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.

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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.

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

      Job support scheme starts 1st November

      The Chancellor has announced a new 6 month Job Support Scheme to help businesses and employees survive the winter months. We are still awaiting full details of the scheme that will replace the current “flexible furlough” scheme but the main features are as follows:-

      Employers of all sizes will be eligible for the new scheme but large organisations will need to demonstrate that their turnover is reduced as a result of COVID-19.

      Eligible employees will be those on the PAYE payroll at 23 September 2020 that are working for at least 33% of their usual hours.

      The employee will be entitled to 2/3 of their usual pay for hours not worked and the Government will pay a grant of 1/3 of usual pay for hours not worked. The maximum grant will be £687.92 a month.

      For example an employee whose usual pay is £450 a week who works 2 days a week would be paid £180 for the 2 days worked and £180 for the other 3 days. The employer could claim a grant of £90 from the Government.

      OTHER MEASURES ANNOUNCED BY THE CHANCELLOR

      In addition to the Job Support Scheme the Chancellor announced that the Self-Employed Income Scheme would also be extended for a further 3 months but the grant will be 20% of average monthly profits capped at £1,875.

      The temporary 5% rate of VAT for the hospitality sector, accommodation and attractions will be extended to 31 March 2021.

      Businesses that have deferred their VAT payments will be able to pay back the deferred amount over 11 months.

      The “Bounce-back” and CBILS loans can be repaid over 10 years instead of 6 years.

       

      Need more information?

      Does your business need support on the Job Support scheme . We have supported all our clients during the Coronavirus and many new clients. Our services are unique to your business and ur 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 • COVID-19 • Covid-19 Hub 0 Comments

        Creating an effective reward strategy

        In the current challenging trading environment, many firms are asking more and more of their team. As such, having an effective reward strategy has never been more important.

        COVID-19 has tested every business and challenged all of us to come up with new ways of working. Spare bedrooms have become home offices, workers have had to balance childcare

        and home schooling with their work commitments, and those who live

        alone have had to deal with loneliness and its effect on their mental health.

        Surviving a tough environment has also meant that businesses have had to find new ways to motivate and retain their teams of people.

        A huge percentage of the workforce has had to deal with increased stress, anxiety and adapting to a new way of working. Many businesses have asked more of their people, in order to survive the COVID-19 crisis and a high percentage of employees have reportedly been working longer hours as the line between work and home life has become blurred. As such, businesses have had to re-think how they motivate their people and that is where a reward strategy comes in.

        A reward strategy should consider the strategic objectives of your firm, what your people want, what is affordable and the structures needed to achieve this.

        Develop your people

        Providing personal and professional growth opportunities is an essential part of a reward strategy. Good people stay with businesses that provide them with training and development opportunities.

        Benefits

        Cash is important but so is a good benefits package. Benefits can include generous annual leave entitlements, medical cover and a good pension scheme. Over and above that, more and more employees value flexibility – whether that is the option to work remotely, compress 5 days work into 4 and so on.

        COVID-19 has proved that remote working can be just as productive as working from the office. Those firms that continue to offer flexible working arrangements and embrace agile working, post COVID-19, will retain the best people.

        Be different

        The very best firms offer rewards that are a little bit different. This doesn’t have to be expensive. For example, you could offer charity volunteering opportunities or Friday morning yoga classes for staff. Regardless of the elements you choose to incorporate into your reward strategy, the key is to ensure that the team feel valued by the firm.

        Need more information?

        Have you created a reward strategy? We offer a wide range of services and 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 • COVID-19 • Covid-19 Hub 0 Comments

          Virtual meetings: running effective meetings

          We have adapted our accountancy practice to work with existing and new clients through virtual meetings. Over the course of the past few months, we have all had to adapt to working remotely.

          Despite lockdown restrictions, many businesses have found ways to move their operations online, with all staff working remotely. This has given rise to an increased volume of virtual meetings on services such as Skype, Zoom, Teams, WebEx or other popular online meeting services. This has resulted in a new challenge – how to have an effective virtual meeting.

          Agenda

          Just like any meeting, take the time to set an agenda and circulate it in advance of the call along with any supporting documents.

          Setting an agenda and sticking to it helps to keep the virtual meeting on track. If there are lots of documents, make sure that you circulate them in time to allow people to read them well in advance.

          Choose the right technology

          There is nothing more frustrating than dialling into a video or conference call and not being able to connect due to a technical glitch. Before you set up your virtual meeting, check with the attendees that they are comfortable (and able) to use your platform of choice. If possible, use a system that allows users to join via a web browser – most platforms such as Skype, Teams, Zoom, WebEx, etc. allow this.

          Etiquette

          A virtual meeting is still a meeting, so make sure you give it your full attention. Ask all attendees to use video – this makes it harder for them to do something else during the virtual meeting as they will be on everyone’s screen. In addition, seeing people on screen can help those who have been working from home during COVID-19 to feel more connected.

          Jump into the content

          Don’t waste time (yours or other people’s) during a virtual meeting. Keep it short and get straight into the agenda. Aim to follow up within 24 hours of the meeting with any relevant action points as it keeps people’s attention. By sending the notes around 2 weeks after a meeting, momentum on any actions may be lost.

          Need more information?

          We have adapted our business to provide clients with virtual meetings. We offer a wide range of services which are unique to your business and work with clients virtually all over the world. 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 • COVID-19 • Covid-19 Hub 0 Comments

            More details on hospitality VAT reduction

            When the Chancellor announced a temporary cut in the rate of VAT for the hospitality sector and attractions in his Summer Statement on 8 July there were a number of areas that needed clarification. The reduction applies to supplies made between 15 July 2020 and 12 January 2021.

            The reduction is one of a number of additional measures announced to support the economy as the COVID-19 pandemic continues to affect individuals and businesses.

            VAT on food and non-alcoholic drinks

            From 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector:

            • A 5% rate of VAT applies to supplies of:
              • food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs
              • hot takeaway food and hot takeaway non-alcoholic beverages.
            • Alcoholic drinks will remain subject to the standard 20% rate.
            • Food and drink supplied as part of a supply of catering services for consumption off-premises continue to be standard rated.

            HMRC have now set out more details of which supplies will attract the 5% temporary rate as well as the impact on invoicing, deposits and the flat rate scheme.

            Need more information?

            We offer a wide range of services for the hospitality industry. Our team of chartered accountants have a wealth of experience to suit your hospitality needs. 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 • COVID-19 • Covid-19 Hub 0 Comments

              Returning From Furlough

              Bringing your employees back from furlough is not a straightforward process.

              As furloughed employees begin to return to work, business owners and managers need to consider both the practical and emotional aspects of returning to “normal”. The impact of the Covid-19 pandemic has been unprecedented. After several weeks of lockdown and social distancing, some employees may be fearful of commuting or sharing an office space with other people. Others may be living with a vulnerable or high-risk individual.

              Managers need to talk to their team members before they return to work

              to understand their personal situation and to allay any concerns. The key to successfully returning furloughed employees to work is listening to them and communicating with them.

              Action plans should be put in place before furloughed employees return to work. Employees should be engaged and the management team should involve them in creating plans to get everyone back up and running in the new normal. Return to work plans should include practical aspects such as how social distancing can continue to be observed as well as logistical and operational requirements.

              Employers should also check any agreements they have with trade unions or employee representatives, to see if they need to enter into any formal consultation.

              In some cases, employees may not want to return to work because they are worried about catching Coronavirus or perhaps they have issues around childcare etc.

              If this happens, take the time to listen to the concerns of the particular employee(s) and take reasonable steps such as offering flexible working arrangements or agreeing some temporary leave if the individual(s) are unable to work for a period of time.

              If the employee(s) still do not want to go back to work, they may be able to take some time off as holiday or unpaid leave, although the employer doesn’t have to agree to this. Guidance on how to manage this type of situation is freely available on www.acas.org.uk

              Returning to work after furlough is going to be a sensitive time for everyone involved. Employees are likely to be nervous but if managers take the right steps and communicate regularly with their teams, things should go smoothly.

              Need more information?

              We have a dedicated team who have been helping our clients old and new with furlough claims. If you need any further information please get in touch with us today. 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 • COVID-19 • Covid-19 Hub • Tax Advice 0 Comments

                Diary of main tax events July/August 2020

                Please see below our list of main tax events for July/August 2020:

                 

                Date What’s Due
                01/07 Corporation tax for year to 30/9/19 (unless pay quarterly)
                05/07 Last date for agreeing PAYE settlement agreements for 2019/20 employee benefits
                05/07 Deadline for agents and tenants to submit returns of rent paid to non-resident landlords and tax deducted for 2019/20
                06/07 Deadline for forms P11D and P11D(b) for 2019/20 tax year. Also deadline for notifying HMRC of shares and options awarded to employees.
                19/07 PAYE & NIC deductions, and CIS return and tax, for month to 5/7/20 (due 22/07 if you pay electronically)
                31/7 50% payment on account of 2020/21 tax liability due. However, due to Covid-19 all taxpayers may defer the payment until 31/1/21 without incurring interest and penalties.
                01/08 Corporation tax for year to 31/10/19 (unless pay quarterly)
                19/08 PAYE & NIC deductions, and CIS return and tax, for month to 5/8/20 (due 22/08 if you pay electronically)

                Need more information?

                If you need more information on the tax events for July/August 2020, please get in touch. 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 your business. 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 • COVID-19 • Covid-19 Hub 0 Comments

                  Second self-employed income support grants to be paid in August

                  Second self-employed income support grants to be paid in August:

                  On 29 May the Chancellor announced that the grant scheme to support the self-employed would also be extended with a further payment based on 70% of average profits for the 3 years ended 2018/19, limited to £6,570 rather than £7,500.

                  The eligibility criteria remain broadly the same as the first grant claim. Self-employed profits in 2018/19 must not exceed £50,000 and must be more than 50% of your total income.

                  If that test is not met, then the same £50,000 and 50% tests are applied to average profits and total income over the three years (or shorter period) to 5 April 2019.

                  Self-employed traders need not have claimed a grant under the old scheme to qualify for the August payment and are required to confirm that their business continues to be adversely affected by Covid-19. The deadline for making a claim for a grant under the original SEIS scheme is 13 July 2020.

                  Need more information?

                  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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