Coronavirus / COVID-19 UPDATE

The Chancellor of the Exchequer, Rishi Sunak, has just announced the detail to the extension to the Coronavirus Job Retention Scheme and also the Self-Employment Income Support Scheme – the support afforded by the UK Government is more generous than previously speculated in the media with smaller employer contributions being required than reported by many news agencies and a second application for support under the Self-Employment Income Support Scheme being announced – as soon as full details are available we’ll update our website.

The Coronavirus Job Retention Scheme is changing:

From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week.

The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.

This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.

Further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June.

Coronavirus Self-Employment Income Support Scheme is changing:

This scheme is being extended. You’ll be able to make a claim for a second and final grant in August 2020.

The online service for the second and final grant is not available yet. We will update this guidance to let you know when you can make your claim.
If you’re eligible the second and final grant will be a taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits, and capped at £6,570 in total.

Self-Employment Income Support Scheme

Many clients are readling misleading information about the timing of the scheme and in particular when it closes for applications for the first grant. As published on the Government website :

The online service for the first grant is now available. Make your claim. If you’re eligible and want to claim the first grant you must make your claim on or before 13 July 2020.

Coronavirus/COVID-19 – UPDATE FROM THE HMRC 04/05/2020

Self-Employment Income Support Scheme – Important Developments

HMRC have today updated the scheme and provided further clarity as to who can apply and how to apply.

​The most important points to note are:

– Accountants and tax advisers will be unable to make the claim on behalf of clients.
– The easiest way of making a claim is via an on-line process – ​It is essential you have your own government gateway account

When you make your claim

You’ll only need your:

– Self Assessment UTR – if you do not have this find out how to get your lost UTR
– National Insurance number – if you do not have this find out how to get your lost National Insurance number
– Government Gateway user ID and password – if you do not have a user ID, you can create one when you check your eligibility online
– bank account number and sort code you want us to pay the grant into (only provide bank account details where a Bacs payment can be accepted)

You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.

If you claim the grant HMRC will treat this as confirmation you’re below the state aid limits.

HMRC will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate.

Full details can be found at : https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme#eligible

Coronavirus/COVID-19 – UPDATE FROM THE HMRC 28/04/2020

Latest Support for Small and Medium Sized Businesses

Coronavirus Bounce Back Loan

Following the announcement by The Chancellor of the Exchequer on 27 April 2020 details of the latest support scheme for businesses can be found at : https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

The scheme should be open for applications from 4 May 2020

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Latest Information regarding Furloughing Employees

What you’ll need to make a claim

Employers should discuss with their staff and make any changes to the employment contract by agreement. Employers may need to seek legal advice on the process. If sufficient numbers of staff are involved, it may be necessary to engage collective consultation processes to procure agreement to changes to terms of employment.

To claim, you will need:

– your employer PAYE reference number
– the number of employees being furloughed
– National Insurance Numbers for the employees you want to furlough
– Names of the employees you want to furlough
– Payroll/works number for the employees you want to furlough
– your Self Assessment Unique Taxpayer Reference or Corporation Tax Unique Taxpayer Reference or Company Registration Number
– the claim period (start and end date)
– amount claimed (per the minimum length of furloughing of 3 consecutive weeks)
– your bank account number and sort code
– your contact name
– your phone number

You will need to calculate the amount you are claiming. HMRC will retain the right to retrospectively audit all aspects of your claim.

If you use an agent who is authorised to act for you for PAYE purposes, they will be able to make a claim on your behalf. If you use a file only agent (who files your RTI return but doesn’t act for you on any other matters) they won’t be authorised to make a claim for you and you will need to make the claim yourself. Your file only agent can assist you in obtaining the information you need to claim (which is listed above). We are making the claim process as straightforward as possible.

​HMRC appear to have changed their requirements regarding agents making a claim on a client’s behalf contrary to previous advise and we may​ be able to submit the claim on behalf of clients – we are continuing to monitor the situation

For more details see:

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

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​COVID-19 Help for Businesses

HMRC have now created an on-line checker for businesses to ascertain what help and support your business may be eligible for. To access the service go to :

https://www.gov.uk/business-coronavirus-support-finder

Coronavirus/COVID-19 – OFFICE CLOSED

The chancellor has announced help for the self employed in today’s press conference.

Self-employment Income Support Scheme

On Thursday 26 March the government announced their intention to provide further support for the self-employed in the form of a taxable cash grant.

The scheme allows individuals to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 per month for the 3 months from March to May 2020. This may be extended if needed.

The taxable cash grant will be in the form of a single lump sum to cover the three months from March to May 2020. It will be paid in June 2020 to those that are eligible directly into their bank account.

The self-employed including members of Partnerships will be eligible if their trading profits for 18/19 were less than £50,000 and more than 50% of their income stems from self-employment.

Alternatively, they will be eligible if their average trading profits for the tax years 16/17, 17/18 and 18/19 were less than £50,000 and more than 50% of their income stems from self-employment. For those that started trading between 2016-19 HMRC will only use those years for which a Self-Assessment tax return has been filed.

The scheme will be open to those that have submitted an income tax self-assessment tax return for the year to 5 April 2019 (the 18/19 tax year).

Additional eligibility criteria include the requirement that the individual must have lost trading profits due to Covid-19 and they must have traded in 2019/2020, intend to trade in 2020/2021 and are trading at the point of application or would have been except for Covid-19.

Individuals that claim Tax Credits would need to include the grant as part of their income.

It is crucial to observe that HMRC will contact and invite those that are eligible to apply. Applications will need to be made online when the invitations have been issued by HMRC.

Individuals do not need to contact HMRC now.

This seems an opportune moment to remind readers that HMRC does not send texts or make calls asking for bank or credit card details. If this happens then it is likely to be a scam. Please be wary.

We will update this guidance as and when HMRC issue further guidance of their own

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Coronavirus/COVID-19 – OFFICE CLOSED

We remain committed to helping our clients, so if assistance is required, then please email Richard Jemmett at richard.j@jemmettfox.com. Please note that there may be unavoidable delays in answering your queries, but we will get back to you as soon as possible.

If you need to drop something off with us, then please contact richard.j@jemmettfox.com to arrange a suitable time.

Thank you for your patience – we are here to help, and we will get through this