The ValueAdd team have been working night and day to keep up with the new legislation and announcements regarding the COVID-19 pandemic.
You, our clients, are very important to us and we want you to know that we’re keeping business as usual and we’re available for any queries you may have through the usual channels.
To support you, we’re creating a hub of the information we have here. These new government measures change on an almost daily basis, so we will update with new information as and when we have it. If there’s anything you’d like to know that isn’t outlined here, please, please just reach out. We’re all in this together and we’re here to support you, whether that’s with specific queries, cash-flow forecasting, business planning or just providing a sympathetic ear.
You can contact;
Emma for bookkeeping at firstname.lastname@example.org
Christine for administration at email@example.com
Sushil for accountancy at firstname.lastname@example.org
And our phone line is open, so please don’t hesitate to give us a bell on 0141 442 0042
- Stay inside as much as you possibly can
- Work from home unless it’s impossible not to go into your workplace, or if you are an essential worker
- Only go out for necessities or to visit and assist a vulnerable person
- You can leave the house once daily for exercise, however maintain a 2m distance from others and practice good hygiene
- If you have symptoms, self isolate
Updated information 25th Sept 2020:
Job Support Scheme
A new Job Support Scheme will be introduced from1Novemberto protect jobs where businesses are facing lower demand over the winter months due to coronavirus (COVID-19).
Under the scheme, which will run for six months, 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 for the hours staff work. For the hours not worked, the government and the employer will each pay one third of their usual wages (capped at 697.92 per month). Employers will need to meet their share of the pay for unworked hours, and all employer National Insurance contributions and statutory pension contributions, from their own funds.This means that employees will receive at least two thirds of their usual wages for the hours not worked.
To be eligible, employees must:
- be registered on PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment in respect of that employee must have been made to HMRC on or before 23 September 2020
- work at least 33% of their usual hours. The government will consider whether to increase this minimum hours threshold after the first three months of the scheme.
Further eligibility criteria is available on GOV.UK Click Here for access.
The Job Support Scheme will be open to employers across the UK even if they have not previously applied under the Coronavirus Job Retention Scheme (CJRS) which ends on 31 October.
The Job Support Scheme will start from 1November and employers will be able to claim in December. Grants will be paid on a monthly basis.
The scheme will operate in addition to the Job Retention Bonus. Businesses can benefit from both schemes in order to help protect viable jobs.
Further eligibility criteria is available on GOV.UK Click Here for access.
SEISS Grant Extension
The government is continuing its support for millions of self-employed individuals by extending the Self-Employment Income Support Scheme (SEISS) grant. Self-employed individuals and members of partnerships who are eligible for the SEISS and are actively continuing trading but are experiencing reduced demand due to coronavirus (COVID-19), will be eligible for a further SEISS grant to provide support over the winter months.
The first grant will cover a three-month period from the start of November 2020 until the end of January 2021. It will be a taxable grant to cover 20% of average monthly trading profits, paid out in a single instalment covering three months worth of profits, and capped at 1,875 in total.
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 to the end of April ensuring our support continues right through to next year.
More information will be published in due course but in the meantime, you may find our factsheet helpful, search SEISS Grant Extension factsheet on GOV.UK.
Extension to the reduced rate of VAT for Hospitality and Tourism
The government has extended the temporary reduced rate of VAT (5%) to tourist attractions and goods and services supplied by the hospitality sector. This relief came into effect on 15 July 2020 and will now end on31March 2021 across the UK.
VAT Deferral New Payment Scheme
If you or your client deferred payments that were due between 20 March and 30 June 2020, then these payments need to be made to HMRC by31March 2021. Employers can use the New Payment Scheme to spread these payments over equal instalments up to31March2022. Alternatively, they can make payments as normal by31March2021 or make Time To Pay arrangements with HMRC if they need more tailored support.
New Self Assessment Self-Serve Time To Pay Scheme
If you or your clients deferred paying your July 2020 Payment on Account, you will need to pay the deferred amount, in addition to any balancing payment and first 2020/21 Payment on Account, by31January 2021. This may be a larger payment than you or your clients usually pay in January.
If you or your clients are unable to pay your Self-Assessment (SA) bill in full by31January 2021, you can set up a Time to Pay payment plan of up to 12 months online without speaking to us. If employers have SA tax debts of up to 30,000, they will be able to access this Time to Pay facility through GOV.UK and will get automatic and immediate approval. If their SA debts are over 30,000, or they need longer than 12 months to repay their debt in full, they will still be able to use our Time to Pay arrangement by calling HMRC.
Previous Update (for historical reference):
For Employers and Employees – The COVID-19 Job Retention Scheme
Under the Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees salary for those that would otherwise have been laid off during this crisis.
This applies to employees who have been asked to stop working, but who are being kept on the payroll, otherwise described as furloughed workers. HMRC will reimburse 80% of their wages, up to 2,500 per month. This is to safeguard workers from being made redundant.
The Job Retention Scheme will cover the cost of wages backdated to 1 March and is initially open for 3 months, but will be extended if necessary. HMRC will set out more details shortly.
COVID-19 Business Support Fund
Although we were initially advised that business would be contacted directly by their local councils, we see that the applications forms are now available online. As payment will be made within 10days of receiving a fully completed form we would advise you to apply sooner rather than later (if you are eligible).
The main criteria for the initial 10,000 is that you should have business premises and be a ratepayer in receipt of SBBS (Small Business Bonus Scheme).
A separate, one-off grant of 25,000 is available to the ratepayers of businesses in Retail, Hospitality, Leisure sectors operating in a premises with a rateable values of 18,001 or up to 50,999.
Any Glasgow business eligible for the Coronavirus Business Support Fund can apply through this link.
Any Edinburgh businesses eligible for the Coronavirus Business Support Fund can apply through this link.
More information on the above can also be found at Federation of Small Businesses. They will assist in looking what funding etc. is available in your area, no matter which area of the UK you reside in.
Time to Pay – VAT/Corporation Tax/PAYE/CIS
These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. Whilst initially targeted towards specific industries such as travel, entertainment, bars restaurants and hotels, other sectors who have been negatively impacted could also make successful applications for deferrals. As advised, this will be agreed on a case-by-case basis with the exception of VAT, where it has been announced that there is an automatic deferment covering VAT due over the next three months.
For VAT, the deferral will apply for liabilities arising between 20 March 2020 until 30 June 2020.
If you normally pay by Direct Debit then you should cancel this with your bank if you are unable to pay. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT Return.
Please note: VAT returns still need to be submitted as per your usual deadlines to avoid penalties.
Businesses are being given until the end of the 2020/21 tax year to pay any liabilities that have accumulated during the deferral period.
Time to Pay – Income Tax
For Self-Assessment payments due on the 31 July 2020, these payments will be deferred until 31 January 2021. Again, this is an automatic offer with no applications required. There will also be no penalties or interest for late payments.
Self-Employment Income Support Scheme
- Provides grants to those partnerships and self employed persons who are negatively impacted by COVID-19
- Grants will be 80% of their profits up to a cap of 2500 per month
- You are required to have been trading in 18/19 and 19/20
- You are required to have plans to continue trading in 20/21
- You must have submitted an 18/19 tax return, however if this is overdue you now have until the 23rd of April to do so
- Your trading profits from self-employment must be under 50,000
- More than half your income must come from self employment
- If you have been trading for the last three years, then HMRC will look at the average profits to calculate the 80%
- You cannot apply yet, and as it stands do not need to contact HMRC. HMRC will contact those eligible for the scheme and invite you to apply online
- The first payments should be issued at the beginning of June
- This does not include Directors of Ltd. Companies paid through PAYE however if this applies to you, you may be able to claim support through the Job Retention Scheme
We understand these measures might leave some of you feeling out in the cold. In the meantime you can access the following support;
- Increased Universal Credit
- Self Assessment payments due in July and VAT payments due from March 20th through June 30th can be deferred
- Grants for businesses that pay little or no business rates
- Business Interruption Loan Scheme
The absolute best source of information in these uncertain times is the government’s dedicated COVID-19 site. You can visit it here. Remember that any information you read that is not taken directly from this website is an interpretation of the information and may not be correct.
Please don’t base any important decisions on things you read on forums or word of mouth.
The following guidance is updated on a daily basis;
If you cannot pay your tax bill
Call the HMRC Coronavirus Helpline sooner rather than later:
Telephone: 0800 015 9559
Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm
If you are worried about loss of income
Whether you are currently in or out of work, whether employed or self employed, if you are on a low income and affected by the economic impacts of COVID-19, you will be able to access the full range of the welfare system, including Universal Credit. Your income may be affected due to working less, no longer working, self-isolating, or caring for someone who is sick. You may be able to receive:
- Sick Pay
- Contributory Employment and Support Allowance
- Contributory Jobseekers Allowance
- Universal Credit
- Council Tax Support
- Rent Rebate (Northern Ireland)
- Help with your rent
- Help with your mortgage
- Free School Meals
More to follow…
We’re monitoring this situation closely. We care about you, our clients, on a business level but also on a personal level. We want to see you succeed and if there’s anything we can do to help you please do just let us know.
Again, our phone number is 0141 442 0042 and we’d love to hear from you if you think we can help.