COVID-19 Update (updated 16th July 2020)
Dear Clients & Friends
The government has updated the guidance on their website:
Self-employed Grant – Click Here
- You can make a claim for the second and final grant if you’re eligible, even if you did not make a claim for the first grant if you can confirm that your business was adversely affected on or after 14th July.
- HMRC’s online service will be available for the final time from 17th August 2020.
- After you have claimed, HMRC will check the claim and pay the grant within 6 working days.
- You must keep evidence to confirm that your business was adversely affected at the time of the claim. If your business recovers after the claim, your eligibility will not be affected.
VAT: reduced rate for hospitality, holiday accommodation and attractions – Click Here
The temporary 5% reduced rate will apply to supplies that are made between 15 July 2020 and 12 January 2021.
- Hospitality – Applicable to food and non-alcoholic beverages on-premises and any hot takeaway food and non-alcoholic drinks – https://www.gov.uk/guidance/catering-takeaway-food-and-vat-notice-7091
- Hotel and Holiday accommodation – applicable if you supply sleeping accommodation in a hotel or similar – https://www.gov.uk/guidance/hotels-holiday-accommodation-and-vat-notice-7093
- Admission to certain attractions – applicable If you charge a fee for admission to certain attractions where the supplies are currently standard rated. https://www.gov.uk/guidance/vat-on-admission-charges-to-attractions
- The Flat Rate Scheme – If you are a small business and use the Flat Rate Scheme to simplify your VAT calculations you should be aware that certain percentages have been reduced in line with the introduction of the temporarily reduced rate of VAT https://www.gov.uk/vat-flat-rate-scheme/how-much-you-pay
Self-employed assistance – Click Here
Worked example from Coronavirus Taxwise (https://www.cronertaxwise.com/)
**New** Bounce Bank Loan – Click Here
Company & Employer guidance
This includes a package of measures to support businesses which are as follows:
- A Coronavirus Job Retention Scheme, this should initially cover employer NI and the minimum auto-enrolment employer pension contribution.
Check if you could be covered by the Coronavirus Job Retention Scheme – Click Here
- Deferral of VAT payment:
Businesses with a UK VAT registration have the option to defer VAT payments due between 20 March and 30 June. Businesses have until 31 March 2021 to pay any VAT deferred as a result of this announcement. Businesses do not need to inform HMRC if they wish to defer payment. They can opt into the deferral simply by not making VAT payments due in this period.
Businesses who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. This can be done online if they’re registered for online banking. They should do so in sufficient time so that HMRC does not attempt to automatically collect on receipt of their VAT return.
Should they wish, businesses can continue to make payments as normal during the deferral period. HMRC will also continue to pay repayment claims as normal. Businesses must continue to submit VAT returns as normal. For more government guidance click here.
- a Statutory Sick Pay relief package for small and medium-sized businesses (SMEs)
- a 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
- small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
- a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
- the HMRC Time To Pay Scheme
COVID-19: Guidance to employers & businesses – Click Here.
- Furloughed workers
- Sick pay
- SSP start date
- Proof of sickness
- Support for rent costs
COVID-19: Support for Business – Click Here
Other useful links from our Association (ACCA).
Anxiety, Emotional Quotient and taking care of your own wellbeing – Click Here
Successful Remote Working for your Team – Click Here
ACCA UK – Covid-19 support for the self-employed and director-led businesses – Click Here
Employment Law – the Coronavirus Job Retention Scheme and furloughing employees – Click Here
Finally, as we have always advised, be aware of an increase in scam emails, calls and texts. If someone gets in touch claiming to be from HMRC, 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 and do not forward these links to others. HMRC will never contact you out of the blue to ask for these details.
We will be updating this page and you by email as and when more information is available.