3,000 per month for businesses required to close in local lockdowns.

The scheme will begin on 1 November and will be available for six months.  A HMRC claims service will be operating from early December.

Cash grants for businesses required to close in local lockdowns has also been increased to up to £3,000 per month.

More details and our appraisal of the scheme can be found here.

Our Rural Insight has been posted out to clients.  In this edition you will find the following articles:

• COVID-19 grants and support for farming and rural businesses
• Government announce Capital Gains Tax review – What does this mean for taxpayers?
• Ways to future proof your farm business
• Do you know the questions to ask when it comes to succession?
• Have you had an overdraft letter from your bank?
• Looking through the new 30-day window on residential property sales
• Have you taken advantage of R&D?
• Farmers use Xero to create opportunities from Making Tax Digital
• Working Smarter – Figured (Guest Spot)
• Estate planning and tax relief
• Decision making is the key to successful farming
• The Farming Financial Planning Guide 2020
• The five key dates for farmers and cash flow over the next 12 months

You can access the update online below.  Alternatively, if you would like to receive a postal copy then please contact us here.

If you have any questions about any of the above please do get in touch with your adviser in the first instance, or alternatively click here…