Author: Lotus Accountancy

The off-payroll working (OPW) rules finally come into force for the private sector on 6 April 2021.The rules aim to ensure that PAYE is accounted for where a contractor would have been an employee of the client, but for the fact that the client has a contract with the contractor’s personal service company rather than the contractor personally.With OPW being introduced, many more contractors may be encouraged to operate via an umbrella company.

The fourth SEISS grant will be open to some taxpayers who became newly self-employed in 2019/20. To protect the scheme from fraud, HMRC is writing to up to 100,000 of these taxpayers, asking them to complete pre-verification checks.HMRC is asking some of those who started self-employment in 2019/20 and who wish to claim the fourth and fifth self-employment income support (SEISS) grants to complete pre-verification checks to confirm their identity and provide evidence of trade.Taxpayers will receive a letter between 8 March and mid-April 2021, notifying them that they will receive a phone…

Coronavirus Job Retention Scheme (CJRS) The CJRS was extended for a sixth time. Instead of ending at the end of April the scheme will remain available until the end of September 2021. Support will reduce as the economy reopens. Employees will continue to receive 80% of their pay for hours not worked, but employers will have to contribute 10% towards the cost of unworked hours in July and 20% in August and September. The eligibility for the scheme has also been amended. From 1 May 2021, newly eligible employees,…