Covid-19 Business Support Update 01.09.20
Welcome back to our Covid-19 Business Support Newsletters. We thought we had better have a break from information overload during August and instead enjoy the traditional summer holiday break in a non-traditional way!
That said a few people have managed to escape abroad and got back from places like Spain before they closed the air bridge again, others had to cancel holidays and others have spent holidays in the UK.
With September now upon us though the return of children to school will see a lot of people getting back to their more normal routines (I am not using the term the “new normal” as that one has been flogged to death). Obviously there are still concerns and worries about sending children back but it’s still a step in the right direction.
During August there has been some news and updates which we will go through in this newsletter.
In August some staff have enjoyed a few breaks, Matt headed off to Somerset for a break with the family and has now returned a committed cider drinker, dons a straw hat and speaks like Jethro. He can be contacted direct should you wish to discuss any aspects of a combined harvester with him. (See video here https://www.youtube.com/watch?v=tb63PdPweDc ) and is thinking about this haircut now
Carla had to endure the misery of a 3rd cancelled holiday abroad – I think the gods were telling her something there! Instead she has taken to tree climbing at Go Ape, Manley Mere, Moel Famau and can now be regularly seen in any local woods and park scaling the nearest oak. Damn handy skill if any clients have a need for someone to go coconut or banana picking.
Dave went off to Ireland on the ferry boat for a weekend, and despite his claim of having sea legs, was sick 3 times without touching a drop of Guinness. Katy has been to the lakes and managed not to walk up a single hill or mountain while she was there but did consume the equivalent of lake Windermere in wine.
Danielle celebrates her birthday on the 1st Sept and is currently having a few days holiday, her boyfriend is a bit miffed as she has gone Glamping with George her horse instead of him.
Lauri is now nearly bald from having the kids for 5 and a half months solid while trying to work 3 days a week and has started her own campaign for ending all school holidays forever. Kerry now has a new dog so this makes 3 people and 1 animal who ignore her in her house now.
Helen is now queen of furlough and I am sure many of you have had conversations with her on it and dread the phone call, Adam is now learning more about Accountancy and maybe just maybe might take over from his pops one day!
On a personal front I need a week off soon as everything seems more settled, I need time to start getting back to getting fit again having gained too many Covid pounds on the scales from sitting behind a computer hour after hour. Colin is also now back at work full time and has suffered the same fate as me, gaining pounds and losing fitness. After speaking with him about getting fit again my thoughts were lets just start simple and make sure we get 10,000 steps a day in, Colins thoughts are lets train to do an Ironman (For those that don’t know it’s a 2.4 mile swim, followed by a 112 mile bike ride and then run a marathon). I am sure you can imagine what an absolutely ludicrous and idiotic idea this was, especially when we have about 8-9 stone to lose between us and neither could run a bath at the moment. So yeah not your best idea Col, but if you are reading Col, we are meeting up with the coach on Wednesday to discuss.
I have also written an article for Wirral Life Magazine for anyone interested in having a read, aptly named “Bob Dylan was right, Times they are a changing”.
Please note our office will remain closed for September and we are currently considering when the office will re-open.
Anyway, I hope everyone has had a great August but for September we need to turn our focus back to work. With that in mind, and if you haven’t fallen asleep from my ramblings already it’s time to reach for either a tea, coffee, wines, spirits or beer and to read through the important information we have for you below:
- Furlough Latest (CJRS)
- Self Employed Income Support Scheme (SEISS)
- Recap on other Covid-19 business support available
- Kickstart Scheme
- Attention Landlords – Capital Gains Tax on Sale of Properties after 6th April 2020
- Payroll & Holidays
- Getting your accounts In
- Leave us a Review / Make a Referral.
1. Furlough Latest
Up to the 31st July for those that qualified staff could be furloughed at 80% of their Feb Salary (Or average pay), Added to the 80%, where applicable, you could also claim the relevant Employers NI and Employers Pension in relation to the furlough claim.
From the 1st August to the 31st August the 80% furlough claim remained in place however the Employers NI and the Pension claim was removed.
From the 1st Sept to 30th Sept. The employee must still be paid 80% of their reference salary (Feb 20) however the employer can only reclaim 70% and must pay the employee the remaining 10% themselves.
From the 1st Oct to 31st Oct. The employee must still be paid 80% of their reference salary (Feb 20) however the employer can only reclaim 60% and must pay the employee the remaining 20% themselves.
The scheme ends completely on the 31st October.
Please note you can still re-furlough employees but only if they have been previously furloughed prior to the 10th June and were furloughed for at least 3 consecutive weeks.
For those with staff on flexible furlough please see our earlier newsletter or visit the blog section on our website for more details. In a nutshell though we need to know an employee’s normal number of work hours and how many hours they have worked part time in order to calculate the claim.
Remember you must keep your records of which staff were furloughed, when and for how long for at least 5 years. No doubt HMRC will be asking for these records soon.
Also please remember for any employees that have been furloughed and remain in your employment as at 31st January 2021 you will receive a £1,000 bonus providing that:
The employee must be earning a MINIMUM of £520 per month on average for the months November 2020, December 2020 and January 2021
When we know how to claim we will inform you, claims will be made from February 2021.
IN THE MEANTIME, WE REMAIN COMMITTED TO MAKING YOUR FURLOUGH CLAIMS ON YOUR BEHALF FREE OF CHARGE BUT PLEASE HELP US TO HELP YOU BY PROVIDING US WITH DETAILS THAT AFFECT YOUR CLAIM AS SOON AND AS ACCURATELY AS POSSIBLE
2. Self Employed Income Support Scheme (SEISS)
The first part of the self-employed receiving a grant took place in June and for those eligible they received 80% of their trading profits. The first part of the scheme closed on the 13th July.
The second and final part of the grant scheme opened on the 10th August. You can claim for the second grant even if you didn’t apply for the first grant (However it is still subject to the same eligibility criteria). This time round the grant will be for 70% of your trading profits
Applications for the grant will end on the 19th October so make sure you have claimed. The relevant link is shown below.
3. Recap on other stuff
Self-Assessment – 2nd Payments on Account are normally made on the 31st July each year. This year second payment on account has been deferred until 31st January.
VAT – Payments of VAT due between 20th March and 30th June do not have to be made until 31st March 2021. All other VAT returns must be paid as normal. If you are having difficulty make sure you contact HMRC before payment is due to advise them. A link for this is below
Reduced Rate of VAT – On 8 July 2020, the government announced that it would introduce a temporary 5% reduced rate of VAT for certain supplies of hospitality, hotel and holiday accommodation, and admissions to certain attractions. This cut in the VAT rate from the standard rate of 20% will have effect from 15 July 2020 to 12 January 2021.
Bounce Back Loans – If you haven’t applied for one yet then you should do so if you require additional funding for your business. It’s such a simple process you will never have access to funding as easy as this ever again! So well worth considering if you haven’t already. The scheme will be reviewed again in November so get any applications in as soon as you can.
Future Innovation Funding – Any SME based, or with significant operations, in the Liverpool City Region (and Wirral), who can demonstrate a viable project plan, capability to deliver, value for money and a clear need for grant funding.
Eligible projects must demonstrate alignment to the following priority areas for the LCR:
- Delivering a sustainable industrial future: businesses seeking to take advantage of new opportunities in materials, manufacturing and engineering.
- Open health innovation: business initiatives to enhance health & wellbeing, during and following the pandemic.
- Global cultural capital: activities to support the resilience of LCR’s cultural vibrancy during and following the pandemic.
- Zero carbon economy: businesses pioneering sustainable approaches to living, travel and doing business in a post-pandemic world, for example linking to the circular economy, mitigating single-use plastic and non-reusable PPE.
- Tech for good: businesses that use technology and data to drive growth and improve society, including but not limited to “smart city” applications, high performance computing, data science and AI.
- Digitalisation: initiatives in any other sector that will yield a clear improvement in business productivity, adaptability and/or diver
Further Information can be found here:
Business Rates Support Cash Grant – Scheme closed as at 28th August 2020
Business Rates Relief – If you are in the Retail, Leisure or Hospitality sector in England will not have to pay business rates for the 2020 to 2021 tax year. Check your business here
Eat out to Help Out Scheme – Ended 31st August
Discretionary Business Grant Fund – Scheme now closed
Stamp Duty Threshold – No stamp duty on the first £500k of property purchases (main home) from 8th July 2020 to 31st March 2021. For those purchasing a second property or more the 3% surcharge still applies.
Coronavirus Business Interruption Loan Scheme (CBILS) – Still active and still difficult to go through for those business that require more than £50,000.
If you are unsure of any of the support that is available to you click on the link below to find out what you are eligible for:
4. Kickstart Scheme
Despite the announcement back in July of the kickstart scheme no further details have been released yet. Bit of a let down to say the least.
The DWP said: ‘We will be publishing details about the Kickstart Scheme and how employers can get involved shortly. ‘Until then, we urge employers to be patient and to not start advertising roles they want to be covered by the scheme.’
The scheme basically covers hiring 16-24-year-old currently on universal credit whose wages will be paid by the government for 6 months
To register for further updates on the scheme as they become available please click on the link below:
If we found out any more in the meantime, we will keep you posted.
5. Capital Gains Tax Reporting on Properties Sold after 6th April 2020
If you sold your property after 6 April 2020 you must report and pay Capital Gains Tax within 30 days of selling property in the UK.
You may have to pay interest and a penalty if you do not report gains on property within the time limit.
You’ll need a Government Gateway user ID and password. If you do not have a user ID, you can create one when you report and pay.
If you sold the property before 6 April 2020, report the gain using the ‘real time’ Capital Gains Tax service.
Please call us if you need help with this.
6. Payroll / Holidays / Paying your PAYE
Due to continuing furlough claims processing payroll remains to be difficult and extremely time consuming. Therefore, please try and get your information to us as soon and as accurately as possible to minimise disruption to this process.
With regards to holidays please note we do not record any holidays for clients. We merely process the payments. It is for each individual employer to make a note of how many holidays each staff member has taken.
We can help you work out holiday entitlement but do not record holidays taken.
The following link on the gov website will also help you work out your employee’s holiday entitlements.
With regards to employers paying their PAYE bill either monthly or quarterly please note that we send out a P30 Employers Payment Certificate on the 6th of each month for those of you on monthly payment scheme and on the 6th April /July /Oct /Jan for those on quarterly, showing you the amounts you need pay and your accounts office reference number.
PAYE payments should be paid by either the 19th of each month for those on monthly schemes or the 19th of each of the above months for those on quarterly schemes.
7. Get your Accounts In
If you have a self-assessment/accounts due for the tax period 05/04/2020 then please submit your books to us electronically as soon as possible.
Please scan your records in (or take photos) and send to .
To scan your documents you can simply download a free scanning app to your phone (camscanner is a good one).
The office remains closed for a few more weeks yet and we are still operating from home therefore we require all records electronically submitting to us.
Please call us to discuss if there is any reason you cannot do this.
If you have a year end of between the 30th November 2019 and 31st March 2020 and haven’t yet submitted your information to us for your year-end account’s, please do so electronically as soon as possible.
8. Leave us a Review/ Make a Referral
Referrals are the lifeblood of our business if you know of anyone who is unhappy with their current accountants, wants a better service, needs to drag their business into the 21st Century (thanks for that review/quote Harry!), wants better support, or just needs an accountant then please do send them our details.
Reviews are essential to us as when people are making purchasing decisions it is essential for them to know they are dealing with someone who is trustworthy, knowledgeable and has the experience they need to help their business. Please do take 5 mins out to leave us a review on Facebook or on google. It’s extremely appreciated and helps us out enormously.
Well that’s all for now folks. Hopefully you have found the content informative and relevant to you.
If there are any further announcements/changes for anything affecting your business, we will let you know as soon as possible and I will keep you posted on what happens with the Ironman training 😊
All the Team at APH