TAXES

31 January 2021 is the deadline for submitting personal tax returns and paying any tax due. There’s a minimum £100 penalty for late submission and HMRC’s current position that there will be no extension to this deadline. HMRC's bank account is shown below, make sure you include your UTR (Tax Reference) with a K on the end as reference otherwise it will not be allocated to your account.

Sort code Account number Account name

08 32 10 12001039 HMRC Cumbernauld Reference: Your UTR with K (e.g. 1234567890K)

Companies with a year end of 31 March should have paid any tax due by 1 January 2021. Those with an April year end need to pay this month. There’s no automatic extension to this payment deadline; however, providing company accounts to Companies House, there has been given extra time to submit these.

Problems paying any tax? If not coronavirus related follow the normal HMRC Time To Pay guidance on https://www.gov.uk/difficulties-paying-hmrc and by ringing 0300 200 3822 (income tax) or 0300 200 3835 (any other taxes). If it is difficult to pay as a result of the pandemic, ring the coronavirus helpline on 0800 024 1222.

In March 2021, the Construction Industry Subcontractor Reverse Charge for VAT is due to start, after being delayed from 2020. This will affect subcontractors who are VAT registered and work for larger contractors in the building and construction industry. More information is available on https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services and from your accountant.

The chancellor recently announced that this year’s Budget Day will be on 3rd March 2021. It is expected that there will be statements on further coronavirus help (including the cost), changes in tax rules (and how the pandemic cost will be repaid) along with the usual economic reports.

TRADING WITH OTHER COUNTRIES

We are now outside of the Economic Union (EU) with a trade deal which will continue to evolve over the coming months. The current deal has mainly focussed on trade in goods, with basic duties and tariffs set at nil, although new documentation will need to be completed, this should now be the same for any overseas trade in goods. New rules for importing goods under £150 have been introduced by the UK government, providing several options in charging VAT and duties. It is expected that services, both physical and digital, will be included in a deal in the near future. If you trade with Northern Ireland, special rules apply. A checker is available on https://www.gov.uk/transition

LOCKDOWN GRANTS AND BUSINESS HELP

As a result of National Lockdown in most of the UK, additional grants have been made available. For those with rateable properties and are in the hospitality, retail or leisure business, a grant will be offered to you of up to £9,000* per property by your local authority and based on your rateable value. Those businesses that are legally required to close will be eligible, and those that offer click-and-collect will still be able to claim.

For those that do not fall into this category, discretionary grants will be made available by applying to your local authority and will be based on the individual needs of a business.

These grants will be administered by local authorities. If you are eligible, they will contact you in the next few weeks. For the discretionary grants you should look on your local authority website on how to apply – note that as this is a new scheme, you should expect a wait of a few days before this information will be fully available and applications can be made. Please be patient with them and their staff. You can follow the latest if you live in the Chesterfield region on CBC’s website https://www.chesterfield.gov.uk/business-and-economic-growth/business-grants-and-support.aspx or find your own local authority via https://www.gov.uk/find-local-council

The 80% grant for furloughing of employees is expected to continue until the end of March, and carry on in the same way as it has done since October.

Government backed loans (bounce-back loans) continue to be claimable through lenders, with the application process extended to March.

You can find out what your business may be eligible for via an online checker https://www.gov.uk/business-coronavirus-support-finder

There has been no changes for those that have been ineligible for previous grants and help, such as those self employed after April 2019, property rental, low paid directors etc. and as such, they are unfortunately still left out. The third self employed grant must be claimed before 29 January.

* the one-off top-ups will be granted to closed businesses as follows:

£4,000 for businesses with a rateable value of £15,000 or under

£6,000 for businesses with a rateable value between £15,000 and £51,000

£9,000 for businesses with a rateable value of over £51,000

any business which is legally required to close, and which cannot operate effectively remotely, is eligible for a grant

SBA OFFICE UPDATE

As a result of the lockdown, the office cannot accept face-to-face meetings, however we are keeping office hours as close to normal for phone calls, video calls, emails, and the drop-off point for providing documents will still be available as it has been for some months. Whilst we will try to maintain as full a service as possible, there may be times when people will be unavailable or phone calls cannot be answered, but we ask for your patience and try again later. If you are making a special journey, please call beforehand, travel safely and within the guidelines. Cleaning gels are available at the reception entrance.

Whilst this is not the start to the New Year any of us would have liked, we wish you a happy 2021 and hope for an improved and prosperous one as the year progresses.

Trading With EU

The Brexit Transition period is due to end on 1 January 2021.

If you trade with EU countries, you may need to change your processes, especially if this involves transporting goods or providing digital services.

Transporting goods: you should apply for an EORI number to speed up the transaction, as your shipper may ask for this from 1 January 2021. If you already ship outside the EU, you will probably already have one of these. https://www.gov.uk/eori

Digital services: if you use the VATMOSS scheme, you may need to register with another EU country, such as Ireland, to continue to use this simplified system. You cannot do this before we leave the transitional arrangements on 1 January 2021.

If you charge VAT, this may change from the 1 January 2021 if you are selling or providing services to EU countries.

If you import and export a large amount, other processes may benefit you such as setting up or using a bonded warehouse. HMRC have provided some resources to help you: https://www.gov.uk/government/publications/hmrc-brexit-transition-communications-resources

If you are unsure if it will immediately affect you or your business, please go through the HMRC checker https://www.gov.uk/transition

Furloughing employees

The furlough scheme is continuing until April. As per our previous newsletters, the scheme is at 80% which is due to be reviewed at the end of January. Claims have to be made by the 14th of the following month. Part furlough is allowed.

Lockdown

Businesses forced to close may receive additional income from local authorities. Please check your local council website to see if they can provide you with any grant income in these tough times.

Personal Tax Returns

The deadline for submitting individual and partnership tax returns is the 31 January 2021. Penalties will be issued for late submissions.

Any income tax due is also due by the 31 January 2021, which may also include the July 2020 payment if you did not make this.

There is no automatic late payment option, but if you want time to pay due to coronavirus issues, then ring HMRC Coronavirus helpline in 0800 024 1222 to discuss arrangements to pay.

SBA

The office is due to re-open on the 4th January 2021 after the Christmas break, though this will depend on the ongoing coronavirus tier situation.

Have a good Christmas and all the best for 2021.

For those businesses forced to close as a result of local lockdowns and the national lockdown (in England), the application process is now open in some districts.

Chesterfield Borough Council are now taking applications for those businesses that have a business rates bill and now forced to close. You should look at the following website for more information and how to apply online.

https://www.chesterfield.gov.uk/benefits-and-advice/business-support-grants-local-restrictions-support-grant.aspx

If your rates bill is from a different council, you should check their website, then search for Local Restrictions Support Grant, or look under Coronavirus Business Help. As each council is different, their application process may be different and may not yet be open for applicants. Please be patient if this is the case and keep checking on their website until more information becomes available.

https://www.gov.uk/find-local-council

https://www.gov.uk/coronavirus/business-support

Job Retention Scheme Retained

80% of unworked wages will be paid to the employee and reimbursed by the government (up to £2,500 per month). Employer is responsible for paying the hours worked and all employer’s national insurance and pensions. The employee must be furloughed or partially furloughed for at least 7 days. Part time working is allowed.

Employer and/or employee do not need to have been in furlough scheme in past, but employee must be on payroll by 30 October 2020 and employer must have a PAYE scheme. Those made redundant after 23 September 2020 can be brought back onto payroll.

The scheme is due to continue until March 2021, with a review of the scheme in January 2021.

The £1,000 bonus payment due in February 2021 for keeping employees on between November 2020 and January 2021 has now been scrapped.

Self Employed Income Support Scheme (SEISS)

The third payment will now be based on 80% of average profits (capped at £7,500 claim), rather than 40% as proposed. Eligibility has not changed from the first two grants. Those that were not eligible for the first two are not eligible for the third. If eligible, you do not need to have made a claim for either of the first two in order to claim the third. This grant differs in that in order to claim, you must declare that the business has had ‘reduced demand’ as a result of the pandemic.

Claims are expected to start at the end of November.

(Main eligibility: sole trader or partner with less than £50,000 profits, submitted 2018/19 tax return before 23 April 2020, profits more than 50% of total taxable income, business still trading)

Local Government Lockdown Grants

Based on rateable value of business property, up to £3,000 per month for businesses forced to shut down will be available from your local authority, specifically the leisure and hospitality sectors. A discretionary grant may be available for those that do not have a rateable property, or are in a different business sector that are also required to close due to lockdown. These are being administered by local authorities who have the power to decide which businesses are eligible. Originally based on Tier 2 and Tier 3 local lockdown, this scheme will now be extended to cover national lockdowns. It is expected that local authorities will have information on this before the end of November.

Please follow your local authority website for updated information on when to apply. Chesterfield Borough Council can be seen at https://www.chesterfield.co.uk/business/business-support/coronavirus/

Other Grants

Grants not specifically linked to the pandemic, but rather business growth may also be available. If you are in the Derbyshire or Nottinghamshire region, the D2N2 fund may be available to you http://www.emb-group.co.uk/our-businesses/east-midlands-business/d2n2-growth-innovation-programme/

This and other schemes may be available throughout the region and in your local region.

There's still no specific help for limited companies and property rental businesses, or those that started after April 2019.

From 5 November, all areas in England will go into National Lockdown again, requiring some businesses to close, employees to work from home where possible, and travel restrictions.

Businesses required to close include non-essential retail (except for online deliveries or click-and-collect), indoor and outdoor leisure and entertainment venues, hairdressers and other personal care and beauty facilities, restaurants and bars other than to provide food and non-alcoholic drinks to take away, accommodation providers (hotels etc) other than for travellers for work purposes. Follow specific government guidance on whether your business can remain open or have to close. Those remaining open should be ‘covid-safe’.

https://www.gov.uk/guidance/new-national-restrictions-from-5-november

As a result, some of the schemes to help out will change. Below are some of the initial announcements made on Saturday 31 October, to be followed by more details in week commencing 2 November.

Furlough Scheme (Job Retention Scheme - JRS) which was due to end at the end of October will now continue through lockdown. The Job Support Scheme (JSS) which was due to take over will now be delayed until lockdown ends.

JRS is expected to  be the same as in August, where 80%  (up to £2,500) of unworked wages to be paid to employee by the employer then refunded via the grant by the government, with an employee able to work part time if they are able. National Insurance and Pensions payable by employer. Employer can top wages up to 100%.

The employer does not need to have used the furlough scheme (JRS) in the past, and an employee can be placed on furlough even if they weren’t furloughed before – the November claim is treated as a clean slate.

There has yet to be any announcement about the self-employment grant (SEISS) and whether this claim, due in mid-November, will change and be more generous.

If your business is forced to close and you hold suitable insurance, you should check to see if your policy still covers you for enforced closure. If you believe you have this cover but were previously refused, similar cases are going through the courts at the moment and you should consider looking at this again with your insurance provider and/or legal representative.

It might be possible for payment holidays of some loans/mortgages to be extended. Check with your lender or financial advisor once more guidance has been issued if you feel this may help you and whether it is available to you, but remember that interest will continue to build on unpaid amounts.

More guidance is expected in the week commencing 2 November as only general information has been provided so far.

Employers and Employees

The Job Retention Scheme (JRS) commonly known as the Furlough Grant Scheme, will end on 31 October 2020.

A new scheme will open on 1 November 2020 and is due to end on 30 April 2021, with a review in January 2021.

Full details will be released at the beginning of November – neither we, nor anyone else knows how this scheme will work until this guidance is released – but here is a brief overview of the scheme(s) so far.

There will be two schemes called the Job Support Scheme (JSS) Open and Job Support Scheme Closed.

Only employers that have a PAYE scheme and a UK bank account are eligible.

Employers that have publicly funded staff costs or are funded via public grants cannot apply for JSS.

Only employees that are on PAYE and recorded under RTI between 6 April 2019 and 23 September 2020 can receive JSS.

If the same employee has been re-hired after ceasing an employment that occurred during the dates above, they are also eligible.

 This is a new scheme and there is no requirement for previous furlough or claims under JRS.

JSS Open:

this is for employers with decreased demand (lower turnover) and will only likely to need to prove this via a financial impact test if they have over 250 employees.

Employee is working fewer hours than normal, but at least 20% of their normal working hours for at least 7 days – with written agreement from employee for the temporary working arrangements.

JSS Closed:

This is for employers that legally have to close as a direct result of government intervention (such as Tier 3 Very High Restrictions).

Eligible for employees required to cease work for a minimum of 7 days – with written agreement from the employee.

Claims can be made from 8 December. The employer will be responsible for paying national insurance and pensions.

Calculation will be based on last pay period before 23 September 2020 or 19 March 2020 (whichever is higher).

The employee will be paid:

Normally for the actual hours worked and

Two-thirds (66.7%) of their unworked hours.

The employer can claim back from the grant:

95% of the amount paid of the employee’s unworked hours (i.e. 95% of 66.7% unworked hours).

Once clear and final guidance has been provided by the government and HMRC, we will send employers additional information. It is expected that the scheme will be administered in much the same way as the JRS.

Tier 2 (HIGH)  and 3 (VERY HIGH) help

Hospitality businesses – local authorities will decide how much of this to distribute and eligibility. This is for hospitality, hotel / B & B, leisure businesses that do not have to close but severely affected:

For properties with a rateable value of £15,000 or under, grants of £934 per month.

For properties with a rateable value over £15,000 and below £51,000, grants of £1,400 per month.

For properties with a rateable value of exactly £51,000 and over, grants of £2,100 per month.

This is equivalent to 70% of the grant amounts given to legally closed businesses (worth up to £3,000/month).

Small grants available (5% of above) for other businesses affected but not included in rateable properties

In Very High Alert (Tier 3) areas, businesses will be supported by local authority grant of up to £3,000 per month (whether the business can stay open or required to close).

Grants will be backdated and cover the dates when the restrictions are in place.

Applications for all these grants will be via local authorities. They are currently setting up the application process and this is expected to be available some time in November. You should regularly check the local government website (for example, the Chesterfield region should go to https://www.chesterfield.gov.uk/your-council/coronavirus-information-hub/businesses-information.aspx

Expected to be reviewed in January by the government, and run until April 2021.

Change to Grant Claims

 Previous grants in relation to the pandemic have just had the requirement that you or your business have been negatively affected by the virus. Future grant claims may require proof that business has had negative impact on income / profitability. This is likely to be a decrease in turnover as compared to a comparable period via your VAT submissions or annual accounts. Penalties may be issued if this is not the case or figures have been manipulated to make it seem that way. HMRC are now starting to check some grant claims, such as the Job Retention Scheme, to ensure that claims have been made correctly.

Change to Self Employed Income Support Scheme rates

The third SEISS grant will now be based on 40% of profits, rather than 20% as originally announced. Criteria is the same as the first two, there’s no change to eligibility. Applications should be in mid-November and will be via the same application process as before. The fourth grant due in February has yet to be announced.

Reminder on Test and Trace Support

Those on low income who are asked to self isolate by NHS Test and Trace may be able to receive a one off £500. Again this is run by the local authority and details on how to apply will be on their website.

Budget 2020

The chancellor has cancelled the Winter Budget, so we are not expecting any announcements or changes in tax and allowances until next year’s Spring Budget at the earliest. Instead it was replaced with the Winter Economy Plan, explaining the changes to coronavirus help.

Self Employed Income Support Grant

Second Grant – claim before 19 October if you are adversely affected by coronavirus for the three month period from 14 July 2020. Eligibility and claim remains same as for first grant (even if you didn’t claim the first one you can claim this) but the claim is now 70% not 80%.

Third Grant -  for period November 2020 to January 2021 if your business continue to have financial issues as a result of coronavirus, the eligibility remains the same as the first two, but the payment will be three months profits at 20% (previously 70% and 80%). This is expected to be claimed in the same way, and same criteria, around mid-November.

Fourth Grant – if your business is financially affected in February to April 2021a final grant will be available early next year. Eligibility, grant amount and claims have yet to be announced.

Unfortunately, as things stand, if you are ineligible for the first grant, you cannot receive the second or third grant. All grants are capped and are taxable.

VAT Reverse Charge on Subcontractors

This scheme was originally due to start in April 2020, and was delayed until April 2021. If you are likely to be affected, you will have received a letter from HMRC with a flow chart explaining the scheme and when you may need to reverse charge VAT – this is when the contractor pays the VAT on your behalf. You only need to look at this if you and the contactor are VAT registered.

Income and Corporation Tax

Payments due in January 2021 (including any deferred July 2020 payments) will be able to ask for a 12 month ‘time to pay’ extension. It is not clear at this time whether this will be automatic or require application. We will update you in a future bulletin on this.

Any penalties and interest raised as a result of you having difficulties because of the coronavirus will be waived in the event of an appeal.

Limited companies who pay corporation tax do not have any automatic right to defer payments but can claim ‘time to pay’ if they have been affected by coronavirus by ringing the dedicated HMRC line 0800 024 1222.

VAT

For tourism and hospitality, the VAT cut to 5% has been extended to the end of March 2021.

If you deferred your VAT bill in March to June 2020, this was due to be paid by March 2021. You can apply to make 11 smaller repayments over 2021/2022 instead of a lump sum, which will be interest free.

IR35 / Personal Service Companies

Delayed from April 2020, these rules for private sector businesses are now due to start in April 2021; anyone working on behalf of the public sector are already under these rules. If you provide personal services through a business, then you may be affected. It will be up to the end user (your customer) to decide whether you should be employed or self-employed for the purposes of the work provided. The rules themselves have not changed, just who makes the decision (it was previously you but is now your contractor).

Bounceback Loans (and Business Interruption Loan Scheme)

The six year repayment is to be increased to 10 years for these type of loans. The application period has also been extended to the end of November.

Scam Phone Calls

Recently people have been receiving phone calls saying they are collecting taxes and if you don’t respond to them, a warrant will be issued for your arrest. This is a scam and you should not respond to these calls. If you do owe any taxes, you should make contact using the numbers you know to establish whether they require any additional information, but you should not respond to this automated message.

Job Retention Scheme and Job Support Scheme

The current scheme (the Job Retention Scheme or JRS) will end at the end of October. The Job Retention Bonus of £1,000 to employers who keep employees who took part in JRS on until the end of January 2021 will continue as before.

The JSS does not require that you previously used the JRS and is independent from previous JRS claims (if any have been made).

A new scheme will take place instead, the Job Support Scheme (JSS). An employee will no longer be able to be fully furloughed, they will have to be working for at least a third of their normal hours and be paid normally for these hours. There will be no government help for this payment.

The unworked hours will then be partially paid by the government, partially by the employer, and partially by the employee in that the unworked element will be paid as follows:

One third will be paid to the employee by the employer and the employer will be able to claim this back through the grant scheme

A second third will be paid to the employee by the employer out of business funds

The final third will remain unpaid and will need to be covered by the employee’s own savings

The grant is capped at £697.92 (monthly), plus National Insurance and pensions remain the employer’s responsibility.

The scheme is expected to run from November 2020 until April 2021.

As we did with the Job Retention Scheme, we will send a separate email towards the end of October to employers with additional information, the processes and charges involved.

Isolation Payment for Low Earners

For low earners that are required to self isolate for 14 days as a result of coronavirus, a £500 payment will be available as of 28 September. This is being run by the local councils and you will need to contact them to receive the payment. You will need proof that you were asked to self-isolate by Track and Trace, that you are unable to work from home and that you are eligible to claim. Although the scheme begins on 28 September, you are unlikely to be able to make a claim before 12 October as the systems have not been set up. Look on your local authority website for updates. This is only available in England.

Trading with the EU

As per our previous newsletter, the UK will no longer have the intermediary rules from the 1 January 2021. If you trade with the EU, either importing or exporting goods or services, then the way you run your business may change. https://www.gov.uk/transition

Capital Gains on Properties

Remember that as of April 2020, it has been a requirement that the sale of residential properties (other than your main home) be declared within 30 days of the sale along with an estimate of any Capital Gains Tax due.

If you rent out a property, you should also pay attention to the restrictions placed on you for evictions and removing tenants from your property. These may hinder your ability to sell your property or remove bad payers. https://www.gov.uk/government/publications/covid-19-and-renting-guidance-for-landlords-tenants-and-local-authorities

SBA

Whilst we are trying to keep the office open on fairly normal opening times, it has been necessary on occasion that the reception desk has been unmanned for short periods of time. We apologise for the inconvenience and ask that you try calling later or emailing your accountant or contact directly if this occurs.

Brexit

 Although the UK is now no longer a member of the EU, the country is currently in transitional arrangements which means that not much has changed.

At the end of 2020, this transitional arrangement is due to end and the way you trade with the EU may change.

If you haven’t already done so, you should follow the latest guidance on the gov.uk website and see if you need to start registering in order to continue trading. This is especially important if you buy or sell to any EU country or provide any services to them (including digital services).

You can also use the website to see how it may affect you personally.

As negotiations are ongoing, advice is constantly updating so you should check this guidance on a regular basis.

https://www.gov.uk/transition

Additional Grants

The government recently announced additional local funding for regional grants for between £1,000 and £5,000 to invest in new technology, equipment and professional advice in order to restart the business after the lockdown. Each district has its own scheme in place which you can find your nearest one here https://www.lepnetwork.net/local-growth-hub-contacts/

Derbyshire businesses should contact https://www.d2n2growthhub.co.uk/ for eligibility and claiming.

The Kickstart Scheme for employing younger people is also due to start shortly as it has been delayed. Details of the scheme are shown https://www.gov.uk/government/publications/a-plan-for-jobs-documents/a-plan-for-jobs-2020

The self-employment grant (SEISS) needs to be applied for no later than 19 October if you have continued to be negatively affected by the pandemic.

Remember all grants are taxable.

Employment

As the furlough grant (Job Retention Scheme) is coming to a close in October, it is worth remembering that the chancellor announced the £1,000 additional grant to employers for every employee that has been furloughed and is still employed at the end of January 2021 (subject to a minimum average monthly wage of £520). Additional guidance on this grant is due later in September.

SBA

Our office is now open from 9 – 5 most work days as we welcome our new morning receptionist Jules into the business. There are still restrictions on providing paperwork and visitor numbers are limited but you should be able to contact us in the usual manner and we encourage you to make an appointment first if you want to see one of us.

As a result of issues with our previous email provider, we have now moved to a more stable system. Although unlikely, if you are expecting a reply from us and have not received one recently, please contact us again as it may have gone missing.

VAT Deferment - reminder

VAT payments were automatically delayed for payment dates up to the end of June 2020 – with payment due anytime up to the end of March 2021.

Future payments must be made on time. If you cancelled your direct debit, you should reinstate this or pay via online bank transfer to avoid penalties. If you wish to delay any future VAT (or other taxes) then you must contact HMRC to arrange a ‘time to pay’ scheme on the coronavirus helpline 0800 024 1222.

Employee Furlough - reminder

Although the Job Retention Scheme continues, the rates in which you can claim are continuing to reduce. You must continue to pay at least 80% of an employee’s wage but the amount you can claim back will drop to 70% in September and 60% in October. The scheme is still due to end at the end of October.

Continuing on from July, you can still part furlough, bringing back furloughed employees on a part time basis and claiming the difference between normal working hours and actual hours worked through the Job Retention Scheme.

If a furlough calculation has been incorrectly submitted, HMRC must be informed and repaid (if appropriate) within 90 days. If you think that you’ve made the wrong furlough claim in the past, please discuss that with us.

Second Self Employed and Partnership Grant (SEISS)

If you are self employed or in a partnership and were eligible for the first Self Employment Income Support Scheme, you will be able to make a second claim from 17 August. You do not need to have made a claim the first time to make the second claim, simply that you must confirm that your business was adversely affected by the coronavirus from 14 July 2020 onwards.

Unfortunately if you were not eligible for the first grant, you will not be able to claim for the second one as the criteria is the same.

You can claim the grant in the same way as you did the first one, again due to HMRC restrictions, we are unable to make the claim on your behalf.

HMRC will contact you when you are able to claim.

July 2020 Payments on Account for Income Tax

As we mentioned previously, these have been automatically deferred, but will be due to be paid before the end of January 2021 along with the normal income tax due at this point so please keep this in mind.

Loans and Overdrafts

The automatic delay of payments and overdraft facilities has now ended and if you want continued help from your bank or lender, you should contact them directly and discuss an extension to these facilities. If you mention that it is in relation to coronavirus, they are more likely to extend this help to you for another three months, but it is no longer automatic.

Making Tax Digital (MTD)

HMRC have released a consultation regarding moving all VAT and most individuals with sole trader, partnership or rental accounts onto a digital (online) system in 2022-23. Within the next twelve months, we will be discussing this further with you, how it may affect your accounts and the provision of information to us.

Those VAT registered businesses that are currently on MTD, the softly-softly approach from HMRC will end in April 2021 and penalties may be issued by them. Increased responsibilities may also be required, such as quarterly reporting. Again, we will be discussing this with you before April if any changes are required.

Office Opening

Although there are still restrictions on the number of people entering the office, our reception will be open from 9am to 5pm on most work days and your accountant or contact will be available as normal during these hours via phone, email etc. Any paperwork will still be subject to a 72 hour quarantine so it is important that you do not delay in dropping off any urgent work. We may encourage other methods such as scanning of documents etc. You may also receive documents from us electronically, commonly ‘MyDocSafe’ or secure email.

A quick update regarding the release of additional local funds for businesses hit by coronavirus.

As of today, Chesterfield Borough Council is providing additional grant options to local businesses affected by coronavirus and haven't been able to claim other grants. As these are likely to be popular, you should look at these as soon as possible to see if you are eligible and able to claim.

If you are not covered by the CBC zone, you should look at your own local council website to see if s similar scheme is available for your area.

If you have already claimed grants from elsewhere then you are unlikely to be able to claim these grants.

Please follow the link below to Chesterfield BC's website for more information.

https://www.chesterfield.co.uk/2020/06/chesterfield-borough-council-announce-discretionary-grants-for-local-businesses/

In this newsletter, there’s information about extension to the Self Employment Income Support Scheme, changes to the Job Retention Scheme and returning employees to work, along with updates about SBA and informing you of some other general considerations.

Self Employed / Partnerships

A further grant will be payable via the Self-Employment Income Support Scheme which will be extended and will pay out another single grant covering three months of June, July and August. If you were eligible for the first grant, you will still be eligible now, but the rate will be 70% of profits rather than 80% previously, up to a total maximum of £6,570.

If you did not qualify last time, then unfortunately you will still not receive any grant this time.

The claim process is expected to be the same as before. The second claim will be available in mid-August.

If you have not made a claim for the first grant, then you have up to the 13 July to make this claim.

Employers

The Job Retention (furlough) Scheme is to be extended to the end of October, but with added restrictions.

Currently, HMRC pays 80% of your employee’s wages, up to £2,500 per month and they cannot work for you during this time, for a minimum of 3 weeks. This will continue until the end of June.

From 1 July 2020, your employee will be able to go back and do some part-time work (anything that is not their full contracted hours). You will be responsible for paying any hours worked in the normal way and rate. Any hours not worked (through furlough) will be covered by the Job Retention Scheme and you will receive a contribution through the grant to pass on to the employee (following the previously established furlough rules).

The grant calculation will also change over time, a brief summary is below:

June and July: 80% of salaries (up to £2,500) covered, plus national insurance and pension contributions, exactly as it has done since March.

August: 80% of salaries (up to £2,500) covered. National insurance and pension contributions no longer covered (you will need to pay this yourself).

September: 70% of wages (up to £2,190) covered. You will need to top this up to 80% (add 10%) and pay national insurance and pension contributions yourself.

October: 60% of wages, (up to£1,875) covered. You will need to top this up to 80% (add 20%) and pay national insurance and pension contributions yourself.

Remember that you must tell us of any changes to furlough in good time so this can be included in your payroll and on any claims. Late notification may result in inaccuracies and incorrect claims. This will be even more important if you have part time working arrangements. We may not be able to back date claims. Coronavirus related statutory sick pay may also be reclaimable from the government for up to two weeks.

You also need to consider your legal responsibilities towards your employees and the ACAS site is a good starting point https://www.acas.org.uk/coronavirus and they are also holding a MicroSoft Teams based seminar on 3 June at 1pm. Email them on nottinghamevents@acas.org.uk or call them on 0300 123 1150 if you are interested in joining their “Returning to Work - ERF Forum Event”. Please note we have no affiliation with ACAS Nottingham.

Finally, on a separate note, if you have any employees with benefits in kind (company car, healthcare etc) then a P11d submission needs to be made by the 6 July. Please advise us if you need one of these completing on your behalf.

Owner Managed Companies

No new announcements were made in relation to companies, directors, shareholders etc. You may continue to follow the furlough arrangements as employers.

Bounce Back Loans have been available for a couple of weeks now and may provide short term interest free finance (for 12 months) but as this is a loan, it will need to be repaid. Grants do not need to be repaid but are subject to tax.

Tax Credits

You may need to complete your tax credits assessment by the end of July. If this is the case, then you should provide your paperwork as soon as possible in order that your accounts can be updated. Please note that the Tax Credits Office does allow for estimates to be provided in July, with true, finalised figures provided by the end of September if these are unavailable at the time.

SBA Update

As you are no doubt aware, we have continued to work for you during lockdown, but under very restricted means. We are pleased to announce that there will be some relaxation of working restrictions, in line with the Government's latest advice.

Here are a few ways we are helping to protect the safety of our customers and employees alike, whilst continuing to provide our services to you.

Changes to our opening hours

Our offices will be open Monday to Friday 9am - 3pm.

Reception will now be on hand to answer phone calls and general administration tasks during opening hours.

There may be times when we cannot meet these opening times or reception will be unavailable due to unforeseen circumstances. We apologise for this and ask you to try again later if this is the case. If you are making a special journey, please try to contact us in advance.

Providing information

You can continue to drop off paperwork during opening hours without appointment by placing the items in the box provided by the main door whilst the office is open. Please ensure any paperwork is securely packaged in an envelope, bag, or similar with your name and business clearly shown. These will then be quarantined for a minimum of 72 hours before distribution. You may be encouraged by your accountant to provide digital documents (through scanning, pictures, apps, digital signatures etc) instead as a safer and quicker means of providing information, though this may not be available in all cases.

If you wish to pick up any paperwork, you should pre-arrange this with our reception and a mutually convenient time will be arranged for collection. We advise that you quarantine these when returning home and clean your hands after handling.

Appointments

We are encouraging all clients to use email, telephone, online conference calling (such as Zoom) to talk to accountants at this time, however there may be some limited face to face appointments available if no other way is available.

We ask all customers to arrange an appointment in advance via telephone or email so that we can manage the amount of people visiting at any one time, and keep customer waiting times to a minimum. You may be asked to wait outside and leave by another exit after your appointment. Please follow the guidance provided by members of staff.

Please note that monitoring the number of people in our office is essential to maintaining social distancing, and for that reason we will be unable to see you without an appointment at this time.

Whenever possible though, please consider the other methods of communication first.

Social Distancing 

If you are visiting for any reason, please follow the guidance and be mindful at all times to observe a 2-metre distance from all staff and other customers, and we will ensure that we do the same in order to keep everyone as safe as possible.  Please use the cleaning gels provided when entering and exiting the building. If you or anyone you have been in contact with has any sign of illness, please do not enter the office. If you, or you are advised that someone you have been in contact with, has become ill within 7 days after visiting, please contact us at once.

Making Payments

We encourage clients to pay SBA through online banking (BACS, Faster Payments), however reception will be available to take card payments over the phone during office opening hours. We will accept cash in exceptional circumstances but discourage payment that way at this time. You may also send a cheque into the office. Although card payments can be made in the office, again we would discourage this during this time, as contactless payments can only be made up to £45. Our bank details are on invoices and statements. Please contact us if you need time to pay.

Finally, we’re extremely grateful for your continued support, and look forward to helping you in the future. We will try to keep you up to date with any changes.

Includes important information for those wanting to claim the Self-Employment Support Grant.

You may need to take action based on the information in this email.

WHAT CAN I RECEIVE IN THIS CRISIS?

HMRC now has a website that will help you identify if your business is allowed to claim anything as a result of the coronavirus epidemic.

 https://www.gov.uk/business-coronavirus-support-finder

IMPORTANT:

SELF-EMPLOYMENT SUPPORT GRANT

More information has now been provided by HMRC for the self-employed and partnerships that will be wanting to claim the grant in mid-May. We will update as appropriate.

 https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

It is important to note that:

The grant is based on profits for year ended 5 April 2019 (plus 2017 and 2018 if applicable).

If you haven’t done a tax return for 2018/19, then you cannot apply.

The grant is only available to sole traders and partnerships, not rental, limited companies etc.

Profits for the latest tax year (ended 5 April 2020) do not need to be calculated for this grant, though you do still need to have been trading and the business negatively affected by the coronavirus.

The maximum claim is £7,500, based on 80% of average monthly profits.

HMRC will be providing you with information on how to claim soon by letter in mid-May.

You will be able to claim online, and other ways (likely to be by paper form and/or phone).

If you claim online, you must have a Government Gateway ID. If you do not have one, and you want to apply this way, you should apply immediately. See below on how to start applying.

Your tax agent (SBA) cannot make the claim for you. This is a restriction made by HMRC.

Payment will be around 6 working days after application.

How to apply for HMRC online account (Government Gateway ID).

If you do not have an account, you will firstly set up an online business account for HMRC., by going to the following webpage: https://www.access.service.gov.uk/registration/email

Once you have done this, you will be able to add Self Assessment onto it, see below.

If it says you already have an account, then sign in using the information you set up, or if you forgot these, use the forgotten information section or contact HMRC directly.

If you already have an HMRC  Online Account, do not set up a new registration, instead log into this  the normal way. https://www.access.service.gov.uk/login/signin/creds

You may need to add Self-Assessment to this account. You will need your personal Unique Tax Reference number (UTR) and National Insurance number. Your UTR can be found on any tax return, tax calculation, as well as some official documentation from HMRC.

What do they look like?

UTR: 12345 12345

National Insurance Number:  AB 12 12 12 A

Click on Register and Add Taxes, the select Self Assessment, follow the onscreen instructions and  go through the questions.

Registration may require a code to be sent to the last known address HMRC has. These take one to two weeks to receive. You will then need to enter the code in the letter in your online account. 

NEW BUSINESS BOUNCE BACK LOAN SCHEME 

This scheme differs from the Business Interruption Loan Scheme, so you may be eligible for this new loan if you found the previous one difficult to obtain.

The new Bounce Back Loan scheme lets small businesses borrow £2,000-£50,000. The loans are 100% guaranteed by the Government who will also pay any interest and fees for the first 12 months. Applications open on 4 May.

 https://www.gov.uk/government/news/small-businesses-boosted-by-bounce-back-loans

JOB RETENTION SCHEME GRANT (FURLOUGH)

The first claims have now been going through and are starting to be paid. If you are an employer and SBA does your wages, remember to tell us if you furlough an employee (including yourself!) and also when you stop furloughing an employee. If you’d like us to claim the grant on your behalf, remember that you need to provide details on our online form. We cannot claim without this information.

RATES RELATED GRANT

Businesses in rateable properties should have now submitted their grant applications. Please contact your local authority that sends your rates bill if you haven’t done this and think you are eligible.

VAT PAYMENTS

If you get a reminder before 30 June about a VAT payment you have deferred, you can ignore it. The new due date is on or before 31 March 2021. Remember that direct debits must be cancelled if you don’t want to pay ‘on time’. Future VAT payments are still due as normal (as things stand).

GRANTS - GENERAL INFORMATION

Remember that grants are taxable (and national insurance) and need to be included in the profits of the business accounts.

Grants that have not been paid within 10 working days of the claim can be chased up directly with HMRC. They will not view claims before this time.

Claims will be retrospectively checked by HMRC for dishonest and inaccurate claims.

SCAMS

Again, remember to be vigilant for unknown people and businesses contacting you offering to collect money as a result of coronavirus.

EMPLOYERS

If you are furloughing staff, you should have received some emails from us, including an online form to complete. Some important points on this:

1. You must tell us if you have furloughed yourself or an employee before your wage slip has been calculated.

2. When completing the online form, if you do not know your PAYE reference or UTR, please leave this blank rather than contacting us for it.

3. Try to wait for the calculation to come through before sending the form to us.

4. If HMRC authorisation is required, these are being delayed due to HMRC being busy and postal service delays.

Employees who were hired between 29 February and 19 March 2020 can only be furloughed if they were registered with HMRC by 19 March. Those on monthly wages are unlikely to be covered as they are reported when a wage slip is created.

The furlough scheme has been extended to June.

SELF EMPLOYED

HMRC will now be contacting you in mid-May if you are eligible for the self-employed grant (including partnerships).

If you were self employed before 31 March 2019 and are still registered as self-employed, with profits less than £50,000 and those profits more than 50% of total taxed income (employment, pensions etc), then you are likely to receive this grant.

If you have not completed a tax return for year ended 5 April 2019, you only have until the 23rd April to submit this.

It is HMRC's intention that the grant will be payable in early June.

The application process is not yet open.

CHARITIES

If you are a charity and provide support for COVID19 affected people, you may be able to claim additional government support.

https://www.gov.uk/government/news/chancellor-sets-out-extra-750-million-coronavirus-funding-for-frontline-charities

BUSINESSES WITH PROPERTIES

If you have a rateable property and claim SBRR or are a retail property, you should by now have completed your applications to claim the grant. If you haven't done so, contact the council which issues your rates bill as soon as possible.

LIMITED COMPANIES

Directors can furlough themselves if they only provide statutory (admin.) tasks for the company. Only wages, not dividends can be included in the furlough, but you can continue to pay dividends as long as profits after taxes allow.

Limited companies cannot receive the self-employed grant.

If they have rateable property, they can receive that grant.

Companies House will take a light touch on fining for late submissions.

A three month extension on submitting statutory accounts can be applied for, where no penalties will arise.

RENTAL ACCOUNTS

These cannot claim the self employed grant. They may be able to claim a repayment holiday on their loans (as can other businesses and individuals). It is unlikely that a property will be in your name if it is a rateable property (it will normally be the business tenant) so you would not be able to claim this grant.

GENERAL

Universal Credits are still available. If you are unable to work, you may be eligible. Apply online.

https://www.gov.uk/universal-credit

Be aware that scams are increasing in relation to the coronavirus outbreak. Be extra wary about phone calls, emails etc that are offering money etc. Check that they are from a reliable source.

Remember if you want to defer paying VAT and you have direct debit set up, you MUST cancel the direct debit otherwise the VAT due will be taken as normal.

A word of caution, all grants are taxable. The amounts you receive is gross, so if the grant is not offset against expenses, then there may be tax to pay. For the employment grant, this is unlikely to be an issue as the wage bill will cover the grant. For the self employment and rates-related grant, these will be treated as earned income ('sales') and taxed in the normal way at the end of the tax period.

Apply to your lender if you want a payment break, this includes credit cards etc. But remember that the money is still owed and may increase the amounts due.

What is Furloughing?

• Keeping an employee on the books even though they are unable to work due to the current coronavirus restrictions, but “pausing” their employment with partial or full pay.

• The employee is sent home, and MUST NOT work for the employer during the period of furloughing in any capacity (though they can work for other employers if contracts allow).

• The furlough period must be a minimum of three (3) weeks.

• The employer can pay the employee, in part or in full, the employee wages including tax, national insurance and statutory minimum pension. The furlough pay is treated the same way as normal wages for tax purposes and a payslip is produced and recorded as normal.

Who Can You Furlough?

• Do you have a payroll (PAYE) scheme (set up before 28 February 2020)?

• Do you have an employee (or employees) who are unable to work due to temporary closure or job being unavailable as a result of coronavirus restrictions? Partial working (short working, reduced hours etc) is NOT furloughing.

• Was the employee included in payroll in February 2020?

• Is the employee a current employee or if you made them redundant due to the restrictions, could you rehire them (reversing the redundancy)?

• Is the employee otherwise able to work – i.e. they are not on sick leave, maternity etc (SSP, SMP etc rule apply in these cases)?

• Does the employee freely accept furloughing and is it within normal employment law (discrimination etc)?

• Directors should be eligible if they are able to follow all the rules of furloughing. Note that only basic wages are included, dividends are not.

What does the employer do?

• Decide whether a job is still available for the employee? Remember that reducing the hours of work or partial working will not be eligible for furloughing, the employee cannot work for the employee at all during the period.

• Decide whether to pay full basic pay, or the 80% minimum. Remember that bonuses, overtime, dividends etc. are not included. (up to a maximum of £2,500 per month)

• For every employee where the job is no longer available, the employer should discuss with the employee the options available, why furloughing is beneficial (keeps the job open, partial or full basic pay) and what it means to them.

• Each employee that agrees you will need to confirm this in a letter stating they are on furloughment. A example  letter is available from Institute of Director website, see below (we do not accept any liability for legality of the letter).

• Those that don’t agree will need separate rules based on redundancy, laying off etc under normal employment law.

• Advise payroll that an employee has been furloughed.

• The employer pays the wage in the normal manner to the employee.

What does SBA need to know from the employer?

• Remember furloughing is not automatic, until you advise SBA, wages will be calculated the standard way. It is important that you advise, via email, the intention to furlough.

• Employee name

• Date furlough starts

• Whether 100% or 80% of basic pay is to be paid, up to the maximum of £2,500 per month.

• Date furlough is likely to end

• You MUST inform SBA of any changes, which includes removal of furlough, or staff leaving, immediately. Any delay will result in incorrect reporting, of which charges/penalties will be payable by the employer.

What can the employer claim?

• The employer can claim 80% of  the basic wage of a furloughed employee. Plus any employer’s national insurance and statutory employer pension contributions (currently 3%) on that furloughed amount.

• The maximum claim is £2,500 per month of the basic wage, plus the employer contributions, per employee.

• They cannot claim for any additional costs, administration fees etc.

• The employer will be able to claim through an online HMRC portal (website) from the end of April 2020, and then every few weeks after that. The portal does not currently exist, and no applications can be made at the moment. The employer needs to cover the cost of furloughment until the repayment is made.

• Payment will be made directly into the employer’s bank account, specified when applying.

The above is advice for general employment and does not cover every situation.

Small Business Accountants Limited 31 March 2020.

www.sbaltd.uk

https://www.iod.com/services/information-and-advice/resources-and-factsheets/details/Directors-and-the-Coronavirus-Job-Retention-Scheme

https://www.acas.org.uk/coronavirus/if-the-employer-needs-to-close-the-workplace

Update: Chesterfield Borough Council now have business rates linked grants application online. See link above. Check other council websites for your area.

Furloughing Employees

• Placing an employee on ‘furlough’ is a way of temporarily sending home workers as there’s no work for them but they remain, inactive, employees of the employer, ready to be called up again at a later stage.
• 80% of average wage for 2019/20 with tax and national insurance (NI), statutory minimum pension deducted in the normal way as a wage would be. Employer NI and statutory pension contributions need to be made as well.
• If higher, the employee may be paid 80% the wage for the same period last year (i.e. March 2020 = March 2019) instead of the average.
• Maximum claim is £2,500 plus employer national insurance and statutory pension payments per employee per month.
• Employee cannot work for employer during this time.
• Employee can work for other employer, unless contract states otherwise.
• Directors may be included if they are employees and cannot work for the company whilst furloughed. It has been mentioned that statutory director duties “may” be exempt. Dividends will NOT be covered.
• Grant will be claimable and repayable to employer starting by the end of April, in three week chunks.
• Approval from employee must be provided to the employer in order to furlough. An example letter is shown on this external site  https://www.iod.com/services/information-and-advice/resources-and-factsheets/details/Directors-and-the-Coronavirus-Job-Retention-Scheme
• You need to follow normal employment law.
• Anyone on the payroll after the 28 February 2020 cannot be furloughed.
• A PAYE scheme must exist in order to reclaim and the employee must be on it (casual wages cannot be claimed)
• If an employee has been made redundant due to virus limiting business income, this can be withdrawn and the employee can be furloughed instead, thus being eligible for the grant.
• Reduced or limited hours is not furloughing. The employee must be unable to work for a three week period.
• Those on SSP cannot furlough until the SSP period is over. SMP/SPP is similar.

Self Employed Grant

• A grant of 80% of averaged profits from 2016/17 – 2018/19 up to £2,500 per month, for three months will be paid in July 2020 in one lump sum.
• If you have not traded for all of the period, the average will be for the period of trade. If you have ceased to trade, you cannot claim the grant.
• The business should have intentions to continue to trade after the pandemic is over.
• 2018/19 tax return must have been submitted by 23 April 2020 (this was due in January 2020).
• Those starting after 5 April 2019 (i.e. they don’t have a 2018/19 tax return) cannot claim the grant.
• Applications will be made in June/July 2020 by invitation. HMRC will contact you and invite you to submit your application online.
• If the average profits are more than £50,000, you will not be able to claim.
• If average profits are less than 50% of your total average income (pension, wages, dividends etc) then you will not be able to claim.
• The grant will be taxable (and national insurance charged)  as income in the normal way.
• You do not have to stop trading during this time – the grant does not require you to stop working as a result of the virus, though you may have to prove reduction in turnover.

Miscelleneous Updates

• Although VAT payments are deferred, a VAT Return must still be submitted as normal during the period.
• There’s no automatic right for companies to pay or submit Corporation Tax late. The ‘time to pay’ rules should be followed.
• Companies House has relaxed the submission rules, allowing companies to submit statutory information such as accounts three months after the normal deadline. This needs to be applied for and is not automatic.
• Additional relaxation of company rules in relation to meetings etc. is being rolled out in order to meet social distancing measures.
• The government has also extended the right to carry forward unused holiday entitlement for up to two years for all employees unable to claim during this period.
• Companies will not be forced into liquidation / insolvency for the duration of the emergency period.
• There are no specific grants announced for property rental businesses though a three month payment holiday for mortgages may be available from lenders.
• Evictions will be forbidden as a result of the virus for the length of the emergency.
• The Derbyshire County Council £500 grant scheme has been overwhelmed with claims and is on a temporary halt.
• Updates on grants from Chesterfield Borough Council – sending out application letters in early April. https://www.chesterfield.co.uk/2020/03/chesterfield-borough-council-update-on-grants-and-business-rate-relief-process/?utm_source=Business+News+March+4&utm_campaign=Business+News+March+4&utm_medium=email

To help minimise the spread of the virus, we are following government recommendations, all staff will now be working from home.

This may result in a longer than normal processing time.

IN LINE WITH GOVERNMENT ADVICE, THIS OFFICE IS NOW TEMPORARILY CLOSED FOR ALL DIRECT CONTACT.

If you are dropping off work, we have arranged a timeslot from 9am to 11am Monday to Friday in which you can do this, if it is legal and safe to do so. Please enter and place documents in the boxes provided by the door and leave safely.

For anything else, please email your accountant.

We thank you for your cooperation & wish you well over the coming period of uncertainty.

Universal Credit / Benefits

https://www.gov.uk/employment-support-allowance

https://www.gov.uk/universal-credit

These benefits may be available should you be unable to work as self-employed or employee.

Time To Pay (for Tax)

Cornonavirus Helpline 0800 015 9559 for time to pay on all taxes.

The second payment on account for income tax, normally due in July 2020, will be deferred until January 2021. No payment in July will be necessary, you do not need to apply as this is automatic.

From 20 March until 30 June 2020, businesses do not need to make any VAT payments. This is automatic and you do not need to apply. The payments will be deferred and you will have until the end of the year to pay the outstanding VAT.

Grants and Rate Relief

Grant now up to £10,000 for businesses eligible for Small Business Rates Relief (SBRR). Local government will be contacting eligible businesses from April.

Retail and hospitality businesses can apply for a grant up to £25,000 if they have a rateable property. Again, the local authorities will contact you on eligibility.

100% Rate Relief for eligible businesses should appear automatically on your 2020/21 rates bill – applicable to those in retail and hospitality. A similar scheme will be available for nurseries.

Those based in Derbyshire can apply to Derbyshire County Council for an emergency relief fund of £500. If you fit the criteria, shown on the website, you can apply online.

www.derbyshire.gov.uk/businessgrants

Other councils are likely to have similar schemes in place.

Staff Issues

Follow ACAS guidance when reducing staff hours or laying them off. https://www.acas.org.uk/

Statutory sick pay will be available from day one, reclaimable at a later date from the government, for self isolation purposes. The SSP will be covered for 14 days. This will create short-term cashflow issues for employers.

80% of an employee’s salary up to £2,500 per month will be covered by the government.

This is only for employees that are unable to work (due to work shutdown for example) but are still on the payroll.

The amount will be paid by the employer and then will be reclaimable via HMRC. This may cause a short-term cashflow issue.

At the moment, this does not apply to workers who are still able to work in their job.

More information on this will be provided by HMRC in the coming days.

Low Cost Loans / Mortgage and loan holidays

Three month mortgage holiday – apply directly to your loan provider, normally online via a self-certification form.

As of the 23 March, the British Business Bank will launch loan support for small and medium sized businesses, providing a guarantee to lenders of 80% of the loan, plus paying the interest on the loan for 12 months.

40 lenders will be available, including the majority of high street banks. You should arrange a meeting with the bank or financial advisor in order to access this loan with a business plan.

This allows for lenders to provide loans which may not have fit their criteria in the past, but a loan is not assured in all cases.

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/

For existing loans, you should talk to your lender if you require a repayment holiday.

Insurance

Some business insurance may cover pandemics and closures ordered by government. Please check your insurance documents and claim through the normal channels.

Universal Credit / Benefits

Employment and Support Allowance (ESA) may be available for self

employed or employees who have to remain at home from day one of

isolation.

More information is available on the government website

https://www.gov.uk/employment-support-allowance

Universal Credit may be available if SSP or ESA is not available.

However there is currently a five week delay on applications.

https://www.gov.uk/universal-credit

Time To Pay (for Tax)

Measures are in place for HMRC to be more lenient on tax payments. The

way to apply is the same as before, however a special helpline is also

available specific to Cornonavirus 0800 015 9559

The tax is not wiped, but delayed and/or spread out over a longer

period.

Grants and Rate Relief

A £3,000 grant has been mentioned that will be available from local

government to businesses that are eligible for small rates relief (SBRR).

Local government officials will be in contact shortly in order to discuss

eligibility though no time frame has been provided, they have been

encouraged to make this a speedy claim.

Those with a taxable value of less than £51,000 rateable in a retail

sector and leisure should be available to 100% rate relief for 2020/21.

This should be clarified by next week.

Staff Issues

Statutory sick pay will be available to staff who self isolate from day

one, not day three as normal. The government has indicated that this

will be reclaimable by the employer but have yet to detail how this will

happen, though it is likely to be via a claim form and refund.

Should you decide to reduce or stop work for employees, you should

consult ACAS https://www.acas.org.uk/ before doing so in order to

ensure that you are within your legal rights to do so. This includes

redundancy, short working hours, and unpaid leave if you decide to shut

down for a period of time. You should try to work with your employees

to decide the best course of action.

Low Cost Loans / Mortgage and loan holidays

The government has announced that low cost loans will be available,

that are government backed, for businesses to apply for. This is likely to

be done with existing lenders and more details will be released soon.

Lenders have also been encouraged to be flexible on current loans,

providing payment holidays, reducing fees and being flexible on

changing the loan structure. Mortgage relief for individuals will also be

available, allowing for payment breaks.

Office Issues

Whilst the office remains open, there is a possibility that some staff will

self isolate and we also ask that personal contact is restricted at this

time, so there may be a delay in response to work and face-to-face visits

are discouraged. If a staff member is not available, it is encouraged that

a message is left with another staff member who will pass this on in

order that they get in contact with you as soon as they can.

If work has a deadline, we will still try to complete this, but delays may

be inevitable. It is expected that the authorities will be lenient on this.

We may look at you providing documentation digitally in order to

minimise contact and other new working methods.

We will try to update you again once more information is available.