News Updates

Coronavirus (Covid-19) Update   November 2020

Covid Schemes Extended - Key Points You May Have Missed

As you will probably already know many of the Coronavirus benefit schemes have been extended over the winter period but were you aware that there may be some extra opportunities for those that haven't previously claimed. Please see below if you do not want to miss out...

Self Employed Income Support Scheme (SEISS)

If you satisfied the conditions to claim for previous grants you will able to claim the new November 20 to January 21 grant based on 80% of income calculation (based on 16/17, 17/18 and 18/19 years) even if you didn't claim the first two grants. If you became self employed after those years you will not be eligible.

The claim service will start after the 30 November and HMRC will contact you on the date you can submit the claim. Further details are below:

SEISS November extension details

Accountants will NOT be able to make a claim on clients behalf.

Clients must have a personal tax account (Government Gateway) to make the claim.

If you haven't already set up a personal tax account online go here to get started.https://www.gov.uk/personal-tax-account

Please contact us if you need any help with this.

Job Retention Scheme (CJRS) - Furlough - This scheme applies to Company Directors

Again this has been extended to March 2021 and you can claim 80% of your salary only, provided you are not working. The new reference date for employment for this furlough period is 31 October 2020.

If you are not working due to Coronavirus during the current England lockdown you may be able to claim even if you have not claimed before. 

There are income conditions to satisfy however, please contact us for further advice if you are not working currently.

More details on the furlough extension are here

Bounce Back Loan Scheme (BBL)

This scheme has been very popular with our clients as it offers loans up to £50K or 25% of turnover with no fees or interest for 12 months and an annual interest rate of 2.5%. It's an excellent deal for a business loan.

The extension to 31 January allows you more time to apply (was due to finish 30 November). It also allows you to top-up an existing loan if you took less than the maximum originally.

You can also extend the loan period to 10 years

Further details on Bounce Bank Loans are here

If you need further details on applying for BBL please contact your bank. The application process is online and in my experience loans are paid very quickly.

Local Businesses Closed Due to Lockdown Restrictions - Local Restrictions Support Grant (LRSG)

If you have a business that has been closed down due to the current lockdown restrictions you may also be eligible for a grant,

More details of LRSG are here

As these schemes are updated (i.e. changed) regularly we will publish further details in January after the next announcement.

Stay Safe

Jeff Neil

Coronavirus (Covid-19) Update    4 May 2020

Self-employed invited to get ready to make their claims for coronavirus (COVID-19) support


HMRC have announced today that the Self Employed Income Support Scheme (SEISS) is to be available sooner than expected on 13 May and they will begin contacting those eligible from today 4 May. 

The first payments will be paid by 25 May and you can check if you are eligible and the date you can submit the claim here: https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference

However, they have also said that Accountants will NOT be able to make a claim on clients behalf.

Clients must have a personal tax account (Government Gateway) to make the claim.

If you haven't already set up a personal tax account online go here to get started. https://www.gov.uk/personal-tax-account

Please contact us if you need any help with this.

Stay Safe

Jeff Neil

Full details of the announcement are here: https://www.gov.uk/government/news/self-employed-invited-to-get-ready-to-make-their-claims-for-coronavirus-covid-19-support

Coronavirus (Covid-19) Update    26 March 2020

Chancellor gives support to millions of self-employed individuals

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Published 26 March 2020 From:HM Treasury and The Rt Hon Rishi Sunak MP

Millions of self-employed individuals will receive direct cash grants though a ground-breaking UK-wide scheme to help them during the coronavirus outbreak, the Chancellor announced today. 

In the latest step to protect individuals and businesses, Rishi Sunak has set out plans that will see the self-employed receive up to £2,500 per month in grants for at least 3 months. 

Millions of people across the UK could benefit from the new Self-Employed Income Support Scheme, with those eligible receiving a cash grant worth 80% of their average monthly trading profit over the last three years. This covers 95% of people who receive the majority of their income from self-employment. 

This brings parity with the Coronavirus Job Retention Scheme, announced by the Chancellor last week, where the Government committed to pay up to £2,500 each month in wages of employed workers who are furloughed during the outbreak. 

Cleaners, plumbers, electricians, musicians, hairdressers and many other self-employed people who are eligible for the new scheme will be able to apply directly to HMRC for the taxable grant, using a simple online form, with the cash being paid directly into people’s bank account. 

Chancellor Rishi Sunak said: 

"Self-employed people are a crucial part of the UK’s workforce who’ve understandably been looking for reassurance and support during this national emergency. 

The package for the self-employed I’ve outlined today is one of the most generous in the world that has been announced so far. It targets support to those who need help most, offering the self-employed the same level of support as those in work. 

Together with support packages for businesses and for workers, I am confident we now have the measures in place to ensure we can get through this emergency together".

The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19. 

To qualify, more than half of their income in these periods must come from self-employment. 

To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply. HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply. 

The income support scheme, which is being designed by HMRC from scratch, will cover the three months to May. Grants will be paid in a single lump sum instalment covering all 3 months, and will start to be paid at the beginning of June. 

Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.

Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.

The scheme has been designed after extensive engagement with stakeholders including the TUC, the Federation of Small Businesses and IPSE - The Association of Independent Professionals and the Self-Employed. 

Self-employed individuals are already benefiting from a series of measures announced by the Chancellor to boost household incomes and will be able to access these while the new scheme is being rolled out. 

These include a strengthening of the welfare safety-net with a £7 billion boost to Universal Credit, income tax and VAT deferrals, £1 billion more support for renters and access to three-month mortgage holidays. 

Notes:

Further information and details of the scheme will be shared shortly by HMRC

HMRC will use the average trading profits from tax returns in 2016-17, 2017-18 and 2018-19 to determine the size of the grant

This scheme also applies to members of partnerships

Before grant payments are made, the self-employed will still be able to access other available government support for those affected by coronavirus including more generous universal credit and business continuity loans where they have a business bank account

Stay well

Jeff Neil

Coronavirus (Covid-19) Update    21 March 2020

The following information was emailed to employers on 21 March 2020

From Chris Ball - Envizage Ltd - Payroll provider to Move On Accountants Ltd

Following my email last week on Employer Payroll changes and to addressing concerns of letters from HMRC and the ICO, I have received numerous text messages and emailing questions of 'Help, what are we entitled to and what do we do re Coronavirus'. I thought it easier to collectively respond as I self isolate this Saturday afternoon, to address as a whole and offer general assistance in keeping you up-to-date with the latest Employer Updates, in the UK's bid to tackle COVID-19. These, to coin the phrase, are unprecedented, extraordinary times, and as small businesses we need to work together to keep things going forward. The information in my email is general and accessible across the net, however I have tried to concentrate on sites of authority like the Federation of Small Business (FSB), HMRC.GOV, and ACAS. My authority on the subjects isn't the definitive answer in all cases, more a structured reply based on interpretation of the information made available. This information is delivered as guidance only and it is your responsibility to check and familiarise your self with the regulations and whether these will apply or not, and of course this data is being added to constantly so I will try to update as much as possible as and when information is made available.

The information we do know:

Statutory Sick Pay - advice is that from 13th March if you have staff self isolating due to having come directly in to contact with the virus; are household quarantined due to a family member self isolating; or have been advised medically (e.g. underlying illness/asthma/bronchitis) or by NHS 111, all of these instances are able to claim SSP and will be paid from day one if they ordinarily qualify through the employer. The first two weeks of this SSP will be reclaimable but it isn't yet clear how and further guidance will be offered. Guidance states you should record SSP as normal and claims for re-imbursement of the two weeks will be back dated to 1st March. For persons who choose to self isolate due to underlying medical conditions and under the advice of the NHS or who have been advised by the government to do so but have not been sent home by the Employer, they can claim SSP up to 12 weeks and do not require medical evidence though they need to show Employers what medications are being taken and what they are being treated for. Employees who choose to self isolate simply because they do not want to potentially expose themselves to the virus, in other words have not been advised they shouldn't work due to underlying medical conditions and under the advice of the NHS or by the government, the understanding is these people are not entitled to pay - there is further guidance and suggestions re 'Employee refusing to Work' from ACAS on this. 

Statutory Sick Pay Non-Qualifiers - SSP is only available to PAYE earners over £118/wk. For those who do not qualify, Employers must advise and issue SSP1 and workers will need to contact Job Centre plus where benefits are being increased, and may be entitled Universal Credit.

Employer chooses to close and self isolate - Employees are entitled to full pay as it's the Employer making the decision.

Home working - Everyone who can work from home should do so. Working hours can still be clearly defined, and staff should receive their normal pay. The question of who covers the running costs should ideally be outlined as soon as possible, as should how any extra expenses should be covered. An employer has a duty of care for staff, even if they are working at home.

80% of Wage Costs - Companies receive grants to pay their workers 80% of their salaries - up to a limit of £2,500 a month. Employer will be able to access grants, by the end of April, from the UK's tax authority to allow them to keep paying employees. The government says 80% of gross wages in the private sector, up to £2,500 a month, for those not working and who would otherwise have been laid off will be covered by these grants from HM Revenue and Customs (HMRC). These will be backdated to March and the scheme will last three months at least. The idea is to prevent mass unemployment. This is for those who are on the pay-as-you-earn system, Self-employed people will not benefit from these grants, instead the protection for them will come through a more generous benefits system. They will also be able to pay tax later.

Time off to look after children - When your children's school is closed, or if you have a relative who is ill, your employer must give you time off to look after them. But your employer is not forced to pay you unless your contract requires it. However, many employers are allowing parents to work flexibly, to try to manage both work and childcare.

What is the support for self-employed people? Broadly speaking, employees are entitled to sick pay and self-employed people are not. The government has said it will make it "quicker and easier" for self-employed people seeing a sudden drop in income to access benefits, and those on contributory Employment and Support Allowance (ESA) will be able to claim from day one, instead of day eight. The minimum income floor has also been removed. The minimum income floor would have taken into account how much they would normally expect to earn in a month when calculating their entitlement to universal credit. Not having the floor means they will be able to claim for time they spend off work due to sickness and it means self-employed people can now access, in full, universal credit at a rate equivalent to SSP for employees. 

Advice from the FSB 

Financial support - Employers should first approach their Business Banking provider as they have the authority with the business loans up to £5 million and offering 12 months IFC. Loans available from 23rd March 

Insurance - Check with your insurers for financial breaks and to advise when employees will be working from home.

Encourage work from home - where possible

Avoid redundancies and terminations - if your contracts allow consider temporary lay offs ensuring work return when possible to do so; have meetings with staff to discuss reduced hours but be mindful of National and Living wage amounts

Work with fellow businesses - important to try and keep the flow moving so be mindful that your situation isn't in isolation. The impact of your non-payment will affect another, un-favourable terms will impact supply so discuss payments over a period of resaonable time to ease cashflow.

We will send more updates as information becomes clearer.

Stay well

Jeff Neil

New Email Set Up  25 June 2017

We have had some feedback from those who email their invoices and tax documents. 

For many of these clients the documents go directly to a separate email inbox and this has resulted in answers requested to some emails being delayed. 

To help us serve you better could you please in future send emails to the following addresses.

For emails with documents attached such as invoices or receipts: Please call us for details

For all other emails where you need an answer please: Please call us for details

Thanks

Jeff Neil  

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The information in this site is of a general nature and is not a substitute for professional advice. You are recommended to obtain specific professional advice before you take any action.

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