Updates Archives - Page 3 of 5

New Grants To Boost Recovery Of Small Businesses

Posted on August 12, 2020 | by Jade Donno

Thousands of smaller businesses in England are set to benefit from £20 million of new government funding to help them recover from the effects of the coronavirus pandemic, the Minister for Regional Growth and Local Government has announced.

Small and medium sized businesses will have access to grants of between £1,000 – £5,000 to help them access new technology and other equipment as well as professional, legal, financial or other advice to help them get back on track.

The support will be fully funded by the Government with no obligation for businesses to contribute financially and the support will be fully funded by the government from the England European Regional Development Fund and distributed through local enterprise partnerships (LEP) Growth Hubs, embedded in local areas across England.

LEPs are voluntary partnerships between local authorities and businesses, set up in 2011 by the Department for Business, Innovation and Skills to help determine local economic priorities and lead economic growth and job creation within the local area.

Activities supported through the £20 million can include:

One-to-many events providing guidance to respond to coronavirus,
Grants (£1,000 – £5,000) to help businesses access specialist professional advice such as HR, accountants, legal, financial, IT and digital, and to purchase minor equipment to adapt or adopt new technology in order to continue to deliver business activity or diversify.

We will provide further details on how to apply for these grants in due course.

Watch this space!

Please see: https://www.gov.uk/government/news/20-million-in-new-grants-to-boost-recovery-of-small-businesses?utm_source=d73de287-c359-4e20-b0ee-3f50952053fd&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

What is the job retention scheme bonus?

Posted on August 11, 2020 | by Jade Donno

Employers will be able to claim a one-off payment of £1,000 for every employee they have previously received a grant for under the Coronavirus Job Retention Scheme (CJRS), and who remains continuously employed through to the end of January 2021.

To be eligible, the employee must have received earnings in November, December and January, and must have been paid an average of at least £520 per month, and a total of at least £1,560 across the three months.

As the employer, you will be able to claim the bonus after you have filed PAYE information for January 2021, and the bonus will be paid from February 2021. More detailed guidance, including how you can claim the bonus online, will be available by the end of September.

What you need to do now

If you intend to claim the Job Retention Bonus you must:

ensure all your employee records are up to date
accurately report employees’ details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system
make sure all of your CJRS claims have been accurately submitted and you have told HMRC about any changes needed (for example if you have received too much or too little).

Reminder of changes to CJRS

From 1 August 2020 CJRS continues to provide grants for furloughed employees but no longer funds employers’ National Insurance (NI) and pension contributions. You now have to make these payments from your own resources for all employees, whether furloughed or not. HMRC guidance has been updated to reflect these changes.

Making sure your data is right

It is important that you provide the data HMRC need to process your claim. Payment of your grant may be at risk or delayed if you submit a claim that is incomplete or incorrect. HMRC may be in touch to request employee data if it’s missing from your previous claims.

National Insurance numbers

You need to provide a National Insurance number (NINO) for all employees as part of your CJRS claim. The only exception is in the very limited circumstances where an employee genuinely does not have a NINO, for example if they are under 16 years old.

If you are claiming for an employee whose NINO you do not currently know, you can check their number by searching GOV.UK for ‘Check a National Insurance Number using basic PAYE Tools’.

HMRC can no longer accept claims for fewer than 100 employees by phone where you do not have all employee NINO’s unless the employees you are claiming for genuinely do not have these.

Claimed too much in error?

If you have claimed too much for a CJRS grant and have not repaid it, you must notify HMRC and repay the money by the latest of whichever date applies below:

90 days after receiving the CJRS money you’re not entitled to
90 days from when circumstances changed so that you were no longer entitled to keep the CJRS grant
20 October 2020 if you received CJRS money you are not entitled to or if your circumstances changed on or before 22 July.

Claim Money Back Through Eat Out To Help Out Scheme

Posted on August 11, 2020 | by Jade Donno

The Government has announced details on how to claim the reimbursement for discounts given to diners with the Eat Out to Help Out Scheme.

Please talk to us if you need help with your claim and record keeping.

Who can claim?

If you have registered your establishment for the Eat Out to Help Out Scheme and offered scheme discounts to diners on Mondays to Wednesdays between 3 and 31 August, you can:

claim back the discount given on food and non-alcoholic drinks
submit weekly claims for August until 30 September

You must make the claim ONLINE yourself. You cannot ask us to do it for you. We can help you calculate the claim if you want us to.

You must enter accurate details for all the establishments you’re claiming for before submitting your claim. If you need to amend information later your payment may be delayed.

When you can claim

You can make a claim after 7 days from the date of your registration. You can only claim for scheme discounts you offered on or after the date you registered.

What you will need

You will need the records you’ve kept for each day you have used the scheme, including the:

total number of diners (covers) who have used the scheme, including children
total amount of discount you’ve given
period you’re claiming for

If you are making a claim for more than one establishment, you will need to have the:

records for each establishment
overall total value of the claim for all establishments ready before you claim

How to claim

You must enter accurate details for all the establishments you’re claiming for and check your claim carefully before submitting.

If you claim too much, HMRC will not be able to correct this until 14 August.

If you claim too little, HMRC will not be able to correct this until 21 August.

You can make up to 5 claims before 30 September. You cannot claim after that.

When you sign into the service you must choose the periods that you are claiming for, from:

3 to 5 August
10 to 12 August
17 to 19 August
24 to 26 August
31 August

You’ll also need to enter the total number of covers and claim value for each establishment that has offered the scheme discount.

Records you must keep

To show the link between the number of diners who got the discount and the total value of scheme discount being claimed for in each claim period, for each day, all you must keep is a record of the:

total number of diners who have used the scheme discount in your establishment
total value of all eat in food and non-alcoholic drink sold where the scheme discounts were given
total value of scheme discounts you’ve given and claimed for

If you are using the scheme for more than one establishment, you must keep these records for each.

HMRC may ask for your records relating to the scheme. You should keep records:

in a format that suits your business
with your other business records

Once you have claimed, you will get a claim reference number. HMRC will then check your claim is correct and pay the claim amount by BACs into the bank account you gave when you registered, within 5 working days.

Paying tax

You will still need to pay VAT based on the full amount of your customer’s bill before the scheme discount is applied. This amount needs to be reflected in the correct VAT return for the period the transaction took place.

If your point of sale system does not allow you to account for VAT accurately under this scheme, you can manually adjust your VAT account after the sale.

If you cannot include the adjustment in the period the transaction took place, you should estimate the VAT and you must account for any difference in your next VAT return.

The payment you receive will be treated as taxable income.

If you need to make a correction

If you need to correct any information given during registration or to a claim, you will need to contact HMRC. There is a dedicated helpline for this scheme: 0300 322 9429.

For further information or assistance with the claim please contact us.

See: https://www.gov.uk/guidance/claim-money-back-through-the-eat-out-to-help-out-scheme?utm_source=6eff9a4f-29d6-41f3-95e0-5d2811a0f51b&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

Business bounce back loan - boy on trampoline

Business Bounce Back Loans

Posted on August 3, 2020 | by Jade Donno

Business Bounce Back Loans – what are they and should you apply for one?

Since the scheme launched in May 2020 (just 3 months ago), more than 860,000 bounce back loans have been issued. This means that thousands of small businesses who are struggling due to the coronavirus have applied for and received financial help; help of which will hopefully get them through this turbulent time. So what are bounce back loans? Here is what you need to know about them including a list of questions to help you decide whether you should apply for one.

Business Bounce Back Loans

While there has been a lot of financial support being dished out due to the impact of the Coronavirus, there are small businesses that can’t access this funding quickly enough; self-employed people who don’t qualify for the Self-Employment Income Support Scheme, and limited company directors who have fallen through the cracks.

For these businesses and individuals, the ones who aren’t covered by other schemes, bounce back loans are a saving grace.

So what are bounce banks loans?

Bounce back loans are 100% government-backed loans which include the following:

Loan amount from £2,000-£50,000 or 25% of your annual turnover (whichever is lower)
No interest charged in the first 12 months (the Government covers the first year)
No repayments needed in the first 12 months
After 12 months, all banks charge a fixed 2.5% interest rate/year
6-year loan with no early repayment charges
Straightforward application and quick access to funds

Obviously, your business will always remain responsible for the repayment of the whole debt amount, but bounce back loans will provide you with significant support over the next 12 months.

Should I apply?

To help you decide whether you should apply for a bounce back loan, here are some questions for you to consider. If your answer is yes to a number of these questions then you are eligible to receive support.

Am I a UK-based business that has been impacted by Covid-19?
Was my business established before 1 March 2020?
Is this the only support that I am applying for (with the exception of personal support)?
Do I need financial help in addition to the self-employment income support grant and universal credit?
Do I need to repay existing finance, i.e. lenders?
Do I need help to pay investments or working capital for the business – including bills, running costs and wages?
Do I need capital immediately (within 24 hours)?

Things to note

If you would like to apply for a bounce back loan, all you have to do is contact a bank directly and fill in a short online application. You will need details of your annual turnover, your account number, the amount you wish to borrow, a copy of your tax return, and proof that your business has been negatively impacted by Covid-19.

In terms of repayments, there are no interest or repayments in the first year but after those 12 months, you will need to make 60 repayments of the amount borrowed. Unlike a personal loan, however, you won’t have fixed payments. Each month, you’ll repay 1/60^th of the capital plus the interest that has accumulated that month. This means that the amount you owe will decrease over time and in turn, your repayment amount will decrease too.

If you would like to know more about the Business Bounce Back Loans book in a no-obligation free meeting TODAY!

Is the new electric bike grant right for your business?

Posted on July 29, 2020 | by Jade Donno

Boris Johnson announces grants for Electric Bikes, but are they a good idea for small business owners?

Bikes (including E-bikes) costing over £1000 will now be included in the Governments ‘Cycle to Work’ scheme. If any of your team members are keen to cycle to work, this is a great opportunity for your business to get involved.

GCI founder Rob Howes said in the Forbes article ‘E-Bikes And Other £1,000+ Bicycles Added To U.K. Government’s Money Saving ‘Cycle To Work’ Scheme’ :

We think the electric bike has an enormous part to play and making it possible to get one using the popular Cycle to Work scheme is a step in the right direction by the Government. We have multiple clients who have given up their cars and swapped to e-bikes, and we have helped lots of people who now have a cargo bike instead of a second bike

Rob Howes

ELECTRIC BIKES

Many cyclists will say that the electric bike is not for the ‘true cyclist’. However for the people who can’t keep up, need a little push up the hills or just don’t want to be sweaty when they arrive at work the electric bike is perfect and keeps cycling inclusive for all abilities.

There is also a myth that electric bikes are heavy, ugly things with wires hanging off the frame linking to a large battery that you have to get your legs around. This is not the case. Paul visited our local bike shop Aerocycles and he was amazed at how good the electric bikes looked. They are definitely worth checking out.

WHAT IS THE CYCLE TO WORK SCHEME?

The Governments Green Transport plan aims to reduce pollution, promote healthier lifestyles and makes cycling to work cost effective. All companies in the UK qualify for the scheme (providing they are UK tax payers). Earnings must remain above the level of national minimum wage after the salary sacrifice has been deducted. Unfortunately sole traders do not qualify for the scheme. The scheme gives employees a tax exemption. The savings are typically about 25-39%. You can implement this as a ‘salary sacrifice’ or as a ‘company perk’.

The added health and environmental benefits of cycling to work are huge. We would definitely recommend this scheme to get you and your work force cycling.

For more detailed information please look at Cyclescheme.co.uk https://www.cyclescheme.co.uk/get-a-bike/how-it-works

If you have a bike already don’t forget the £50 voucher to get your bike back on the road. https://www.bbc.co.uk/news/business-53558629

Happy Cycling

Eat Out to Help Out

Posted on July 20, 2020 | by Jade Donno

Restaurants and other establishments serving food for on-premises consumption can now sign up to a new government initiative aimed at protecting jobs in the hospitality industry and encouraging people to safely return to dining out.

The Eat Out to Help Out registration service went live on the 13th of July on GOV.UK, allowing businesses to join the scheme.

Restaurants, bars, cafes and other establishments who use the scheme will offer a 50% reduction, up to a maximum of £10 per person, to all diners who eat and/or drink-in throughout August.

Customers do not need a voucher as participating establishments will just remove the discount from their bill. Businesses simply reclaim the discounted amount through an online service, supported by HM Revenue and Customs (HMRC). Claims can be made on a weekly basis and will be paid into bank accounts within five working days.

The scheme is open to eligible establishments across the UK and can be used all day, every Monday to Wednesday, between 3 and 31 August 2020.

For details on how the scheme works see: https://www.gov.uk/guidance/register-your-establishment-for-the-eat-out-to-help-out-scheme?utm_source=4783ef6b-1939-4072-8311-f58a0a39e451&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

The Government has provided marketing resources for the Eat Out to Help Out scheme. There are posters, images and other promotional materials for use by establishments who are taking part in the Scheme.

See: https://www.gov.uk/government/publications/eat-out-to-help-out-scheme-promotional-materials?utm_source=eca9b856-2878-4866-8cd8-8cca1cba1c39&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediat

Another Furlough Update

Posted on July 20, 2020 | by Jade Donno

CORONAVIRUS JOB RETENTION SCHEME (CJRS) UPDATE.

From 1^st July “Flexible Furlough” was introduced and the calculations and time recording of full-time, part-time and fully furloughed employees has become more complicated.

Changes are occurring regularly as the Government and HMRC make clarifications to the scheme. If you have any queries regarding your claim talk to us first.

The latest changes are outlined below:

Steps to take before calculating your claim using the Coronavirus Job Retention Scheme

Wording has been added to make it clear that HMRC will not decline or seek repayment of any grant based solely on the particular choice between fixed or variable approach to calculating usual hours, as long as a reasonable choice is made

See: https://www.gov.uk/guidance/steps-to-take-before-calculating-your-claim-using-the-coronavirus-job-retention-scheme?utm_source=e431e0b9-f22e-4543-b2b9-01c631e87961&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

HMRC has issued further guidance on the CJRS Individuals you can claim for who are not employees:

You can claim a grant for individuals who are not employees – as long as they’re paid via PAYE. The groups you can claim for include:

office holders (including company directors)
salaried members of Limited Liability Partnerships (LLPs)
agency workers (including those employed by umbrella companies)
limb (b) workers
Contingent workers in the public sector
Contractors with public sector engagements in scope of IR35 off-payroll working rules (IR35)

Individuals who are paid through PAYE but not necessarily employees in employment law, can continue to be furloughed from 1 July as long as you have previously submitted a claim for them for a furlough period of at least 3 weeks between 1 March and 30 June 2020.

See: https://www.gov.uk/government/publications/individuals-you-can-claim-for-who-are-not-employees?utm_source=1cc1078c-073c-45c9-a179-daa90bd46bb3&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

Paying employee taxes and pension contributions

There is also an update on ‘Paying employee taxes and pension contributions’ section and added wording to section on employee rights to make it clear that you can continue to claim for a furloughed employee who is serving a statutory notice period.

See: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme?utm_source=0d23eb32-d558-4713-ba3e-58ea7cf51edb&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

The process HMRC is developing to recover overclaimed grant amounts through the tax system

Information has been added about the process HMRC is developing to recover overclaimed grant amounts through the tax system.

If you have made an error in a claim and do not plan to submit further claims, you should contact HMRC to let them know about the error and find out how to pay back any overclaimed amounts. Once you have contacted HMRC you will be given a payment reference number and directed to make a payment.

The Government are introducing legislation to recover overclaimed grant amounts through the tax system. If you repay any overclaimed grant amounts back through the above methods then this will reduce or, if the full amount is repaid, prevent any potential tax liability under that legislation. Further guidance on this will be issued in due course.

If you have made an error that has resulted in an underclaimed amount, you should contact HMRC to amend your claim. As you are increasing the amount of your claim, they need to conduct additional checks.

See: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme?utm_source=5334b049-902e-4fdd-bfc2-9a7c1c222c4c&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

Businesses Need To Reinstate VAT Direct Debits

Posted on June 18, 2020 | by Jade Donno

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.

The Institute of Chartered accountants in England and Wales (ICAEW) Tax Faculty has reminded its members.

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.

However, ICAEW is reminding businesses that they need to take steps to reinstate their direct debit mandates so that they are in place in time for payments due in July 2020 onwards. Any outstanding returns should be filed, and three working days should be allowed to elapse before reinstating the direct debit mandate.

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.

Click here to find out more

C19 Business News Update

Posted on June 15, 2020 | by Jade Donno | Leave a Comment

What’s Going On Now?

As time goes on it is getting harder and harder to keep track of all the Government changes. We have put together this blog to summarise the latest changes.

STAYING ALERT AND SAFE (SOCIAL DISTANCING)

Everyone’s actions have helped to reduce the transmission of coronavirus in our communities. Fatalities and infection rates continue to fall.

The government has set out its plan to return life to as near normal as we can, for as many people as we can, as quickly and fairly as possible in order to safeguard livelihoods, but in a way that is safe and continues to protect the NHS. The most important thing we can continue to do is to stay alert, control the virus, and, in doing so, save lives.

This guidance applies in England – people in Scotland, Wales and Northern Ireland should follow the specific rules in those parts of the UK.

Click here for more information

NEW FUNDING CONFIRMED FOR LOCAL AUTHORITIES TO HELP THOSE STRUGGLING FINANCIALLY AS A RESULT OF CORONAVIRUS

An additional £63 million has been confirmed by government to be distributed to local authorities in England to help those who are struggling to afford food and other essentials due to coronavirus.

Local authorities are already working to support those who are vulnerable, and this additional funding will contribute to that work.

Many have existing mechanisms to provide this support in a way that suits the needs of their community. This includes provision of cash payments, food vouchers, or alternative means of support.

Click here for more information

MANAGEMENT OF STAFF AND EXPOSED PATIENTS AND RESIDENTS IN HEALTH AND SOCIAL CARE SETTINGS

This guidance provides advice on the management of staff and patients or residents in health and social care settings according to exposures, symptoms and test results. It includes:

staff with symptoms of COVID-19
staff return to work criteria
patient exposures in hospital
resident exposures in care settings

Please note that this guidance is of a general nature and that an employer should consider the specific conditions of each individual place of work and comply with all applicable legislation, including the Health and Safety at Work etc. Act 1974.

There may be further information specific to each country in the United Kingdom, as this guidance was written by Public Health England primarily for an English health professional audience. To see if country specific information is available, please refer to Health Protection Scotland, Public Health Wales, or Public Health Agency in Northern Ireland.

Click here for more information

WHAT YOU CAN AND CAN’T DO FAQs

This guidance has been updated 12 June.

Click here for the guidance

SELF-EMPLOYED GET SECOND GRANT FROM GOVERNMENT

Posted on June 1, 2020 | by Jade Donno | Leave a Comment

Sole Traders to get second grant from the Government.

The government’s Self-Employment Income Support Scheme will be extended, giving more security to individuals whose livelihoods are adversely affected by coronavirus in the coming months, the Chancellor announced on Friday 29 May 2020. Rishi Sunak announced the Self-Employment Income Support Scheme will be extended – with those eligible able to claim a second and final grant capped at £6,570.

Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus. An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase.

Further guidance on the second grant will be published on Friday 12 June and we will keep you up to date with the details when we know them.

See: https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme?utm_source=95036a42-e8c3-49f3-8f73-6300a69ea34a&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

Category: Updates

New Grants To Boost Recovery Of Small Businesses