Coronavirus Support Update
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
Discretionary Grant Fund
The Government have recently announced a Discretionary Grant Scheme for small and micro business with fixed property costs that were not eligible to claim neither of the previous Small Businesses Grant Fund nor the Retail, Hospitality and Leisure Grant Fund. If you have already benefited from either of these schemes, then you will not be eligible to claim via the new Discretionary Grant Scheme.
If you are working from home, then you are also not eligible to apply for this scheme.
Discretionary Grant Scheme
Under the new scheme you may be eligible to receive a grant of £25,000, £10,000 or any amount under £10,000.
Eligibility
You are potentially eligible if your business:
- is based in England
- has fewer than 50 employees
- has fixed building costs such as rent
- was trading before 11 March 2020
- not be a chain or subsidiary of a larger company
- has annual property or other fixed costs of over £3,000 per year (which, for market traders, includes pitch fees)
- has been adversely impacted by the Coronavirus
Please note you are still eligible if you have applied for either the Coronavirus job Retention Scheme or the Self-Employed income Support Scheme
How to apply
Visit your local council’s website to find out how to apply. Due to the limited funding available and expected over-subscription to the scheme, grant applications will need to be submitted to the City Council for assessment, with payments expected to start in June. The grant will not need to be repaid, however please note that it will be taxable.
Please be aware that the closing date for applications is 15th June 2020.
Should there be anything further that we can assist you with, please do get in touch.