This e-mail is relevant to self-employed taxpayers.
Please read the following notes that provide advance warning on tax office communications you may be receiving shortly regarding the final 5th SEISS claim for June-September 2021.
Your personal claim date
You should receive an email, SMS or letter from HMRC shortly advising you of your “Personal Claim Date”. This is the date from which you can make your claim for the 5th and final SEISS grant. Do not claim before this date as it will not be processed.
Preparing turnover figures
As part of the claims process HMRC will need additional turnover figures as part of the 5th grant application. They will need turnover for two years:
We can help you calculate these numbers. The 5th grant will be paid at two rates depending on whether your turnover has fallen by more or less than 30%.
Taxpayers who were newly self-employed in 2019-20
If you fall into this category, HMRC may send you a letter asking for proof of identity and trade information via Dropbox. As part of the process HMRC will also call you. You will not be able to make a claim unless you respond to these requests.
If online process is not available
A small number of taxpayers will receive a letter from HMRC asking them to call if they want to make a claim. The online service will not be available if you receive this letter. To claim, you will need to call the number on the letter.
Beware scams…
Fraudsters will no doubt attempt to piggy-back on these processes to obtain personal information or your bank details. If you are at all unsure if a letter, email or SMS is genuine, please call so we can advise or call HMRC by using a contact number on the GOV.UK website (https://www.gov.uk).
There is also a list of genuine HMRC contacts made at https://www.gov.uk/guidance/check-a-list-of-genuine-hmrc-contacts
Source material: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
How we can help
Remember, you can only claim the grant if you have been adversely affected by the pandemic, and grants received under the scheme are taxable and must be considered in working out your profits. If you are unsure how to proceed please call us.
Although we cannot directly make claims for clients, we can help if you are unsure if you should make a claim or you are having difficulty completing the online application process.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Full article can be found here
Claims process for the final Self-Employed Income Support Scheme grant will open next month
The 5th and final grant under the SEISS will be opened to claims from late July 2021.
If you need help deciding if you can make a claim contact us when HMRC issue their extended guidance notes later this month.
The grant is taxable, as are all of the other COVID grants.
Look out for communication from HMRC mid-July 2021
HMRC will be contacting you in mid-July to let you know a date to make a claim. This will be sent by letter, email or within HMRC’s online service.
Conditions to qualify for this grant:
The 5th grant is different:
The 5th grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.
HMRC have said they will provide more information by the end of June to help you work out how your turnover will be affected.
Making your claim
You can only apply online, and the online service is timed to open from late July 2021. Your letter from HMRC will advise you of the earliest date you can apply.
You must make the claim personally, we cannot do this for you.
Source material: https://www.gov.uk/government/publications/self-employment-income-support-scheme-fifth-grant/self-employment-income-support-scheme-fifth-grant
How we can help
Remember, you can only claim the grant if you have been adversely affected by the pandemic, and grants received under the scheme are taxable and must be considered in working out your profits. If you are unsure how to proceed please call us.
Although we cannot directly make claims for clients, we can help if you are unsure if you should make a claim or you are having difficulty completing the online application process.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Full article found here
Since the COVID 19 outbreak Government funding and support has been hugely helpful to many business owners.
With the closing of the CIBLs (Coronavirus Business Interruption Loan Scheme) and BBLs (Bounce Back Loan Scheme) funding, the Government have introduced a new funding scheme, known as The Recovery Loan Scheme.
The scheme is aimed at helping businesses to recover from the COVID 19 pandemic and the transitional period we currently find ourselves in.
A few key points:
Source material – https://www.gov.uk/guidance/recovery-loan-scheme
We can help
Remember, the Steven Burton & Co team of small business advisors are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Full article can be found here
Look out for communication from HMRC April 2021
HMRC will be contacting you in mid-April to let you know if you are eligible to claim the 4th SEISS grant for the quarter ending 30 April 2021. This will be sent by letter, email or within HMRC’s online service and it will advise you of the earliest date you can make your claim.
Before making your claim
To make your claim you will need to gather together the following information:
You may also need to answer questions about your passport, driving licence or other information held on your credit file.
You may need to back up your claim
You will need to keep evidence that your business has suffered reduced activity. For example, business accounts show reduced activity, records of cancelled contracts or appointments, record of any dates you suffered reduced activity due to lockdown or similar government restrictions.
Additionally, you will need to keep details of the following:
Making your claim
You can only apply online, and the online service is timed to open from late April 2021. Your letter from HMRC will advise you of the earliest date you can apply.
You must make the claim personally, we cannot do this for you.
Once you have completed the claims process you should receive your grant within 6 days.
Source material: https://www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension/self-employment-income-support-scheme-grant-extension
How we can help
Remember, you can only claim the grant if you have been adversely affected by the pandemic, and grants received under the scheme are taxable and must be considered in working out your profits.
If you are unsure how to proceed please call us.
Although we cannot directly make claims for clients, we can help if you are unsure if you should make a claim or you are having difficulty completing the online application process.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch .
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Full article found here
Since the Covid 19 outbreak Government funding and support has been hugely helpful to many business owners.
Given the falling case numbers and success of the vaccination programme, we are all hopeful of seeing an end to the National lockdowns. All positive news!
To flip this, the Government have now taken a look at reducing funding support, which includes CIBLs and BBLs.
The following gives some detail of the two funding options:
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CBILS BBLS Who? Limited Companies and Limited Liability Partnerships Limited Companies, Limited Liability Partnerships and Sole Traders What? Overdrafts of £50,001 to £150,000 Loans of £50,001 to £250,000 Loans up to £50,000 Application deadline 31st March 2021 31st March 2021 |
Clearly the key piece of information here is the Application deadline of 31 March 2021.
Source material – https://www.british-business-bank.co.uk/finance-hub/covid-19-support/
If you haven’t taken on any funding during the pandemic, it is worth plotting out your business cashflow for the next 3, 6, 9, 12, 18 and 24 months. This will give you an indicator of whether funding will be needed.
NB VAT deferred from 2020 will need to repaid soon, so building this into your numbers is critical.
We can help
Remember, the Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Full article can be found here
Self-Employed Income Support
Claiming 4th and 5th grants, April and July 2021
Can you claim SEISS 4th and 5th payouts during 2021?
1 If you commenced self-employment after 5 April 2019
If you started your self-employment after 5 April 2019, you were denied support under this scheme from the first three quarterly payouts to 31 January 2021.
The good news is that due to lobbying by tax professionals and self-employed support groups the SEISS is being opened to traders who commenced after 5 April 2019. However, there is an additional hurdle to jump before you can make a claim; your tax return for 2019-20 needed to have been filed by midnight 2 March 2021.
Additionally, your business must be adversely affected by the pandemic and your profits from self-employment must be at least 50% of your income and less than £50,000.
2 If you commenced self-employment on or before 5 April 2019
If you qualified for the first three grants, you should qualify for the further grants due this year unless your circumstances have changed between 2018/19 and 2019/20, for example, your trading profits went above £50,000 or your non trading income was greater than your trading income, or indeed if you are no longer adversely affected by COVID disruption.
For those of you who may be claiming for the first time, you will need to claim using your online tax account. HMRC should advise you when the claims process is open for business.
3 If claiming the fourth grant – 1 February 2021 to 30 April 2021
The fourth grant under the scheme covers February to April 2021. It is worth 80% of three months’ average trading profits capped at £7,500 and can be claimed from late April until 31 May 2021.
4 If claiming the fifth and final grant – 1 May 2021 to 30 September 2021
The fifth and final grant covers the period from May to September 2021. The amount of the grant will depend on the impact that Covid-19 disruption has had on your profits.
The final grant can be claimed from late July 2021.
There is a potential misfit in this fifth grant. Although it covers a five-month period (May – September 2021) the actual payout for this period is based on three months. We await clarification on the other two months.
Source material: https://www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension/self-employment-income-support-scheme-grant-extension
We can help
Remember, you can only claim the grant if you have been adversely affected by the pandemic, and grants received under the scheme are taxable and must be considered in working out your profits.
If you are unsure how to proceed please call us.
Once we receive further explanation for the scope of the fifth grant (the missing two months) we will update you.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
The Chancellor, Rishi Sunak, presented his 2021 Budget on 3 March 2021.
The extent to which the measures will affect you will depend on your personal circumstances. This report is split for your convenience into three sections:
Impact on individuals
Personal allowance and income tax thresholds frozen
The personal allowance is increased in line with inflation to £12,570 for 2021/22. However, it will remain at this level for the next five years, until April 2026. The basic rate band will also remain at £37,700 for the next five years, freezing the starting point for paying higher rate at £50,270 until April 2026.
If your income increases during this period, for example, your pay rises in line with inflation, you may find that you move into the higher rate band, paying tax on some of your income at 40% where previously you were a basic rate taxpayer. NB if you claim child benefit, bear in mind the impact an increase in your income could mean you need to repay some of your child benefit claim.
The basic rate of tax will remain at 20%, the higher rate at 40% and the additional rate at 45%.
Covid support continues
The Coronavirus Job Retention Scheme is extended until 30 September 2021. This means that if you have been furloughed or flexibly furloughed, you will continue to be paid 80% of your normal wages for your unworked hours, subject to the cap of £2,500 per month.
If you are self-employed and your business has been adversely affected by the Covid-19 pandemic, you will be able to claim two further grants under the Self-Employment Income Support Scheme.
Pension lifetime allowance frozen
The pension lifetime allowance will not be increased in line with inflation over the next five years. Instead, it will remain at its current level of £1,073,100 for 2021/22 to 2025/26. This may affect you if you already have pension savings at or near this level. If this is the case, you should review the amount of your pension pot before making further tax-relieved contributions.
Pension savings more than the lifetime allowance are taxed at 25% if the excess is taken as a pension, and at 55% if it is taken as a lump sum.
Stamp Duty Land Tax (SDLT) threshold to remain at £500,000 until 30 June 2021
The temporary increase in the SDLT threshold to £500,000 will remain in place until 30 June 2021. It will then fall to £250,000 until 30 September 2021, returning to the standard amount of £125,000 from 1 October 2021. If you are looking to move to a new house or to buy an investment property, there is still time to benefit from the higher threshold.
These comments refer to rates in England and Northern Ireland, the devolved administrations of Wales and Scotland may set alternative rates.
Inheritance tax nil rate band to remain at £325,000
The inheritance tax nil rate band will remain at its current level of £325,000 until April 2026. The residence nil rate band, available where your main residence is left to a direct descendant, also remains at its current level of £175,000 until April 2026. This should be considered when undertaking inheritance tax planning.
Impact on the self-employed
Two further grants available under the SEISS
If you are self-employed and you continue to be adversely affected by the Covid-19 pandemic, you will be able to claim two further grants under the Self-Employment Income Support Scheme (SEISS).
The fourth grant under the scheme covers February to April 2021. It is worth three months’ average profits capped at £7,500. It can be claimed from late April.
The fifth and final grant covers the period from May to September 2021. The amount of the grant will depend on the impact that Covid-19 has had on your profits. If your turnover has fallen by 30% or more because of Covid-19, you will be able to claim a grant equal to 80% of your average profits for three months, capped at £7,500. However, if your turnover has dropped by less than 30%, you will be entitled to a reduced grant of 30% of three months’ average profits, capped at £2,880. The final grant can be claimed from late July.
Remember, you can only claim the grant if you have been adversely affected by the pandemic.
Grants received under the scheme are taxable and must be considered in working out your profits.
Help for the newly self-employed
Support under the SEISS was not available to traders who commenced self-employment in 2019/20 – to qualify a tax return had to be filed for 2018/19. However, as the deadline for filing the 2019/20 tax return has now passed, you may be eligible for the fourth and fifth grants if your 2019/20 tax return was filed by midnight on 2 March 2021. To qualify, your business must be adversely affected by the pandemic and your profits from self-employment must be at least 50% of your income and less than £50,000.
Carry-back period for losses extended
The period for which losses may be carried back is temporarily extended from one year to three years. For unincorporated businesses, the extended carry-back will apply to losses made in 2020/21 and 2021/22. Losses must be set against a later period before an earlier period.
If you have suffered losses due to Covid-19, carrying back losses for up to three years may generate a most welcome tax repayment.
Impact on small companies
Tax-efficient extraction of profits
For 2021/22, if you extract profits by taking a mix of salary and dividends, the optimal salary level (assuming you have not used your personal allowance elsewhere) will be £9,568 (equivalent to £797 a month) if you are not entitled to the employment allowance.
This will be the case if you are a personal company with only one employee who is also a director. At this level, you will have a little bit of employer’s National Insurance to pay, but this will be outweighed by the associated corporation tax deduction.
If you can claim the employment allowance, for example, if your company is a family company with at least two employees, the optimal salary for 2021/22 is equal to the personal allowance of £12,570.
Any further profits can be extracted as dividends but remember you can only pay dividends if you have sufficient retained profits to pay them from. Dividend tax rates remain at 7.5%, 32.5% and 38.1% for 2021/22.
Three-year carry back for losses
Companies, like unincorporated businesses, can benefit from a measure allowing losses to be carried back for three years, rather than for one year. For companies, this applies to losses incurred in accounting periods ending between 1 April 2020 and 31 March 2021 and to losses for accounting periods ending between 1 April 2021 and 30 March 2022. Losses carried back must be used against a later period before an earlier period.
This measure may provide you with earlier relief for losses suffered because of the Covid-19 pandemic and generate a useful tax repayment at a time where cash flow is tight.
Super-deduction for investment expenditure
Companies that invest in plant and machinery in the period from 1 April 2021 to 31 March 2023 will be able to benefit from enhanced capital allowances. Investments in assets that qualify for the main rate of capital allowances of 18% will benefit from a 130% first-year allowance. This means that for every £100 that you spend, you can deduct £130 in computing your taxable profits. This is equivalent to a tax saving of 24.7%.
Investments in assets qualifying for special rate capital allowances benefit from a 50% first year allowance (although claiming the annual investment allowance instead where this is available will be more beneficial).
If you are looking to invest in plant and machinery, it can be advantageous to do so within this window to benefit from the super-deduction. However, it is not available where contracts were agreed before Budget day.
Future increases in corporation tax
To help meet some of the costs of the pandemic, companies with profits of £250,000 or more will pay corporation tax at a rate of 25% from 1 April 2023. A lower rate of 19% will apply to companies with profits of £50,000 or less. Companies with profits of between £50,000 and £250,000 will pay corporation tax at the 25% but will be able to claim marginal relief. The thresholds will be proportionately reduced to take account of associated companies and short accounting periods.
Given the complexity of the tax calculations, contact us so we can explain how this could affect you.
Extension of the Coronavirus job Retention Scheme
If you have furloughed or flexibly furloughed employees, you will be able to continue to claim grant support under the Coronavirus Job Retention Scheme until the end of September.
Until the end of June, you can claim 80% of your employee’s normal pay for their unworked hours, subject to the cap of £2,500. However, while your employees must continue to receive 80% of their normal pay for their furloughed hours, you can only claim 70% from the Government in July and 60% in August and September. You must pay the remaining 10% in July and the remaining 20% August and September. As now, you must meet the employer’s National Insurance and employer pension contributions on all payments to employees.
The scheme will come to an end on 30 September 2021.
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
We hope these points have been useful. If you have any questions on these, please let us know.
The Chancellor Rishi Sunak yesterday announced in tandem with the national lock-down in England – from 5 November to 2 December 2020 – that further changes have been made to the furlough scheme and support for the self-employed.
The announced details are as follows:
Coronavirus Job Retention Scheme (CJRS)
This furlough scheme will now be extended until the end of March 2021. Details released 5 November 2020 are:
• Government will cover 80% of hours not worked up to a maximum of £2,500 per person per month. This percentage support may be flexed for February and March 2021 when employers may be asked to contribute.
• Any grants paid must be passed on to the relevant employee in full.
• The previous flexibility to allow employees back part-time will continue until December.
• Employers will only be asked to cover National Insurance and pension costs and wages for time worked. Importantly, they will NOT be required to contribute to hours not worked but they are free to make top-up payments at their discretion.
Which employers/employees can claim or be eligible for this extended support?
• All employers with a UK bank account and a UK PAYE scheme can make a claim.
• There is no requirement that employers or employees have made previous claims for CJRS support.
• Employees must be on employer’s payroll before midnight 30 October 2020.
Payment for claims
• The extended CJRS will operate as the previous Scheme did, with businesses being able to claim shortly before, during or after running payroll. Claims can be made from 8am Wednesday 11 November. Claims made for November must be submitted to HMRC by no-later than 14 December 2020. Claims relating to each subsequent month should be submitted by day 14 of the following month.
Previously announced Job Support Scheme (JSS)
As the furlough scheme is now extended to the end of March 2021, this new scheme will be deferred until the extended furlough scheme ends, presumably 31 March 2021.
The Job Retention Bonus
The Job Retention Bonus (JRB) will not be paid in February 2021 instead a retention incentive will be deployed at the appropriate time. The purpose of the JRB was to encourage employers to keep people in work until the end of January. However, as the CJRS is now being extended to 31 March 2021, the policy intent of the JRB no longer applies.
The Self Employed Income Support Scheme (SEISS)
The Chancellor has announced a corresponding increase in financial support for the self-employed to mirror the benefits of the extended furlough scheme.
The extension will last for 6 months, from November 2020 to April 2021. Grants will be paid in 2 lump sum instalments each covering a 3 month period.
For the period November 2020 to 31 January 2021, SEISS support will be 80% of average trading profits capped at £7,500.
The previous eligibility criteria will still apply.
Additionally, SEISS grants will be paid faster. The claims window will open at the end of November rather than the middle of December. This will provide much needed funds for the self-employed before Christmas.
The Government has already announced that there will be a fourth grant covering February 2021 to April 2021. They will set out further details, including the level, of the fourth grant in due course.
The grants are taxable income and also subject to National Insurance contributions.
Government backed loan schemes
The deadline for submitting applications for government backed loans has been extended to 31 January 2021.
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, the information contained may not be comprehensive. Furthermore, it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Further information on the furlough scheme and support for the self-employed can be found: https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced
Client Update Monday 2 November 2020
On Saturday 31 October the Prime Minister announced new national restrictions, including what they mean for business closures, employees working from home and the financial support available.
Please note that the full implications of the announcement are unknown and we will be in touch as soon as we know more and detailed guidance is released.
Full details of the announcement can be found here:
https://www.gov.uk/guidance/new-national-restrictions-from-5-november
To reduce social contact, the Government has ordered certain businesses and venues to close. More information can be found here:
https://www.gov.uk/guidance/new-national-restrictions-from-5-november#businesses-and-venues
For those people who can continue to work the following is relevant:
https://www.gov.uk/guidance/new-national-restrictions-from-5-november#going-to-work
As a result of these restrictions there is likely to be adverse financial consequences to many businesses and employees, therefore the government have announced new support measures:
https://www.gov.uk/guidance/new-national-restrictions-from-5-november#financial-support
Key Points
The delay of the JSS and extension of the CJRS.
The Coronavirus Job Retention Scheme (CJRS) will no longer be ending on 31 October 2020, and The Job Support Scheme (JSS) will not be introduced until after CJRS ends.
The CJRS is being extended until December 2020. The level of the grant will mirror levels available under the CJRS in August 2020, so the government will pay 80% of wages up to a cap of £2,500 and employers will pay employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work.
As under the current CJRS, flexible furloughing will be allowed in addition to full-time furloughing.
Further details, including how to claim this extended support through an updated claims service, will be provided to us shortly and we will then update you as soon as possible.
Business Grants
Businesses required to close in England due to local or national restrictions will be eligible for the following:
You can find and check your rateable value using the below link:
https://www.gov.uk/correct-your-business-rates
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
In a welcome announcement last week, the Chancellor, Rishi Sunak, revealed changes to the Self Employed Income Support Scheme (SEISS) – from those originally announced on 23 September as part of the Chancellor’s Winter Economy Plan. The changes will re-establish more realistic support for businesses adversely affected by COVID-19 disruption.
From 1 November 2020, the SEISS grant due covering the period from 1 November 2020 to 31 January 2021, is doubled from 20% (as previously announced) to 40% of qualifying profits, paid out in a single amount and capped at £3,750 in total.
The amount of the final grant – covering the period from 1 February 2021 to 30 April 2021 – will be announced next year.
This is in addition to the first grant (applications for the first grant closed on 13 July 2020) which was calculated as 80% of the average of three months of trading profits, up to a maximum of £7,500 and the second grant (applications for the second grant closed on 19 October 2020) which was calculated as 70% of the average of three months of trading profits, up to a maximum of £6,570.
Please note
Further guidance will be published by the Government shortly
Any payments received from government will be taxable.
As with other government grants, HMRC will check claims and demand repayments of any claims made incorrectly or fraudulently.
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
In a welcome announcement last week, the Chancellor, Rishi Sunak, revealed changes to the Job Support Scheme (JSS) – this is the new scheme (originally announced on 23 September as part of the Chancellor’s Winter Economy Plan) which is replacing the Coronavirus Job Retention Scheme (CJRS) which is due to end on 31 October. The changes will re-establish more realistic support for businesses adversely affected by COVID-19 disruption.
There are 2 schemes,
The schemes will run from 1 November 2020 until 30 April 2021, the government will review the terms of the scheme in January.
JJS Open
Benefits for employees
Benefit for employers
A word of caution for employers (cash-flow consequences)
As with the wider JSS scheme, claims for November will be processed in December via an online portal. Subsequent months’ claims will thus be paid one month in arrears. Employers will need to accommodate the cash-flow consequences as wages will need to be paid before any JSS Open grants are received.
JSS Closed
For employers who are legally required to close their premises as a direct result of coronavirus restrictions set by one or more of the four governments of the UK
Who can claim
To make a claim, employers must have a UK bank account and be registered with a UK PAYE scheme on or before 23 September 2020.
Employees do not need to have been furloughed under the CJRS to be eligible for the JSS.
Employers cannot claim for an employee who has been made redundant or is serving a contractual or statutory notice period during the claim period.
JSS Open, employers are eligible if,
JSS Closed
Please note
This is not a complete list of eligibility requirements; further guidance will be published by the Government shortly
Any payments received from government will be taxable.
The JSS grant will not cover National Insurance contributions or pension costs; these remain payable by the employer.
As with other government grants, HMRC will check claims and demand repayments of any claims made incorrectly or fraudulently. In particular, employers should agree and notify claims in writing with affected employees. HMRC may ask to see these written agreements.
HMRC have also indicated that they will be publishing the names of employers that have claimed under the scheme.
A reminder of the Job Retention Bonus (JRB)
This is a one-off payment of £1,000 for every eligible employee you furloughed and claimed for through the Coronavirus Job Retention Scheme (CJRS), kept continuously employed until at least 31 January 2021 and who meets the other eligibility criteria. You do not have to pay this money to your employee.
You will be able to claim the bonus between 15 February and 31 March. To do this you must have submitted PAYE information for the period up to 5 February 2021 on time.
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, the information contained may not be comprehensive. Furthermore, it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
There are two types of grant available.
Firstly, there are grants available for business required to close in England and secondly, there are also grants for businesses not required to close but have been severely disrupted by Tier 2 restrictions in England.
Cash Grants for business required to close in England
Cash grants to businesses required to close in England are being increased. These cash grants are to support business owners with fixed costs; those costs payable even if the business is closed.
Grants will be linked to rateable values of business premises and will be paid every two weeks. This should provide extra financial support to businesses across the hospitality sector that are required to close due to COVID restrictions.
Cash Grants for businesses severely disrupted by Tier 2 restrictions in England (such as Essex)
Additional government funding is being provided to local authorities to support businesses in Tier Two lockdown. These will be businesses which are not legally closed, but which are severely impacted by restrictions on socialising.
The changes will be welcomed by affected concerns in the hospitality sector who will now receive 70% of the grants paid to businesses legally closed.
Benefits for Tier 2 businesses
Grants available will be based on the rateable value (RV) of business premises:
Claims can be back-dated to the point at which these restrictions began.
Affected businesses should contact their Local Authority to determine the amount and date that they should start to receive this additional support.
Possible support for businesses not in the business rates system
Local Authorities in England are also being funded – a 5% top-up – to help businesses affected by partial lockdown who may not be registered with rated business premises.
Affected businesses should contact their local authority to see if funding will be made available.
Visit your local council’s website to find out how to apply:
Find the website for your local council.
Please note
This is not a complete list of eligibility requirements; further guidance will be published by the Government shortly
Any payments received from the government will be taxable.
As with other government grants, HMRC will check claims and demand repayments of any claims made incorrectly or fraudulently.
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, the information contained may not be comprehensive. Furthermore, it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
The Chancellor Rishi Sunak yesterday outlined additional government support to provide certainty to businesses and workers impacted by coronavirus across the UK.
Delivering a speech in Parliament, the Chancellor announced a package of measures that will continue to protect jobs and help businesses through the uncertain months ahead as we continue to tackle the spread of the virus.
The package includes a new Jobs Support Scheme to protect millions of returning workers, extending the Self Employment Income Support Scheme and 15% VAT cut for the hospitality and tourism sectors, and help for businesses in repaying government-backed loans.
The package of measures, which applies to all regions and nations of the UK, includes:
Support for workers
A new Job Support Scheme will be introduced from 1 November to protect viable jobs in businesses that are facing lower demand over the winter months due to coronavirus.
Under the scheme, which will run for six months and help keep employees attached to the workforce, the government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand.
Employers will continue to pay the wages of staff for the hours they work – but for the hours not worked, the government and the employer will each pay one third of their equivalent salary.
This means employees who can only go back to work on shorter time will still be paid two thirds of the hours for those hours they can’t work.
In order to support only viable jobs, employees must be working at least 33% of their usual hours. The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month.
The Job Support Scheme will be open to businesses across the UK even if they have not previously used the furlough scheme, with further guidance being published in due course, which we will then update you, when we have this information.
It is designed to sit alongside the Jobs Retention Bonus and could be worth over 60% of average wages of workers who have been furloughed – and are kept on until the start of February 2021. Businesses can benefit from both schemes in order to help protect jobs.
In addition, the Government is continuing its support for millions of self-employed individuals by extending the Self Employment Income Support Scheme Grant (SEISS). An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to actively trade but face reduced demand due to coronavirus.
The initial lump sum will cover three months’ worth of profits for the period from November to the end of January next year. This is worth 20% of average monthly profits, up to a total of £1,875.
An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from February 2021 to the end of April.
Tax cuts and deferrals
As part of the package, the government also announced it will extend the temporary 15% VAT cut for the tourism and hospitality sectors to the end of March next year.
In addition, up to half a million business who deferred their VAT bills will be given more breathing space through the New Payment Scheme, which gives them the option to pay back in smaller instalments. Rather than paying a lump sum in full at the end March next year, they will be able to make 11 smaller interest-free payments during the 2021-22 financial year.
On top of this, around 11 million self-assessment taxpayers will be able to benefit from a separate additional 12-month extension from HMRC on the “Time to Pay” self-service facility, meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.
Giving businesses flexibility to pay back loans
If you were a business who took out a Bounce Back Loan, you can now pay this through the new Pay as You Grow flexible repayment system. This will provide flexibility for those repaying a Bounce Back Loan.
This includes extending the length of the loan from six years to ten, which will cut monthly repayments by nearly half. Interest-only periods of up to six months and payment holidays will also be available to businesses.
The government also intend to give Coronavirus Business Interruption Loan Scheme lenders the ability to extend the length of loans from a maximum of six years to ten years if it will help businesses to repay the loan.
In addition, the Chancellor also announced he would be extending applications for the government’s coronavirus loan schemes. The extension aligns all the end dates of the schemes to 30 November, ensuring that there is further support in place for those who may need it.
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
The Coronavirus (COVID-19) Self-Employment Income Support Scheme – Second Grant
Updated 12 August 2020
Action Required before 19 October 2020
The government recently announced that the Self Employed Income Support Scheme (SEISS) has been extended. The first grant covered a three month period to 13 July 2020. The second grant will cover the three months commencing 14 July 2020.
If you were eligible for the first grant and can confirm to HMRC that your business has been adversely affected on or after 14 July 2020, you’ll be able to make a claim for a second and final grant from 17 August 2020.
The scheme allows you to claim a second and final taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total.
As with the first grant HMRC will contact you if you’re eligible. HMRC will work out your eligibility for the second grant in the same way as the first grant.
You can make a claim for the second grant if you’re eligible, even if you did not make a claim for the first grant. Please note that if you received a grant for the first period this does not give you automatic rights to claim for the second period.
There are two things you will need to consider:
What are the qualifying conditions for the second grant under SEISS?
The qualifying conditions are the same as those for the first grant, which can be found on our website but because time has moved on, you may have qualified for the first grant but not the second.
Are you eligible?
You will need to consider if your self-employment continues to be adversely affected by COVID disruption after 14 July 2020. The factors that you should examine are:
Additionally,
HMRC provides examples of situations were a business affected here.
If you do not fit any of the above criteria, for the three months beginning 14 July 2020, you may not be eligible to make a further claim under SEISS.
Eligibility checker
Last time on HMRC website they had an eligibility checker that was open for anyone to use, not just those who have been contacted by HMRC. We presume that this will be the same for the second grant.
You will need to enter your self assessment (UTR) and national insurance number and the checker confirms whether HMRC believes you may be eligible or not. You will not need to enter any information about your income and it does not require you to log in to your government gateway account if you have one. The checker will also confirm the date and time you can make the claim (the dates and times are randomly allocated by HMRC to manage demand on the system).
How do you make a claim?
The online service is not currently available yet. If you’re eligible you’ll be able to make a claim for a second and final grant from 17 August 2020. Just like with the first grant the government will open a portal on their website, so you can repeat the exact process you had to undertake to claim previously.
After 17 August 2020, if you want to claim the second and final grant you must make your claim on or before 19 October 2020.
To claim you’ll need the following:
You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus on or after 14 July 2020.
Please note that you must make the claim yourself. As your tax agent unfortunately we must not claim on your behalf as this will trigger a fraud alert, and you will have to contact HMRC. This will cause a significant delay to you receiving your payment. However we are able to advise you on how to make the claim, if you are unsure on how to do this.
What if I could not claim for the first grant but circumstances have changed
If you were not able to claim for the first SEISS grant to 13 July 2020, but you are now adversely affected – and you meet all other eligibility criteria – you should be able to claim the second grant.
Not sure if you can claim?
If you find yourself unable to decide if you can claim for the second grant, we can help.
Most of the information required we already have as your tax advisers, and we are used to dealing with the application processes.
Deadline
If you want to claim the second and final grant you must make your claim on or before 19 October 2020
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Grant Number One
Update 11 July 2020
Urgent action required by 13 July 2020.
Further to our update of 3 June 2020.
Urgent action required by 13 July 2020. If you’re eligible and want to claim the first grant you must make your claim on or before 13 July 2020. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
We strongly recommend referring to our update of 13 May 2020 for detailed guidance on the eligibility criteria and how to apply.
If you need to set up a government gateway account HMRC have now made the process quicker and we recommend that you do this through the eligibility checker, rather than at the application stage as was originally the plan.
When creating an ID through this service, you will be asked to verify your identity by providing details from your driving licence photocard or your UK passport. If you are without either of these documents will be asked for a piece of financial information, for example, the date you set up a mobile phone contract.
When a government gateway ID is created as part of this service (eligibility checker) there is no requirement for an authentication code (PIN) to be sent in the post. The usual method of creating a government gateway account through any other route on gov.uk, would mean further delays waiting for an authentication code (PIN).
Those that are unable to claim online should contact HMRC for help on 0800 024 1222.
This helpline is also available for other Self-employed Income Support Scheme related queries, but demand is likely to be high and it should be used only where it has not been possible to resolve queries or to request a review using the online guidance and systems. HMRC has asked that this webchat link webchat be used in preference to phoning, to help it manage demand.
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Last week Chancellor Rishi Sunak delivered his summer statement. His focus was on recovering from the economic harm caused by Coronavirus and a “plan for jobs”.
His four main themes were:
Job Retention Bonus
The Chancellor has announced a bonus for employers who have used the Coronavirus Job Retention Scheme (CJRS) who continue to employ these staff.
Employers will be able to claim the bonus from February 2021 once 31 January 2021 payroll has been processed and RTI data has been received by HMRC.
More information about this scheme will be available by 31 July 2020 and full guidance will be published in the autumn.
VAT Cut
Businesses in the hospitality and tourism industry have been granted a cut in VAT, from 20% to 5% for the next 6 months (from 15 July 2020 to 12 January 2021).
The businesses this will impact:
Kickstart Scheme
The “kickstart scheme” is a £2 billion fund to create hundreds of thousands of high quality 6-month work placements aimed at those aged 16-24 who are on Universal Credit and are deemed to be at risk of long-term unemployment.
The payment will cover the national minimum wage for up to 25 hours per week, plus National Insurance and pension contributions. Employers can top this up.
Job Support
High quality traineeships for young people – £1,000 grant per trainee for employers in England.
Payments for employers who hire new apprentices:
Stamp Duty
Stamp Duty Land Tax (SDLT) threshold increased from £125,000 to £500,000 until 31 March 2021 (the threshold under which no SDLT is paid on the purchase of a main home).
Eat Out to Help Out
There’s a new scheme called “Eat out to help out” which offers diners 50% discount on their bill. Which is aiming to attract more people to eat out during August.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
The coronavirus (COVID-19) Self-Employment Income Support Scheme – Update 3 June 2020
Urgent action required by 13 July 2020.
Further to our emails dated 27 March 2020, 4 May 2020, 12 May 2020 and 13 May 2020.
The Chancellor announced on Friday (Friday 29 May 2020) that the government’s Self-employment Income Support Scheme (SEISS) is changing.
Here are the main points from the announcement:
Further guidance on the second grant will be published on Friday 12 June.
Urgent action required by 13 July 2020. If you’re eligible and want to claim the first grant you must make your claim on or before 13 July 2020. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
Please refer to our previous e-mails for detailed guidance on the eligibility criteria.
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Coronavirus Job Retention Scheme – Update 3 June 2020
Further to our emails dated 16 April 2020 and 12 May 2020.
Urgent action required before 10 June 2020.
The Chancellor announced on Friday (Friday 29 May 2020) that the government’s Coronavirus Job Retention Scheme (CJRS) is changing.
https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme
Here are the main points from the announcement:
From August the government grant provided through the job retention scheme will be slowly tapered, with the employer bearing some of the cost of furloughed wages
An initial condition of the scheme was that furloughed workers were unable to do any work for their employer, but from the start of July (originally August but brought forward to July), furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.
When we have more detailed guidance we will of course update you.
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Further to the information provided on 12 May 2020.
We wanted to update you on the further changes to Self-Employment Income Support Scheme.
As we advised yesterday the eligibility checker can be used at any time to check that date and time. There is, at the moment, no deadline by which claims must be made. Payments will be made by 25 May or within six days of the claim being submitted.
If you need to set up a government gateway account HMRC have now made the process quicker and we recommend that you do this through the eligibility checker, rather than at the application stage as was originally the plan.
When creating an ID through this service, you will be asked to verify your identity by providing details from your driving licence photocard or your UK passport. If you are without either of these documents will be asked for a piece of financial information, for example, the date you set up a mobile phone contract.
When a government gateway ID is created as part of this service (eligibility checker) there is no requirement for an authentication code (PIN) to be sent in the post. The usual method of creating a government gateway account through any other route on gov.uk, would mean further delays waiting for an authentication code (PIN).
HMRC has also updated its guidance on how different circumstances affect claims, please follow this link, for further details https://www.gov.uk/guidance/how-different-circumstances-affect-the-self-employment-income-support-scheme
Those that are unable to claim online should contact HMRC for help on 0800 024 1222.
This helpline is also available for other Self-employed Income Support Scheme related queries, but demand is likely to be high and it should be used only where it has not been possible to resolve queries or to request a review using the online guidance and systems. HMRC has asked that this webchat link webchat be used in preference to phoning, to help it manage demand.
Also please note that HMRC advises taxpayers to keep a copy of the calculation and a record of the claim reference number. It is also important to keep evidence that the business has been adversely affected by coronavirus such as:
Please also watch the following HMRC video on a step by step guide on how to apply:
https://www.youtube.com/watch?v=nRNKONgLqhg&list=PL8EcnheDt1zhTsyhT9ak3xiXnmlvbHJJV&index=8
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice. Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Further to the information provided on 4 May 2020.
We wanted to update you on the Self-employment Income Support Scheme.
Preparing to Claim – Urgent Action Needed
This week the Self-employment Income Support Scheme Grant online application goes live. Applications will open on a staged basis to taxpayers between 13 and 18 of May. HM Revenue & Customs started to send out Emails, SMS messages and letters to taxpayers who they think may be entitled to claim the Self-employment Income Support Scheme (SEISS).
Please note that to guard against fraud the emails and SMS messages from HM Revenue & Customs do not include active links. If you receive an email or SMS purporting to come from HM Revenue & Customs which includes an active link, that email or SMS is a scam.
HM Revenue & Customs are contacting all those who may be eligible, but not everyone that HM Revenue & Customs contact will in fact be eligible. HM Revenue & Customs have selected cases based on the information in the self assessment tax returns filed by the taxpayers and have carried out the necessary calculations and eligibility checks based on those figures. However, HM Revenue & Customs will not necessarily know whether you meet the following conditions of the scheme:
Eligibility checker
The eligibility checker is open to anyone to use, not just those who have been contacted by HM Revenue & Customs.
You will need to enter your self assessment Unique Taxpayer Reference (UTR) and National Insurance Number (NINO) and the checker confirms whether HM Revenue & Customs believes you may be eligible or not. You will not need to enter any information about your income and it does not require you to log in to your government gateway account if you have one. The checker will also confirm the date and time you can make the claim (the dates and times are randomly allocated by HM Revenue & Customs to manage demand on the system).
You can check if you are eligible here using HMRC’s eligibility checker
Below is a video from HMRC to show how to use the eligibility checker:
https://www.youtube.com/watch?v=3X4oMjIY0Bs&feature=youtu.be
Government Gateway Account
If you are eligible you will need to log on to your Government Gateway account, please note that we file our clients’ tax returns using secure software, therefore most of our clients either rarely need to use their Government Gateway account or perhaps do not have one. We do not know your Government Gateway account User ID and Password or indeed if you even have one.
This link takes you to the relevant page to sign in:
https://www.gov.uk/log-in-register-hmrc-online-services
Then click on green “sign-in” button, and then click on “continue to your account”
If you can not sign in, this page has 5 different links:
Please note when creating an ID through this service, you will be asked to verify your identity by providing details from your driving licence photocard or UK passport. If you are without either of these documents will be asked for a piece of financial information, for example, the date you set up a mobile phone contract.
How to apply
Once you have a date and time you can then log in to your government gateway account (or select the option to create an account) to complete the application process. You will be presented with a detailed calculation and will be asked to:
You will not need to provide any information about your income – the calculations are all done by HM Revenue & Customs based on the tax returns submitted. HM Revenue & Customs will check the claim and expects to make payments from 25 May 2020 within six working days of the application being submitted, whichever is later.
Criteria
Your self-employed trading profits must also be less than £50,000 and more than half of your income comes from self-employment. This is determined by at least one of the following conditions being true:
If you started trading between 2016-17 and 2018-19, HM Revenue & Customs will only use those years for which you filed a Self-Assessment tax return.
Here is the link to all the details on HM Revenue & Customs website:
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Further to the information provided on 16 April 2020.
The government’s Coronavirus Job Retention Scheme will remain open until the end of October, the Chancellor announced today (Tuesday 12 May 2020).
Here are the main points from the announcement:
Rishi Sunak said the furlough scheme would be extended by a further four months with workers continuing to receive 80% of their current salary.
A current condition of the scheme is that furloughed workers are unable to do any work for their employer, but from the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.
The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.
The scheme will continue in its current form and will continue to apply across all regions and sectors in the UK economy until the end of July, the changes to allow more flexibility will come in from the start of August. More specific details and information around its implementation will be made available by the end of this month.
When we have more detailed guidance we will of course update you.
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Further to the information we provided on 18 March 2020
The government have announced some new funding for those who missed out on the small business grants but that do have ongoing property costs.
https://www.gov.uk/government/news/top-up-to-local-business-grant-funds-scheme
Summary
Criteria:
How to Apply
Contact your local authority, but bear in mind that this is a very new scheme and procedures may not yet be in place to process these claims.
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
The Coronavirus (COVID-19) Self-employment Income Support Scheme
Further to the information provide on 27 March 2020.
We wanted to update you on the Self-employment Income Support Scheme.
Preparing to Claim – Urgent Action Needed
HM Revenue & Customs have unfortunately announced that, we as your tax agent cannot make the claim for you.
You must make the claim yourself.
In order to do this it seems likely that you will need a Government Gateway account.
We file our clients’ tax returns using secure software, therefore most of our clients either rarely need to use their Government Gateway account or perhaps do not have one. We do not know your Government Gateway account User ID and Password or indeed if you even have one.
It is important that you:
This link takes you to the relevant page to sign in:
https://www.gov.uk/log-in-register-hmrc-online-services
Then click on green “sign-in” button, then click on “continue to your account”
If you can not sign in, this page has 5 different links:
Scheme Summary
The Coronavirus (COVID-19) Self-employment Income Support Scheme
The support is open to self employed people and also partners in a business partnership. It is not open to Limited Companies.
Who can apply
But as you would expect there are criteria, which inevitably excludes some people.
Your self-employed trading profits must also be less than £50,000 and more than half of your income comes from self-employment. This is determined by at least one of the following conditions being true:
If you started trading between 2016-17 and 2018-19, HMRC will only use those years for which you filed a Self-Assessment tax return.
How much
You’ll get a taxable grant which will be 80% of the average profits from the tax years mentioned above (ie 2016-17 to 2018-19).
It will be up to a maximum of £2,500 per month for 3 months.
HMRC will pay the grant directly into your bank account, in one instalment.
When
The grants will start to be paid from the beginning of June.
How to apply
You cannot apply for this scheme yet. HMRC will contact you if you are eligible for the scheme and invite you to apply online.
After you’ve applied
Once HMRC has received your claim and you are eligible for the grant, they will contact you to tell you how much you will get and the payment details.
Limited Companies
Many small businesses operate as Limited Companies rather than as self employed.
Please note that a sole director of a limited company is not self employed so cannot claim a grant through the Coronavirus (COVID-19) Self-employment Income Support Scheme as this relates specifically to sole traders and partnerships.
If you’re a director of your own company and paid through PAYE you may be able to get support using the Job Retention Scheme, but I’m afraid that for most directors this help will be difficult to obtain and also of minimal value.
https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Further to information we provided on 28 April 2020.
The Coronavirus Bounce Back Loan scheme goes live today.
This scheme will help small and medium-sized businesses affected by Coronavirus (COVID-19) to apply for loans of up to £50,000.
Summary
Criteria:
How to Apply
Follow this link to apply:
Or visit your bank’s website.
Coronavirus Business Interruption Loan Scheme
Prior to the announcement of the Coronavirus Bounce Back Loan, businesses were able to apply for the Coronavirus Business Interruption Loan Scheme (CBILS), a scheme announced on Wednesday 11 March 2020 during The Budget.
If you’ve already received a loan of up to £50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020.
If the Coronavirus Bounce Back Loan is not suitable for you, then the Coronavirus Business Interruption Loan Scheme might still be.
Criteria:
https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Last night (Monday 27 April 2020) the Chancellor announced some new support for small businesses.
This scheme will help small and medium-sized businesses affected by coronavirus (COVID-19) to apply for loans of up to £50,000.
https://www.gov.uk/government/news/small-businesses-boosted-by-bounce-back-loans
Summary
The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000 for up to 6 years.
There won’t be any fees or interest to pay for the first 12 months and no repayments will be due during the first 12 months.
The loans are not from the government, but the government will guarantee 100% of the loan. The scheme will be delivered through a network of accredited lenders and the government will work with lenders to agree a low rate of interest for the remaining period of the loan.
Criteria:
We expect the government to provide more details over the coming days.
The following points are not mentioned within the official guidance we currently have, but have been reported in the media:
How to Apply
The Bounce Back Loan scheme will launch on Monday 4 May 2020.
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
Coronavirus Business Interruption Loan Scheme
Prior to the announcement of the Coronavirus Bounce Back Loan, businesses were able to apply for the Coronavirus Business Interruption Loan Scheme (CBILS), a scheme announced on Wednesday 11 March 2020 during The Budget.
If you’ve already received a loan of up to £50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020.
If the Coronavirus Bounce Back Loan is not suitable for you, then the Coronavirus Business Interruption Loan Scheme might still be.
Criteria:
https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Further guidance has now been issued on how to make a claim under the Coronavirus Job Retention Scheme.
Background
HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per person per month, plus the associated Employer National Insurance contributions and basic employer pension contributions on that subsidised furlough pay.
This is a temporary scheme in place for three months starting from 1 March 2020, but it may be extended if necessary and employers can use this scheme anytime during this period (Update on 17 April 2020: Scheme now extended to 30 June 2020).
This link provides more detailed guidance from HMRC:
https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
This link provides more guidance from The Advisory, Conciliation and Arbitration Service, also known as ACAS. ACAS gives employees and employers free, impartial advice on workplace rights, rules and best practice:
https://www.acas.org.uk/coronavirus
In particular they have provided a free to download and use template for an agreement to temporarily send home an employee because there’s no work (‘furlough’).
https://www.acas.org.uk/furlough-letter-template
How Much to Claim
You should make your claim using the amounts in your payroll, either shortly before or during the running of your payroll. Claims can be backdated until the 1 March where employees have already been furloughed.
If appropriate, worker’s wages should be reduced to 80% of their salary within your payroll before they are paid. This adjustment will not be made by HMRC.
Your employees will still pay the taxes they normally pay out of their wages. This includes pension contributions (both employer contributions and automatic contributions from the employee).
HMRC will check your claim, and if you’re eligible, pay it to you by BACS to a UK bank account (this should take 6 working days).
Preparing to Claim – Urgent Action Needed
You will be able to claim funding from the government using a new portal if you have furloughed any of your employees. Although we have not yet been given full guidance from HMRC, it appears that the funding will need to be claimed through the government gateway service for employers. You will, therefore, need to make sure you have access to your PAYE online account.
In order to make sure that you can claim as soon as possible, the launch will be on 20 April, please take the following action now.
If you already have a government gateway account, please log in to make sure it works, and your password is correct or is renewed. Then ensure that PAYE Online for Employers is listed as a service that you can use. If it is not, please follow the instructions to add it. You will need your PAYE reference number and accounts office reference number to hand when you do.
If you do not have a government gateway account already, please visit https://www.gov.uk/log-in-register-hmrc-online-services to do so. An activation code will need to be posted to you which is why we suggest you action this now.
Even if we prepare your payroll for you, we still recommend that you follow these steps, as unfortunately HMRC do not allow us as your agent to undertake certain tasks, and this may be one of them.
Please do not hesitate to contact us if you require any assistance with PAYE online services.
Making a Claim
Before making your claim please gather together the following information.
If you have fewer than 100 furloughed staff you will be asked to enter details of each employee you are claiming for directly into the system, this will include.
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Last night (Thursday 26 March 2020) the government announced their plans to support self employed people.
The coronavirus (COVID-19) Self-employment Income Support Scheme
The support is open to self employed people and also partners in a business partnership. It is not open to Limited Companies.
Who can apply
But as you would expect there are criteria, which inevitably excludes some people.
Your self-employed trading profits must also be less than £50,000 and more than half of your income comes from self-employment. This is determined by at least one of the following conditions being true:
If you started trading between 2016-17 and 2018-19, HMRC will only use those years for which you filed a Self-Assessment tax return.
If you have not submitted your tax return for the tax year 2018-19, you must do this by 23 April 2020, but be warned that HMRC are likely to look very closely at these late returns because they are the ones most likely to contain fraud.
How much
You’ll get a taxable grant which will be 80% of the average profits from the tax years mentioned above (ie 2016-17 to 2018-19).
It will be up to a maximum of £2,500 per month for 3 months.
HMRC will pay the grant directly into your bank account, in one instalment.
When
The grants will start to be paid from the beginning of June.
How to apply
You cannot apply for this scheme yet. HMRC will contact you if you are eligible for the scheme and invite you to apply online.
Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.
You will access this scheme only through GOV.UK. If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam.
After you’ve applied
Once HMRC has received your claim and you are eligible for the grant, they will contact you to tell you how much you will get and the payment details.
Limited Companies
Many small businesses operate as Limited Companies rather than as self employed.
Please note that a director of a limited company is not self employed so cannot claim a grant through the coronavirus (COVID-19) Self-employment Income Support Scheme as this relates specifically to sole traders and partnerships.
If you’re a director of your own company and paid through PAYE you may be able to get support using the Job Retention Scheme, but I’m afraid that for most directors this help will be difficult to obtain and also of minimal value.
https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Last night (Friday 20 March 2020) the Chancellor stood in 10 Downing Street and announced some new support for small businesses.
We have summarised these below (please also refer to our update from Wednesday 18 March 2020).
Coronavirus Job Retention Scheme
HMRC will reimburse 80% of furloughed (basically another word for temporarily redundant) workers wage costs, up to a cap of £2,500 per person per month.
HMRC are working urgently to set up an online system for reimbursement as currently their systems are not able to facilitate payments to employers.
Other Information:
VAT and Income Tax Deferral
VAT
You will not have to pay any VAT until at least 30 June 2020.
Any unpaid VAT that has accumulated up to 30 June 2020 must then be paid by 5 April 2021.
Income Tax
The self-assessment tax payment you should be making on 31 July 2020 has been deferred until 31 January 2021.
Other Information:
To reiterate these are deferrals not write offs, so both the tax and the VAT will still be payable.
The Time to Pay helpline has fallen over a number of times this week and has been unable to cope, so this relief is something that was already happening in practice anyway.
Support for businesses through the Coronavirus Business Interruption Loan Scheme
The interest free period on loans under this scheme was extended from 6 to 12 months.
Measures already announced
As far as we can see all of the rest of the reliefs announced in the budget on Wednesday 11 March 2020 and by The Chancellor on Tuesday 17 March 2020 have stayed the same.
You can get full details of everything that is currently available to small businesses:
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
In light of the ever-changing situation around Covid-19, we wanted to share with you what support and help there is available.
Steven Burton & Co Support…
Firstly, we’re here to help, even if that is just to act as a sounding board. Please let us know if you need any support and we can chat it through.
The whole team is now working from home. We have undertaken remote working since 2015, so this is nothing new to us. All team members have remote access to our office servers and telephone lines will be open as usual. Should your call go through to voicemail, please leave us a message, we will return your call.
If you need to drop something into the office, please call 01787 329709 before you leave to make sure there will be someone in to meet you. We would however encourage you to send us documents electronically (using Receipt Bank or Dropbox).
All meetings going forward will be moved to the telephone or a video call (using Microsoft Teams, Zoom, WhatsApp, or FaceTime). We’ll ask what you prefer when we book the appointment.
We will issue any updates on Government financial action by e-mail and on our social media channels.
Facebook – https://www.facebook.com/pg/stevenburtonco/about/
Twitter – https://twitter.com/stevenburtonco
Review your cashflow, overheads & capital expenditure
If you are predicting cashflow difficulties it is important to review your expenditure.
The first thing to do is categorise expenditure (both personal and business) into “essential” and “nice to have”. Once you have those numbers you can better appraise your situation and we can support you further with short term cash flow forecasts.
It is sensible to review your overheads & future capital expenditure in the business and pause any spending you feel may not be necessary at this time.
HR Department
Our clients at Steven Burton & Co Ltd have access to Employment Law, Health & Safety and Legal Advice support. If you need any support relating to these areas, please call us for further details.
Our professional body have released the following guidance:
Whats the priority for employers
Funding Support…
Your own Bank
Contact your own bank, either your dedicated manager if you have one or your business call centre to discuss your options should you need a new or increased overdraft limit, asset finance, credit cards or other forms of temporary finance.
Other potential funding sources
Please note these are only a few of the options available to you and these do not form a recommendation by Steven Burton & Co.
Capital On Tap – https://www.capitalontap.com/en/
Capitalise – https://capitalise.com/
Funding Circle – https://www.fundingcircle.com/uk/
Iwoca – https://www.iwoca.co.uk/
NatWest Rapid Cash – https://rapidcash.natwest.com/
Satago – https://www.satago.com/
Turning now to the Government support…
Grants
The government will provide an additional £2.2 billion funding for local authorities to support small businesses that already pay little or no Business Rates because of Small Business Rate Relief (SBBR). This will provide a one-off grant of £10,000 (previously announced at £3,000 in the budget) to around 700,000 businesses currently eligible for SBRR or Rural Rate Relief, to help meet their ongoing business costs. For a property with a rateable value of £15,000, this represents 2/3rd of their rateable value, or comparable to roughly 8 months of rent.
In response to the Prime Minister’s previous announcement to limit social contact in pubs and restaurants, the Chancellor has extended 100% business rates relief for 12 months for all businesses within the retail, leisure and hospitality sectors (this includes hotels, restaurants and coffee bars), regardless of size. In addition, companies with a rateable value of less than £51,000 will be eligible for a cash grant of up to £25,000. Further details are expected within a few days.
The discount that pubs receive on their business rates will increase from £1,000 to £5,000, as long as their rateable value is below £100,000 in England.
Loans
In the Budget 2020, the Chancellor announced that a ‘Coronavirus Business Interruption Loan Scheme’ (CBILS) will temporarily replace the Enterprise Finance Guarantee (EFG), becoming available over the coming weeks.
It will operate in a similar way to EFG and be provided by the British Business Bank, but will offer more attractive terms for both businesses and lenders, with the aim of supporting the continued provision of finance to UK businesses during the Covid-19 outbreak.
As it stands, we do not know any more than this. More information will be available in the coming days and weeks, please click on the link below for updated advice:-
Our professional body have released the following guidance:
HMRC and Time to Pay
HMRC have launched a helpline to help businesses concerned about paying their tax due to coronavirus (COVID-19). Again, this appears to be a “work in progress”. You will find more details below, but if you have any concerns about making payment to the tax authorities please call us immediately for support.
For the most part we have found them to be very sympathetic in coming to arrangements, and in many cases waiving penalties. However, in our experience HMRC will generally ask if you have approached your bankers for assistance first.
Official guidance for employers
For HMRC’s guidance for employers, please follow the link below:-
Statutory Sick Pay SSP Support
To support businesses experiencing increases in costs or financial disruptions:
The government will bring forward legislation to allow small and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19.
The eligibility criteria for the scheme will be as follows:-
The government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible. Existing systems are not designed to facilitate employer refunds for SSP.
The information above has been taken from the following Source:-
Again, it is unclear how this will be organised and how quickly the payroll software will catch up with the situation.
We are more than happy to discuss your individual circumstances and advise on the best way forward.
Compliance Reporting…
We may see some recommendations from the accounting bodies in the coming days for relaxation on filing deadlines for annual accounts and corporation tax. We will monitor these and keep you updated accordingly.
Landlords
The Residential Landlords Association & National Landlords Association are encouraging all landlords to work positively with tenants to provide support where needed throughout this difficult period. Landlords should be as flexible as they can to help tenants facing payment difficulties resulting from the impact of the coronavirus.
This is a useful link:
https://www.rla.org.uk/campaigns/coronavirus/
Mortgage & Loan Payments
It has been reported that banks have agreed with the Chancellor that they will offer ‘forbearance’ (tolerance and help) on mortgages. This means they all should offer those struggling a three-month ‘holiday’, allowing customers a temporary break from having to make mortgage payments during this time.
This is a useful link for consumer finance advice:
https://www.moneysavingexpert.com/news/2020/03/uk-coronavirus-help-and-your-rights/
Finally…
We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.
The Steven Burton & Co team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.
This material has been prepared for informational guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive. Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.
Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.
Our friendly customer service team are on hand to help with any queries you may have.
01787 329 709
info@stevenburtonandco.com