Furlough Scheme Is Extended – CJRS.2
Furlough scheme is extended to March For those businesses affected by the increased restrictions necessary to curb the coronavirus pandemic, additional economic support has been announced by the Chancellor. The Coronavirus Job Retention Scheme (CJRS) otherwise known as furlough was originally due to end on the 31st of October. However, the Government has announced that the furlough scheme is extended to March. This means that the CJRS will now be extended by five-months until the end of March with the government paying 80% of wages for the hours that furloughed employees do not work. SEISS Also Extended Similarly, support for […]
Read moreJob Support Scheme – Now Postponed
Edit – Job Support Scheme Now Postponed The Coronavirus Job Retention Scheme (CJRS), which was due to end on 31 October, will now be extended, with the UK government paying 80% of wages for the hours furloughed employees do not work, up to a cap of £2,500 for periods from 1 November. The new Job Support Scheme, which was due to start on Sunday 1 November, has been postponed. Any employees who have already signed agreements for the Job Support Scheme which was due to start on the 1st of November must be placed back on furlough leave wherever applicable. […]
Read moreExtended Date For Making Tax Digital Is Now Confirmed
Making Tax Digital is already compulsory for VAT registered businesses with a taxable turnover of over £85,000. At the present time, smaller businesses with less turnover aren’t currently obligated to comply. However, the extended date for Making Tax Digital for all VAT registered businesses is now confirmed as April 2022. Making Tax Digital For VAT As we know, MTD is already compulsory for VAT registered traders with an annual turnover exceeding £85,000. However, smaller VAT registered businesses with lower turnover have so far been exempt. This is, in part, due to plans to make tax digital for all VAT registered […]
Read moreThe Importance Of Cash Flow
How Cash Flow Planning Can Help Your Business Recover From Covid-19 For business owners, one of the hardest questions posed by the outbreak of Covid-19 was “How long can we last without cash flow?”. To quickly adjust for the difficulties ahead and with cash flow forecasts being a required part of the application process for government-backed loans, many found it necessary to take a good hard look at their budget. In this instance, cashflow planning has prepared businesses for the impact of the pandemic. But it’s much more than just a tool in a crisis. The Importance Of Cash Flow […]
Read moreDates For Your Tax Diary
There have been many different grants, schemes and tax-deferment options throughout the coronavirus pandemic. Whilst they have been vital to the economy and survival of UK businesses, the various start and end dates are quite confusing. Keeping track of timescales for grants, loans and tax deferment is also essential for good cash-flow planning. With this in mind, we have put together a list of important dates for your tax diary. Important Dates To Remember This blog will detail the key dates for your tax diary including when the rules change when claims must be submitted, and when payments of deferred […]
Read more90 Days To Repay Coronavirus Grants
Employers and self-employed people now have 90 days to repay coronavirus grants if they have been over-paid. HMRC have announced that they must be informed within a 90 day period if businesses have over-claimed furlough payments through the CJRS. Self-employed individuals have the same time-period to report any overpaid grants through SEISS. The excess payments must also be paid back or penalties will apply. CJRS Overpayments – Furlough Scheme A CJRS grant should be repaid to HMRC if the funds were not used to reimburse the employer’s costs related to furloughed employees within a reasonable period of time. The grant […]
Read moreHMRC Tax Investigations And COVID-19
Due to social distancing restrictions, there has been a reduction in face-to-face HMRC tax investigations. HMRC staff are mainly working from home and not carrying out customer-facing compliance work. They have therefore given taxpayers extensions and/or the option to suspend compliance work. However, compliance works have not completely stopped and some taxpayers are being notified of new tax enquiries. We as accountants are also receiving correspondence regarding ongoing enquiries on a regular basis. Whilst this is certainly a quiet period for tax investigations, this will not continue in the long term. Tax Investigations Into Coronavirus Support Claims Many of the […]
Read morePart-time Furlough And Self-Employed Scheme Update
Update On Part-time Furlough, Changes To The Coronavirus Job Retention Scheme And The Second Self-employed Income Support Scheme. On the 28th of May, the Chancellor Rishi Sunak announced plans to end the eight-month coronavirus job retention scheme (CJRS) and self-employed income support scheme (SEISS) by gradually withdrawing taxpayers’ contributions from August. Whilst outlining his plans Mr Sunak said that he intends to reduce contributions to the furlough scheme as it “cannot continue indefinitely”. This means that in the final phase of the eight-month scheme employers will be asked to “contribute, alongside the taxpayer, towards the wages of their staff”. CJRS […]
Read moreHow To Apply For The Self-employed Income Support Scheme
The self-employed income support scheme (SEISS) allows self-employed tax-payers to claim a taxable grant of 80% of their average monthly trading profits. This will cover 3 months and will be paid in one instalment (capped at £7,500). The grant will be subject to Income Tax and self-employed National Insurance. Work Restrictions Unlike the furlough scheme, if you receive the grant you CAN continue to work, start a new trade or take on other employment. You are also able to take part in voluntary work, or duties as an armed forces reservist. When Is It Open? The self-employed income support scheme […]
Read moreCoronavirus Job Retention Scheme FAQ’s
The coronavirus job retention scheme is a temporary scheme open to all UK employers for at least three months starting from 1 March 2020. This scheme exists to allow employers to claim for 80% of furloughed employees’ (employees on a leave of absence) via an online portal. The claim can be made for usual monthly wage costs, up to £2,500 a month. (plus associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions.) The scheme is now up and running and you can make a claim here. Frequently Asked Questions This scheme works very differently from standard payroll […]
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