The Lost Tax Relief For Partners’ Expenses

The Lost Tax Relief For Partners’ Expenses

THE LOST TAX RELIEF FOR PARTNERS’ EXPENSES

As a partner you could be missing out on claiming relief for your personal homeworking expenses, with COVID-19 throwing a spanner in the works, and with an increase in working from home you may be incurring more expenses that you haven’t yet claimed back.

How does it work?

All partners’ personal expenses must be solely for the purpose of the business to be able to qualify and claim relief. In order to do this the usual starting point is to claim them on your expenses and be reimbursed by the partnership. Sometimes though, an expense claim can’t be made, making the claim for tax relief more difficult, as you can’t claim the tax relief through your tax return.

The solution, is to make a claim through the partnership tax return and allocate them specifically to a partner. This means the expense is now deemed to have been incurred by the partnership. In effect, the expense is posted through the tax computation as a personal business expense. These outgoings are then deducted from the calculation of profits which can then be put onto the partner’s personal tax return and the problem is solved.

In light of the current climate, some expenses are COVID specific and others are normal items. All expenses must be for the benefit of the business, provided the partner meets the criteria and the wholly and exclusively test. With regard to examples of these expenses, they are as follows:

  • Working from home between £10 and £26 per month depending on hours worked.
  • Course fees.
  • Specific office equipment (desk, chairs and IT equipment).
  • Telephone and broadband.
  • Most other costs relevant to the business (supposedly tea and coffee).

How can we help?

At Hawsons we have a dedicated team of highly qualified and experienced tax specialists who offer personal and corporate tax advice from our offices in Sheffield, Doncaster and Northampton and we are here to support our clients throughout these difficult times.

If you would like to discuss your partnership expenses, please get in touch with your usual Hawsons contact who will be happy to help you.

More from our tax experts

You can find all of our latest tax articles and tax resources here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

David Cairns

Tax Partner, Northampton

01604 645 600

[email protected]

£588m of additional funding announced for adult social care

£588m of additional funding announced for adult social care

£588m of additional funding announced for adult social care

The Department of Health and Social Care has announced that from 1 September a fund of £588m will become available for the NHS to use for adult social care. The purpose of this fund is to speed up hospital discharges by giving people access to care homes. This fund will support those such as the elderly and disabled people that will still require full-time care once they leave the hospital.

The funding comes from a larger £3 billion fund which was designated in case there is a second peak in coronavirus cases. This funding aims to protect and prepare health and social care environments from the potential second wave of the virus.

When funding becomes available on 1 September the NHS will be able to provide further support to those in need for up to six weeks. Over this six-week period, patients will be able to receive continuing support to aid their recovery and rehabilitation once they have left the hospital. This support will include:

  • Care home fees
  • Domiciliary care
  • Physiotherapy
  • Community nursing services

NHS Continuing Healthcare (NHS CHC) assessments are due to resume in September. This assessment is in place to make sure patients with complex health problems can access the care they require, free of charge. It is expected that most patients will be able to return home after their discharge from the hospital. However, a small percentage will need full-time care in a residential home, nursing home, or hospice care.

How can we help?

At Hawsons we have a dedicated team of care home accountants at our offices in Sheffield, Doncaster, and Northampton. Our in-depth knowledge and understanding of the sector are applied and we work closely with our clients, ensuring that changes in the care sector are recognised promptly and appropriate strategies implemented and actions taken. We recognise that no two homes are the same.

More from our care sector experts

You can also find all of our latest care sector news and newsletters here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Scott Sanderson

Partner, Sheffield

0114 266 7141
Government Announces £3.1m Funding Plan

Government Announces £3.1m Funding Plan

Government Announces £3.1m Funding Plan for Litigants in Person

The Ministry of Justice (MOJ) and the Access to Justice Foundation have worked together on a joint initiative to provide a grant worth £3.1 million to support litigants in person, (a person, company or organisation that makes a legal claim without aid from a legal representative, such as a solicitor or barrister) as part of the ‘MOJ’s Legal Support Action Plan’.

Organisations within the not-for-profit sector will receive funding to provide legal support for those who do not have representation. The MOJ have said this will help educate those individuals regarding legal processes and help them to understand their rights within them. In addition to this they will receive practical support throughout court proceedings.

The Ministry have announced that they have already allocated over £500,000 in grants to national charities. These grants have been used for:

  • improving support helplines
  • web-based advice
  • online hubs

The aim of this is to support those on lower incomes to access key legal advice.

An additional £270,000 has been allocated for emergency support to ensure organisations can still continue to provide advice and offer their services to litigants in person during the coronavirus pandemic.

Simon Bladen, Legal Partner at Hawsons commented: This is a very positive announcement in a time of need and hopefully these measures are another step towards improved access to justice for all.

How can we help?

At Hawsons we have a dedicated team of accountants at our offices in Sheffield, Doncaster, and Northampton. Hawsons is one of the few accountancy practices with a dedicated team of solicitor accountants specialising exclusively in the needs of solicitors and legal professionals. Our understanding of the unique issues that many in the sector are facing, combined with our technical experience, allows our solicitor specialists to provide you with proactive, commercial and informed accountancy and tax advice.

More from our legal sector experts

You can find all of our latest legal sector news and newsletters here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Simon Bladen

Partner, Sheffield

0114 266 7141
Additional support now available for the self employed

Additional support now available for the self employed

Additional support now available for the self-employed

The applications for the second stage of the Self Employment Income Support Scheme (SEISS) opened on the 17th August 2020.  The first stage of the scheme saw 2.7 million self-employed people received a total of £7.8 billion from the scheme. Self-employed workers that are now eligible for the second grant will receive 70% of their average monthly trading profits up to a maximum of £6,570.

Eligibility criteria is the same for the second grant as it was for the first if your business has been adversely affected since the 14th July 2020 as a result of the virus:

  • The individual must have traded during the year ended 5 April 2019 and submitted their tax return for that year by 23 April 2020, and;
  • They must also have traded during the year ended 5 April 2020, and;
  • They must also intend to continue trading during the year ended 5 April 2021, and;
  • Their trade must have been negatively affected by Coronavirus, and;
  • Their trading profits must not have exceeded £50,000 and must have made up more than 50% of their total income for either the year ended 5 April 2019 or for an average of the 3 tax years ended 5 April 2019.

HMRC have said that they will contact anyone who they think is potentially eligible for the grant. Additionally, you can still claim the second grant even if you did not claim the first, as long as your business has been adversely affected since 14 July 2020 by Coronavirus.

Find more information here: https://www.gov.uk/government/news/million-of-self-employed-to-benefit-from-second-stage-of-support-scheme

 

How can we help?

At Hawsons we have a dedicated team of highly qualified and experienced tax specialists who offer personal and corporate tax advice from our offices in Sheffield, Doncaster, and Northampton and we are here to support our clients throughout these difficult times.

 

If you would like to discuss your SEISS claim, please get in touch with your usual Hawsons contact who will be happy to help you.

More from our tax experts

You can find all of our latest tax articles and tax resources here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Scott Sanderson

Partner, Sheffield

0114 266 7141

Jenny Brown

Senior Tax Manager, Sheffield

0114 266 7141

[email protected]

Rebound Revenue for Law Firms

Rebound Revenue for Law Firms

Revenue rebound for Law Firms

Legal revenues increase by 19.5% in June

The latest figures from the Office for National Statistics indicate that revenues in the UK legal industry jumped by 19.5% in June compared to May. It should be noted that May is normally among the weakest months of the year in this sector. However strong growth during a global pandemic should be seen as a sign for optimism.

 

When compared to June 2019 the figures look less promising than first thought as revenues decreased by 3.6%. But June 2019 was the highest billing June on record, and compared to many other sectors the UK legal industry has actually performed quite well during the Coronavirus pandemic. In fact, the services sector as a whole is performing well as it grew by 24.5% in June. One of the reasons is because many businesses in the services sector have managed to adapt to remote working. Something not possible in many other sectors such as manufacturing.

 

Law firms are now outsourcing more

 

According to EY this increase in revenue has caused a greater number of legal firms to outsource work in order to meet demand and in some cases reduce costs. Services most likely to be outsourced include:

 

  • Contract management
  • Employment law
  • Records management

 

Medium and large sized firms are more likely to outsource work than smaller firms. 55% of these firms are targeting a cost reduction of 10-20% over the next two years.

 

How can we help?  

 

At Hawsons we have a dedicated team of solicitor’s accountants at our offices in Sheffield, Doncaster, and Northampton.

 

We act for a large number of law firms across all three of our offices and offer a wide range of services that are tailored to meet their individual needs. Our legal client base consists of a multitude of firms of varying structure and size, from sole traders to limited companies and LLPs with corporate members.

 

Our understanding of the unique issues that many in the sector are facing, combined with our technical experience, allows our solicitor specialists to provide you with proactive, commercial and informed accountancy and tax advice.

 

More from our legal sector experts

You can find all of our latest legal sector news and newsletters here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Simon Bladen

Partner, Sheffield

0114 266 7141