ends on 4th November 2020..
Coronavirus (COVID-19) has presented many challenges to businesses of all shapes and sizes
The Bounce Back Loan scheme was set up to provide businesses with quick access to loans of up to £50,000.
We want to make sure you're aware that the deadline to apply for one of these loans is currently 4 November 2020.
So if your business has been affected and you need some financial support, make sure you apply before this date.
From 1 September, the government will pay 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough. Employers will top up employees’ wages to ensure they receive 80% (up to £2,500). The caps are proportional to the hours not worked.
Unless you’re making a new claim for an employee who is a military reservist or is returning from statutory parental leave, you can only continue to claim through the scheme if:
Homebuyers will be temporarily exempt from paying the tax for the first £500,000 of any property price, saving them an average of £4,500 and up to £15,000. The increase in the threshold from £125,000 to £500,000 is effective immediately and will run until the end of March 2021.
The Chancellor will pay businesses a £1,000 job retention bonus for every furloughed worker that is brought back and employed until the end of January 2021. If every furloughed worker returns to work, the policy would cost £9bn, Mr Sunak said. Workers must have been continuously employed and earn an average of more than £520 per month in November, December and January.
£20 million new funding to help smaller businesses recover from the effects of the coronavirus pandemic.
Thousands of smaller businesses in England are set to benefit from £20 million of new government funding to help them recover from the effects of the coronavirus pandemic.
Small and medium sized businesses will have access to grants of between £1,000 - £5,000 to help them access new technology and other equipment as well as professional, legal, financial or other advice to help them get back on track.
It comes on top of an unprecedented package of Government support to help businesses to recover, including the £2 billion Kickstart Scheme which will create hundreds of thousands of new, fully subsidised jobs for young people across the country, as well as £1.6 billion invested in scaling up employment support schemes, training and apprenticeships to help people looking for a job.
Contrary to one of our earlier updates there has been a change made by HMRC:
If you are NOT able to pay your second payment on account by 31st July then as long as it is paid by 31st January 2021 there will be no penalties or interest and you DO NOT need to contact HMRC to tell them you are deferring.
Any further changes will be announced here.
Claim for your employees’ wages through the Coronavirus Job Retention Scheme .
A step by step guide:
As part of the government’s support for businesses during COVID-19, HMRC gave businesses the option of deferring their VAT payments if they were unable to pay on time, without incurring late payment interest or penalties.
Payment of VAT falling due between 20 March and 30 June 2020 can be deferred until 31 March 2021.
You must continue to file your VAT return on time, even if you defer payment.
This is a reminder that the option to defer paying VAT ends on 30 June 2020. This means that VAT returns with a payment due date after 30 June must be paid in full, on time.
If you haven't deferred any VAT payments, you don't need to take any further action. If you have deferred paying your VAT and normally pay by Direct Debit you should now reinstate it.
You should do this at least three working days before submitting your VAT return in order for HMRC to take payment. For further details go to GOV.UK and search for 'Pay your VAT bill'.
Remember, any VAT payments you have deferred during this period should be paid in full on or before 31 March 2021. You can make ad hoc payments or additional payments with your subsequent VAT returns to reduce the amount outstanding, if you wish.
If you're unable to pay the VAT due and need additional time to pay, please contact HMRC before the payment is due. For help go to GOV.UK and search for 'If you cannot pay your tax bill on time', or call 0300 200 3835. If you do call, please quote 'V1'.
For advice and information on other support available, please go to GOV.UK and search 'Business support'.
Defer your self-assessment payments on account due to coronavirus.
Choose how and when you can delay making your second payment on account for 2019 to 2020 tax year.
You have the option to defer your second payment on account if you’re:
You can still make the payment by 31 July 2020 as normal if you’re able to do so.
HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021.
You will still need to submit your Self Assessment tax return to HMRC on time.
If you choose to defer:
You do not need to tell HMRC that you’re deferring your payment on account.
Choosing to defer will not stop you from being entitled to other coronavirus support that HMRC provides.
You must make your second payment on account on or before 31 January 2021 if you choose to defer. Other payments you may have to make by this date include any:
You can check payments you need to make towards your next tax bill by signing in to your online account.
If you want to pay in full:
You can pay your second payment on account bill in full any time between 31 July 2020 and 31 January 2021 using the online service.
If you want to pay in instalments:
You need to contact HMRC if you already have overdue tax which you’re paying through a Time to Pay instalment arrangement and want to include your second payment on account in that arrangement.
If you do not have other overdue taxes, you can make your payment in instalments any time between now and 31 January 2021 by setting up a budget payment plan.
Payments made by direct debit:
If you choose to defer and normally make your payments on account by Direct Debit, you should cancel your Direct Debit through your bank as soon as possible so that HMRC will not automatically collect any payment due. You can cancel online if you’re registered for online banking.
After the deferral ends:
The usual interest, penalties and collection procedures will apply to missed payments.
How to reduce costs and avoid employee redundancies during COVID-19
10 June: Final date that an employer can furlough employees for the first time.
12 June: Further guidance on flexible furlough and calculation of claims under the flexible scheme will be published.
30 June: The furlough scheme closes to new entrants.
Throughout June: 80% of furloughed employees’ wages can be claimed up to a cap of £2,500 as well as employers’ NI and pension contributions. Employees still should not work for the employer during furlough during June other than training.
1 July: Employers can make their first claim under the new flexible furlough scheme. Previously furloughed employees can return to work part time by agreement with the employer, and employers can still claim furlough grant for normal hours not worked.
31 July: Employers have until this date to make any claims in respect of furlough periods before 30 June.
Throughout July: 80% of furloughed employees wages can be claimed (up to a cap of £2,500) as well as employer NI contributions and pension contributions. This only applies for the hours the employee does not work. Employers must pay employees for the hours they work.
1 August: the level of the grant will be slowly reduced.
Throughout August: the Government will pay 80% of furloughed employees wages up to a cap of £2,500 for hours not worked. Employers will pay employer NICs and pension contributions for the hours the employee does not work. Employers must pay employees for hours worked.
Throughout September: Government will pay 70% of furloughed employees wages up to a cap of £2,187.50 for hours not worked. Employers will pay employer NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
Throughout October: Government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay employer NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.
Have you opened a new location, redesigned your shop, or added a new product or service? Don't keep it to yourself, let folks know.
Check if you can get tax free childcare and 30 hours free childcare during coronavirus (COVID-19)
Temporary changes have been made to the eligibility criteria for Tax-Free Childcare and 30 hours free childcare, during coronavirus.
The changes may affect you if you, or someone you live with, are:
You can now check online if you are eligible to apply for the scheme, to do this please click here. You will be asked to enter your UTR and National Insurance number, if you do not have these on file please do let us know and we can assist you.
If you are eligible you will be able to apply for the support from midday on 14th May, in order to apply you will need your own personal government gateway login, unfortunately this isn't something we can do for you as your agent/or not.
However it takes 5 minutes to setup a government gateway login - to create your account today please click here.
When creating your login you will be asked for information to verify who you are, if you need any help with this please do let us know.
Who is entitled?
So what will I get?
If eligible you will receive a taxable grant which will be 80% of the average profits from the tax years (where applicable):
Where applicable your trading profits will be added together and divided over the periods to calculate your monthly amount capped to £2,500 per month for 3 months.
This will be paid to you in one instalment directly to your bank.
If we are not yet your accountant but would like us to be, please email email@example.com
This scheme will help small and medium-sized businesses affected by coronavirus (COVID-19) to apply for loans of up to £50,000.
This scheme will launch on 4th May.
The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000.
The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.
Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.
The scheme will be delivered through a network of accredited lenders.
If you are self employed and have not yet submitted your 2019 tax return, you only have a few weeks left to submit it and get help from the government if you have been affected by COVID-19.
If you need help please get in touch:
If you have deferred your VAT payment that was due between 20th March 2020 and 30th June 2020 you have until 31st March 2021 to pay it.
All businesses in England in receipt of small business rates relief will be eligible for a £10,000 grant to help with running costs.
Businesses in retail, hospitality and leisure will get £25,000 if they have a rateable value of between £15,001 and £51,000.
Look on your local authority website to apply.
Previous advice said there was no need to apply as it would be automatic, but this does not appear to be the case now.
Please make sure you apply or you will not receive the grant.
If you have no work for your employees due to COVID-19 you can furlough them and you can claim 80% of their salary from HMRC upto a maximum of £2500 per month per employee. There will be a portal on HMRC to make the claims. This is for employees that you would otherwise have had to lay off due to COVID-19. The employee cannot do any work during the time they are furloughed. PAL will be dealing with claims on behalf of their payroll clients that are affected
VAT payments are deferred for 3 months.
If you have a direct debit set up you MUST cancel it or payments will be taken automatically. If you currently have a payment plan for overdue VAT payments you will need to contact HMRC to ask for approval of deferral. HMRC are, as you can expect very busy at this moment in time, but they are also very accommodating.
All payments due on 31st July 2020 are now deferred until January 31st 2021
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