Weekly e-mail to clients - 20 June 2020
21/06/2020

Hello

 

There is still major confusion within the general accounting community about what are considered to be “usual” hours when looking at the new furlough claim procedure. I am sure this will continue on as the Government’s way of calculating the usual and furlough pay is based upon the hours worked in a 7 day week rather than the normal 5 day week.

 

We will be keeping on top of this for you. If you prepare payroll we will be sending out a detailed e-mail about the new furlough scheme and if we prepare your payroll the information we will require in order to process the payroll and also to continue making claims on your behalf.

 

The VAT deferment of payment of VAT to HMRC ceases on 30 June 2020. See below for more details.

 

Stewart & Partners will continue to be working from home for the foreseeable future 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.

 

We will be making some changes in the web site in the next few days. As part of the upgrade there will be an opportunity to book a free 15 minute online zoom call with Simon to discuss anything you want.

 

Local Authority Discretionary Grants Fund

 

The Discretionary Grant Fund supports small and micro businesses that are not eligible for other grant schemes opened on the 8 June.

 

Small and micro businesses with fixed property costs that are not eligible for the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund may be eligible for the Discretionary Grants Scheme.

 

Every council is applying slightly different criteria for deciding how to allocate their funds and there are time limits for making the claim. Some councils have already closed their applications.

 

Check with your local council for details.

 

To find your local council see: https://www.gov.uk/find-local-council

 

 

Anti-Money Laundering Responsibilities

 

The accountancy professional bodies have now published guidance on fraudulent Covid 19 claims. As members of the ICAEW we will be following their guidance which can be found on their web site.

 

VAT deferment ends

 

The deferral of VAT payments due to coronavirus comes to an end on 30 June and businesses need to take action to reinstate their direct debit mandates. Please go online and make sure these are back in place.

 

The VAT payment deferral means that all UK VAT-registered businesses have the option to defer VAT payments due between 20 March and 30 June 2020 until 31 March 2021.

 

The relevant returns are therefore for the months ended February, March and April 2020 as these payments were due 1 month and 7 days after the end of the month. The payment for the quarter to 31 May 2020 is due on 7 July and therefore needs to be paid on time.

 

HMRC will issue guidance on the end of the VAT deferral period very soon but, to be effective, direct debit mandates usually need to be set up three working days before a VAT return is filed.

 

We cannot set up direct debit mandates on behalf of our clients; the business needs to set up the mandate through their business tax account.

 

HMRC has confirmed that it will not collect the outstanding balance of deferred VAT when the direct debit mandate is reinstated. HMRC has made the necessary systems change to avoid this happening for businesses in MTD for VAT.

 

If you have deferred a VAT payment then you need to start planning for its payment in March 2021. This may involve preparing cashflows and we can help with this if needed.

 

Forms P11d

 

Don’t forget that forms P11d for benefits in kind for the year to 5 April 2020 need to be submitted by 5 July 2020. If you have not already done so please get in contact so we can prepare the forms for you.

 

 

Self Employed Income Support Scheme (SEISS)

 

The Chancellor has announced plans to extend the Self-Employment Income Support Scheme (SEISS) for those people whose trade continues to be, or is newly, adversely affected by COVID-19 (coronavirus). Eligible self-employed people will be able to claim a second and final SEISS grant in August; this will be a taxable grant worth 70% of their average monthly trading profits for three months, paid out in a single instalment and capped at £6,570 in total.

 

The eligibility criteria for the second grant will be the same as for the first grant. People do not need to have claimed the first grant to claim the second grant: for example, their business may have been adversely affected by COVID-19 (coronavirus) more recently.

 

Claims for the first SEISS grant, which opened on 13‌‌ May, must be made no later than 13‌‌ July. Eligible self-employed people must make a claim before that date to receive the first SEISS grant (a taxable grant of 80% of their average monthly trading profits, paid out in a single instalment covering 3 months' worth of profits, and capped at £7,500 in total).

 

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

 

It’s important to note that the original 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 three week period prior to 30‌‌ June.

 

From 1 July as the rates for furlough change month by month any missed days should not be carried forward to the next month as the amounts claimable will be different.

 

An amendment tool for furlough claims is being made available as part of the monthly furlough claim process.

 

From 1 July the minimum period of furlough will be 1 week instead of 3 weeks.

 

As employers will be liable to pay employers National Insurance from 1 August we will be starting to claim employment allowance for our clients from that date where it has not been claimed previously.

 

This is a useful summary in table form:

 

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CJRS – Paperwork

 

As previously advised all paperwork relating to furlough must be kept until at least 30 June 2025 in case HMRC wish to review it. This is really important and more detail will be given in our e-mail for clients with payroll as mentioned above.

 

 

Bounce Back loans

 

Bounce Back (BB) loans have now been available for a while and the number of financial institutions offering them is increasing slowly.

 

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

 

 

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. Therefore if you require a loan in excess of £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 then 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 BB loans and CBILS can be made up to 4 November 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 new links which may be of help:

 

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.

 

HMRC guidance on who can be put on furlough - https://www.gov.uk/guidance/check-which-employees-you-can-put-on-furlough-to-use-the-coronavirus-job-retention-scheme?utm_source=13e820c2-94c1-42fc-8ef6-e0dea23dff1d&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

 

 

Online Client meeting

 

We continue to hold weekly online meetings which al clients are entitled to attend. The meetings are an open discussion about what has happened, maybe a preview of this weekly e-mail and I am open to any questions.

 

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 24 June 2020, 11.00am

 

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

 

Meeting ID: 838 7972 6978

 

Invites will also be sent out to 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 24229. The office phone is not being monitored on a regular basis so any messages left will not be dealt with in a timely manner.

 

Share this article

 

Although this article is aimed mainly at clients if you know of anyone who would benefit from receiving it then please pass the link onto them with my compliments. If anyone wishes to be added to teh e-mail list then please get in touch.

 

Feedback

 

Feedback from readers is important. It would help me to know that this weekly posting 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 who is in need of support or help then please ask them to get in touch.

 

I hope you are all keeping well and following the government guidelines. I foresee the lock down lasting at least another 3 -4 weeks so you need to be prepared for this.

 

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.

 

 

 


    

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

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