Loans

Self-Employed Sole Traders in the new tax year – where do you start?

[Sponsored Post]

The new tax year started on the 6th April – that we do know for sure.

At times it felt like everything else changed and at a very quick pace. Our world slowed down – working from home where possible, home schooling our children the #StayHomeSaveLives were on windows with rainbows.

People settled into ways of working from home with daily routines including video calls to keep connected with fellow employees, following pop quizzes on the radio or simply taking time to reflect. Kids following PE lessons, craft tutorials and Disney princesses via online platforms while parents worked.

As this way of life continues for the foreseeable how can you be more productive?

One main cause for concern is money, knowing your financial stance helps you plan for the future. By getting ready to calculate your 2019-20 tax return – you will have your income and tax liability ready.

Digital copies of receipts and paperwork can be saved allowing for a clear out of the home office.

Whilst you do not have to submit right now, being safe in the knowledge of your outgoings for tax means you can then focus on sales and plan for the future.

The government stepped up and offered financial support

As the pandemic picked up pace and businesses were restricted by the Government the self-employed sat waiting and hoping they would be thrown a life-line. Chancellor Rishi Sunak gave them the Self-Employment Income Support Scheme.

The scheme is open to self-employed individuals or a member of a partnership who:

  • Have submitted their Income Tax Self-Assessment tax return for the tax year 2018-19.
  • Traded in the year 2019-20
  • Are trading when they apply, or would be except for COVID-19
  • They intend to continue to trade in the tax year 2020-21
  • They have lost trading/partnership trading profits due to COVID-19

For a further in-depth review of the scheme please follow the link above or visit www.gov.uk

Please note you had until 23rd April 2020 to file your 2018-19 self-assessment tax return to be eligible for this scheme.

A further helping hand was offered for anyone who uses Payments on Account, they will have their normal payment due on 31st July deferred –  this payment won’t be due until 31st January 2021.

Another deferral was that of the VAT payments due before 30th June 2020, these will now not need to be made until 31st March 2021. However you will be required to file your VAT return.

There were earlier announcements made by the Chancellor in March 2020 with an emergency £330bn financial package to bolster the UK economy. These included a business rates holiday and for struggling firms, loans.

There were postponements too for the controversial tax reforms to off-payroll working rules, more commonly known as IR35 – these have been postponed until April 2021 to help ease some strain from the pandemic and the effect it is having on businesses and individuals.

In 2019, it was announced that the Personal Allowance would be increasing from £11,850 to £12,500. Thanks to the increase, the tax brackets in the UK were also to be pushed back. Specifically, the basic rate limit was increased to £37,500 and the higher rate threshold was set at £50,000.

In April 2020 the Capital Gains Tax allowance increased to £12,300. Anything above the allowance, though, will be taxed at 18% for basic-rate taxpayers and 28% for additional-rate taxpayers. The Capital Gains Tax Allowance is the amount you can make from the increased value of your possessions tax-free.

GoSimpleTax bring you their award winning software, which factors in all the latest updates.

With GoSimpleTax software, filing has never been easier as it does all the calculations for you and thanks to features that allow you to take a picture of expenditure and upload it to your records, as well as log all forms of income.

With the documentation you need in one place and learning resources to help minimise your tax liability further, all that’s left for you to do is press submit.

Take their free trial today, no credit card required.

Tags: , , , , , , , , , ,

Tuesday, April 21st, 2020 Income Tax, Jobs, National Insurance No Comments

None of the content on this website, including blog posts, comments, or responses to user comments, is offered as financial advice. Figures used are for illustrative purposes only.

New! Postgraduate Loan Repayment

Starting from April 2019, repayment of new Postgraduate Student Loans will be done through Pay As You Earn (PAYE). As The Salary Calculator has just been updated with the April 2019 figures, repayment of postgraduate loans has been added so, if this applies to you, you can see what effect this will have on your take home pay.

These loan repayments are in addition to Plan 1 and Plan 2 student loan repayments, which you may have from undergraduate courses you have studied. Postgraduate loan repayments are calculated as 6% of gross annual earnings over £21,000. More information is available from the Student Loans Company.

Also, so you can see how your loans are being repaid, if you select more than one loan type on The Salary Calculator you will be able to click for a breakdown of how the repayments are distributed to your different student loans.

Because this only comes in to effect from April 2019, in order to see the effect of postgraduate loan repayments you will need to select “2019/20” from the Tax Year drop-down. Head over to The Salary Calculator to check it out!

Tags: , , , , , ,

Understanding student loans

I discovered an excellent article today by Martin Lewis, laying out the facts behind student loans – how they work and how they are repaid. There are a number of common misconceptions about student loans, and this article sets out all the information you would need to understand if you were considering going to university (or sending one of your children). Topics covered include:

  • If you take a low paying job after graduation, you’ll only repay a small amount of the loan (or none of it!)
  • Monthly repayments under the new loan system are lower than under the previous system
  • Your monthly repayments are the same, no matter how high your tuition fees are
  • You only start repaying once you leave university and start earning
  • You will still be able to get a mortgage

To learn more about all of these and more, check out Student Loans Mythbusting.

You can see how much your student loan will cost each month, and how long it will take to repay, by using the tool on our sister site Loan Tutor.

Tags: , , , ,

Wednesday, October 22nd, 2014 Student Loan No Comments

Save money with offset mortgage

Over on our sister site LoanTutor, there is a new tool and a new article trying to explain what an offset mortgage is and how it could help you save money. With an offset mortgage, you use your savings to effectively cancel out some of your mortgage balance, which reduces the interest your lender charges you. You can use this to either reduce your monthly payments, or keep your payments the same and pay off your mortgage quicker.

If you would like to learn more, have a read of the offset mortgage article, or to see how much you might be able to save try out the offset mortgage calculator.

Tags: , , , , ,

Thursday, November 29th, 2012 Mortgages No Comments

Loan Tutor website launched!

A new sister site to The Salary Calculator has been launched to provide information about loans and loan repayment.

Loan Tutor contains details about different loan types, such as mortgages, unsecured loans, debt consolidation loans and student loans. As well as a suite of tools for calculating loan repayment costs, there are also hints and tips and links to further information about borrowing money.

There will also be articles with suggestions of how you can save money with loans, including the first of these which explains how to avoid overpaying your student loan. Other articles and tools are planned for the future, including car loans, offset mortgages and credit cards.

Tags: , , , , ,

Tuesday, August 7th, 2012 About The Salary Calculator No Comments

Sponsored Links

Close X

This website uses cookies - for more information, please click here.