Weekly e-mail to clients - 27 June 2020
30/06/2020

Hello

PM ANNOUNCES EASING OF LOCKDOWN RESTRICTIONS

From next Saturday 4th July, the Prime Minister has announced that pubs, restaurants and hairdressers will be able to reopen, providing they adhere to COVID Secure guidelines.

From the same date, he has set out that two households will be able to meet up in any setting with social distancing measures, and that people can now enjoy staycations in England with the reopening of accommodation sites.

In order to begin restoring the arts and cultural sector, some leisure facilities and tourist attractions may also reopen, if they can do so safely – this includes outdoor gyms and playgrounds, cinemas, museums, galleries, theme parks and arcades, as well as libraries, social clubs, places of worship and community centres.

Following a review, the Prime Minister has also set out that where it is not possible to stay two metres apart, guidance will allow people to keep a social distance of ‘one metre plus’. This means staying one metre apart, plus mitigations which reduce the risk of transmission.

This is very welcome news as It is a big step towards the ending of restrictions and a return to a more normal life.

I do not think that things will ever return fully to the way they were but there now seems to be more light at the end of the tunnel.

With this change now is the time to consider how your business can recommence to trade and what you will need to do in order to start earning money again. Talk to us for ideas and help and if you need more formal planning we can assist you in the preparation of budgets and cashflows.

 

Payroll

This week we sent out our separate payroll e-mail to clients who have staff and who need to know the changes to the CJRS rules. These are summarised below but the letter goes into much more detail.

If you did not receive the e-mail and would like a copy then let us know and we will send you a copy.

 

Congestion Charge

Not tax related but definitely to do with lockdown. The London Congestion Charge was increased from 22 June to £15 per day and also the hours have been extended from 7.00am to 10.00pm. There are up to 3 days to make payment of the charge. The increased charge is supposed to be temporary and there is a NHS patient reimbursement scheme for people vulnerable to coronavirus. Details in the latest TFL press release.

There is also due to be an increase in the Ultra Low Emission Zone (ULEZ) from 26 October 2021 to be bounded by the North and South Circular Roads.

 

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.

 

Working Safely during CV19

As noted above from 4 July all business premises apart from certain specified venues can reopen.

The Government have issued 10 guides to cover a range of different types of work. Many businesses operate more than one type of workplace, such as an office, factory and fleet of vehicles. You may need to use more than one of these guides as you think through what you need to do to keep people safe. Further guidance will be published as more businesses are able to reopen.

 

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.

 

Tax credit renewals

There are still around 3.8 million people claiming working or child tax credits. As tax credits are assessed on an annual basis the claim must be renewed each year. 31 July is the latest date to confirm tax credit claims for the current year.

HMRC is automatically renewing most claims, other than for around 150,000 claimants who it regards as “high risk”. These claimants must reply to HMRC with further information before their claim is renewed.

Those on automatic renewal should receive a renewal pack (form TC603R) including all the information that has been used to calculate the new award. The claimant should only have to contact HMRC if the information in that pack needs correcting.

However, claims by self-employed individuals for 2020/21 should be based on their 2019/20 income. The self-employed have always been able to provide a provisional figure of their previous year’s profits by 31 July, and the final figure by the following 31 January. The tax credits renewal pack does not make this clear in all cases.

If you are self-employed and claiming tax credits contact the Tax Credits Office and provide a provisional figure of profits for 2019/20. If the Tax Credit Office uses profit figures derived from 2018/19 and marks those figures as “final”, it may be impossible to change those income figures at a later date.

Many self-employed people were encouraged to claim universal credit so that they received some income while waiting for their SEISS grant. In such cases any existing tax credit will cease on the day before the universal credit claim commenced, and it won’t be possible to go back to re-start a tax credit claim.

 

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

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:

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

 

Online Client meeting

We continue to hold weekly online meetings which all 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 1 July 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 e-mail

Although this post is aimed mainly at clients if you know of anyone who would benefit from receiving it then please pass a link 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 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 post 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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