In these unusual times we are keeping this page updated for information as and when it is released.
For the most up to date advice and explanations please click here.
Please rest assured that we will contact out clients with information. If you would like to be on that list please contact us.
SEISS 5th grant
The fifth Self-Employment Income Support Scheme (SEISS) grant is different from the previous SEISS grants. The amount of the fifth grant will be determined by how much your turnover has been reduced in the year 2020-21 compared to before the pandemic.
HMRC will contact you if they think you are eligible. The grant claims will open from late July.
For more information click here.
Job Rentention Scheme (Furlough)
- The furlough scheme has been extended until 30 April 2021.
- You can claim 80% of an employee’s usual salary (up to £2,500 per month).
- You can claim for employees who were employed on 30 October 2020 as long as you have made an RTI submission by that date.
- You can furlough employees for any amount of time and work pattern and claim for hours not worked.
- You will need to pay employer NI and pension costs.
- For more information click here.
Self employed Income Support Grant (SEISS)
- These cover 3 month periods from November 2020 – January 2021 and February 2021 – April 2021
- To claim you must have been eligible for the first and/ or second grant even if you did not make the claim.
- You must have been previously trading but are temporarily unable to due to coronavirus.
- The grant covers up to 80% of 3 months trading profits up to a maximum of £7,500.
- For more information click here.
There are a variety of other funding options including loans and grants. For further information click here.
Local councils are also providing grants for business so it is worth contacting your local council to see what funding is available.
November 2020 – updated – Lockdown 5 November 2020
Since the Prime Minister’s announcement of national lockdown beginning 5 November 2020 extensions have been made to the help available as follows:
- The furlough scheme has been extended to cover November 2020 with plans unveiled on 5 November to extend it until March 2021. This had been due to end on 31 October but has been reopened for claims of 80% of salary for furloughed staff for November 2020 onwards.
- The Job Rentention Bonus which was due to be paid in February 2021 has currently been withdrawn until the extended furlough period ends.
- The Self employed income support grant has been amended. The grant for November to January will be 80% of historic profits up to a maximum of £7,500. For more details click here. Applications open in December 2020.
- The loan applications deadline has been extended to 31 January 2021. For bounceback loans click here. For business interruption loans click here.
- Mortgage payment holidays and credit card payment holidays have been extended beyond the 31 October.
If you need any help or advice your Grass & Holm Associate will be happy to help. Please get in touch with them. At this time it is important that we work together.
In October 2020 the furlough scheme comes to an end, however the Chancellor has announced the Jobs Suport Scheme which will see the government “directly support” the wages of those in part time work. The scheme will run for six months from November and will subsidise the pay of employees who work a minimum of 33% of their normal hours. It means that employees will receive a minimum of 77% of their wage under the scheme.
The chancellor has also extended the self-employed income support grant and developed the Pay as You Grow loans that will see bounceback loans be extended from six to ten years. Business Interruption loans will also be extended for up to ten years.
The VAT rate for hospitality and tourism will remain at 5% until March 2021.
The self employed
The second SEIS Grant application opened in August 2020 and is for claimants who have suffered continued business loss due to COVID-19. There will now be a third grant available from November 2020. The third grant will be limited to 20% of average monthly profits (covering 3 months) and capped at £1,875. For more detail click here.
A fourth grant covering January to April 2021 may also be issued. Details are pending.
For details of the self employed income support scheme please click here.
You can now check your eligibility for the Self Employed Income Support Scheme.
You may also wish to defer your payment on account due in July 2020 until January 2021. We’d be happy to advise further on this.
Owner director limited companies
There is currently little financial support for directors of owner managed limited companies. If you have no work you can choose to furlough yourself and are allowed to work on the business only as far as carrying out your statutory duties, you must do no other work. Obviously if you have been tax planning then your furlough claim will be low if it is possible at all and you may need some other form of income stream.
If you need to raise finance then you have the Business Interruption Loans or the Bounce Back Loans.
If you are on self assessment you may also wish to defer your payment on account due in July 2020 to January 2021.
Before you do anything you may wish to talk this through with us.
The Job Retention Scheme – ending October 2020
This is now up and running and we have made a number of claims which have been paid.
This has now been extended until October 2020. Changes are in place with 10 June being the last day that new employees can be furloughed from. Once that date passes furlough claims can only be made for employees who have previously been furloughed. You can check the new rules here.
Advice relating to holiday allowances for furloughed staff has also been given. Initially there was no advice regarding this but it has been confirmed that employees can take holiday allowance whilst furloughed. Employers are urged caution when it comes to making employees take holiday during furlough. Click here for more information.
You can find out more here. The link here also covers guidance on flexible furloughing.
VAT payments due on the quarter ending 30 June 2020 can be differed until 31 March 2021. To do this simply cancel your direct debit or do not make the payment. You do not need to make a claim to defer the payment.
If you didn’t manage to cancel your direct debit in time you may be able to claim a VAT repayment for this time period.
Don’t forget to set up your direct debit again once all of this is over.
For more information please click here.