Claim for wage costs through the Coronavirus Job Retention Scheme

A rore detailed guidance has been released about the Job Retention Scheme.  As it is a lengthy document, the link is below:-

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

The contents include the following:-

  • Who can Claim
  • Employees you can claim for
  • Work out what you can claim
  • What you’ll need to make a claim
  • Claim

If you intend to use the Job Retention Scheme, please read.

If Hills & Peeks process your payroll, we will be in touch with you when the portal is open and we can process the claim.

 

Covid-19 – Self-Employment Income Support Scheme

The Self-Employment Income Support Scheme (SEISS) will support self-employed individuals (including members of partnerships) during the Covid-19 crisis.

The scheme will provide a taxable grant to self-employed individuals or partners, worth 80% of their profits up to a cap of £2,500 per month.

HMRC will use the average profits from tax returns in 2016-17, 2017-18 and 2018-19 to calculate the size of the grant. The scheme will be open to those where the majority of their income comes from self-employment and who have profits of less than £50,000. The scheme will be open for an initial three months.

Eligibility criteria:

    • Be self-employed or a member of partnership;
    • Have lost trading/partnership trading profits due to COVID-19;
    • File a tax return for 2018-19 as self-employed or a member of a trading partnership.
        • Those who have not yet filed for 2018-19 will have an additional 4 weeks from this announcement to do so;
    • Have traded in 2019-20; be currently trading at the point of application (or would be except for COVID 19) and intend to continue to trade in the tax year 2020-21
    • Have trading profits of less than £50,000 and more than half of your total income come from self-employment. This can be with reference to at least one of the following conditions:
        • Your trading profits and total income in 2018/19
        • Your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19.

Access to the scheme

Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational. HMRC will then pay the grant directly to eligible claimants’ bank account.

Timing of payments

Grants are expected to start to be paid by the beginning of June 2020. In the interim the self-employed will still be eligible for other government support, including more generous universal credit and business continuity loans.

Due to Covid-19 and Government guidelines, we are now working from home.

We are offering full service and support to all our clients at this critical time.  We will offer advice via the telephone (01903 231239), email and via our website.  All face to face meetings will be by appointment ONLY and be restricted to two people (including attending member of staff).

 

To keep up to date with specific government advice, please access the following link:-

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

Covid-19 – Emergency measures announced

In the last few days, the Government has made major announcements about help for small businesses and individuals affected by coronavirus. Below is a summary of the significant points, although details are awaited as to how some of these schemes may be accessed.

The following measures were announced in the Budget and have not (to date) been updated.

    • Statutory Sick Pay (SSP) to be paid from the first day of absence, not the fourth, where people have the virus or have to self-isolate, or care for such people.
    • Support through Universal Credit and Employment and Support Allowance for self-employed people and others not entitled to SSP.
    • Full funding of the cost of two weeks’ SSP for small and medium-sized employers whose workers have claimed SSP as a result of coronavirus.
    • Businesses and self-employed individuals in financial distress will be able to negotiate ‘time to pay’ arrangements with HMRC without incurring late payment penalties.

At a press conference on Tuesday 17 March, the following additional measures were announced.

    • Retail, hospitality and leisure sectors
        • All businesses (not just those with a rateable value of less than £51,000, as previously announced), will pay no business rates for 2020/21.
        • Those businesses with a rateable value below £51,000 will also be eligible for an additional cash grant of up to £25,000 (i.e. cash payment from the government) per business, to help them through this period.
            • This means that every single shop, pub, theatre, music venue, restaurant , etc. will pay no business rates whatsoever for 12 months and, if they have a rateable value of less than £51,000, they can now get a cash grant as well.
    • The 700,000 or so small businesses that are already eligible for Small Business Rates Relief will receive a grant of  £10,000 (not £3,000, as previously announced) to help with business costs.
    • For those individuals in difficulty due to coronavirus, mortgage lenders will offer at least a three-month mortgage holiday, so that people will not have to pay a penny towards their mortgage while they get back on their feet.
        • This will apply to homeowners but not buy-to-let investors.

At a press conference on Friday 20 March, the following additional measures were announced.

    • A new Coronavirus Job Retention Scheme (CJRS) will be set up to help pay people’s wages.  Any employer in the country (small or large, including charitable or non-profit) will be eligible for the scheme.
        • Employers will be able to contact HMRC for a grant to cover most of the wages of their workforce who remain on payroll but are temporarily not working during the coronavirus outbreak.
        • UK workers of any employer who is placed on the CJRS can keep their job, with the government paying up to 80% of a worker’s wage costs, up to a total of £2,500 per worker each month.
        • This will be backdated to 1st March and will be initially open for 3 months, to be extended if necessary.
        • It can apply to anyone who was on the payroll at 29 February 2020, even if they have subsequently been made redundant, as long as they are reinstated on the payroll
    • Any business that needs access to cash to pay their rent, salaries, suppliers, or to purchase stock, will be able to access a government-backed loan on “attractive terms” (which have not yet been specified).
        • That support will be delivered to small and medium businesses via the new Coronavirus Business Interruption Loan Scheme (announced at the Budget), which will now provide loans of up to £5 million, with no interest due for the first 12 months (not 6 months, as announced previously).
        • The scheme will be up and running by the start of next week.
    • VAT payments due by all VAT-registered businesses between now and the end of June will be deferred until the end of the tax year.
        • No VAT registered business will have to make a VAT payment normally due with their VAT return to HMRC in that period.
    • Income tax payments due on 31 July 2020 under the Self Assessment system will be deferred to January 2021, benefiting the cash flow of up to 5.7m self-employed businesses.
    • The standard rate in both Universal Credit (UC) and Tax Credits will be increased by £20 a week for one year from April 6th, meaning claimants will be up to £1,040 better off.
    • The ‘minimum income floor’ for the self-employed claiming UC is temporarily suspended for everyone affected by the economic impacts of coronavirus.
        • This means that every self-employed person can now access, in full, Universal Credit at a rate equivalent to SSP for employees.
    • There will be additional support for renters, through increases in housing benefit and Universal Credit.
        • From April, Local Housing Allowance rates will pay for at least 30% of market rents in each area.

COVID-19 : SUPPORT FOR BUSINESSES

In the last few days, the Government has made major announcements about help for small businesses and individuals affected by coronavirus. Below is a link outlining the significant points, although details are awaited as to how some of these schemes may be accessed. Please use this link to keep up to date with any changes.

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

New Staff Member

Hills & Peeks are pleased to announce that Lorena Haste will be joining our team on Monday 14 October 2019.

Lorena will be replacing Lucy in reception and will be the first point of contact for all clients.

Lorena will book in appointments for Leigh, take messages and direct any queries to another member of our team who will be able to help you. We would like to ask for your patience whilst Lorena settles in and learns the ropes and gets to know people.

 

VAT on small parcels

When you order goods online you don’t expect to pay any additional taxes when they are delivered. This is currently the case for goods ordered from a supplier in the UK or the EU.

However, if you order goods from outside the EU you may receive a notice saying you must pay the import VAT before the goods can be delivered. If the supplier has already charged you the import VAT, you should not have to pay it twice.

If the UK leaves the EU without other arrangements in place (no-deal Brexit), import VAT will be due on all parcels of goods worth no more than £135, which arrive in the UK from the EU or from other countries. If the parcel is a gift to the recipient no import VAT is payable, but the parcel must be clearly marked as a gift from an individual to another individual and must be intended for personal use.

The business which sends the parcel to the customer in the UK should register with HMRC and pay the import VAT, or arrange for the parcel operator to pay the VAT. The registration is required even if the goods are zero-rated for VAT.

If your business relies on goods sent as small parcels through the post, be aware of this change in the rules. If you are sending small parcels to non-business customers in other EU countries you may have to pay import VAT to those countries.

Starting a business

Many businesses start slowly. At first there are a few occasional sales, and only after the individual has convinced themselves they can effectively deliver the product or service will the entrepreneur enthusiastically launch their business.

You should tell HMRC about the start of your new business within six months of the end of the tax year in which it started. To do this you need to decide exactly when the new business commenced. Is it when the first sale was made, or was it much later when a viable business seemed possible?

If you have had a stop-start business launch, the Trading and Miscellaneous Income Allowance (TMIA) can help you out.

The TMIA can cover up to £1,000 of trading or other sundry income per tax year. It doesn’t matter when the sales were made within the tax year, if the total is less than £1,000 the TMIA will cover them, and the allowance doesn’t have to be claimed on the tax return.

Example
Liam quit his job to launch his baking business in June 2019, having made a few test sales in January to March 2019 which amounted to £300.

The sales before 6 April 2019 can be covered by the TMIA of £1,000, so the real business can be said to start in June 2019 within the tax year 2019/20. Liam has until 5 October 2020 to tell HMRC about his new business and register for self-assessment.

Liam won’t have to complete a selfassessment tax return for 2018/19 as his taxable income was fully reported and taxed under PAYE for that year.

VAT on imports

Leaving the EU without an agreement in place (no-deal Brexit) is going to create some VAT challenges for businesses which import goods.

Currently, import VAT is payable on goods imported from non-EU countries, and that has to be paid up-front. This import VAT would also have to be paid up-front on any goods coming in from EU countries after Brexit, unless other arrangements are put in place.

The Government is proposing that, immediately following a no-deal Brexit, all import VAT will be paid on a postponed basis. This means VAT-registered businesses will account for import VAT on their VAT return, rather than paying import VAT at the time that the goods arrive at the UK border. This procedure will apply to all imported goods from the EU and from non-EU countries.

Customs declarations and the payment of any other duties will still be required at the border, but at least the VAT problem will be parked.

This will of course open up the possibilities for VAT to go missing in the supply chain and no doubt the Government will have to put in other measures to counter that.