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Are you switching from Limited Company to Umbrella Employment? We won’t make our margin for the first 4 weeks.Click here to learn more>>

We have created an information hub to support our Orange Genie Accountancy clients, our Umbrella Employees and agencies where the the Covid-19 rules and legislation are explained for recruiters, contractors and the self-employed. Click here to find out more>>

Limited Company Contractors FAQs - January 2021

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Here are the three most frequently asked questions we received from limited company contractors in January 2021, with answers from the experts at Orange Genie Accountancy:

Guide to opening and running your limited company: click here to download>>

How do I repay the VAT that I owe for the period 20 March 2020 to 30 June 2020?

You can pay your deferred VAT in full by 31 March 2021 and there is no need to contact HMRC. If you want to opt to use the new deferral scheme you will soon be able to opt into the payment scheme. Instead of paying the full amount by the end of March 2021, you can make up to 11 smaller monthly payments, interest free. All instalments must be paid by the end of March 2022. You must opt in yourself; we cannot do this for you as agent. To use the scheme, you must be up to date with your VAT returns and must apply before the end of March 2021. Instalments must be paid by Direct Debit. Your accountant can explain more about what you need to do.

What do I do if I cannot afford to pay my self -assessment by 31 January?

You can set up a payment plan to spread the cost of your self-assessment bill as long as you owe less than £30,000, you have no other payment plans with HMRC, your tax returns are up to date and its less than 60 days after the payment deadline. Payment plans can be set up online or in person with HMRC. Your accountant should be able to advise you.

Is the furlough scheme still available to company directors during the 3rd lockdown?

The scheme has been extended until the end of April 2021 for eligible employees. To be eligible you must have been on your company’s payroll and submitted an RTI submission before the end of October 2020. The government will contribute 80% of your salary cost, up to a maximum of £2,500 per month. The scheme no longer covers the cost of Employers NIC or pension contributions, so these will need to be paid from Company funds. The furlough scheme is available on a full or part time basis and must be thoroughly documented.

If you have questions or if we can help in any way, please call our expert team on 01296 468 483 or email info@orangegenie.com

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