Weekly update - 12 September 2020
14/09/2020

Hello

 

DON’T DELAY – YOU COULD MISS OUT!

 

Recovery SME Grant – open Tuesday 15th September 2020

 

The Government has made £20m of funding available to boost small businesses recovery from the Coronavirus pandemic. This grant opens on Tuesday 15th September at midday.

 

It’s funded by the European Regional Development Fund (ERDF). The eligible SMEs can access grants of between £1,000 – £3,000 (up to £5,000 in exceptional circumstances) for specialist advice. There is no obligation for businesses to contribute financially as the grant is fully funded.

 

Given the current state of the economy, the scheme is guaranteed to be very popular. Therefore, funding is extremely limited.

 

Expressions of interest (EoI) should be made as soon as possible after the scheme opens.

 

There is no waiting list so decisions will be made on a first come, first served basis.

 

The gateway diagnostic will close when the expression of interest (EoI) limit has been reached.

 

Grant payments will not be made until up to 10 weeks after the purchase of the item or service the business has paid and claimed for.

 

The business will be paid upon production of an invoice for the service.

 

The grant will be able to be used for many things including help with planning for the future – cashflows etc.

 

More details about the eligibility criteria in this document.

 

Details of all Growth Hubs can be found here.

 

The Budget

 

The annual Government Budget was moved from its traditional date in March to November in 2017 by Philip Hammond the then Chancellor of the Exchequer. Moving it to this date is to enable HMRC to make changes to their systems and issue notices in good time for the start of the financial year on 6 April each year. However, the timing has been a bit erratic with there being no budget at all in 2019 due to the election called late in the year. There was then a budget in March 2020 so that the relevant legislation that needed to be put in place could be enacted.

 

There was also a Summer Statement this year due to the Covid19 situation which was not a budget although it had the feel of one.

 

There is a budget that is due to be held in the autumn this year although the date has not yet been announced.

 

With every budget there are rumours of what is likely to be changed and this year is no different. The Chancellor has given away a lot of money in order to prop up the UK economy over the last 6 months. At some stage he will need to recoup the amounts that have been distributed. Although changes to income tax and National Insurance are unlikely there is a case for increasing Corporation Tax (CT) and Capital Gains Tax (CGT) and maybe Class 4NI for the Self Employed. I have also heard a whisper that there may be some sort of change to the way dividends are taxed.

 

Additionally, there has been talk in the past about restricting pension relief and this is something that would be easy to implement with little cost and with little attention to be paid to any complaints.

 

Whilst I cannot predict what changes will be made it would be prudent to look at your particular situation to see if there are steps that you could take to maximise the tax relief now rather than just waiting to see what happens.

 

I would be happy to have a discussion with you about tax and/or pension planning.

 

Call me to arrange an appointment (07738242299) or book an online meeting via the web site.

 

Overpaid CJRS claims

 

If you have prepared your own CJRS claims and think you have over claimed then there are mechanisms for repaying the amount overclaimed. You can make a deduction from the next claim or contact HMRC if you are not making any further claims.

 

There are deadlines for making the repayment of 90 days from the date of receipt of the grant with a final backstop date of 20 October 2020. Notifications or discovery of overclaims after these dates can lead to penalties.

 

If you are not sure if you have overclaimed we can look at the amounts you have claimed and advise you if you need to make a repayment. We can also guide you through the repayment process.

 

 

NEWS! NEWS! NEWS!

 

2 new great FREE offerings for clients if they use online bookkeeping.

 

Fluidly lite - 90-day cashflow forecasting updated in real-time and fully automated. It shows what's going on in your business on a day-to-day basis, from the cash going into the cash going out, and everything in between. If you are interested in a demonstration please let me know.

 

We have held our first online demonstration of the product which went very well. Our client thought that it was a great tool that could help him when looking at scenario planning for taking on more staff or purchasing a piece of equipment.

 

Reducer - Analyses your accounting data to find out where you can reduce your business costs. If you decide to switch suppliers Reducer will work with you directly to complete the process. Your own procurement professionals but not costing you a penny! E-mails about the scheme have been sent out. If you want to join then please get in contact.

 

We are very excited to be offering you the opportunity to use these pieces of software for free. However, both software offers only work with online bookkeeping systems so if you are not using Xero or Quick Books now is a good time to look at changing. Contact Simon for more details.

 

 

The team at Stewart & Partners is working from home during the crisis although we do very occasionally visit the office if needed. All post is being forwarded onto us from the office.

 

Don’t forget to access our dedicated Covid 19 hub for all new announcements and far more detailed information.

 

 

Planning for Upcoming Payments

 

With all of the deferred payments and new loans sometimes it is possible to lose track of where you are with what you owe and when payments are due.

 

We have put together a simple spreadsheet to help you record the upcoming payments over the next 18 months. This will remind you when payments are due or when they should start. This spreadsheet is available for you to download directly.

 

Once you have prepared it you may be able to highlight where there are likely to be times of cash shortages in the future. Forewarned is forearmed.

 

If after you have prepared the spreadsheet you think you will need a more formal cashflow we can assist you with this. A cashflow showing how cash shortages will be manged could help you raise additional short term funding from banks or other financial institutions.

 

 

Self Employed Income Support Scheme (SEISS)

 

Don’t forget to make the second claim for the Self Employed Income Support Scheme. The period for making claims opens on 17 August and the final date for making the claim is 19 October 2020.

 

To see if you are eligible to claim and for details of how the scheme works check out this helpsheet.

 

The claims must be made by you, we cannot do this on your behalf.

 

If you need support from us to hand hold you through the application process please contact me. There will be a fee for sitting with you online to go through the process.

 

 

CJRS

 

The CJRS continues in September but with changes to the amounts that can be claimed.

 

From 1 September the government will pay 70% of wages up to a cap of £2,187.50 per employee but employers will be required to pay 80% of the normal salary together with the related ER NICs and pension contributions.

 

For all payrolls where we deal with the CJRS claims these claims will be submitted as near to 30 September as we can.

 

CJRS – Paperwork

 

As previously advised all supporting paperwork relating to furlough must be kept until at least October 2025 in case HMRC wishes to review it.

 

Bounce Back loans

 

A list of banks currently offering the BB loans is available on the British Business Bank web site.

 

Applications for BB loans can be made up to 4 November 2020.

 

CBILS

 

The Coronavirus Business Interruption Loan Scheme (CBILS) is still running for loans above £50,000. A Business can only have either a BB loan or a CBILS loan but not both. If you need a loan over £50,000 CBILS is the way to go.

 

If you already have a BB loan and need more funds you can apply for a CBILS loan as long as the new loan is used, in part, to repay the BB loan.

 

Again, planning for the repayment for the loan is essential and we can help with preparing cashflows and budgets if needed.

 

Applications for CBILS can be made up to 23 September 2020.

 

 

Accounting for grants and loans

 

If you need help with your bookkeeping for the various loans and grants please contact us for advice on how to record these.

 

 

Links

 

Here are a few links which may be of help:

 

Coronavirus support for business from outside government - List of public bodies, organisations and charities that have produced additional resources that may be useful to employers and employees.  

 

Stewart & Partners outgoings timeline spreadsheet – a spreadsheet to record upcoming payments

 

Government 10 guides to working safely during CV19

 

Stewart & Partners UK Covid 19 business guidance and resources - http://clientresources.co.uk/ - a 3rd party web site with good advice and resources that Stewart & Partners link to.

 

Hertfordshire Growth Hub - www.hertsgrowthhub.com – support for existing businesses.

 

Enterprise Nation - www.enterprisenation.com – Small business support, free to join.

 

HMRC Skills toolkit - theskillstoolkit.campaign.gov.uk/ - free online courses to learn new digital and numeracy skills.

 

CIPD – CV19 Returning to the workplace - https://www.cipd.co.uk/knowledge/fundamentals/emp-law/employees/workplace-guide-returning-after-coronavirus - How to plan a return to work.

 

CJRS: Step by step guide for employers

 

How to set up a direct debit for VAT returns - https://www.gov.uk/government/publications/vat-instruction-to-your-bank-or-building-society-to-pay-by-direct-debit-vatc9

 

Zoom tips for home working https://blog.zoom.us/working-from-home-tips-to-meet-like-a-pro/?utm_source=website&utm_medium=postattendee&utm_campaign=WFHQ1FY21&zcid=3710

 

How to change your zoom background -  https://www.loom.com/share/269c91301db747c18eed82cdc2f615bd

 

Online Client meeting

 

We continue to hold weekly online meetings that all clients are entitled to attend. The meetings are a drop in opportunity for clients to come online and ask any questions they may have. If there are any updates on the current situation these will also be discussed.

 

There is no obligation to attend but you may hear something you would otherwise have missed. You may also receive support or ideas from other clients.

 

The next meeting will be next Wednesday morning. Details as follows:

 

Date and Time:  Wednesday 9 September 2020, 11.00 am

 

Meeting URL: https://us02web.zoom.us/j/83879726978  

 

Meeting ID: 838 7972 6978

 

Invites will also be sent out separately.

 

 

Contact us

 

We are now on WhatsApp and happy to talk to you via this method. We have created groups for Covid19 support where I am posting updates in the group that will eventually appear in this newsletter. If you wish to join the group or for any other communication please contact us. WhatsApp connection through 07738242299 or Stewart & Partners

 

The best way to contact us is by e-mail but I am accepting calls on 07738 242299. The office phone is not being monitored so any messages left will not be dealt with.

 

Share this e-mail

 

This e-mail is written for clients but if you know of anyone who would benefit from receiving it then please pass it onto them with my compliments.

 

Feedback

 

Feedback from clients is important. It would help me to know that this weekly e-mail is being appreciated.

 

Also if you have any queries join us for the meeting on Wednesday.

 

Referrals

 

We are still looking for referrals from you. If you know anyone requires support or help then please ask them to get in touch.

 

 

Don’t forget we put out at least one and on some days two articles on social media. Follow us on:

 

Twitter: @StewartPtnrs

Facebook: https://www.facebook.com/Stewart-Partners-780549322295593/ 

LinkedIn: linkedin.com/in/simonalever and also   www.linkedin.com/company/stewart-partners-chartered-accountants

 

 

This e-mail is written by Stewart & Partners for our clients and direct contacts but we are happy for you to pass it onto any of your contacts. The information is based upon our understanding of the current situation but we can accept no responsibility for any action or inaction in respect of the content.

 


CONTACT US

232 Kinetic Business Centre, Theobald Street
Elstree, Herts, WD6 4PJ
Contact Us: mail@stewartpartners.co.uk | Call: 07738 242299

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