COVID SUPPORT LATEST : - WEEKEND 26-27TH SEPTEMBER
Updated: 8 hours ago
We're here to help you through this together, so the T+G support blog is updated every day.
For any advice you need, just call 01995 600 600, or
email our dedicated, support team at email@example.com
INTERIM & PENDING :- REMINDERS FOR YOUR DIARY
SEP 24 OFFICE WORKERS WHO CAN WORK FROM HOME SHOULD DO SO
SEP 24 ALL HOSPITALITY CLOSES FROM 10PM IN ENGLAND & TABLE SERVICE ONLY
SEP 28 UP TO 10K FINES COME IN FOR FORCING THE SELF ISOLATED TO WORK
OCT 1 EMPLOYERS WILL PAY 20% OF FURLOUGHED STAFF'S WAGES
OCT 19 SELF EMPLOYED INCOME SUPPORT SCHEME (2) FINAL DAY FOR CLAIMS
OCT 31 THE JOB RETENTION SCHEME ENDS
NOV 1 SEISS GRANT (3) ELIGIBILITY FOR THOSE STILL AFFECTED AT NOV 1
NOV 30 BOUNCE BACK LOANS & CBILS APPLICATIONS DEADLINE
FEB 1 JOB RETENTION BONUS OF £1,000 PER FURLOUGHED EMPLOYEE KEPT ON
FEB 1 SEISS GRANT (4) ELIGIBILITY FOR THOSE STILL AFFECTED AT FEB 1
In retail, leisure, tourism and other sectors, Covid-secure guidelines become legal obligations on September 28th. Businesses will be fined up to £4,000 and could be closed if they breach these rules.
Social groups of no more than six can meet inside or outside those venues and it is also important to note that people from different households, in the group remain socially distanced.
From September 28th customers and staff in indoor hospitality will also have to wear face coverings – except while seated at a table to eat or drink.
Face coverings must be worn in taxis and private hire vehicles, and by indoor hospitality and retail staff while at work from September 28th.
COVID-19 Secure guidance for all sectors, available here
A new Job Support Scheme to replace the Job Retention Scheme will be introduced from November 1st to protect viable jobs in businesses, who are facing lower demand over the winter months due to coronavirus.
1. There is a Job Support Scheme Factsheet published by the Government – please see attached for the full details, or click the link. We recommend printing this out to refer to if you intend to use the scheme.
2. It will begin on the 1st November 2020 and run for 6 months, ending on the 30th April 2021.
3. It is open to all SME employers with a UK banking facility and UK PAYE scheme in place on or before the 23rd September 2020. Only larger businesses will have to meet a financial assessment test.
4. Employees will need to work a minimum of 33% of their usual or contracted hours for the first 3 months of the scheme (this may be subject to increase by government after 3 months). For every hour not worked the employer and the government will each pay one third of the employee’s usual pay, and the government contribution will be capped at £697.92 per month. The employer can choose to top this up to 100% at their own expense.
5. Employees using the scheme will receive at least 77% of their pay up to the cap of £697.92 per month.
6. Employees can come on and off the scheme, but each period on the scheme must be for a minimum of 7 days (it is not yet clear if this is calendar or working days).
7. The employer will be reimbursed in arrears for the government contribution and claims can be made from December 2020.
8. The scheme does not cover Class 1 employers NIC’s or pension contributions, which remain payable by the employer.
9. The employee must not be made redundant or put on notice of redundancy during the period the employer is claiming the grant for that employee. This is a big difference from the Furlough scheme, which did allow for it to cover redundancy notice periods. This is because the intention of the scheme is to support roles which will remain but are impacted by a reduction in demand due to Covid over the Winter period.
10.Previous use of the Furlough scheme is not a pre requisite of using this scheme.
11.The employee must be on payroll on or before the 23rd September 2020.
12.Employers can use this scheme alongside the January £1000 Job Retention Bonus, if they meet eligibility requirements.
13.Employee agreement, in writing, similar to that required for the Furlough scheme is required.
14.As you would expect, HMRC will be checking on claims to minimise fraud or incorrectly made claims, so be sure to following the full guidance carefully, once it is issued.
Beth normally works 5 days a week and earns £350 a week.
Her company is suffering reduced sales due to coronavirus.
Rather than making Beth redundant, the company puts Beth on the Job Support Scheme, working 2 days a week (40% of her usual hours).
• Her employer pays Beth £140 for the days she works.
• And for the time she is not working (3 days or 60%, worth £210), she will also earn 2/3, or £140, bringing her total earnings to £280, 80% of her normal wage.
• The Government will give a grant worth £70 (1/3 of hours not worked, equivalent to 20% of her normal wages) to Beth’s employer to support them in keeping Beth’s job.
Hours Employee Worked 33% 40% 50% 60% 70%
Hours Employee Not Working 67% 60% 50% 40% 30%
Employee Earnings (% of normal) 78% 80% 83% 87% 90%
Gov’t Grant (% of normal wages) 22% 20% 17% 13% 10%
Employer Cost (% normal wages) 55% 60% 67% 73% 80%
It is designed to sit alongside the Jobs Retention Bonus and could be worth over 60% of average wages of workers who have been furloughed – and are kept on until the start of February 2021.
Businesses can benefit from both schemes in order to help protect jobs.
We have a separate blog on the Job Retention Bonus of £1,000 per furloughed worker, which is payable in February
BOUNCE BACK LOAN :- UPDATE SEPT. 24TH
Closing date for applications extended to November 30th
Pay As You Grow Terms
Term extension now available for 10 years
6 month holiday or interest only period option
Businesses can borrow from £2,000 - £50,000
Capped at 25% of turnover.
Rapid online application and approval
Funds 24 hours after approval
Interest and repayment free for 12 months
Loan terms up to 10 years at a maximum of 2.5%
No personal guarantee
For sole traders or small partnerships, who often risk their personal assets when borrowing, the terms of the Bounce Back Loan Scheme means no recovery action can be taken over a principal private residence or a primary personal vehicle.
Any customer with a CBILS loan, or overdraft of £50,000 or less, will be able to switch that facility to a BBLS loan should they choose to do so until November 30th.
FULL DETAILS: -
Following the scheme extension to November 30th and the new maximum terms of 10 years, these FAQ's will be updated by all lenders, in the coming days.
FAQs FOR SMALL BUSINESSES: BOUNCE BACK LOANS
What is the Bounce Back Loan Scheme? Am I eligible? How do I apply? How long is the scheme open? How much can I apply for? How long will it take me to get the funds? What products are available under the Bounce Back Loan Scheme? When do I have to start repayments? What fees and interest will I be required to pay? What term can I borrow this over? How much am I meant to repay? Can I repay early? What checks will I be subject to? What protections do I have under the Bounce Back Loan Scheme? What can I use the loan for? What happens if I find I’m struggling to repay the loan? Do you support all businesses? Can I apply for a CBILS facility as well as a Bounce Back Loan Scheme facility? What is the difference between CBILS facility and the Bounce Back Loan Scheme? What is the difference between Start Up Loans and the Bounce Back Loan Scheme? Is the loan available under the Bounce Back Loan Scheme a personal loan or a business loan? Does this contribute to my State aid allowance? Which businesses meet the “business in difficulty” criteria? What if I want to complain about my loan under the Bounce Back Loan Scheme?
HOW TO APPLY & FIND A LENDER
APPROACH A LENDER
You should approach a lender yourself, ideally via its website.
In the first instance, you should approach your own provider. You may also consider approaching other lenders if you are unable to access the finance you require.
You will need to fill in a short application form online, which self-certifies that your business is eligible for a loan under BBLS.
If your business is eligible, it will be subject to appropriate customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks. Some state aid restrictions may apply to your application.
Note: There is high demand for finance through BBLS. Phone lines are likely to be busy and branches may not be able to handle enquiries in person.
THE LENDER MAKES A DECISION
The lender has the authority to decide whether to offer you finance.
Under the scheme, lenders are not permitted to:
take any form of personal guarantee
take recovery action over a borrower’s personal assets (such as their main home or personal vehicle)
IF THE LENDER TURNS YOU DOWN
If one lender turns you down, you can still approach other lenders within the scheme.
BBLS is designed to be fast for lenders to process and quick and easy for businesses to access. To help achieve this, you will only be required to fill out a short application form online.
WHO IS ELIGIBLE?
Your business must be able to self‑declare to the lender that it:
has been impacted by the coronavirus (COVID-19) pandemic
was not a business in difficulty at 31 December 2019 (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules)
is engaged in trading or commercial activity in the UK and was established by 1 March 2020
is not using the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England’s Covid Corporate Financing Facility Scheme (CCFF), unless the Bounce Back Loan will refinance the whole of the CBILS, CLBILS or CCFF facility
is not in bankruptcy or liquidation or undergoing debt restructuring at the time it submits its application for finance
derives more than 50% of its income from its trading activity (this requirement does not apply to charities or further-education colleges)
is not in a restricted sector (see below)
Note: The above is not an exhaustive list – see our Frequently asked questions for more information.
Bounce Back Loans are available to businesses in all sectors, except the following:
Credit institutions (falling within the remit of the Bank Recovery and Resolution Directive)
State-funded primary and secondary schools
CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME (CBILS)
LOANS OF £50,001- £5M
Under CBILS, lenders will not take personal guarantees of any form for facilities below £250,000.
DEADLINE EXTENDED TO NOVEMBER 30TH
The Coronavirus Business Interruption Loan Scheme (CBILS) is available for SMEs through more than 40 accredited lenders across the UK.
WHO IS ELIGIBLE
Your business must:
Be UK-based in its business activity
Have an annual turnover of no more than £45 million
Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
Self-certify that it has been adversely impacted by the coronavirus (COVID-19).
HOW TO APPLY
1. FIND A LENDER
2. APPROACH A LENDER
You should approach a lender yourself, ideally via the lender’s website.
Notes: There is high demand for CBILS facilities. Phone lines are likely to be busy and branches may not be able to handle enquiries in person.
WHAT LENDERS WILL NEED FROM YOU
When you apply for a business loan, most lenders will ask you for the following:
Note: For many customers approaching their existing lenders for a smaller facility, the process may be automated and therefore may not require the same level of documentation
DETAILS OF THE LOAN
The amount you would like to borrow
What the money is for — the lender will check that it’s a suitable business purpose and the right type of finance for your needs
The period over which you will make the repayments — the lender will assess whether the loan is affordable for you
You will need to provide certain evidence to show that you can afford to repay the loan. This is likely to include:
Cash flow forecast
Details of assets
The above requirements will vary from lender to lender.
If you do not have everything listed here, a CBILS loan could still be an option to provide finance to support your business.
GUIDANCE FOR THE SELF-EMPLOYED
Use this scheme if you're a sole trader, or a member of a partnership and have lost income due to Covid 19.
You must then meet two more conditions to be eligible :-
a) Annual trading profits of no more than £50,000
b) Make more than 50% of income from self-employment
The extension to the scheme announced on September 24th will provide two grants and will last for six months from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.
The grant will be limited to self-employed individuals who are currently eligible for the SEISS and are actively continuing to trade but are facing reduced demand due to COVID-19.
The first grant will cover 3 months’ worth of profits from the start of November until the end of January.
Who is eligible?
To be eligible for the scheme, self-employed individuals, including members of partnerships, must meet the following criteria:
· Currently be eligible for the SEISS (although they do not have to have claimed the previous grants)
· Declare that they are currently actively trading and intend to continue to trade
· Declare that they are impacted by reduced demand due to COVID-19 in the qualifying period. The qualifying period for the first grant is between 1 November and the date of claim
THE SECOND SEISS GRANT
A second grant is now available, capped at 70% of your average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
HMRC will contact you if they think you are eligible, with a date to make your claim.
If your eligible and your business has been adversely affected on, or after 14 July 2020, you can make an online claim until October 19th.
If your business recovers after you’ve claimed, your eligibility will not be affected.
You should also keep any evidence that your business has been adversely affected by coronavirus at the time you made your claim, such as:
business accounts showing a reduction in turnover
confirmation of any coronavirus-related business loans you have received
dates your business had to close due to lockdown restrictions
dates you or your staff were unable to work due to coronavirus symptoms, shielding or caring responsibilities
You can claim for the second grant even if you did not make a claim for the first grant, which closed on July 13th.
To make a claim
You’ll need your : -
Self Assessment Unique Taxpayer Reference (UTR) number - if you do not have this find out how to get your lost UTR number
National Insurance number - if you do not have this find out how to get your lost National Insurance number
Your tax agent or adviser can also use the online tool on your behalf to check eligibility
Please be aware you will not be able to process a claim for SEISS, unless each individual, or partner, has a unique and current Government Gateway ID.
Speak to an adviser online (quicker than phone)
0800 024 1222
Mon.to Fri: 8am to 4pm
Closed on bank holidays.
HOW DOES IT WORK? :-
If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist.
The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.
HMRC will work out if you’re eligible and how much grant you may get. But you can follow these steps to help you understand how we will do this and what you can do now.
WHO CAN CLAIM?
You can claim if you’re a self-employed individual or a member of a partnership and all of the following apply:
you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
you traded in the tax year 2019 to 2020
you intend to continue to trade in the tax year 2020 to 2021
you carry on a trade which has been adversely affected by coronavirus
Your business could be adversely affected by coronavirus if, for example:
you’re unable to work because you:
are on sick leave because of coronavirus
have caring responsibilities because of coronavirus
Or you’ve had to scale down or temporarily stop trading because:
your supply chain has been interrupted
you have fewer or no customers or clients
your staff are unable to come in to work
You should not claim the grant if you’re a limited company or operating a trade through a trust.
To work out your eligibility we will first look at your 2018 to 2019 Self Assessment tax return.
Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
If you’re not eligible based on the 2018 to 2019 Self Assessment tax return, we will then look at the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019.
Find out how we will work out your eligibility including if we have to use other years.
Grants under the Self-Employment Income Support Scheme are not counted as ‘access to public funds’, and you can claim the grant on all categories of work visa.
You must make the claim yourself.
Your tax agent or adviser must not claim on your behalf as this will trigger a fraud alert, and you will have to contact HMRC.
This will cause a significant delay to you receiving your payment.
How different circumstances affect the scheme
Check if your circumstances affect your eligibility for the following:
HOW MUCH YOU'LL GET
You’ll get a taxable grant based on your average trading profit over the 3 tax years:
2016 to 2017
2017 to 2018
2018 to 2019
We will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years, then we will divide by 3.
The second grant will be worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,750 in total. The online service will tell you how we’ve worked your grant out.
The grant amount HMRC work out for you will be paid directly into your bank account, in one instalment.
OTHER HELP YOU CAN GET
You can make a claim for Universal Credit while you wait for the grant.
Universal Credit is a monthly payment to help with your living costs. You may be able to get it if you’re on a low income, out of work or you cannot work.
Find out if you’re eligible for Universal Credit.
The SEISS grant may affect the amount of Universal Credit you get, but will not affect claims for earlier periods.
Making a claim for Universal Credit may affect other benefits so you should check how tax credits and other benefits affect each other, and find out what to do if you’re already getting benefits.
Businesses that apply for the Discretionary Grant Scheme can still apply for coronavirus-related loans if they’re eligible.
The government is also providing the following help for the self-employed:
If you have other employment as a director or employee paid through PAYE your employer may be able to get support using the Coronavirus Job Retention Scheme.
IF YOU ARE NOT ELIGIBLE
We have used the information you or your tax agent or adviser sent us on your Self Assessment tax returns to work out your eligibility.
If you submitted your returns between 26 March 2020 and 23 April 2020 check your eligibility again as the online service has been updated.
If you think you are eligible, you should first check who can claim or contact your tax agent or adviser for help.
If you still think you should be able to claim you can ask HMRC to review your eligibility.
PAYING BACK GRANTS IF YOU WERE INELIGIBLE OR OVERPAID
You must tell HMRC if, when you made the claim you:
a) were not eligible for the grant
b)received more than we said you were entitled to
When you must tell HMRC
When you must tell HMRC depends on the date you received your grant.
If you received the grant:
a) before 22 July 2020 you must tell us on or before 20 October 2020
b) on or after 22 July 2020 you must tell us within 90 days of receiving the grant
If you do not you may have to pay a penalty.
Use this online service to claim for your employees’ wages.
The scheme changed on July 1st and ends on October 31 2020
This video gives an overview of the changes to the Job Retention Scheme and more information on:
how employers are affected
If you can't maintain your current workforce because your operations have been severely affected by coronavirus (COVID-19), you can furlough employees and apply for this grant.
The government will reimburse up to 70% of salaries up to £2500 per month, for any employee on a P.A.Y.E. system who would otherwise have been laid off during this crisis.
It will be ended on October 31st, and can include any workers who were registered on their employer's P.A.Y.E. system by 19th March 2020, as long as they were placed on furlough before June 10th for the minimum three week period.
Employees will continue to receive 80% of their monthly wages.
EMPLOYERS CONTRIBUTION TO FURLOUGH
Employers can reclaim a reduced reimbursement of 70 % of furloughed employees wages from September and 60% in October
NATIONAL INSURANCE AND PENSIONS
Employers were responsible for making the national insurance and pension contributions for all furloughed employees from August 1st.
Employers can now agree any working arrangements with previously furloughed employees.
Individual firms will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them - and will be responsible for paying their wages while in work.
Claims from July onwards were restricted to employers already using the scheme and previously furloughed employees.
However, if your employer has previously used the scheme and you are returning from extended maternity or paternity leave, you will still be eligible to join the scheme.
When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week, for grants to be calculated accurately across working patterns.
THE TAPER TIMELINE
The government paid 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
The government pays 70% of wages up to a cap of £2,187.50. Employers pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
The government pays 60% of wages up to a cap of £1,875. Employers pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.
PAY CORONAVIRUS JOB RETENTION SCHEME GRANTS BACK
Alternatively, employers can reduce working days/hours if they are struggling.
Staff can be laid off without pay but employers might have to pay guaranteed pay
This is £29 per day payable for 5 days over a 3-month period.
Employees can ask for redundancy pay if the layoff continues for more than 4 weeks.
Staff are eligible for redundancy after 2 years employment, based on age and weeks’ pay
FURLOUGH RE-IMBURSEMENT VIA H.M.R.C.
Weekly or monthly claims can be submitted 14 days ahead of payroll date.
The monies will be paid, four to six working days post-payroll, after H.M.R.C validation is carried out.
Online services may be slow during busy times.
Check if there are any problems with this service.
CAN T+G SORT OUT MY FURLOUGH PAYROLL?
If Towers + Gornall manage your payroll, we are happy to fully manage your online J.R.S. furlough claims. The payroll department will be in touch with each client individually.
If you are unsure who is your dedicated contact and you need to prepare any furlough adjustments to your payroll wages ahead of time, simply email Joan Dennett, who heads up the Payroll Team using this email firstname.lastname@example.org
If you want an agent to act for you
agents authorised to act for you on P.A.Y.E. matters can make the claim on your behalf using their ID and password
you will need to tell your agent which UK bank account you want the grant to be paid into, in order to ensure funds are paid as quickly as possible to you.
You should retain all records and calculations in respect of your claims.
If you are not an existing payroll client, but are concerned about the complexities of the process and would like discuss whether T&G could manage the J.R.S. payroll for you, then please call 01995 600 600.
BUSINESSES WHO NEED BREATHING SPACE
The Corporate Insolvency and Governance Bill received royal assent on 25 June and is now an Act. It was due to expire on 30 September 2020 but has been extended.
The temporary measures include:
Companies and other qualifying bodies with obligations to hold AGMs will continue to have the flexibility to hold these meetings virtually until 30 December 2020. This means that shareholders can continue to examine company papers and vote on important issues remotely
Statutory demands and winding-up petitions will continue to be restricted until 31 December 2020 to protect companies from aggressive creditor enforcement action as a result of coronavirus related debts
Termination clauses are still prohibited, stopping suppliers from ceasing their supply or asking for additional payments while a company is going through a rescue process. However, small suppliers will remain exempted from the obligation to supply until 30 March 2021 so that they can to protect their business if necessary
The modifications to the new moratorium procedure, which relax the entry requirements to it, will also be extended until 30 March 2021. A company may enter into a moratorium if they have been subject to an insolvency procedure in the previous 12 months. Measures will also ease access for companies subject to a winding up petition. The temporary moratorium rules will also be extended to 30 March 2021
The Bill consists of 6 insolvency measures
The insolvency measures will provide vital support to businesses to help them through this period of instability.
introducing a new moratorium to give companies breathing space from their creditors while they seek a rescue
prohibit termination clauses that engage on insolvency, preventing suppliers from ceasing their supply or asking for additional payments while a company is going through a rescue process
introducing a new restructuring plan that will bind creditors to it
enabling the insolvency regime to flex to meet the demands of the emergency
temporarily removing the threat of personal liability for wrongful trading from directors who try to keep their companies afloat through the emergency
temporarily prohibiting creditors from filing statutory demands and winding up petitions for coronavirus related debts
And two corporate governance measures.
temporarily easing burdens on businesses by enabling them to hold closed Annual General Meetings (AGMs), conduct business and communicate with members electronically, and by extending filing deadlines
allowing for the temporary measures to be retrospective so as to be as effective as possible
Commercial tenants are protected from the risk of eviction until the end of 2020 helping businesses to protect jobs.
Businesses will be protected from the threat of eviction until the end of year following an extension to the commercial eviction ban announced on 16 September 2020
The government is clear that where businesses can pay their rent, they should do so, as this support is aimed to those businesses struggling the most during the pandemic.
This move will help those businesses most in need of additional support to remain in their premises without the threat of eviction for the rest of this year, giving them the chance to focus on rebuilding their business over the autumn and Christmas period.
The government will also extend the restriction on landlords using Commercial Rents Arrears Recovery to enforce unpaid rent on commercial leases, until the end of the year.
The guidance is clear both landlords and tenants should continue to work together to agree rent payment options if businesses are struggling. In June, the government published a Code of Practice to support these discussions.
The Code of Practice was produced alongside leading businesses and trade associations to help guide and encourage all parties to work together to protect viable businesses and ensure a swift recovery.
General enquiries: If you are a member of the public 030 3444 0000
RATES HOLIDAY FOR RETAIL, HOSPITALITY & LEISURE
Clients in the retail, hospitality and leisure industries that pay business rates will not have to pay these rates in the 2020/21 tax year. Estate agents, lettings agencies and bingo halls have now been added to this category.
STATUTORY SICK PAY
The Coronavirus Statutory Sick Pay Rebate Scheme is now live.
You can now claim for employees who are self-isolating because they’ve been notified by the NHS or public health bodies that they’ve come into contact with someone with coronavirus
The scheme will allow small and medium-sized employers, with fewer than 250 employees, to apply to HMRC to recover the costs of paying coronavirus-related SSP.
To use the online service you will need the Government Gateway user ID you got when you registered for PAYE Online.
If you did not register online you will need to enrol for the PAYE Online service.
Find your lost Government Gateway user ID if you do not have it.
If you use an agent who is authorised to do PAYE online for you, they will be able to claim on your behalf.
The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the SSP paid to current or former employees.
What you can claim
The repayment will cover up to 2 weeks SSP starting from the first qualifying day of sickness, if an employee is unable to work because they:
have coronavirus symptoms
are self-isolating because someone they live with has symptoms
are self-isolating because they’ve been notified by the NHS or public health bodies that they’ve come into contact with someone with coronavirus
are shielding and have a letter from the NHS or a GP telling them to stay at home for at least 12 weeks
have been notified by the NHS to self-isolate before surgery for up to 14 days
You can make more than one claim per employee, but you cannot claim for more than 2 weeks in total.
You can claim from the first qualifying day your employee is off work if the period of sickness started on or after:
13 March 2020 – if your employee had coronavirus or the symptoms or is self-isolating because someone they live with has symptoms
16 April 2020 – if your employee was shielding because of coronavirus
28 May 2020 – if your employee has been notified by the NHS or public health bodies that they’ve come into contact with someone with coronavirus
26 August 2020 – if your employee has been notified by the NHS to self-isolate before surgery
Most people are asked to self-isolate for 3 days before surgery. In this case, the day of surgery will be the 4th day of their period of incapacity for work. You cannot claim repayment of SSP for the day of surgery or any other days when the absence is not due to coronavirus.
A ‘qualifying day’ is a day an employee usually works on. The weekly rate was £94.25 before 6 April 2020 and is now £95.85. If you’re an employer who pays more than the weekly rate of SSP you can only claim up to the weekly rate paid.
If an employee has returned to the UK
From 8 June 2020, some people entering or returning to the UK will be required to quarantine for 14 days. If an employee is unable to work during this period, they will not qualify for SSP unless they also meet one of the above criteria.
The weekly rate was £94.25 before 6 April 2020 and is now £95.85. If you’re an employer who pays more than the weekly rate of SSP you can only claim up to the weekly rate paid.
Use the SSP calculator to work out the actual amount.
Business owners who threaten self-isolating staff with redundancy if they do not come to work can be fined up to £10,000 from 28 September.
People will be required by law to self-isolate from 28 September, supported by payment of £500, for those on lower incomes who cannot work from home and have lost income as a result.
There will be fines for those breaching self-isolation rules will start at £1,000 – bringing this in line with the penalty for breaking quarantine after international travel - but could increase to up to £10,000 for repeat offences and for the most egregious breaches, including for those preventing others from self-isolating.
Steps will be taken to make sure that people are complying with the rules, these include:
NHS Test and Trace call handlers making regular contact with those self-isolating, with the ability to escalate any suspicion of non-compliance to Local Authorities and local police;
Using police resources to check compliance in highest incidence areas and in high-risk groups, based on local intelligence;
Investigating and prosecuting high-profile and egregious cases of non-compliance; and
Acting on instances where third parties have identified others who have tested positive, but are not self-isolating.
Support payments of £500 to those on low income can self-isolate without worry about their finances.
From 28 September 4 million people who are in receipt of benefits in England will be eligible for this payment
Local Authorities will set up these self-isolation support schemes by 12 October.
Those who start to self-isolate from 28 September will receive backdated payments.
This financial support comes as the government places a legal requirement on people to self-isolate when instructed to by NHS Test and Trace and introduces tougher fines for breaking the rules.
This guidance outlines how holiday entitlement and pay operate during the coronavirus pandemic. It is designed to help employers understand their legal obligations, in terms of workers who:
continue to work
have been placed on furlough as part of the government’s Coronavirus Job Retention Scheme (CJRS)
This guidance should not be treated as legal advice. Employers and workers should always check individual contracts and if necessary seek independent legal advice.
PAYING TAX: TIME TO PAY SERVICE :
If you’re struggling to pay your tax bill on time, or you’re experiencing financial difficulties you can contact HMRC’s Time to Pay service
The Winter Economy plan on Sept. 24th included:-
RETAIL & HOSPITALITY VAT CUT EXTENSION
Extension on the temporary 15% VAT cut for the tourism and hospitality sectors to March 31 next year.
VAT DEFERRAL INSTLAMENTS
On 24 September 2020, the Chancellor announced that businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period.
Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest free.
You will need to opt-in to the scheme, and for those who do, this means that your VAT liabilities due between 20 March and 30 June 2020 do not need to be paid in full until the end of March 2022.
Those that can pay their deferred VAT can to do so by 31 March 2021.
If you are still unable to pay the VAT due and need more time, see the guidance about what to do if you cannot pay your tax bill on time you can also contact us by phoning: 0300 200 3835.
More information on the scheme will be available on GOV.UK in the coming months.
For advice and information on other support available use the get help and support for your business guide.
What you need to do
If you have cancelled your Direct Debit to HMRC to take advantage of the deferral, you will need to set up a new Direct Debit arrangement in time for the first payment after 30 June. Payments due after 30 June must be paid in full as normal and you must continue to file your VAT return on time.
You can pay or make payments towards your deferred VAT now or at any time up to 31 March 2021.
VAT repayments and returns
HMRC will continue to process VAT reclaims and refunds as normal and most repayments are paid within 5 working days.
Repayments will not be offset against any deferred VAT, but they will be offset against existing debts.
You can apply online to move to monthly returns to improve your cashflow if you’re in a repayment position.
How deferring VAT affects payments on account
If you defer a payment on account between 20 March 2020 and 30 June 2020 but the balancing payment is outside of these dates, the amount you must pay is the balancing payment less any deferred payments. Deferring payments will not create a repayment.
You will still need to submit your VAT returns to HMRC on time.
Payments made by Direct Debit
If you normally pay by Direct Debit you should cancel your Direct Debit through your bank as soon as possible so that HMRC will not automatically collect any VAT due. You can cancel online if you’re registered for online banking.
After the VAT deferral ends
VAT payments that are due after the end of the deferral period will need to be paid as normal.
How to get help
Time to pay arrangements are available to all businesses and individuals who are in temporary financial distress as a result of coronavirus. Time to pay arrangements that started before 20 March 2020 should still be paid.
Enhanced Time to Pay for Self-Assessment taxpayers - September 24 2020 announcement
The government will give the self-employed and other taxpayers more time to pay taxes due in January 2021, building on the Self-Assessment deferral provided in July 2020.
Taxpayers with up to £30,000 of Self-Assessment liabilities due will be able to use HMRC’s self-service Time to Pay facility to secure a plan to pay over an additional 12 months.
This means that Self-Assessment liabilities due in July 2020 will not need to be paid in full until January 2022.
Any Self-Assessment taxpayer not able to pay their tax bill on time, including those who cannot use the online service, can continue to use HMRC’s Time to Pay Self-Assessment helpline to agree a payment plan.
If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to 31 January 2021.
You have the option to defer your second payment on account if you’re:
registered in the UK for Self Assessment and
finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus
You can still make the payment by 31 July 2020 as normal if you’re able to do so.
If you are self-employed you are eligible.This is an automatic offer with no applications required. No penalties or interest for late payment will be charged in the deferral period.
HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities.
The June 2020 Self Assessment statements showed 31 January 2021 as the due date for paying the July 2020 Payment on Account.
This is because HMRC updated their IT systems to prevent customers incurring late payment interest on any July 2020 Payment on Account paid between 1st August 2020 and 31 January 2021.
The deferment has not been applied for all customers by HMRC and it remains optional.
HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021.
You will still need to submit your Self Assessment tax return to HMRC on time
P.A.Y.E. - NATIONAL INSURANCE - CORPORATION TAX
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
You are eligible if your business: pays tax to the UK government or has outstanding tax liabilities
How to access the scheme
If you have missed a tax payment or you might miss your next payment due to COVID-19, please call H.M.R.C.’s dedicated helpline: 0800 024 1222 (Mon- Fri 8:00a.m- 4:00p.m.)
If you’re worried about a future payment, please call us nearer the time.
Check above for the temporary changes to the time limit and rules for notifying an option to tax land and buildings.
The Government has confirmed that people who are unable to work their normal hours because of coronavirus (COVID-19) will still receive their usual tax credits payments.
Those working reduced hours due to coronavirus or those being furloughed by their employer will not have their tax credits payments affected if they are still employed or self-employed.
The Government is uprating Child Benefit, other tax credits rates and thresholds, and Guardian’s Allowance by 1.7% with effect from 6 April 2020. Child Benefit rises to £21.05 per week (from £20.70 per week) for the eldest/only child, and to £13.95 (from £13.70) for other children.
The government has announced that Working Tax Credits (WTC) payments will be increased from 6 April 2020, WTC payments will be increased by £1,045 to £3,040 per year from 6 April 2020 until 5 April 2021.
The amount a claimant or household will benefit from will depend on their circumstances, including their level of household income. But the increase could mean up to an extra £20 each week.
Due to COVID-19, there are new temporary guidelines in place if your circumstances change as a direct result of COVID-19.
· If your working hours have been temporarily impacted due to these exceptional circumstances and are expected to last 8 weeks or more, you do not have to contact the Tax Credit Office and your payments will continue as normal.
· Further guidance will be provided by the Tax Credit Office after 8 weeks.
· However, it is important to know that if you have any change in circumstances that have not been a direct impact of COVID-19 then you must as normal contact the Tax Credit Office and notify them within the 30 days of the change.
Help Line 0345 300 3900
The normal guidance when receiving W.T.C. is that you must notify the Tax Credit Office within 30 days if you have a change in circumstance such as:
Losing a job
Having a child
Start working less than 16 hours a week
Customers that have not yet had a payment freeze or requested an extension of an existing payment freeze can request this up until 31 October 2020.
Trade Credit Insurance, which provides essential cover to hundreds of thousands of business-to-business transactions, will receive up to £10 billion of government guarantees.
measures will support thousands of businesses by protecting against customer defaults or payment delays
scheme is available on a temporary basis for nine months, backdated to 1 April 2020, and available insurers operating in the UK market
to protect businesses that the private credit market cannot insure,export credit insurance is also available from UK Export Finance to cover UK exports to 180 countries.
The guarantees will support supply chains and help businesses during the coronavirus pandemic to trade with confidence, safe in the knowledge that they will be protected if a customer defaults or delays on payment.
BUSINESS INTERRUPTION INSURANCE
There is continuing and widespread concern about the lack of a positive response of some of those BI insurance policies, and the basis on which some insurers are making decisions in relation to claims.
After the outcome of the test case taken by the Financial Conduct Authority the Interim CEO, Christopher Woolard has written the following letter to insurance companies in relation to those looking to pursue Business Interruption Insurance claims
"The High Court judgment on the test case has brought greater clarity and certainty for all parties. It is critical that this results in insurers paying valid and successful claims in full at the earliest possible date to support business and consumers during the current situation. Where we see that insurers are not meeting the expectations set out here, we will use the full range of our regulatory tools and powers to ensure they do so. We will also continue to co-ordinate closely with the Financial Ombudsman Service."
IR35 REFORMS IN THE PRIVATE SECTOR DELAYED
The government has announced that its planned reforms to IR35 legislation will be delayed for a year. The reforms, which will affect contractors who work in the private sector, were due to be implemented on 6th April this year but will now come into effect in April 2021.
We are also aware of an increase in scam emails, calls and texts. If someone gets in touch claiming to be from H.M.R.C., saying that financial help can be claimed or that a tax refund is owed, and asks you to click on a link or to give information such as your name, credit card or bank details, please do not respond. H.M.R.C. will never contact you out of the blue to ask for these details.
Before you go:- Can you help our local NHS heroes fighting Covid 19 on the front line at Royal Lancaster Infirmary, with spare office supplies that can be re-purposed for PPE?