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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.



Rickey Cooper FFA, FMATT, ATT

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