Our website uses cookies to enhance the visitor experience (what's a cookieCookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.). Are you happy for us to use cookies during your visits?
Please note: continuing without making a choice equates to giving us your consent, which you can withdraw at any time via our cookies policy page.


Coronavirus Update

On Friday 29th May 2020, the Government issued further support for small Businesses.

I believe the main points to be:

Coronavirus Job Retention Scheme

• The 10th June 2020 is the last date when an employee can be placed on furlough for the first time.

• From 1st July, furloughed workers can now be brought back for part-time working.

• Part-time working means, the Employer pays them for their actual working hours, together with any furloughed hours, and then reclaims from the Government 80% of the furloughed hours, together with the Employers NIC and pension costs made.

• From the 1st August, the same applies BUT the Employers cannot reclaim the Employers NIC or Pension costs paid.

• From the 1st September, the Government will reduce the furlough reclaim amount from 80% to 70%, and to 60% from the 1st October, and again the Employer cannot reclaim the Employers NIC or pension costs paid.

• So, this means if a worker is still on furlough in September and October, the Employer has still to pay 80% of their Wages, plus Employers NIC and pension costs, but can only reclaim 70% (September) and 60% (October), of the furloughed wages paid.

• Employers will need to consider forward-planning on all the above.

Self-Employed Income Support Scheme (SEISS)

• The second and final SEISS Grant is coming in August.

• It is the same eligibility as for the first SEISS claim, and again must be made by the individual self-employed person.

• The taxable Grant claimable is 7/8th of the first Grant claimed.

• Claims for the first Grant must be made before the 13th July.

• You do not need to have made a claim under the first Grant, to be able to claim the second Grant.

• The SEISS Grant is for self-employed businesses and workers who have been adversely affected by COVID-19 (Coronavirus).

• Our strong recommendation is for you to keep evidence of how your Business has been adversely affected by COVID-19. – This is because we do expect HMRC will be investigating thousands of claims over the next 3 years. All evidence should be retained for a period of 5 years from making a SEISS claim.

Deferring VAT payments

You can only defer:

• quarterly and monthly VAT returns’ payments for the periods ending in February, March and April.

• Any payments due between 20 March 2020 and 30 June 2020.

• This means that VAT payments for the 31st May 2020 month or quarter-end, will still be due for payment on the 7th July (or 10th July if on direct debit).

• Any previous direct debit cancelled, will need to be re-set up for the above.

Bounced-Back Loans – Reminder

• This scheme enables small Businesses who have been affected by Coronavirus to quickly access a Loan.

• You can borrow between £2,000 and £50,000, up to a maximum of 25% of your annual turnover.

• The Loan is for six years and you do not have to make any repayments for the first year. The Government also pays the interest for the first year.

• You can repay the Loan early without early repayment charges and the interest rate will be 2.5%.

• For further details and how to apply: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

We will continue to offer you and your Business, our help and support through the next phases of this COVID-19 situation.

Regards

Rickey

Rickey Cooper FFA, FMATT, ATT
JONES COOPER LIMITED

Leave a Reply


    • Follow us on LinkedIn
    • Follow us on Twitter
    • Foollow as on Facebook