April 2021 Newsletter | Cylchlythyr Misol Ebrill 2021
Applications for the fourth grant under the Self-Employment Income Support Scheme will open "from late April 2021" per the UK Government website. This will be based on 80% of average profits.
Full details are available here
If you are a freelance contractor, you may be impacted by the new IR35 rules that came into effect on 6 April 2021. These rules have made it more onerous for companies that engage contractors to assess whether their contractors should be classed as employees. HMRC have published an online tool that can help individuals assess whether they may be impacted by the IR35 rules.
Full details are available here
Following the Budget last month, several high street lenders have launched 95% mortgage products. These are aimed at helping first time buyers to get onto the property ladder. Ensure that you shop around for the best mortgage deals.
Beware of emails and leaflets advertising investment opportunities in holiday resorts and lodges. Headline investment returns often exclude the significant fees involved and are based on occupancy rates unthinkable even before the pandemic.
HMRC have launched an app that allows users to access all their income tax data in one place. For example, if you worked for several PAYE employers during a tax year but have mislaid your P45/P60, the app should contain all this information.
Full details can be found here
Ask Huw & Aled: I run a furnished holiday let (FHL). Due to Covid, I have not been able to reach the required occupancy rate of 105 days in the last tax year. Will I lose the different tax treatment that FHLs receive?
There is a distinction between FHLs and other property income in terms of the allowability of certain costs, such as mortgage costs. Specific elections can be made in order to protect the FHL status for a tax year, based on certain terms and conditions. Check with your accountant.
