Todays announcement from the Chancellor put forward job retention scheme changes making it a more realistic solution. Although the basic intentions remain, the fundamental payment criteria has changed.
At this point we’re assuming these changes apply to Wales, but please watch this space
New Job Retention Scheme Changes
- Workers must now work a minimum of 20% of their hours.
- The Government will pay 61.67% (maybe slightly different) of the hours not worked by the employee.
- The employer must pay 5% of the hours not worked by the employee.
- Maximum amount from the government is £1,541.75 for the hours not worked by the employee.
Please note- it will not be opening until December, therefore November payrolls will need to be paid for by the employer and claimed afterwards – This may cause a cashflow issue.
The job retention scheme changes are designed to protect viable jobs in businesses during lower demand over the winter due to Covid-19. These principles still apply:
- Keeps their employees attached to the workforce.
- The scheme will open on 1 November 2020 and run for 6 months.
- The company to pay employee for time worked,
- This will ensure employees earn a minimum of 80% of their normal wages, where the Government contribution has not been capped.
Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
Extended Job Support Scheme
For businesses legally forced to close employees will get 2/3 of their pay, whilst employers pay NI and Pension contributions. Further details to follow when available.
Tier 2 & 3 Closures (applies in England)
There will also additional business grants under these circumstances.
What about Wales?
Where this leaves Welsh Businesses during Fire-Break Lock Down is still to be revealed. We will keep you posted as we hear anything.
SEISS – The self employed income support scheme has been extended to April 2021 The Government will provide a taxable grant covering 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £3,750 in total.
Click Here for more information
HMRC Checks on Furlough Claims
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.
INCASE YOU MISSED LAST TIME
£300m Extra Support
The Welsh government announced an extra support package
- an extra £150 million into phase three of the ERF to support to businesses affected by the firebreak
- every operating business covered by the small business rates relief scheme will automatically receive a £1,000 grant payment
- retail, leisure and hospitality businesses which have to close and occupy premises with a rateable value below £50,000 will receive a one-off grant payment of up to £5,000
- there will also be additional discretionary grants and support for smaller businesses which are struggling
Extra Economic Resilience Fund
- Automatic payment of £1,000 to all that receive small business rates
- Automatic payment of Up to £5k for SME’s in the tourism, leisure and hospitality sector
- Discretionary grant over other potential smaller grants for businesses struggling
Existing Economic Resilience Fund – Phase 3
- Increased to £100m and increased ringfenced amount for tourism & hospitality to £20m
- Will allocate the funds urgently
- The CVJS
- Job support scheme
- Forced to close – extended job support scheme
The £140m Funding package already in place is to be split :
- £80 million to support business transition to tomorrows economy
- £20m of this will be ringfenced for tourism and hospitality
- The remaining £60m allocated to support businesses impacted by local lockdown
- The balance of the £140m to be allocated flexibly e.g. increased lending through The Development Bank of Wales
The Fund is open to:
- Micro businesses (employing between 1 and 9 people) can apply for up to £10,000 if they match this with their own investment of at least 10%.
- SMEs (employing between 10 and 249 people) can apply for up to £150,000 if they match this with their own investment of at least 10% for small business (1 to 49 staff) and 20% for medium sized (50 to 249) business.
- Large businesses (employing 250+ people) can apply for up to £200,000 if they match this with their own investment of at least 50%.
For More Details Click Here
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.
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 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
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