Thank you for your email and for alerting me to the bureaucratic nightmare facing you and other self-employed individuals as a result of the move to MTD.
I have written to the Treasury Minister responsible seeking his comments upon your concerns.
With best wishes,
Chris Chope
Sir Christopher Chope OBE MP
House of Commons, London SW1A 0AA
01425-541087
If the EA is activated the Employer's NI will already be reduced accordingly. However using Sage payroll you are required to apply for EA and only confirm eligibility when confirmed by HMRC so it will not be possible to apply EA until then. What will happen re the JRS claim when eligibility has been confirmed and presumably an adjustment and refund will be available?
Will the amount claimed for Er's NI have to be refunded?
I'm interested in this point for people who may only be paid in month 12, albeit that they may be directors, which is another matter.
As the payment & claim should be based on the higher of same month last year or 2019/20 average then presumably 1/12 of the amount can be claimed and paid each month for 2020/21?
If true it is still possible to include amounts in month 12, 2019/20?
"Owner managed companies" and directors are specifically mentioned but is there any distinction made between directors who have a service contract / contract of employment who I think would correctly be treated as "employees" and those without any contract as I suspect is the case with most directors of small companies as otherwise they would have been subject to minimum wage regulations and should not have been on the typical minimal salary?
Agreed.
If the people earning over £50k profit are only 5% then the additional cost of including them may not be significant.
Also, what is the relevance of someone generating over £50k profit having "earnings" (gross income) of £200k?
My answers
Response from my MP:
Thank you for your email and for alerting me to the bureaucratic nightmare facing you and other self-employed individuals as a result of the move to MTD.
I have written to the Treasury Minister responsible seeking his comments upon your concerns.
With best wishes,
Chris Chope
Sir Christopher Chope OBE MP
House of Commons, London SW1A 0AA
01425-541087
Shocking! I saw the program. And small business accountants are supposed to report people for using the business photocopier for private use......
Many thanks Helen.
From comments made elsewhere this seems to be only a Sage payroll issue. It is possible to just confirm eligibility without waiting for a letter.
If the EA is activated the Employer's NI will already be reduced accordingly. However using Sage payroll you are required to apply for EA and only confirm eligibility when confirmed by HMRC so it will not be possible to apply EA until then. What will happen re the JRS claim when eligibility has been confirmed and presumably an adjustment and refund will be available?
Will the amount claimed for Er's NI have to be refunded?
Very good thanks Helen. Is it OK to copy it and use it for own purposes or information to clients?
Capital allowances are separately stated on tax returns so surely could be included or excluded from calculations.
I'm interested in this point for people who may only be paid in month 12, albeit that they may be directors, which is another matter.
As the payment & claim should be based on the higher of same month last year or 2019/20 average then presumably 1/12 of the amount can be claimed and paid each month for 2020/21?
If true it is still possible to include amounts in month 12, 2019/20?
"Owner managed companies" and directors are specifically mentioned but is there any distinction made between directors who have a service contract / contract of employment who I think would correctly be treated as "employees" and those without any contract as I suspect is the case with most directors of small companies as otherwise they would have been subject to minimum wage regulations and should not have been on the typical minimal salary?
Agreed.
If the people earning over £50k profit are only 5% then the additional cost of including them may not be significant.
Also, what is the relevance of someone generating over £50k profit having "earnings" (gross income) of £200k?