Below I have summarised all the main tax related updates we have seen this week.
• Applications close on the 21st June for the Salesforce £5,000 small business grants
• Updated HMRC Guidance on Self-employment Income Support Scheme
• Changes to the Coronavirus Job Retention Scheme
• Treasury Committee recommends additional help for businesses
I hope you have a great weekend!
Steven Hillman ACA
Tel: 01934 444100
Applications close on the 21st June for the Salesforce £5,000 small business grants
Applications close on the 21st June for the Salesforce Small Business Grants. This is a £5,000 grant for 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
You can read more about the grant and check to see if you qualify here:
Updated HMRC Guidance on Self-employment Income Support Scheme
HMRC has published its updated guidance to confirm who is eligible for the two Self-employment Income Support Scheme (SEISS) grants.
HMRC has published examples on its website which details when it considers a business has been 'adversely affected' by COVID-19 and would meet the criteria for the 1st and 2nd SEISS grants.
The first grant is available to self-employed business owners adversely affected up to 13th July 2020, and the second grant is available to self-employed business owners affected after 13th July 2020.
HMRC has provided some guidance on the meaning of ‘adversely affected’. This includes being unable to work because the taxpayer is shielding, self-isolating or is on sick leave or has care responsibilities because of coronavirus. It also includes scaling down or temporarily stopping trading because the supply chain has been interrupted, the business has fewer or no customers or staff are unable to work.
The first grant is calculated as 80% of three months of trading profits, up to a maximum of £7,500. The second grant is calculated as 70% of three months of trading profits, up to a maximum of £6,570.
Applications for the first grant are open now and will close on 13th July 2020. Applications for the second grant will open in August.
HMRC has confirmed that if you are self-employed and able to return to work as normal in June you will not be eligible for the second SEISS grant.
Read more here: https://www.gov.uk/guidance/how-different-circumstances-affect-the-self-employment-income-support-scheme
Changes to the Coronavirus Job Retention Scheme
HMRC have now published details on how the Coronavirus Job Retention Scheme will change from 1st July.
Important upcoming furlough dates:
• The scheme will close to anyone who hasn’t been furloughed for 3 weeks by 30th June.
• The first time you will be able to make claims for days in July will be 1st July, you cannot claim for periods in July before this point.
• From 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.
• The 31st July is the last day that you can submit claims for periods ending on or before 30th June.
• From 1 August 2020, the level of grant will be reduced each month. To be eligible for the grant employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed.
• For September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
• For October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
• The Coronavirus Job Retention Scheme will close on 31 October 2020.
If an error is made in a CJRS claim that means you received too much money, you must pay this back to HMRC. You can notify HMRC of this online in the application system.
If you made an error in a CJRS claim and do not plan to submit further claim, HMRC are looking to update the system so you can make the notification online. This facility is not yet in place.
You must keep records of all furlough claims for 6 years.
You can read more here: https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme
If you need any help or advice regarding the Coronavirus Job Retention Scheme please drop us a line.
Treasury Committee recommends additional help for businesses
With Directors of Limited Companies and the newly self-employed being excluded from the Self-Employment Income Support Scheme (SEISS), we’re hoping that the Chancellor will listen to Mel Stride the Chair of the Treasury Committee who is urging the Government to provide additional help for businesses.
It is estimated over one million self-employed and company directors have been excluded from the scheme.
We are keeping our figures crossed this will lead to some much-needed assistance to those businesses who have received no Government help so far.
We will keep you updated of any developments!