Discretionary Grants

If you missed out on the Business Rates Grant, you may be able to get a discretionary grant. Please see your local authority’s Covid page to see the eligibility criteria for these grants.

Discretionary Grant details:

Grant Amount 1 – A discretionary grant of £1,500 is available to assist businesses that have:

  • Been forced to close (as defined by the regulations) as a result of the national firebreak lockdown
  • OR are able to demonstrate that the national firebreak lockdown will result in at least an 80% reduction in their turnover for that period

Grant Amount 2 – A discretionary grant of £2,000 is available to assist businesses that have:

  • Been forced to close (as defined by the regulations) as a result of the national firebreak lockdown
  • OR are able to demonstrate that the national firebreak lockdown will result in at least an 80% reduction in their turnover for that period
  • AND have been subjected to local restrictions for 3 weeks or more up to the 23rd October and experienced at least 50% reduction in their turnover for that period.

Discretionary Grant 1 and Grant 2 cannot both be applied for.

You are not eligible for this grant if:

  • You are eligible for, or have received, the Lockdown Non-Dometic Rate Grant from your Local Authority
  • If you have 50 or more employees
  • If the business generated less than 50% of your income, the business must be your main source of income.

This information is from Businesswales.gov.wales but at the time of publishing their website appears to be down, likely due to high web-traffic.

Self Employment Grant Changes

Self Employment Grant 3 will now be 80% of trading profits up to £7,500.

Applications due to open 30th November.

Furlough Changes

There are a number of changes to staff support for the coming month, as was announced following England’s lockdown announcement.

It has been confirmed that furlough is to be extended until March 2021.

In the interim period – here is the main information for you that we have so far:

  • ‘Job retention scheme’ (original furlough scheme to most of us) will be in place as originally planned to end of October. Paying 80% to employees, with the government funding 60%.
  • From 1st November – this will now go back to the furlough that was in place in August. Paying 80% to employees, with the government funding 80% also (up to a cap of £2,500).
  • Employers will have to pay for employers national insurance and pension contributions.
  • To qualify this time, neither employee nor employer needs to have used the scheme before.
  • Magic date is 30th October – as long as employee was on the books as at 30th October – they will be eligible from 1st November. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.
  • The employee can work hours in November (Flexi Furlough). There is no limit to how many hours (obviously not more than what they would normally work). These hours, as worked, would be paid by the employer. The rest of the time (not worked) will be funded 80% by the government (up to a cap of £2,500).
  • A note for mixed practice dental practices – “The government expects that publicly funded organisations will not use the scheme, as has already been the case for CJRS, but partially publicly funded organisations may be eligible where their private revenues have been disrupted. All other eligibility requirements apply to these employers.”
  • These new rules apply to both England and Wales.
  • For Wales this covers week 2 of the firebreak lockdown and the rest of November.
  • Be mindful that HMRC will need to tweek their systems so processing claims may be delayed due to this.

This information is based on current legislation and may change.

HMRC Checks on Furlough Claims

Have you received a HMRC letter asking you to check your furlough calculations?

A number of our clients have had these generic, but alarming letters. This doesn’t mean you’ve done anything wrong, it’s just a mopping up exercise.

However you only have a short time to respond.   So please send us a copy quickly if you’re randomly selected for a check.

BEWARE – State Aid Maximum Limit – don’t get caught out!

The current state aid maximum level of e200,000 of government funding over a 3 year period, has been increased to e800,000 under a temporary Covid-19 framework ( if certain conditions are met). However this limit includes a range of other grants and support such as Research and Development or Capital Allowance Claims. So please keep track of the total support your are claiming!!

If you would like to discuss further, please call your client manager.  

Tax Due

Personal Tax

Self-assessment taxpayers have been given even longer to pay all the taxes due by 31 January 2021 made up of:

  • 2019/2020 Second payment on account due 31 July 2020
  • 2019/2020 Balancing payment
  • 2019/2020 Capital Gains tax
  • 2020/2021 First payment on account

If your total tax due does not exceed £30,000, you can request for this to be spread over 12 monthly instalments ending on 31 January 2022.  This will automatically be agreed by HMRC.  No interest or penalties will be charged during this period.

If the total tax due exceeds £30,000, you will need to agree a bespoke payment plan with HMRC which could include a longer time to pay arrangement.

Deferred VAT Payment

If you deferred VAT payments due between 20th March and 30th June 2020  you will now have the option to pay in interest free installments.
Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest free.

You need to opt-in to the scheme so that your VAT liabilities due between 20 March and 30 June 2020 don’t need to be  fully paid until the end of March 2022.
Those that can pay their deferred VAT can still do so by 31 March 2021

Protecting You and Us

With a Fire Break lockdown across Wales we’re sadly closing our doors to clients from Friday . 

  • Some of our team may go into the office sporadically if necessary, however we will still be available remotely.
  • We will be continuing to hold virtual meetings for the foreseeable future. These proved very successful during lock-down.
  • For the time being and for your own safety we ask that you avoid coming to our offices
  • To limit unnecessary journeys for you and potential cross infection, we also ask you to send  your records electronically . Please give us ring if you need any help with this.

We thank you for your patience and understanding

Stay Safe Stay Healthy

Return to newsletters