Coronavirus Updates

The last couple of weeks have seen an enormous amount of information sent out by HMRC and we’ve been answering your questions as quickly and thoroughly as we’re able, but it is changing all the time, so please bear with us. We will try to keep the website as upto date as we can.

The retail and hospitality sectors have a rates holiday for 2020/21, and businesses within these sectors with rateable values below £51,000 will receive cash grants. These schemes will all be automatically administered by your local authority you do not need to make a claim.

VAT payments for the three months to June 2020 are deferred to 31 March 2021, don’t forget to cancel your direct debit if you wish to use this deferral.
The 31 July Self Assessment payment on account may also be deferred until 31 January 2021, but don’t forget you’ll still have make the payment in January along with any balancing payment due for 2020/21.

If you need time to settle any tax liabilities there is a special Covid 19 Time to Pay facility ring 0300 0159 559 to get help.

There are also schemes to help fund the self-employed and employees and you can read more on the links below.

Remember we’re always available to assist you and your business.

Help For Sole Traders and Freelancers

The Government has announced a package it calls Self Employed Income Support. In order the qualify

  • You must be still trading and intend to trade in 2020/2021
  • You will be paid an initial taxable grant of 80% capped at £2,500 per month of your average profits over the last three years. Deadline for claiming is 13 July 2020.
    You may also claim a second grant of up to £6,570, or 70% of your average monthly profits for June – August 2020. New invitations will be sent out by HMRC.
  • There is a £50,000 profits cap, this is by reference to either your 2018/19 profits or the average over the last three years (or such period as you have been trading if less).
  • You must have filed your 2019 tax return, if you haven’t you have 4 weeks from 26 March to do so.
  • More than half your income must come from self employment
  • Your business, must be suffering losses due to Coronavirus
  • You need to make your claim via your Government Gateway login.

Help For Employees

If you’re employed and your employer has to lay you off due to the Coronavirus outbreak then you can be paid up to £2,500 or 80% of your normal basic salary each month. You must have been in employment at 28 February 2020 to qualify. The qualifying date has now been extended to those on the payroll at 19 March provided they have been included in a payroll run.

Help for Employers

The Government announced the Coronavirus Job Retention Scheme and this will go live on 20 April 2020 and it will come to an end in October 2020. There is a phased withdrawal of funding over the coming months.

From March 2020 you will be able to recover 80% of your furloughed employees’ salary up to £2,500 per person, as well as the employers national insurance and the minimum employer pension contributions you must make. Staff cannot work during a furlough period and the minimum period of furlough for this period is three weeks.
From July 2020 your workforce may come back to work part time, that is the minimum three week period will be dispensed. So if you need a member of staff back for 2 days a week, and they usually work five days, you will pay them as normal for the two days worked and the Government will pay furlough of 80% of the three days cost. You can vary these proportions as you wish, paying the staff for the worked hours and claiming furlough for the balance. You must renew the furlough agreements if you bring staff back part time.
This scheme closes to new entrants on 30 June so you may only furlough employees who have already been on furlough for three weeks, meaning they must have been furloughed by 10 June to qualify.
From August 2020 the Government will continue to pay 80% of the furloughed pay, but the employer will the Employers’ NICs and the pension contribution on that amount.
From September 2020 the government contribution will reduce to 70% (capped at £2,187.50) and in addition to the NICs and pension the employer will pay 10% of the furlough payment.
From October 2020 the government contribution will reduce further to 60% (capped at £1,875) and the employers’ furlough contribution will increase to 20%.

You can find the detailed guidance here.

Other Help for Business

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Tel: +44(0) 1282 426 331 Email: [email protected]