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5th November 2020

Job Retention Scheme & Self Employed Income Support Grant

Filed Under: Coronavirus / COVID-19 updates, Tax


In light of increased restrictions due to the coronavirus pandemic, the government is introducing additional measures to support employers, employees, and self-employed.

Coronavirus Job Retention Scheme (CJRS)

The Job Support Scheme has been placed on hold, reinstating the Job Retention Scheme until March 2021*. From 1st November the government will pay 80% of wages for the hours furloughed employees do not work, up to a cap of £2,500. Similar to the rules in August, employers will need to pay all employer national insurance contributions (NICs) and employer pension contributions.

Claims can be made for employees who were included in a PAYE Real Time Information (RTI) submission between 20 March 2020 to 30 October 2020 (23:59). Employees who have been made redundant or stopped working for the company can qualify for the scheme if rehired and included on an RTI submission on or before 23 September 2020.

*The government will review the policy in January 2021 and is subject to change.

Self-Employment Income Support Scheme (SEISS) Grant Extension 

In September the Government announced two further grants under the Self-Employment Income Support Scheme (SEISS) with the extension lasting 6 months to April 2021.

The third grant covering the periods November 2020 – January 2021, will provide a taxable payment calculated at 80% of 3 months average trading profits, capped at £7,500. This is an increase from the previously announced 55%.  The fourth grant covering periods February 2021 – April 2021 will be announced in due course by the government.

To be eligible to claim for the SEISS grant extension, self-employed individuals including members of partnerships must have:

  • Been previously eligible for the SEISS first and second grant
  • intended to continue to trade but are impacted by reduced demand due to coronavirus
  • previously traded but are temporarily unable to do so due to coronavirus

For further information or assistance please contact our office on 01903 300230.

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3rd April 2020

Important legislation changes to consider for 2020/2021 Tax Year (06 April 2020)

Filed Under: Coronavirus / COVID-19 updates, Tax


  • There will be no tax code points uplift this year with the personal allowance remaining £12,500 per annum
  • The Employment Allowance will increase to £4,000 from £3,000 (subject to relevant criteria)
  • Holiday pay for casual workers, including zero-hour contracts, will now be calculated based on average weekly earnings over 52 weeks, instead of 12
  • The introduction of Statutory Bereavement Pay (SPBD) following the death of a child (subject to relevant criteria)
  • Increase in National Minimum & Living Wage:

 

  • Increase in Statutory Sick Pay (SSP) – £95.85
  • Increase in Statutory Maternity/Paternity/Adoption & Shared Parental Leave(SMP/SPP/SAP/ShPP) – £151.20
  • The earnings trigger of £10,000 and contribution percentages of 3% employer & 5% employee will remain the same for the purposes of Auto Enrolment, but the lower and upper levels have changed.

In light of Covid-19 virus, HM Revenue & Customs have advised that workers will receive Statutory Sick Pay (SSP) from their first day off, not the fourth. It was also announced in the budget, that companies with less then 250 employees would be able to reclaim Statutory Sick Payments made as a result of the Covid-19 outbreak; we await further information on this.

 

 

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31st July 2019

Client Sign Up – Making Tax Digital (MTD) for VAT

Filed Under: Tax, VAT


As you are aware Making Tax Digital (MTD) for VAT is now in effect for those businesses with turnover above the VAT threshold of £85,000.

HMRC requires these businesses to sign up to MTD for VAT online via the Gov.uk website and then link the Government Gateway account to your chosen MTD compatible software.

If you submit your own VAT returns you will need to complete the process yourself using your current Government Gateway account that you currently use to submit VAT returns.

The schedule shows when your first MTD compliant VAT Return will need to be submitted. Signing up with HMRC will need to be completed at least 7 days before submitting the first MTD compliant VAT return.

Please note; Download and save a copy of your VAT Certificate before completing this process.

  • To sign up you will need your Government Gateway credentials and the date of registration
  • Signing up for MTD with HMRC needs to be completed at least 7 days before submitting your first MTD compliant VAT return.
  • Software can be linked once a confirmation email from HMRC has been received.
  • Once registered you will not be able to submit VAT returns manually on the HMRC website, only through compatible software.
  • If VAT is usually paid by Direct Debt (DD), please contact HMRC to ensure the DD Payment will be taken after signing up to MTD. There have been circumstances where HMRC has not taken the DD. If you have any queries please get in contact.

 HMRC Sign Up

To sign up to Making Tax Digital for VAT with HMRC, please click on the below link. Select “Sign up your own business” follow the steps and wait for confirmation by email that you’ve been moved to the MTD service.

https://www.gov.uk/guidance/sign-up-for-making-tax-digital-for-vat

Once the email has been received, you will then be able to link your software to the Government Gateway Account.

Please do not hesitate to contact us on 01903 300230, if you have any queries.

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