Following the latest Government Announcements made at the end of last week, we wanted to provide an update on financial assistance that may be beneficial to support your business through the Winter.
Job Support Scheme
A new scheme will be brought in from 1st November to replace the existing furlough scheme, ending on the 31st October. The aim of the scheme is to protect jobs where businesses are facing lower demand due to coronavirus. You do not need to have claimed through the first scheme in order to claim through the new job support scheme however any claimants must have had an active payroll with submissions made before the 23rd September in order to qualify.
Employees must work a minimum of 33% of their usual contracted hours in order to qualify, (percentage to be reviewed after the first three months) with the Government and employer each paying one third of any unworked hours. Under the new scheme claims will be made retrospectively, with employers needing to cover the employee’s wages initially.
It is believed that the scheme will operate in addition to the Job Retention Bonus scheme, due to be claimed in February 2021. Full details of this scheme are yet to be announced.
We are pleased to have been able to support many of our payroll clients in submitting furlough claims to HMRC over the past six months, however due to the increased workload this is not something that we can continue to offer free of charge. A further update will be issued in November with updated guidance relating to the Job Support Scheme and details of the ongoing service we can provide to support any future claims required.
Extension to the VAT reduction scheme for Hospitality and Tourism
The government has extended the temporary reduced rate of VAT (5%) to tourist attractions and goods and services supplied by the hospitality sector. This relief came into effect on 15 July 2020 and will now end on 31 March 2021.
VAT Deferral Payment Scheme
If you deferred payments that were due between 20 March and 30 June 2020, then these payments need to be made to HMRC by 31 March 2021.
You can use the New Payment Scheme to spread these payments over equal instalments up to 31 March 2022.
Alternatively, you can make payments as normal by 31 March 2021 or make Time To Pay arrangements with HMRC if you need more tailored support by calling 0300 200 3835.
New Self-Assessment Self-Serve Time To Pay Scheme
If you deferred paying your July 2020 Payment on Account, you will need to pay the deferred amount, in addition to any balancing payment and first 2020/21 Payment on Account, by 31 January 2021. This may be a larger payment than you usually pay in January.
If you’re unable to pay your Self-Assessment (SA) bill in full by 31 January 2021, you can set up a Time to Pay payment plan of up to 12 months online. If you have SA tax debts of up to £30,000, you’ll able to access this Time to Pay facility through GOV.UK and will get automatic and immediate approval. If your SA debts are over £30,000, or you need longer than 12 months to repay your debt in full, you will still be able to use our Time to Pay arrangement by calling HMRC.
Self Assessment Payment Helpline
Telephone: 0300 200 3822 Monday to Friday, 8am to 4pm
Please see below an update on the latest schemes as announced yesterday by the Chancellor:
Furlough Bonus Scheme
This is a one-off payment of £1000 to employers that have used the CJRS for each furloughed employee who remains continuously employed until 31st January 2021. To be eligible employees need to:
- earn at least £520 per month on average for November, December and January
- have been furloughed by you at any point and legitimately claimed for under the Coronavirus Job Retention Scheme
- have been continuously employed by you up until at least 31 January 2021
The bonus will be able to be claimed by employers in February 2021. More guidance on this scheme is expected later in the year.
Eat Out to Help Out Scheme
During August, diners can get 50% off Monday to Wednesday on meals and non-alcoholic drinks, up to £10 per person, when eating at participating restaurants, bars, cafes and other establishments that have registered.
Companies can start to register on the Governments website from Monday 13th July.
Vat Reduction Scheme
From 15 July until 12 January 2021, the UK government will cut VAT from 20% to 5% on any eat-in or hot takeaway food and drinks from restaurants, cafes and pubs, excluding alcohol. This VAT reduction also applies to all holiday accommodation in hotels, B&Bs, campsites and caravan sites, as well as attractions like cinemas, theme parks and zoos.
It has not yet been confirmed if the VAT reduction will be applicable to those on the Flat Rate scheme. Further information on this scheme is expected to be released over the coming days.
An increase in the Stamp Duty Land Tax (SDLT) threshold in England and Northern Ireland – increasing the threshold under which no SDLT is paid on the purchase of a main home from £125,000 to £500,000, with immediate effect until 31 March 2021.
Keeping you informed
We expect more information to be released covering the above schemes; as soon as we receive any further information we will let you know.
Should you have any concerns, or any further questions please do get in touch with your dedicated accountant.