Important Information

Updated 7^th January 2021

We have managed to keep our office open throughout the pandemic and will continue to do so during the current National Lockdown 3 period, but this is still subject to Government advice.

We are not currently meeting with clients and have organised a 'drop off' arrangement for books and records at the entrance to the office, so far this has worked well for those of you that have used it. 

We will continue to update this information as regularly as possible, this is a summary of the advice from HMRC

Self Employed

The deadline for the first two Self Employed Income Support Scheme Grants has now passed and claims for the third SEISS Grant must be made by 29 January 2021.

The third grant will cover a three-month period from the start of November until the end of January.  HMRC will provide a taxable grant covering 80% of average monthly trading profits, capped at £7,500 in total.  You must have been eligible for the first two grants to claim the third, but there have been changes to the eligibility criteria for the latest grant.

To be able to claim the third SEISS grant, you must be able to declare that you reasonably believe there will be a significant reduction in your trading profits during the period

The fourth grant will cover a three-month period from the start of February until the end of April.  The level of this grant has not yet been set by HMRC.

As before, if your annual average profits are over £50,000, you will not qualify for the grant.  Nor will you qualify if you commenced self employment after 6th April 2019.  Under these circumstances the current options are to claim Universal Credit and/or Employment and Support Allowance

Employers

Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees' salary for those that would otherwise have been laid off during this crisis.

From 1^st November 2020 to April 2021

The government will pay 80% of wages up to a cap of £2,500 per month for the hours the employee does not work.  Employers will continue to pay any employer’s National Insurance contributions and employer Pension contributions due.  The cap on the furlough grant will be proportional to the hours not worked if employees have returned part-time during the payment period.

Businesses Grants

Businesses that were open as usual, but required to close between 5^th November 2020 and 2^nd December 2020 due to the National Restrictions may be eligible for a Local Restrictions Support Grant (Closed).  Grants are claimed from your Local Council.

The LRSG Grant (Closed) is linked to rateable values and small businesses with a rateable value under £15,000 will be able to claim a cash grant of £1,334 per 28 days (payable every 2 weeks).  Rateable values between £15,001 and £51,000 can claim £2,000 per 28 days and over £51,000 can claim £3,000 per 28 days.

Businesses that have not had to close (or had closed but are now re-open) but have been severely impacted due to local Tier 2 or Tier 3 restrictions may be eligible for the Local Restrictions Support Grant (Open).  Grants are claimed from your Local Council.

The LRSG Grant (Open) is linked to rateable values and small businesses with a rateable value under £15,000 will be able to claim a cash grant of £467 per 14 days.  Rateable values between £15,001 and £51,000 can claim £700 per 14 days and over £51,000 can claim £1,050 per 14 days.

For those businesses without premises or those that do not have to close, but have been severely impacted, there is the Additional Restrictions Grant which provides local Councils the freedom to determine which businesses to target and also with how much.

When the UK was placed into a Nationwide lockdown on 5^th January 2021 The Chancellor announced one-off top up grants for retail, hospitality and leisure businesses.

The top ups will be granted to businesses that have had to close based on rateable values.

A closed business with a rateable value under £15,000 will be able to claim a cash grant of £4,000.  Rateable values between £15,001 and £51,000 can claim £6,000 and over £51,000 can claim £9,000.

VAT payments

You must still complete and submit your VAT Return by the usual relevant date. 
If you have a deferred VAT payment from the period 20 March 2020 to 30 June 2020 that was originally payable on 31 March 2021, there is now an option to defer that payment over 11 interest free payments.  You will need to opt in to the New Payment Scheme and we expect the opt in process to be available in early 2021.

Income Tax payments

Income Tax Self-Assessment payments that were due on the 31 July 2020 were deferred until 31 January 2021.  The Government announced that you can agree a payment plan to pay these liabilities over an additional 12 months (i.e. up to 31 January 2022).  You will need to make a claim to HMRC through your Personal Tax Account, but you will be automatically accepted if your current outstanding liability is under £30,000.  Interest will be charged from 1 February 2021 but the usual late payment penalties at 28^th February 2021, after 6 months and after 12 months will not apply if you have a time to pay arrangement in place.

PAYE and Corporation Tax payments

There currently are no deferral payment periods for either of these taxes.  Payments are still expected on the normal due dates.  If you know you will be unable to make a payment at the correct time, you will need to contact HMRC (see below for details).

Business loans

From 4th May 2020 you can apply for a Business Bounce Bank loan, which can be between £2,000 up to £50,000 (or 25% of your turnover if that is lower.  It is 100% backed by the Government, the first year is interest and repayment free.  The interest rate is fixed at 2.5% for the term of the loan and there are no early repayment penalties or set up fees.

You can now take advantage of the new Pay As You Grow flexible repayment scheme, which will allow you to:
- Extend the repayment period from 6 years to 10 years
- Opt for interest only repayments for up to 6 months (up to 3 times)
- Suspend repayments for up to 6 months (once at least 6 payments have been made)

Time to pay

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. If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC's dedicated helpline: 0800 0159 559