Further to our previous messages, we remind you that the level of the grant changes from 1 August 2020. The Government will still fund 80% of wages up to a cap of £2,500 for the hours an employee is on furlough but the employer will have to pay the national insurance and pension contributions for hours not worked as well as all costs for any hours worked under the flexible furlough scheme.
Further changes will be effective for September and October claims. Below is a summary of the grants to cover the costs of furlough to the end of the scheme on 31 October 2020:
These changes should be factored into any decisions regarding the use of flexible furlough and decisions to bring employees back to work, as well as implications for holiday entitlement and timing of any redundancy decisions.
We are here to help so please contact us if you wish to discuss any of the above.
Following the Government’s extension to the Self Employed Income Support Scheme, it has now been announced that the extended scheme will go live on 17 August 2020.
There is no immediate action required. HMRC will contact you shortly before this date to confirm your eligibility and you will then be able to make your claim online via your Government Gateway account. You can make a claim for this second grant even if you did not make a claim for the first grant.
The Government has announced its proposed penalty regime in relation to fraudulent claims under the Coronavirus Job Retention Scheme (“CJRS”). The regime is expected to be given Royal Assent by the end of July.
As part of the Government’s support for businesses affected by Covid-19 they allowed the deferral of VAT payments to 31 March 2021 for any VAT payments due in the period 20 March 2020 to 30 June 2020.
The deferral period came to an end on 30 June 2020 and any VAT payments due after this date should be paid in full along with timely submission of the VAT Return.
Businesses that cancelled their direct debit will need to take action to reinstate this for any VAT payments that fall due on or after 1 July 2020.
HMRC advise that direct debits should be set up at least three days before payment is due and that failure to get the payment set up in time could result in it being late and penalties being incurred. The instruction can be set up in the online VAT account with HMRC.
As previously reported a new requirement to report and pay capital gains tax (CGT) within 30 days on disposals of residential property was introduced in April. With the COVID-19 crisis HMRC further announced a light touch approach to penalties by confirming they would not charge late filing penalties up to 31 July 2020.
This light touch is now ending, and transactions that are completed from 1 July will face the penalties if not reported in time.
You will be aware from our previous emails that the Coronavirus Job Retention Scheme (“CJRS”) is changing for furlough periods after 1 July 2020 to enable employees to work part time during their periods of furlough known as “flexible furlough”. Summarised below are some important points you need to be aware of to address each of the following questions: