By Katie Business Advice • COVID-19 • Covid-19 Hub • Tax Advice • Tax News 0 Comments

Are you working from home? Make a claim

With more of us working from home there is good news from HMRC that employees can now make a claim for tax relief to cover some of their costs while they are working from home.

The previous rule for employees was that there had to be a home working arrangement with their employer under which they were required to work from home on a regular basis to be paid £6 a week tax free (£4 a week up to 5 April 2020). This rule has now been relaxed as a result of COVID-19 so that such arrangements are not currently required and employees can also claim tax relief directly from HMRC where their employer does not make the payments.

£312 a year tax free is equivalent to £538 gross for a higher rate taxpayer. The payments are tax deductible for the employer and not liable to national insurance contributions.

Where the employer does not make the payments to the employee there is a new claims portal on the HMRC website so that the employee who is working from home can claim to deduct £312 from their employment income. That would generate a £124.80 tax refund for a higher rate taxpayer or £62.40 if basic rate.

There is a similar tax break for the self employed which provides a deduction from profits of up to £26 a month.

 

Need more information?

Are you working from home? We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

Our fantastic team at A&C Chartered Accountants are here to help.

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    By Katie Business Advice • Business News 0 Comments

    Penalties for over claimed CJRS, SEISS and “eat out to help out” grants

    HMRC have announced that they will be imposing penalties of up to 100% of the amounts over claimed CJRS, SEISS and “eat out to help out” grants, on businesses during the coronavirus pandemic so make sure that your claims are correct.

    The penalties depend on whether or not the over claim is the result of a deliberate error and whether or not the disclosure was prompted by HMRC. The penalty may be reduced where the taxpayer assists HMRC in correcting the error.

    Many over claims may be the result of careless errors or a misinterpretation of the rules which have changed many times in the last 9 months so we hope that HMRC will apply the rules with a light touch and focus on those that have abused these schemes.

    We understand that HMRC are writing to 4,000 catering establishments that they suspect may have over claimed under the “Eat out to help out” scheme that ran in August.  Traders are being asked to check their claims and respond within 60 days or face an HMRC compliance check.

    Need more information?

    Do you need more guidance on the penalties on over claimed CJRS? Feel free to contact us – we understand this is a difficult time for all during the coronavirus pandemic. We offer a wide range of services which are unique to you and your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

    Our fantastic team at A&C Chartered Accountants are here to help.

    Contact us below

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      By Katie Business Advice • Tax Advice 0 Comments

      Reference Pay

      An employee’s reference pay will depend upon whether or not they were on the payroll and subject to an RTI submission for 2019/20 on or before 19 March 2020. Where that is the case their reference pay will be that used under previous furlough claims. Where the employee has joined since that date or not subject to an RTI submission prior to 19 March the reference pay will generally be that for the last pay period ending before 30 October.

      There are exceptions to these rules and complications for those working variable hours and with variable rates of pay.

      Reference pay: calculating 80% of wages

      If an employee was not previously eligible for CJRS, 80% of wages must be calculated for employees:

      • on a fixed salary – 80% of the wages payable in the last pay period ending on or before 30 October 2020
      • whose pay varies – 80% of the average payable between (these dates are inclusive) the start date of their employment or 6 April 2020 (whichever is later) and the day before their CJRS extension furlough periods begins

      80% of wages is capped at the maximum wage amount which will be calculated in the in the way it was for CJRS before the extension .

      We can of course assist you with your claims, or alternatively prepare them on your behalf.

       

      Need more information?

      Do you need help and guidance with reference pay? We offer a wide range of services which are unique to your businesses who are just getting going! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

      Our fantastic team at A&C Chartered Accountants are here to help.

      Contact us below

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        By Katie Business Advice • Tax Advice 0 Comments

        Claim your “furlough” grant by 14th December 2020

        We now have further details of the operation of the extension of Coronavirus Job Retention Scheme “furlough” grant that will apply from 1 November 2020 through to the end of March 2021. The government support will initially be at the rate of 80% of an employee’s reference pay for hours they are furloughed, subject to a maximum of £2,500 a month.

        Claims must be made by the 14th of the following month although they can be made up to 14 days in advance. Another key difference from the previous versions of CJRS is that there is no requirement that the employee was on the payroll at 19 March 2020 or has been previously furloughed. They do however need to be on the payroll and subject to an RTI submission prior to midnight on 30 October 2020.

        Need more information?

        We have helped all our clients claim the furlough grant. Do you need help too? We are here to support you and your business through this difficult time and we offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

        Our fantastic team at A&C Chartered Accountants are here to help.

        Contact us below

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          By Katie Business Advice • COVID-19 • Covid-19 Hub 0 Comments

          Green Homes Grant: make energy improvements to your home

          Green Homes Grant: make energy improvements to your home

          Homeowners

          What is the Green Homes Grant?

          The government will provide a voucher up to £5,000 that covers up to two-thirds of the cost of energy efficiency and low carbon heat improvements to your home. See which improvements are included in the scheme below.

          You may be able to receive a bigger grant if you are a homeowner and you or a member of your household receives one of the qualifying benefits. The government will cover 100% of the cost of the improvements up to £10,000.

          How do I apply?

          1. Check if you’re eligible for a voucher
          2. Check what improvements may be suitable for your home
          3. Choose which improvements you would like and see an estimate of how much they may cost
          4. Find registered installers to get quotes to carry out the work
          5. Apply for your voucher

          The Green Homes Grant scheme will never include official representatives coming to your property uninvited or cold calling on the phone to encourage you to join the scheme.

          Tradespeople

          Tradespeople and businesses that are appropriately certified to install energy efficiency and/or low carbon heating improvements in homes need to register with TrustMark to carry out work under the scheme. This confirms to homeowners that you will install measures to high standards.

          You will be added to a directory of TrustMark registered  installers and homeowners can then contact you to obtain a quote.

          Tradespeople and businesses that install low carbon heating improvements in homes will also need to be MCS certified.

          Once you are registered with TrustMark, you need to apply to become a Green Homes Grant installer so you can deliver work in the 600,000 homes that will receive vouchers.

          Working during national restrictions

          Tradespeople, including Green Homes Grant installers, can continue to work in people’s homes under the national restrictions from 5 November.

          You must follow the COVID-19 Secure guidelines.

          Installers do not need to physically attend a customer’s home to provide a quote and can do this remotely using a video call or detailed photos.

          Need more information?

          If you need more information on the green homes grant, do not hesitate to contact us – we offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

          Our fantastic team at A&C Chartered Accountants are here to help.

          Contact us below

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            By Katie Business Advice • Business News • Startups 0 Comments

            Self-Employment Income Support Scheme Grant Extension

            Good news for the self-employed – the government announced yesterday it will increase support over the coming months with a Support Scheme Grant Extension. Please read below for more information.
            • To reflect the recent changes to the furlough scheme, the UK-wide Self-Employment Income Support Scheme (SEISS) will be made more generous – with self-employed individuals receiving 80% of their average trading profits from the previously announced level of 40% of trading profits for November 2020. This therefore increases the total level of the grant from 40% to 55% of trading profits for 1 November 2020 to 31 January 2020. To ensure those who need support get it as soon as possible, payments will also be made more quickly with the claims window being brought forward from 14 December to 30 November.
            • The extension 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 first grant will cover a three-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 55% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £5,160 in total. The second grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this in due course.

            Reminder: The grants are taxable income and also subject to National Insurance contributions.

            Who can claim
            To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:

            • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
            • declare that they intend to continue to trade and either:
            •  –   are currently actively trading but are impacted by reduced demand due to coronavirus
            •  –  were previously trading but are temporarily unable to do so due to coronavirus
            How to claim
            The online service for the next grant will be available from 30 November 2020. HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.

            In addition, more businesses will be able to access additional support as deadlines for applications for government-backed loan schemes and the Future Fund have been further extended until 31 January 2021.

            Regards,

            Paul and the team

            Need more information?

            Are you self-employed and need help with the Support Scheme Grant Extension? We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for the self-employed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

            Our fantastic team at A&C Chartered Accountants are here to help.

            Contact us below

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              By Katie Business Advice • Business News 0 Comments

              Keeping your data secure when working remotely

              With many of us now working from home, making video conference calls, uploading documents and conducting business online, how can firms ensure that their data and systems are secure?

              Update your network security

              While you should really do this on a regular, ongoing basis, making sure your devices are completely up to date with the most recent security patches and upgrades can make a huge difference in securing your data.

              Things like your operating system, antivirus and antimalware programs, and your router are just some of the things you should immediately shore up and protect since those are generally your first and last defense against external threats. If some of your staff are using their own, personal devices when working remotely, your firm can roll out secure platforms such as Mobile Iron, which can be installed on those devices, in order to keep company data secure.

              Encrypt home WiFi

              If your team is working from home, ensure that their WiFi network is encrypted. A good start is to change the router’s default password as it’s susceptible to attack from a hacker.

              The default passwords tend to be weaker. ‘Admin’, for example. Note that this is not the password you use to access the network; it’s the one you use to protect your settings and configuration.

              Two-factor authentication (2FA)

              2FA requires two forms of identification to gain access, such as a password and a PIN code. This makes it harder for hackers to guess user login details. If you don’t want to rely on set numbers and codes, you can also use apps like Microsoft/Google Authenticator – this will send an approval notification to your phone which you can either approve or deny.

              Training

              Having the right training in place is central to working remotely. Assign appropriate training courses to your team and ensure that they all complete it. Reinforce staff responsibilities, including when to report cyber security issues.

              Remind employees that while they work remotely, they have to maintain the same level of professionalism when it comes to secure and sensitive data as they do in the office. That includes reminding people that personal email is not to be used in an official capacity and that any physical documents kept at home must either be disposed of properly with a shredder or set aside securely (in a locked cabinet) to be shredded or securely filed at a later date.

              It is also important to look after your mental health during the coronavirus pandemic. Take a look at the mental health website for more guidance.

              Need more information?

              Are you and your team working remotely? We offer a wide range of services which are unique to your business. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

              Our fantastic team at A&C Chartered Accountants are here to help.

              Contact us below

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                By Katie Business Advice • Business News • COVID-19 • Covid-19 Hub 0 Comments

                Covid-19 update – Chancellor Increases Financial Support For Businesses

                Today, the Chancellor has announced further financial support for businesses during this time. These include:

                –  Open businesses which are experiencing considerable difficulty will be given extra help to keep staff on as government significantly increases contribution to wage costs under the Job Support Scheme, and business contributions drop to 5%.
                – Grants for the self-employed doubled to 40% of previous earnings.
                – Business grants are expanded to cover businesses in particularly affected sectors in high-alert level areas, helping them stay afloat and protecting jobs.

                Please see below for more information on these changes.

                Job Support Scheme (JSS)

                When originally announced, the JSS – which will come into effect on 1 November – saw employers paying a third of their employees’ wages for hours not worked, and required employers to be working 33% of their normal hours. Today’s announcement reduces the employer contribution to those unworked hours to just 5%, and reduces the minimum hours requirements to 20%, so those working just one day a week will be eligible.
                That means that if someone was being paid £587 for their unworked hours, the government would be contributing £543 and their employer only £44. Employers will continue to receive the £1,000 Job Retention Bonus. The Job Support Scheme Closed for businesses legally required to close remains unchanged.

                Self-employed grant

                Today’s announcement increases the amount of profits covered by the two forthcoming self-employed grants from 20 per cent to 40 per cent, meaning the maximum grant will increase from £1,875 to £3,750.
                The government will provide two taxable SEISS grants to support those experiencing reduced demand due to COVID-19 but are continuing to trade, or temporarily cannot trade. It will be available to anyone who was previously eligible for the SEISS grant one and grant two, and meets the eligibility criteria. Grants will be paid in two lump sum instalments each covering 3 months.
                – The first grant will cover a three-month period from the start of November 2020 until the end of January 2021. The government will pay a taxable grant which is calculated based on 40% of three months’ average trading profits, paid out in a single instalment and capped at £3,750.
                – The second grant will cover a three-month period from the start of February until the end of April 2021. The government will review the level of the second grant and set this in due course.

                Business Grants

                The Chancellor has also announced approved additional funding to support cash grants of up to £2,100 per month primarily for businesses in the hospitality, accommodation and leisure sector who may be adversely impacted by the restrictions in high-alert level areas. These grants will be available retrospectively for areas who have already been subject to restrictions, and come on top of higher levels of additional business support for Local Authorities moving into Tier 3 which, if scaled up across the country, would be worth more than £1 billion.
                It will be up to Local Authorities to determine which businesses are eligible for grant funding in their local areas, and what precise funding to allocate to each business – the above levels are an approximate guide. Businesses in Very High alert level areas will qualify for greater support whether closed (up to £3,000/month) or open. In the latter case support is being provided through business support packages provided to Local Authorities as they move into the alert level.
                The government is working with local leaders to ensure the Alert Level very high packages are fair and transparent.

                This is currently all the information we have. When we know more we will keep all of our clients up to date. 

                Need more information?

                Does your business need support through the coronavirus? We are helping our clients old and new during this time. We offer a wide range of services which are unique to your business and work in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

                Our fantastic team at A&C Chartered Accountants are here to help.

                Contact us below

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                  By Katie Business Advice • Business News • COVID-19 • Covid-19 Hub 0 Comments

                  Self-Employment Income Support Scheme: Claim by 19th October 2020

                  What is the Self-Employment Income Support Scheme?

                  The Self-Employment Income Support Scheme (SEISS) is designed to provide support for self-employed individuals whose businesses have been adversely affected as a result of the coronavirus pandemic. The government is providing up to four taxable grants to those who meet the eligibility conditions. Claims for the first grant are now closed. If you want to claim the second grant you must make your claim on or before 19 October 2020.You need to consider whether your business has been adversely (negatively) affected before you apply for the SEISS grants. You need to confirm that your business has been adversely affected as part of the claim process.

                  HMRC’s guidance contains examples of why your business could be adversely affected. These include if you have not been able to work for periods of time due to self-isolating, shielding or as a consequence of caring responsibilities caused by coronavirus, or if your business has had to temporarily close or scale down due to lockdown, making your workplace ‘COVID secure’, staff shortages, or a lack of customers. You will be expected to keep business records to show how your business has been affected and that you are eligible to claim the grant.

                  Who can claim?Please follow the link here to check if you can claim a grant through the Self-Employment Income Support Scheme.

                  What happens after you have claimed?HMRC will check your claim and pay your grant into your bank account in the next 6 working days. HMRC send an email when your payment is on its way. If your business recovers after you’ve claimed, your eligibility will not be affected. You must keep evidence to confirm your business was adversely affected at the time you made your claim.

                  Scheme extension
                  Please note, this scheme is now being extended from 1st November 2020 . Find out more here about the extension to the scheme. This guidance is yet to be published, but will be updated as soon as possible. When it does we will contact all clients.

                  Need more information?

                  Do you need more guidance on the Self-Employment Income Support Scheme? We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience with those who are self-employed and have helped many of our self-employed clients through the coronavirus pandemic. Our team work hard to ensure they create smart and effective tax-efficient solutions for the self-employed to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

                  Our fantastic team at A&C Chartered Accountants are here to help.

                  Contact us below

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