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Self-Employed Contractors FAQ - January 2021

self-employed

Here are the most frequently asked questions we've received from self-employed contractors in January 2021, with answers from the experts at Orange Genie Accountancy:

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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.

Can I claim Self Employed Income Support (SEISS) during the 3rd lockdown?

Currently, the third SEISS grant is available to eligible individuals. To be eligible you must have submitted your self-assessment for 2018-19 on or before 23 April 2020 and your 2019-20 return. You must either be currently trading but are impacted by reduced demand for your services or are temporarily unable to trade due to coronavirus. You should reasonably expect there to be a significant reduction in your profits but you should also be intending to continue to trade when circumstances allow. This third grant has to be claimed before the 29 January 2021. A fourth grant is expected to cover the period from February 2021 to April 2021 but the Government have yet to announce the level of that support.

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.

If you have questions if iwe can help in any way please call our expert team on 01296 468483 or email info@orangegenie.com.

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