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GoSimpleTax is a cloud based self-assessment software that calculates and submits directly to HMRC.
GoSimpleTax – Self Assessment tax return calculator and submission tool.
AIA has teamed up with GoSimpleTax to provide AIA members with a cost effective easy to use solution. Leave the calculations to their HMRC recognised software which also provides hints and tips that could save you or your clients money on allowances and expenses that could have been missed. The software allows you to switch between clients and has the added functionality of multiple years.
Low cost with no hidden charges
Simple accountant’s dashboard
Discount to AIA Members
One to One product overview for AIA Members
GoSimpleTax offer 25% discount on all software (pay just £34.50), to all AIA Members with volume discounts available, for example pay £160 for 10 clients with just £1 per client thereafter.
Simply follow any of the above links or click here to register to receive your discount code, no payment required.
GoSimpleVAT is MTD compliant VAT bridging/filing software that imports a VAT report from any spreadsheet or PDF. Approved by HMRC and guaranteed to lead you to compliance. You can take advantage of our free 14-day trial (no credit card required) to see just how simple VAT filing through bridging software can be.
For just £240.00 per year (£60.00 per Qtr.) for unlimited clients and unlimited submission.
Discount to AIA Members
GoSimpleTax offer 25% discount on all software, to all AIA Members.
Simply follow any of the above links or click here to sign up to receive your discount code.
Just a month after the government announced support for sole traders in the form of the Self-Employment Income Support Scheme, or SEISS, 2 million claims were made, totaling £6.1 billion in government support.
Now, with a second grant opening in August 2020, a number of sole traders are set to benefit from further financial assistance. Is your client one of them?
Quick dates to remember
17 August 2020: Applications open
19 October 2020: Applications close.
We’ve asked Mike Parkes from AIA Partner, GoSimpleTax, to explain the terms and help you and your clients claim.
So how does the SEISS work?
To re-cap the scheme is available to all self-employed individuals that have been adversely affected by COVID-19. This is provided that they:
Earn the majority of their income through self-employment
Have average annual trading profits of less than £50,000
Have filed a tax return for the 2018/19 tax year
Have traded during the 2019/20 tax year and intend to continue trading in 2020/21
To determine whether or not your clients were affected by COVID-19, any of the following must apply:
Government orders have meant that your trade or industry had to close or be restricted in such a way that your trade closed – or is otherwise adversely affected
You cannot organise your work, or your workplace, to allow staff to work safely
Your staff or customers are no longer able to purchase from you due to restrictions
Social distancing has meant that you are not able to safely serve customers
You’ve had contracts cancelled as a result of COVID-19
You have either had to care for others since lockdown or have been self-isolating
The first grant ended on 13 July 2020, and claimants could receive either £7,500 or 80% of their average monthly profits over the 2016/17, 2017/18 and 2018/19 tax years (whichever is the lower amount).
Applications for the second grant will open on 17 August 2020, but you must have confirmed by 14 July 2020 that you have been adversely affected by COVID-19.
Why is there a phase two?
While the government set a three-month cap on the support, it has since been agreed that COVID-19 is still impacting the earnings of some sole traders. As a result, it is necessary for them to receive another grant in order to stay afloat.
It will also help to support those who may not have initially been affected by lockdown (and so did not claim the first grant) but have subsequently suffered a loss of business.
What’s the difference?
The differences between phase one and two are limited, although the second grant will be worth 70% of your average monthly trading profits. It’ll still be paid out in a single instalment that covers three months’ worth of profits, but will be capped at £6,750 total – almost £1,000 less than the phase one grant.
Additionally, your client can only claim the second grant if your business was adversely affected on or after 14th July.
Can clients continue working and still claim?
Yes, they can continue to work as long as they intend to continue trading in 2020/21 in the self-employed role they are claiming for. They can even take up other employment if necessary, provided that the SEISS payments still cover the majority of the income. HMRC will not penalise your clients for topping up their income with a little additional earnings to sustain their household.
Phase two will have a deadline of 19 October 2020. You can find out more about it on the GOV.UK site. If your clients are still losing out on income or opportunities to earn, we massively recommend they claim the second grant. This is unprecedented levels of government support and could make the difference between staying afloat or falling behind.
GoSimpleTax software submits directly to HMRC and is the solution for accountants and sole traders alike to log all their income and expenses. The software will provide you with hints and tips that could save you money on allowances and expenses you may have missed.
Trial the software today for free - add up to five income and expense transactions per month and see your tax liability in real time at no cost to you. Pay only when you are ready to submit or use other key features such as receipt uploading.
AIA members receive a 25% discount – to get your discount code simply sign-up to try our software above and it will be emailed to you. Volume Discounts are available.
Furthermore, AIA members who sign up to try the software throughout August 2020 will be eligible for a free one to one session providing an insight to our software and answering any questions you may have – sign up now www.gosimpletax.com/tax-aia
Provided your clients are VAT-registered and have a taxable turnover above the threshold, you’ll be expected to assist in their MTD compliance. For the most part, you’ll need to help clients ensure that their VAT records are in a digital format. This will mean an end to any paper-based bookkeeping.
What VAT information must be stored digitally for MTD?
TheVAT Notice 700/22specifies that the following information must be kept, maintained and preserved in digital form:
Address of principle place of business
Supplies made by third party agents
VAT registration number
VAT accounting scheme used
Supplies made - including the time of supply (tax point), value of supply (net of VAT amount) and rate of VAT charged
Supplies received - including time of supply (tax point), value of supply (net of VAT amount) and value of input tax being claimed
The following information has more specific rules surrounding it:
Use of supplier statements
HMRC will accept totals from supplier statements, rather than individual invoices - however their preference is the latter.
Petty cash transactions
Regarding petty cash transactions, businesses can record these as a total value and total VAT. This applies to individual purchases of less than £50 - subject to a maximum of £500 (including VAT) per entry.
Supplies received by third party agents
You only need to record the details once you receive the information from the agent. If this is sent as a summary, you can treat it as one invoice for record-keeping purposes.
Charity fundraising events
When it comes to charity fundraising events, record-keeping can be hard. HMRC will accept all supplies made recorded as a single transaction. The same applies to supplies received.
Reverse charge transactions
If your software records reverse charge transactions, you are not required to submit separate entries for supply and purchase. If your software does not record reverse charge transactions, you will need to record these twice - once as a supply made and once as a supply received.
HMRC require the following summary data to be recorded:
Output tax owed on sales
Output owed on purchases from EU member states
Tax required to pay as a result of reverse charge rules
Input tax claimed on purchases
Input tax allowable on purchases from EU member states
Total VAT due, or refund claimed after all adjustments
Any adjustments required or allowed by the VAT rules
If your client adjusts their VAT amount in line with existing VAT rules, they must log that adjustment within their chosen compatible software. There’s no obligation to log the calculations behind each adjustment, simply the total change to the VAT amount – however, storing calculations somewhere will assist against any future audits. The calculations you make using the HMRC tool can be stored however your client prefers.
You can correct errors that are not deliberate, below the reporting threshold of £10,000 or for an accounting period that concluded less than four years ago. However, it’s important to ensure that the correcting adjustment is recorded in the compatible software.
Everything not covered above can be stored either digitally or on paper. These include:
Flat Rate– Under this scheme, businesses don’t need to keep a digital record of purchases unless classed as capital expenditure goods (where input tax can be claimed).
Retail– If your client accounts for VAT using a retail scheme, they must keep a digital record of their Daily Gross Takings (DGT). They aren’t required to keep a separate digital record of supplies that make up DGT – just the DGT itself.
11.MarginSchemes - You are not required to keep the calculation of the marginal VAT charged digitally. However, you will need to keep a record of the adjustment made to the VAT calculation digitally. You are still required to keep the normal records associated with Margin Schemes.
What’s important is that your client has complete understanding that while not all of the above requires logging into their MTD compliance software, refusing to include certain calculations will harm them in the face of an investigation.
On the 25th March 2020, Chancellor Rishi Sunak announced the Self-Employment Income Support Scheme (SEISS). This allowed HMRC to calculate and provide an appropriate taxable grant to self-employed individuals ‘whose livelihoods are adversely affected by coronavirus’, based on their average income.
The news was well-received. There had been concern that the self-employed would need to wait on Universal Credit until their industries were able to operate again. Now, with the scheme being extended with a second grant, a large number of sole traders are able to come out of lockdown relatively unscathed.
However, accessing this scheme is no small feat. To ensure your clients qualify for the additional support through June, July and August, Mike Parkes from AIA partner, GoSimpleTax, explains the application process and your role within it.
What is the SEISS?
SEISS is a scheme set up to support self-employed workers unable to earn as a result of COVID-19. The scheme opened to applications of its first grant on the 13th May 2020 – covering income for March, April and May – with HMRC identifying eligible self-employed workers and inviting them to enter their bank details online.
The support is determined by the individual’s average profits from the past three tax years. HMRC adds up the total profit for the combined three years, divides it by three, and uses that to calculate the monthly amount – a useful method if the earnings in one of your three years was significantly different from the other two.
In the initial period (March-May), the grant you receive would be 80% of the determined average profit – much like employee furlough. There is a limit though. The grant is capped at £2,500 a month for those that are eligible, and it is taxable (meaning you must declare it on your Self Assessment tax return). From June to August, this percentage will drop to 70%. It’ll be paid as a single instalment that covers three months’ profits, and capped at £6,570 total.
The deadline for applying for the first grant is 13th July 2020. Applications for the second grant are due to open from 17th August 2020, but your client must confirm that their business has been adversely affected by COVID-19 either on or after 14th July 2020.
Who qualifies for SEISS?
To be eligible for SEISS, there are a series of requirements your clients need to meet. These are:
They must earn the majority of their income through self-employment
Their average trading profits need to be less than £50,000 a year
They have filed a tax return for the 2018/19 tax year
They have traded during the 2019/20 tax year and intend to continue trading in 2020/21
Of course, this will allow some self-employed individuals to get support even without three years’ worth of tax returns. If that applies to your client, then averages will be taken using what history is available.
However, those without a single, full year’s Self Assessment history (those who have started self-employment in the 2019/20 tax year) won’t qualify. This is to prevent fraudulent claims.
Can my client keep working?
Yes, provided they intend to continue working as a self-employed individual in the 2020/21 tax year. They can even work at another job in order to support their household income while receiving payments. However, they will still need to prove that their payments represent the majority of their income (i.e. greater than 50%).
As the SEISS payment will constitute earned income, you should beware if your clients were on Universal Credit to supplement their income. This may stop, and they may need to re-apply for Universal Credit in July.
How do I help my client stay compliant with HMRC?
Provided they qualify for the SEISS and they submit their Self Assessment tax return with all the relevant information, they should stay on the right side of the taxman.
However, you and your clients should also bear in mind that the second payment on account deadline has been extended. Usually, some self-employed individuals are required to pay their second payment on account on 31st July. However, with COVID-19 causing a significant disruption to many sole traders’ cash flows, HMRC has decided to delay this deadline until 31st January 2021.
While this initially sounds beneficial, if your clients normally make a second payment on account, it could result in the perfect storm next year when all their tax responsibilities come at once – causing greater harm to their cash flow and potentially leaving your clients with little in the bank in January. It’ll pay to file your clients Self Assessment early, be aware of their tax bill, and put any plans in place to meet your clients obligations.
About GoSimpleTax and Your AIA Member Discount
With GoSimpleTax software you can avoid being caught off guard in January by working out your clients tax liability ahead of time.
Their award-winning platform lets you log your income and expenditure in real time, and uses this information to automatically calculate your tax bill.