Friday 29 May 2020

Weekly Update 29th May 2020














Below I have summarised all the main tax related updates we’ve seen this week. 
  • Chancellor extends self-employment income support scheme
  • Major changes to the furlough scheme
  • North Somerset Council Discretionary Grants Fund Now Open (closes the 8th June)
  • ow to Claim back Statutory Sick Pay due to coronavirus (COVID-19)
  • Temporary Coronavirus Tax Exemption for Homeworker Expenses
  • How to register as a self-employed subcontractor in the construction industry
As always if you need any support or advice please don’t hesitate to contact me.

I hope you have a great weekend! 

Major changes to the furlough scheme

In a further annoucement this evening, the Chancellor has confirmed a number of changes to the furlough scheme. 

In June and July the furlough scheme will continue as before. However from August, employers will be asked to cover National Insurance and employer pension contributions.

From September, employers will pay 10% of wages for furloughed staff, and then in October 20%.

The Government is also introducing a more flexible furlough scheme in July, with the ability to bring back employees on a part-time basis, whilst remaining on the furlough scheme. 

To summarise the furlough changes: 

- June & July - no employer contribution.
- Aug - employers pay NI and pension contributions.
- Sept - government pays 70% and employers pay 10% of wages.
- Oct - government pays 60% and employers pay 20% of wages.

The furlough scheme will then close at the end of October 2020.

Chancellor extends self-employed income support scheme

The Chancellor this evening annouced some good news for the self-employed. It has been confirmed that the self-employment income scheme (SEISS) will be extended, with applications opening in August for the second and final grant payment. 

The second grant will work the same as for the first grant, however the max grant will be capped at £6,570 or 70% of average profits (previously 80%).

Unfortunately the support grant still excludes company directors who earn dividends from their own limited company.

The SEISS scheme will then end.

Thursday 28 May 2020

How to register as a self-employed subcontractor in the construction industry
























If you've recently been offered self-employed work in the construction industry (or due to COVID-19 you're considering a career move into the construction industry sector as a subcontractor), you will need to register with HMRC for both self-assessment as self-employed, and under the construction industry scheme (CIS). This does mean that there are two separate registrations, but these can both be done at the same time.

In most cases you can register as self-employed by calling the HMRC Newly Self-employed Helpline on 0300 200 3504. If you are already registered as self-employed, but need to register under the CIS scheme, you should contact the CIS Helpline on 0300 200 3210.

The contractor for whom you are working will ask you for your unique tax reference (UTR) and you need to provide this before you are first paid, in order to determine which tax deduction rate to use.

The UTR is issued when you are first set up under self-assessment to complete a tax return. If you have not previously been required to prepare a tax return, you will be given a UTR when you register as self-employed.

For further guidance on registration and other obligations for subcontractors, see the Gov.uk website at https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor.

If you have questions about CIS you can read our guide at www.hillmans.co.uk/cis, or feel free to contact us on 01934 444100 and we'd be pleased to help. 

Wednesday 27 May 2020

Temporary Coronavirus Tax Exemption for Homeworker Expenses

The government has introduced a temporary tax exemption and National Insurance disregard to ensure that home office equipment purchased by employees as a result of the coronavirus outbreak, will not attract tax and NICs liabilities where reimbursed by the employer. This temporary change applies for 2019/20 from 16 March 2020, and for the 2020/21 tax year.

To be eligible for the exemption the expenditure must meet the following two conditions:

- The equipment is obtained for the sole purpose of enabling the employee to work from home as a result of the coronavirus outbreak; and
- The provision of the equipment would have been exempt from income tax if it had been provided directly to the employee by or on behalf of the employer.

Mobile phones and internet connections

If an employer provides a mobile phone and SIM card without a restriction on private use, limited to one per employee, this is non-taxable.

If an employee already pays for broadband, then no additional expenses can be claimed. However, if a broadband internet connection is needed to work from home and one was not already available, the broadband fee can be reimbursed by the employer and is non-taxable. In this case, the broadband is provided for business and any private use must be limited.

Laptops, tablets, computers, and office supplies

If items are purchased and mainly used for business purposes with incidental private use, these will be non-taxable.

Where the employer does not reimburse the employee for purchased items, the employee can claim tax relief for the expenditure on their tax return (or form P87) as long as the amount claimed is incurred 'wholly, exclusively and necessarily in the performance of their duties of employment'. Employees will need to keep records of their purchase and claim for the exact amount.

Additional household costs of working from home

Payment or reimbursement to employees of up to £6 a week from 6 April 2020 is non-taxable for additional household expenses incurred when an employee is required to work from home.

If an employer wishes to pay more than the guideline rate of £6 per week tax-free, then it is recommended that the employer should agree a scale rate in advance with HMRC. Failing that, records will need to be kept of the actual additional costs incurred by each employee.

Temporary accommodation

If an employee needs to self-isolate but cannot do so in their own home, the employer may reimburse hotel expenses and subsistence costs but such expenses will be taxable.

Tuesday 26 May 2020

How to Claim back Statutory Sick Pay due to coronavirus (COVID-19)

The Coronavirus Statutory Sick Pay Rebate Scheme has launched online today (26th May).  

The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the Statutory Sick Pay paid to current or former employees.

Who can use the scheme

You can use the scheme as an employer if:

you’re claiming for an employee who’s eligible for sick pay due to coronavirus
you have a PAYE payroll scheme that was created and started on or before 28 February 2020
you had fewer than 250 employees on 28 February 2020 across all your PAYE payroll schemes

Employees do not have to give you a doctor’s fit note for you to make a claim. But you can ask them to give you either:

an isolation note from NHS 111 - if they are self-isolating and cannot work because of coronavirus (COVID-19)
the NHS or GP letter telling them to stay at home for at least 12 weeks because they’re at high risk of severe illness from coronavirus

The scheme covers all types of employment contracts, including:

full-time employees
part-time employees
employees on agency contracts
employees on flexible or zero-hour contracts
fixed term contracts (until the date their contract ends)

Using an agent to do PAYE online

If you use Hillmans as your PAYE agent, we will be able to claim on your behalf. 

Saturday 23 May 2020

North Somerset Council Discretionary Grants Fund Opens 26th May

Small businesses in North Somerset, which have yet to receive financial support during the COVID-19 crisis, can now apply for additional funding following an announcement from the Government.

A grant of £2.1 million has been awarded to North Somerset Council as part of a new Government Discretionary Grants Fund, and will offer financial support to small businesses that can demonstrate:

-they have suffered a significant fall in income because of the Covid-19 pandemic
-have fixed property-related costs
-employ fewer than 50 employees

The Government is asking councils to prioritise the following types of businesses:

-small businesses in shared offices or other flexible workspaces
-regular market traders who do not have their own business rate assessment
-bed and breakfasts (excluding Airbnb) which pay council tax instead of business rates
-charity properties that receive charitable business rates relief, which would otherwise have been eligible for small business rates relief or rural rate relief

Organisations applying for the fund must have been trading on 11th March 2020 and not have received any other Government funding.

Businesses need to apply online to the Discretionary Grants Fund quickly, as the window is only open for two weeks from the 26th May until the 8th June.


Friday 22 May 2020

Weekly Update 22nd May 2020














Below I have summarised all the main tax related updates we’ve seen this week. 

Mortgage deferral extended for a further three months
Coronavirus Statutory Sick Pay Rebate Scheme will launch online on the 26th May 2020
Salesforce £5,000 small business grants
Tide Banking accredited to offer the Government-backed Bounce Back Loans
Questions we are commonly asked during the Covid-19 crisis

As always if you need any support or advice please don’t hesitate to contact me.

I hope you have a great bank holiday weekend!

Mortgage deferral extended for a further three months



The Government has confirmed that homeowners struggling to pay their mortgage due to Coronavirus will be able to extend their mortgage payment holiday for a further three months, or start making reduced payments, in proposals published today.

The availability of a three month mortgage holiday was first announced in March which will be coming to an end in June.

However if you are still struggling and need help, a full extension of the mortgage holiday for a further three months will be available.

Thursday 21 May 2020

Coronavirus Statutory Sick Pay Rebate Scheme will launch online on the 26th May 2020

HMRC have confirmed that the Coronavirus Statutory Sick Pay Rebate Scheme will launch online on 26th May 2020.

The scheme will enable small and medium-sized employers with fewer than 250 employees to claim coronavirus-related Statutory Sick Pay (SSP). 

If you are a Hillmans payroll client we will be to make the claim on your behalf. 

Employers are eligible to use the scheme if:

they are claiming for an employee who’s eligible for sick pay due to coronavirus

they had a PAYE payroll scheme in operation before 28 February 2020

they had fewer than 250 employees across all PAYE schemes on 28 February 2020

they are eligible to receive State Aid under the EU Commission Temporary Framework.

The repayment will cover up to two weeks of the applicable rate of SSP, and is payable if a current or former employee was unable to work on or after 13th March 2020 and entitled to SSP, because they either:

have coronavirus

are self-isolating and unable to work from home

are shielding because they have been advised that they’re at high risk of severe illness from coronavirus.

To prepare to make a claim, employers should keep records of all the SSP payments they wish to claim for.

For more information about eligibility and the claim process go to: https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19 


Wednesday 20 May 2020

Salesforce £5,000 small business grants


Salesforce is partnering with Enterprise Nation offering grants of £5,000 to eligible small businesses that have received no grants in relation to COVID 19. 

To be eligible to apply, companies must:

-Be registered at Companies House
-Been established for at least 12 months
-Have not received any other cash grant during 2020 in relation to COVID-19 from any Government
-Be based in the UK with a British bank account
-Have between 2 to 50 employees
-Meet all other eligibility requirements as stated in the grant programme terms

Applications will open in six regional phases, with the South of England region covering Somerset and Bristol opening on the 15th June and you will have until 21st June to apply. This is a very small window to make a claim, so our advice is to visit the link below to check if you qualify and set a reminder for the 15th June to make an application. 

You can read more about the grant here: https://www.enterprisenation.com/smallbusinessgrants/  

Tuesday 19 May 2020

Tide Banking accredited to offer the Government-backed Bounce Back Loans

Tide Banking have now been accredited to offer the Government-backed Bounce Back Loans to their customers.

The loans should be open to applications this week.

If you’re not currently a Tide customer you can register your interest for a loan at https://www.tide.co/bounce-back-loans/.

You can read more about the Government-backed Bounce Back Loan scheme here: https://www.hillmans.co.uk/bounce-back-loan-scheme

Monday 18 May 2020

Questions clients commonly ask us the during the Covid-19 crisis


Is your office open?

While our Worle office is not currently open, our telephone lines are being answered remotely by the team working from their homes. All the accounts team are working normal hours (Monday to Friday 9am to 5pm) and being fully paid – so please contact us by phone or email and we will be pleased to assist you.

When will your office reopen?

Although we don’t know when our office will be reopening yet, we will of course follow government guidance and do everything we can to maintain the safety and the health of our team, clients and visitors to the office when we do reopen.

Can I drop records off to you to complete my accounts and tax return?

Yes, although our office is currently closed, we are popping into the office a couple of times each week to collect and open the post.

If you need to drop your records off to the Worle office, please call 01934 444100 before you leave to make sure there will be someone to collect the records from you. We will ask that you leave the package at the door for us to bring safely into the office.

Alternatively, we have a letter box you can post your records through (the letterbox is to the right of the reception front door).

Are you still taking on new clients?

Absolutely! We have had some really lovely feedback from clients over the past two months thanking us for our support during the pandemic (it’s been our absolute pleasure and privilege to assist!), with many of our clients referring us to their friends and family. If you would like to discuss switching accountants to us (or know someone who would), please drop us a line by phone on 01934 444100 or email (steve@hillmans.co.uk) for a friendly, no obligation chat with Steve Hillman.


Friday 15 May 2020

Weekly Update 15th May 2020


Below I have summarised all the main updates we’ve seen this week from HMRC.
  
Applications for Self-Employment Income Support Scheme Now Open
HMRC SEISS Telephone Number
Chancellor extends furlough scheme until October
Starling Bank now accepting Bounce Back Loan Scheme applications

As always if you need any support or advice please don’t hesitate to contact me.
 
I hope you have a great weekend!

Thursday 14 May 2020

HMRC SEISS Telephone Number

HMRC SEISS Telephone Number:


If you’re struggling to make a claim for the Self-Employed Income Support Scheme Grant (SEISS) via the Gov.uk website, you should be able to make a claim with HMRC over the phone using the telephone number 0800 024 1222. 


Just be aware the lines are ‘very’ busy at present!

Wednesday 13 May 2020

Applications for Self-Employment Income Support Scheme Now Open


From 8am this morning (13th May 2020), HMRC is accepting applications from self-employed individuals to apply for a Self-Employment Income Support Scheme (SEISS) grant worth 80% of their average monthly trading profits.

Individuals are eligible if their business has been adversely affected by coronavirus, they traded in the tax year 2019 to 2020, intend to continue trading, and they:

- are self-employed individuals (sole-traders) or members of a partnership
- earn at least half of their income through self-employment
- have trading profits of no more than £50,000 per year
- traded in the tax year 2018 to 2019 and submitted their Self Assessment tax return on or before 23 April 2020 for that year

Directors of limited companies are unfortunately not eligible for SEISS.

HMRC will calculate the amount to be paid to each eligible claimant based on an average of the tax returns for 2016/17, 2017/18 and 2018/19.

We have produced a step by step guide on how to claim for the Self-Employment Income Support Scheme (SEISS) Grant as HMRC are not allowing accountants and tax advisors to apply for their clients.


Although we cannot make the application for you, we can talk you through setting up your online Tax Account and help you with the information you need to enter for the grant application. Please drop us a line and we will be pleased to help.

Tuesday 12 May 2020

Chancellor extends furlough scheme until October

The government’s Coronavirus Job Retention Scheme will remain open until the end of October, the Chancellor announced this afternoon (Tuesday 12th May 2020).

Furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500. 

From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.

The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month. 

Our interpretation is that Government will contribute 60% and the employers will contribute 20%. We will keep you up to date with any developments when we receive confirmation.

Monday 11 May 2020

Starling Bank now accepting Bounce Back Loan Scheme applications



Some good news for Starling Bank customers, if you have a business account with Starling Bank, you can now apply for a Bounce Back Loan (BBL) through their online banking website or app.

Starling Bank received authorised by the British Business Bank on Thursday 7th May to lend through the Bounce Back Loan Scheme which launched elsewhere on Monday 4th May. 

Limited Company Businesses can apply straightaway, sole-traders will be able to apply from tomorrow. 

If you're not a Starling customer, you can apply for a business account and be eligible for the BBL. Most accounts are opened the same day.

Visit https://www.starlingbank.com/ for more information. 

Thursday 7 May 2020

Weekly Update 7th May 2020

Weekly Update 7th May 2020
 


Below I have summarised all the main updates we’ve seen this week from HMRC. 

New Bounce Back Loans Launch
Important Changes to Self-Employment Income Support Scheme Grants (SEISS)
Read our Step by Step Guide on How to Claim for the Self-Employment Income Support Scheme (SEISS) Grant
Small firms that missed £10k grant could benefit from £617m new grants

As always if you need any support or advice please don’t hesitate to contact me.
 
I hope you have a great bank holiday weekend!

Small firms that missed £10k grant could benefit from £617m new grants

There could be some good news for small businesses that missed out on the £10,000 government grant because they were not on their local council’s rates list as they may now be able get the money.

The Government has announced £617m in new grants to support businesses in shared spaces, regular market traders and small charity properties. This includes businesses who pay Business Rates indirectly via their landlord rather than being on the rates list themselves. 

It will be at local authorities’ discretion who gets the money, and can include Bed & Breakfasts that pay council tax rather than business rates.

To qualify, a business must have under 50 employees and be able to demonstrate that they have seen a significant drop of income due to coronavirus restriction measures. Grants of £10,000 and £25,000 will be available, and local authorities can choose to make payments of any other amount under £10,000 depending on local economic needs if they wish.

The local Council will need to set up a new payment system to administer the grants, so they are not available immediately. 

We will keep you up to date with any developments. 

Wednesday 6 May 2020

Guide on how to claim for the Self-Employment Income Support Scheme Grant



We have produced a step by step guide on how to claim for the Self-Employment Income Support Scheme (SEISS) Grant as HMRC are not allowing accountants and tax advisors to apply for their clients.

These steps are necessary for you to make a claim.

You can download the guide from our website at: https://www.hillmans.co.uk/guide-to-claim-for-seiss-grant

Although we cannot make the application for you, we can talk you through setting up your online Tax Account and help you with the information you need to enter for the grant application. Please drop me a line and I will be pleased to help.

Best wishes,

Steve

Steven Hillman ACA
Chartered Accountant
Tel: 01934 444100

Tuesday 5 May 2020

Changes to Self Employment Income Support Scheme Grants
















CHANGES TO SELF EMPLOYMENT INCOME SUPPORT SCHEME GRANTS

HMRC yesterday announced several important changes to the Self-Employment Income Support Scheme (SEISS) Grant:

1. The first is that you will need to apply for the grant - previously the government announcements indicated that the process would be more automated.

2. Secondly, HMRC have confirmed agents (accountants) cannot make the application on your behalf via their agent access with HMRC.

This means that you need to make sure you register for an online Tax Account if you do not already have one with HMRC. 

You can register for an online Tax Account here at the HMRC website: https://www.gov.uk/personal-tax-account/sign-in/create-account

You will be provided with a gateway account ID and password. HMRC will process the grant claim via your Tax Account, so it’s important you get this set up ASAP.

The online portal opens on the 13th May 2020. Once you have opened your Tax Account, you can check your eligibility for the grant and find out when you can start your application.

Although we cannot make the application for you, we can talk you through setting up your online Tax Account and help you with the information you need to enter for the grant application. Please drop me a line and I will be pleased to help.

Best wishes,

Steve

Steven Hillman ACA
Chartered Accountant
Tel: 01934 444100

Monday 4 May 2020

New Bounce Back Loans launch today



The Governments new Bounce Back Loan Scheme (BBLS) has launched this morning. The BBLS offers businesses a 100% government-backed lending facility if you meet the Bounce Back Loan Scheme eligibility criteria (which I’ll detail below).


Friday 1 May 2020

Weekly Update 1st May 2020



Below I have summarised all the main tax updates we’ve seen this week from HMRC. 

New 100% government backed loan scheme for small business
Coronavirus and R&D Tax Credits
VAT scrapped on E-publications
HMRC stop sending paper tax returns
Making Tax Digital Phase 2 postponed to April 2021 due to COVID-19
Coronavirus grants for young entrepreneurs

As always if you need any support or advice please don’t hesitate to contact me.

Have a great weekend!

VAT scrapped on E-publications



Plans to scrap VAT on e-publications fast-tracked and will come force into today.

lans to scrap VAT on e-books and e-newspapers have been significantly fast-tracked in a boost to readers and publishers during the coronavirus outbreak, the Chancellor announced yesterday.

Rishi Sunak said the zero rate of VAT will now apply to all e-publications from the 1st May 2020 - seven months ahead of schedule – potentially slashing the cost of a £12 e-book by £2 and e-newspapers subscriptions by up to £25 a year.

Read more information on the HMRC website here: https://www.gov.uk/government/news/vat-scrapped-on-e-publications