Quick summary of our latest email that has gone out to clients including details of office reopening, VAT deferrment coming to an end, SEISS and Job Retention Scheme.
1. Our Bawtry office is fully reopen from 1st July 2020.
We will be asking clients to call ahead before visiting to ensure there is capacity to see them as some staff member will be working alternate days. In the meantime our phone lines and emails continue to remain fully operational and we can arrange to see you at the office by appointment if necessary.
You'll notice a few changes should you visit with regards to social distancing, with appropriate measures to keep both clients and staff safe. We're looking forward to welcoming you back!
(North Notts. sub office will continue to be by appointment only as usual).
2. VAT Deferral coming to an end 30 June 2020
The VAT payment deferral period ends on 30 June 2020. This means you’ll need to:
set-up cancelled direct debits in enough time for HMRC to take payment
submit VAT returns as normal, and on time
pay the VAT in full on payments due after 30 June
Any VAT payments you have deferred between 20 March and 30 June should be paid in full on or before 31 March 2021. You can make additional payments with subsequent returns.
Contact HMRC:
if you are unable to pay the VAT due and may need time to pay as soon as possible and before the payment is due
3. Self employment (SEISS)
The deadline for applying for the 1st grants (most of which have been claimed now) is 13 July 2020, so if you haven't made the first claim and you believe you are eligible visit
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
(again only for sole traders and partnerships, not limited companies).
A second self employed grant will be available to apply for in August (date still tbc).
To be eligible for the second grant you must be able to prove your self employed business was effected by COVID19 on or after 14th July 2020. We expect HMRC to challenge grants where sole traders are trading at full capacity again as at 14 July further down the line.
4. Job Retention scheme and furloughing (skip section if not an employer)
As always let us know your latest up to date employee situation with regards to furloughed staff members. The system changes from the end of this month, details of which we've already sent out although I attach links for you to check the latest guidance.
The scheme is going to allow flexible furloughing, meaning that employees can come back to work part time and still qualify for furlough payemnts for the hours not worked - whereas before the employees were not allowed to work at all. This means the employer will pay for the hours worked, and the government will fund a sliding percentage (starting at 80% in July) of the hours NOT worked.
The scheme is now significantly more convoluted with a few snags in it - and so if you are unsure as to you eligibility then you need to contact us immediately
Additionally, From 1 July, only employees that you have successfully claimed a previous grant for will be eligible for further grants under the scheme. This means they must have previously been furloughed for at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June. The last day an employee could have started furlough for the first time was 10 June 2020.
For claim periods starting after 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim Coronavirus Job Retention Scheme grant for the hours not worked. This only applies where you have previously submitted a claim for the employee in relation to a furlough period of at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June.
https://www.gov.uk/guidance/check-which-employees-you-can-put-on-furlough-to-use-the-coronavirus-job-retention-scheme
Job Retention Scheme timeline
JULY - The government will pay 80% of wages up to the cap of £2,500 - as well as Employer National Insurance and pension contributions - for the hours the employee doesn’t work.
AUGUST - the government will continue to pay 80% of wages (subject to a cap as explained above), employers will have to pay Employer National Insurance and pension contributions. Many smaller employers have some or all of their employer NIC bills covered by the Employment Allowance so they may not see a significant change to their costs in August.
SEPTEMBER - As August but the government will pay 70% of wages not 80%, up to a similarly reduced cap of £2,187.50 (pro rata) for the hours the employee does not work. Employers will pay Employer National Insurance, pension contributions and 10% of wages to make up 80% total up to a cap of £2,500 (pro rata).
OCTOBER - As September but the government will pay 60% of wages up to a cap of £1,875 (pro rata) for the hours the employee does not work. Employers will pay Employer National Insurance, pension contributions and 20% of wages to make up 80% total up to a cap of £2,500 (pro rata).
At the end of October the scheme will then come to an end.