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Company Profile
Banks Sheridan is a leading accountancy and tax practice based in Crewe. Our services include; audit and accountancy,tax compliance, tax planning and business advisory work.
We act for corporate and commercial clients from sole trader businesses to multi-million pound corporates.
We also provide services to individuals in respect of their personal tax affairs.
We are located in prestigious new offices on Crewe Business Park, which we share with our sister company Jones Sheridan, Independant Financial Advisers.
Our success is built on reputation for delivering top quality advice and service for all our clients.
Our success is built on a reputation for delivering top quality advice and service for all our clients.
Banks Sheridan is registered to carry out audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.
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Banks Sheridan Ltd is now connected with
Self Employment Income Support Scheme SEISS 4
Self Employed Income Support Scheme SEISS 4
Almost five months after the third round of the Self-Employment Income Support Scheme (SEISS) grants, HMRC is now sending emails, letters or messages within...
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Self Employment Income Support Scheme SEISS 4
Almost five months after the third round of the Self-Employment Income Support Scheme (SEISS) grants, HMRC is now sending emails, letters or messages withi...Self Employment Income Support Scheme SEISS 4
Almost five months after the third round of the Self-Employment Income Support Scheme (SEISS) grants, HMRC is now sending emails, letters or messages within its online service advising those whose tax returns show they may be entitled to claim the fourth SEISS grant when their personal claims window opens.
The window will open in “late April” according to HMRC and will close for all SEISS 4 claims on 1 June 2021.
Changes to this round of SEISS grants
The new SEISS 4, covers the period from 1 February 2021 to 30 April 2021 and brings 2019/20 tax returns into account, both for eligibility and in calculation of the amount of the grant. This will open the scheme to some new applicants who started up in 2019/20. It excludes not only those who are no longer trading, but also some who had little or no profit relative to other income in 2019/20.
Eligibility is determined by HMRC and only applies to those whose 2019/20 tax returns were submitted before 3 March 2021.
HMRC will test eligibility for 2019/20 in isolation to see if profits are under £50,000 and at least half the relevant income. For those who don’t qualify based on 2019/20 alone, HMRC will then evaluate the four tax years 2016/17, 2017/18, 2018/19 and 2019/20 combined to test if average profits across the four years are under £50,000 and at least half of relevant income. If trading hasn’t continued through all four tax years, only the most recent continuous two or three tax years with trading income are used in determining both eligibility and amount.
The amount is also determined by HMRC, and SEISS 4 will again be 80% of three months’ average profits, but it is likely to be different to SEISS 3. The amount of SEISS 4 could be higher or lower than SEISS 3 because 2019/20 profits will be included for the first time in working out average profits.
There is no mechanism to claim a smaller amount; the only option would be to make the claim and voluntarily repay part of it.
Entitlement
Just because HMRC’s historical records may show eligibility, it does not mean that someone is necessarily entitled to claim. There are two important declarations required:
1. The claimant actually traded as self-employed in 2020/2021 and is intending to continue to trade in 2021/2022;
2. The claimant must have reasonable belief there will be a significant reduction in trading profits due to reduced self-employed income (not just increased costs) because of reduced business activity, capacity, demand or inability to trade due to coronavirus.
Tax on SEISS payments
All SEISS grants are subject to tax and Class 4 NIC and for SEISS 4 this will be so in 2021/22, the year in which the grant is made, even though most of the qualifying three months are not in 2021/22. The claimant’s SEISS grants received will be declared on self-assessment returns separately from normal business turnover.
Be prepared for HMRC checks
HMRC has repeatedly said all SEISS claims will be checked. The focus of checks will principally be the entitlement declarations claimants make, since HMRC itself is determining eligibility and amount. HMRC can be expected to automate checks to some extent by comparing SEISS claims with turnover and profits on self-assessment tax returns for 2020/21 and eventually with 2021/22 tax returns.
Accountants input
All SEISS grants must be claimed by the trader and the amount of the grant due is determined by HMRC. If the accountant (despite holding all due authorisations with the tax authorities) attempts to submit on behalf of their self-employed client, such action may be flagged up as a fraudulent claim.
If any of the Banks Sheridan team can help further, please contact us.
Banks Sheridan Ltd is now connected with
VAT DEFERRAL PAYMENT SCHEME
At the beginning of the pandemic, HMRC provided the opportunity to defer VAT that fell due for payment between 20 March 2020 and 30 June 2020. No interest or penalties hav...VAT DEFERRAL PAYMENT SCHEME
At the beginning of the pandemic, HMRC provided the opportunity to defer VAT that fell due for payment between 20 March 2020 and 30 June 2020. No interest or penalties have been charged on that outstanding VAT debt and businesses have been free to pay the amount due at any time.
The deferred VAT was originally due to be paid before 31 March 2021, but HMRC have now released details of arrangements for further deferring settlement of that debt. Businesses wishing to do so must formally opt into a new payment scheme and can pay the outstanding amounts in equal monthly instalments by direct debit over a period of up to 11 months.
To smooth the procedure of agreeing a payment arrangement, HMRC is introducing an automated process accessed through an online portal. This will open on 23 February and remain open until 21 June 2021.
To avoid penalties a business must either:
• Pay all deferred VAT before the end of March 2021, or
• Opt into the new scheme by the deadlines, or
• Contact HMRC on 0800 024 1222 by 30 June 2021 to agree some other arrangement.
To pay in 11 instalments, businesses must opt in by 19 March 2021 and the first payment will be due when opting in. To pay in fewer monthly instalments, businesses must opt in by the following dates:
Date Maximum number of instalments available
• 21 April 2021 10
• 19 May 2021 9
• 21 June 2021 8
If no opt in is made by 21 June 2021 and the deferred VAT was not paid by the end March then interest and penalties will be charged.
Before a business can use this new VAT deferral scheme it needs to get all its VAT ducks in a row as follows:
• submit all its outstanding VAT returns for the last four years
• correct any errors on past VAT returns
• know how much VAT was deferred
• know how much of that deferred VAT debt is still outstanding
• have enough cash ready to pay the first instalment of the VAT due immediately.
You must have the authority to set up a direct debit to pay the remainder of the debt by monthly payments. Where a direct debit can’t be set up, perhaps because there is no UK bank account, or the account has two signatories, you will need to call HMRC on 0800 024 1222.
If the business doesn’t have the cash to even pay the first instalment of VAT, you should contact the HMRC payment support service on 0300 200 3835.
Banks Sheridan are not permitted to opt in to the payment scheme on behalf of our clients as this must be done by the individual authorised to set up direct debits. The scheme will be accessed through the online portal using the Government Gateway account.
Further guidance is given at : https://www.gov.uk/guidance/deferral-of-vat-paymen...
If we can assist further, please do not hesitate to contact us.
ADVICE REGARDING HMRC TIME TO PAY FACILITY (VAT)
VAT
The UK Government has pledged to support businesses throughout the period that the Coronavirus is impacting the economy.
It is equally important that...ADVICE REGARDING HMRC TIME TO PAY FACILITY (VAT)
VAT
The UK Government has pledged to support businesses throughout the period that the Coronavirus is impacting the economy.
It is equally important that you do all you can to protect your business from a potential cashflow crisis resulting from loss of business or difficulty in obtaining payment from your customers. This measure looks at delaying payment of your VAT liabilities to HMRC.
DO NOT simply not file the VAT Return or file it “at the last minute”. We suggest that it is completed and filed as soon as possible.
Firstly, if you currently pay your VAT liability by DD, you will need to contact your bank to:
a) Instruct them to withhold the next DD to HMRC (usually 1 month + 7 days following the end of the VAT period) or
b) Cancel the DD completely.
Your accounting software used to file VAT returns may also have a tick box instruction to pay by DD, which should also be removed.
Option b) would mean that a new DD instruction would need to be set up once finances are back on an even keel. Option a) would need to be repeated each time a VAT payment is due, if necessary.
HMRC have now engaged in providing time to pay arrangements and this advice relates to using this facility in respect of your VAT liabilities. The telephone number to call is: 0800 0159 559
HMRC will only discuss the options available to you once the VAT return is filed, so it is important that this is done as soon as possible.
You will need to answer a few basic security questions and it would be useful to have available:
• Your VAT registration number
• Address, where the registration is valid
• The amount in box 5 (the liability) shown on your last filed return
• Date of registration
HMRC are tasked with providing all assistance necessary and will present two options to you; those will be:
a) To defer the VAT payment for 3 months, or
b) To enter into a payment plan to pay regular DD’s (weekly, fortnightly, or monthly)
If you choose option a) to defer, it appears that you can then ask later to enter into a payment plan to settle that deferred payment.
The phone lines appear to be well manned, but you could expect a minimum of a 30 minute wait before the call is answered. We expect this time to increase nearer to the payment deadline date.
If we are your registered agent dealing specifically with your VAT affairs, we will be able to help by dealing directly with HMRC on your behalf.
We hope that you find this information useful, please do let us know if we can assist in any way.
CLIENT BRIEFING ON COVID-19
COVID-19 has thrust the UK and the rest of the world into unprecedented times of uncertainty, not only in terms personal health and wellbeing, but the financial insecurity t...CLIENT BRIEFING ON COVID-19
COVID-19 has thrust the UK and the rest of the world into unprecedented times of uncertainty, not only in terms personal health and wellbeing, but the financial insecurity to almost every business and individual.
There are a number of actions that businesses need to urgently address, including:
• Formulating an action plan for the business to deal with Coronavirus.
• Deciding on HR policies for home working and for those staff self-isolating or catch Coronavirus.
• Taking measures to ensure maximise liquidity over coming weeks/months.
• Consider suspending CAPEX and discretionary spending.
• Engaging with key suppliers regarding credit terms and to ensure continuity of supply.
• Reviewing insurance policies to see if there is any provision for making claims for business interruption.
• Engaging with banks at an early stage to discuss potential assistance e.g. emergency funding, loan repayment holidays.
It is also imperative to keep up to date with government measures being taken to support businesses over this time. Announcements are now being made daily, so please bear in mind that it is a constantly changing environment.
On 17 March 2020, the UK government set out financial measures to help the UK economy and businesses deal with the impact from the coronavirus. The package announced is worth 15% of UK GDP, a substantial increase from a those mentioned in last weeks’ budget, worth 1% of GDP, and include:
• £330bn government-back loans and guarantees: This will be available for all sizes of businesses to help them pay wages, suppliers, and keep afloat during turbulent times. The Chancellor announced that this would be increased if required.
• Business interruption loan scheme: Government backed loans up to £5m for SME’s.
• £25,000 cash grants: This will be available for retail, hospitality and leisure businesses operating from smaller premises with a rateable value between £15,000 and £51,000.
• £10,000 cash grants: These will be available for business who already pay little or even no business rates due to small business rate relief.
• Three-month mortgage holidays: All mortgage lenders will now provide three-month mortgage holidays for those that need them.
• Business rate holiday: This is applied to the 2020/21 year for retail, hospitality and leisure businesses in England.
• HMRC time to pay facilities: All businesses and self employed in financial distress and outstanding tax liabilities may be eligible for a time to pay service.
• Sick Pay reimbursed to employers: Small and medium-sized businesses employers can reclaim SSP for the first 2 weeks for eligible sick employees for absence due to COVID-19.
Further details can be found on the following link:
https://www.gov.uk/government/publications/guidanc...
In addition to the above, the government has postponed the controversial reforms to the IR35 tax rules applied to personal service companies in the private sector for 12 months until April 2021 in order to help alleviate pressure on both businesses and individuals.
Further measures are set to be announced by the Government over the coming days, including an Employment Support Package, which will have the aim of assisting employers in retaining their employees
All the staff at Banks Sheridan are committed to supporting our clients during these uncertain times and will endeavour to keep you informed as further important announcements are made.
If we can assist further please do not hesitate to contact us.
Staff members have been busy baking in aid of St Paul's Centre Crewe.
Banks Sheridan Ltd posted a news article
Job Vacancy - Client Manager
ACCOUNTANT – CLIENT MANAGER
We currently have a vacancy within our firm for an accountant in the role of a client manager. A practice based background is essential and the applicant will need to demo...
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Staff members Nathan Shaw and Jasmin Jack delivering Easter Eggs to The Wingate centre in Wrenbury.
Ellie Harding likes this.
