We wish you and those close to you the happiest and safest of Christmases.
Our Christmas Opening Hours
Our office will be closed for the Christmas and New Year period from 5pm on Tuesday 22nd December, re-opening at 9am on Monday 4th January.
We think most clients will be glad to see the
back of 2020. Let us have hope that later in 2021 we return to a more normal
way of life.
How do we make sense of what’s happened this
year?
This year will be remembered for the
destruction Coronavirus has caused to our lives, especially the 79,000 who died
from the virus. We have had to change the way we work and communicate. One of
the greatest costs has been the restrictions on civil liberties in peacetime.
We now wear face masks and socially distance. Schools have been closed and
pupils now learn part of the time remotely and in some areas of the country,
attendance has been below 80%. There are nearly 1.5 million patients waiting
more than six months from appointment to referral for hospital treatment. The
criminal court backlog has grown significantly and mental health amongst all
elements in our population has worsened.
Economically, the country has been devastated
and sectors such as hospitality, travel, the Arts and high street retail hit
hardest. The number of people claiming Universal Credit has doubled to 5.7
million people. For many business
owners, 2020 has been the worst of the worst years, and the UK economy is
expected to shrink by 11.3% this year and not return to its pre-Covid size
until the end of 2022. Government borrowing will rise to its highest outside of
wartime to deal with the economic impact.
A “No Deal” Brexit will have a further
negative impact on the economy in early 2021 and any recovery will take longer
as a result. The Confederation of British Industry (CBI) predict the UK won’t
get back to its pre-pandemic level until the end of 2022 and if there is “No
Deal” this could take up to 2024.
Below I have summarised all the main tax related updates we have seen this week.
If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.
I hope you have a good weekend.
Stay safe and well.
Kind regards,
Steve
Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
Chancellor Rishi Sunak has today extended the Governments furlough scheme for another month until the end of April 2021.
The Government will continue to pay up to 80% of an employees wage who has been furloughed.
Bounce Back Loan Scheme
The Chancellor also confirmed the Government guaranteed COVID-19 business loan schemes would be extended until the end of March 2021.
Budget
Finally the chancellor has also confirmed the next budget would take place on 3rd March 2021.
HMRC have announced that they will be imposing penalties of up to 100% of the amounts overclaimed on CJRS, SEISS and Eat Out to Help Out Grants.
The penalties depend on whether or not the overclaim is the result of a deliberate error and whether or not the disclosure was prompted by HMRC. The penalty may be reduced where the taxpayer assists HMRC in correcting the error.
Many overclaims may be the result of careless errors or a misinterpretation of the rules which have changed many times in the last 9 months so we hope that HMRC will apply the rules with a light touch and focus on those that have abused these schemes.
We understand that HMRC are writing to 4,000 catering establishments that they suspect may have overclaimed under the “Eat out to help out” scheme that ran in August. Traders are being asked to check their claims and respond within 60 days or face an HMRC compliance check.
Christmas is a time for giving. This often extends beyond family and friends to charity donations. Where possible taxpayers should “Gift Aid” any payments to charity to provide additional benefit to the charity. Higher rate taxpayers obtain additional tax relief on the grossed up amount donated.
For example, where an individual makes a £20 cash donation to charity the charity is able to reclaim a further £5 from HMRC making a gross gift of £25. Where the individual is a 40% higher rate taxpayer he or she is able to claim a further £5 tax relief under self-assessment, reducing the net cost of their donation to £15.
Note that the donor is required to make a declaration that they are a UK taxpayer and those that have not suffered sufficient UK tax to support the Gift Aid amount will taxed on the shortfall.
Remember that Gift Aid does not just apply to gifts of cash. Many charity shops will now sell donated items on your behalf and are able to treat the sale proceeds as Gift Aided donations. It is also possible to gift quoted securities and land and buildings to charity and claim Gift Aid on the market value of those assets.
Business owners affected by the pandemic will be protected from eviction until the end of March 2021.
The Government states: “The majority of commercial landlords have shown flexibility, understanding and commitment to protect businesses during an exceptionally challenging time.
This final extension to protections from the threat of eviction will give landlords and tenants 3 months to come to an agreement on unpaid rent. The government is clear that where businesses can pay any or all of their rent, they should do so.”
Further guidance to support negotiations between landlords and tenants will also be published shortly.
See: https://www.gov.uk/government/news/business-evictions-ban-extended-until-march
Output is expected to shrink again in November after England's second shutdown forced many businesses to close.
October 2020 saw the sixth consecutive month of growth, but the rate of recovery has slowed each month since the largest rise of 9.1% in June 2020. Across services, the monthly growth was driven by health, wholesale, retail and motor trades, and education, while accommodation and food and beverage service activities declined. Within manufacturing there was widespread growth, led by a rise of 6.8% in motor vehicle production. Monthly construction output growth slowed to 1.0% in October 2020, the sixth consecutive month of growth but the lowest rise in that time, with the level of construction output in October 2020 still 6.4% below the February 2020 level.
The figures are gradually improving although it is going to be a long haul. It is clear the hospitality, travel, arts and retail sectors are hardest hit and whilst there are regional grants to support them we believe these sectors will take the longer to recover.
A “No Deal” Brexit will have a negative impact on the economy in early 2021 and any recovery will take longer as a result. The Confederation of British Industry (CBI) predict the UK won’t get back to its pre-pandemic level until the end of 2022 and if there is “No Deal” this could take up to 2024.
Despite the pandemic and the possibility of “No Deal”, we still continue to be impressed with the resilience of our clients and how they have energetically repurposed or pivoted their businesses into new areas, products and services.
Please do talk to us about planning for 2021 and beyond, we have considerable experience in helping businesses project their figures forward and perform “What if” analysis to look at a range of scenarios.
Below I have summarised all the main tax related updates we have seen this week.
If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.
I hope you have a good weekend.
Stay safe and well.
Kind regards,
Steve
Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
The Local Restrictions Support Grant (LRSG (Open) supports businesses that have been severely impacted due to temporary local restrictions.
Businesses that have not had to close, but which have been severely impacted due to local tier 2 or tier 3 restrictions, may be eligible for LRSG (Open).
Eligible businesses may be entitled to a cash grant from their local council for each 14-day period under local restrictions.
Local councils have the discretion to provide grant funding for businesses under this scheme. They will use their discretion in identifying the right businesses to receive this funding, based on their application process.
See: https://www.gov.uk/guidance/check-if-youre-eligible-for-the-coronavirus-local-restrictions-support-grant-for-open-businesses
The third grant for SEISS is now open. To make a claim for the grant, your business must have been impacted by coronavirus on or after 1st November 2020. You can make a claim for the third grant if you are eligible, even if you did not make a claim for the first or second.
What you will need to make your claim
You will need your:
• Self-Assessment Unique Taxpayer Reference (UTR)
• National Insurance number
• Government Gateway user ID and password
• UK bank details including account number, sort code, name on the account and address linked to the account
You may also need to answer questions about your passport, driving licence or information held on your credit file.
You must make your claim between 30th November 2020 and 29th January 2021 using the government website below.
See: https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme
Government guidance has been updated to reflect the extension of the VAT reduced rate for tourism and hospitality from 12th January to 31st March 2021.
The government made an announcement on 8th July 2020 allowing VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies relating to:
• hospitality
• hotel and holiday accommodation
• admissions to certain attractions
The temporary reduced rate will apply to supplies that are made between 15th July 2020 and 31st March 2021.
See: https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions
Prime Minister, Boris Johnson, has announced an additional £1,000 Christmas grant for ‘wet-led pubs’ in tiers 2 and 3 in England, who will miss out on turnover during the busy Christmas period.
Pubs that predominantly serve alcohol rather than provide food, have been asked to make sacrifices over the festive season and will be eligible for a one-off £1,000 to help make ends meet.
The payment will be a one-off for December and will be paid on top of the existing £3,000 monthly cash grants for businesses. This will cover those in tiers 2 and 3 forced to reduce their operations as a result of the latest regional measures put in place to contain transmission of the virus.
See: https://www.gov.uk/government/news/prime-minister-announces-1000-christmas-grant-for-wet-led-pubs
4th December 2020 – Hillmans Weekly Update
Below I have summarised all the main tax related updates we have seen this week.
If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.
I hope you have a good weekend.
Stay safe and well.
Kind regards,
Steve
Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
HMRC are not the Grinch after all. They have recently announced that employers may arrange a “virtual” Christmas party this year and there will be no taxable benefit for employees provided that all staff are invited and the cost per head does not exceed the normal £150 limit.
Maybe keep it to a modest affair and have a big bash when the Coronavirus pandemic is over as we are allowed more than one event a year within the £150 limit.
Certain gifts to staff at Christmas are tax free if structured correctly. Employers are allowed to provide their directors and employees with certain “trivial” benefits in kind tax free.
This exemption applies to small gifts to staff at Christmas, on their birthday, or other occasions and includes gifts of food, wine, or store vouchers.
There are of course a number of conditions that need to be satisfied to qualify for the exemption.
Conditions for the exemption to apply
• the cost of providing the benefit does not exceed £50
• the benefit is not cash or a cash voucher
• the employee is not entitled to the benefit as part of any contractual obligation such as a salary sacrifice scheme
• the benefit is not provided in recognition of particular services performed by the employee as part of their employment duties (or in anticipation of such services)
Below I have summarised all the main tax related updates we have seen this week.
If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.
I hope you have a good weekend.
Stay safe and well.
Kind regards,
Steve
Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
Official forecasts now predict the biggest economic decline in 300 years.
The UK economy is expected to shrink by 11.3% this year and not return to its pre-Covid size until the end of 2022. Government borrowing will rise to its highest outside of wartime to deal with the economic impact.
The Office for Budget Responsibility (OBR) expects the number of unemployed people to increase up to 2.6 million by the middle of next year.
This means the unemployment rate will hit 7.5%, its highest level since the financial crisis in 2009.
Amongst other announcements made yesterday, the minimum wage - which has been rebranded as the National Living Wage - will increase by 2.2% - or 19p - to £8.91 an hour, with the rate extended to those aged 23 and over. Other rates were also increased. From April 2021, 16 and 17-year-olds will see their pay go up to £4.62 per hour, from £4.55 today.
The chancellor also announced a £4.3bn package of support to help the jobless get back into work.
So what does the spending review mean for businesses?
Clearly the situation is unprecedented in peace time. The size of the cost of Covid-19 is huge and the Government will need to find more money from spending cuts and taxes just to balance revenues on a day to day basis.
So businesses can expect to see tax rises announced in the March 2021 budget.
There is already speculation that the government could raise money from changes to Capital Gains Tax, pensions relief or self-employment taxes. However this will not be sufficient to cover the Covid-19 costs so we predict there will be some corporation tax, income tax, VAT or national insurance increases.
The big decision for the government will be to decide when to stop the support to the recovering economy - and when to start strengthening public finances by tax rises. The extreme uncertainty underlines how difficult that decision could be.
Businesses should strengthen their cash flow management now ahead of the end of supports and tax changes.
The most important advice we can give our clients is to take some time to plan ahead to look at maximising revenue and minimising or streamlining operating costs. We can provide you with templates and forecasts to do this or we can help you prepare accurate forecasts based on a number of scenarios and do a “what if” exercise on your business.
Please talk to us about how we can help you make it through the next few months and preparing for recovery.
2018/19 tax returns can be amended by the taxpayer up until 31 January 2021. Where the omitted property income or gain relates to earlier tax years the taxpayer should consider disclosing using HMRC’s let property campaign.
If this affects you we can assist you in putting together the details that HMRC require.
CGT BUSINESS ASSET DISPOSAL RELIEF LIFETIME LIMIT JUST £1 MILLION
In the March 2020 Budget it was announced that CGT Entrepreneurs’ relief (ER) was replaced by CGT Business Asset Disposal relief (BADR) for disposals on or after 11 March 2020.
It was also announced that the 10% CGT rate would only apply to the first £1 million of qualifying gains in the taxpayer’s lifetime and many business owners have misinterpreted how this limit applies. Unfortunately claims under the predecessor ER need to be taken into consideration so if £750,000 ER has already been claimed only the first £250,000 of qualifying gains after 11 March 2020 would qualify for BADR.
Any gains in excess of that amount would be taxed at normal CGT rates, currently 20% for higher rate taxpayers.
Welcome to our Brexit update. There will be new rules for trade, travel and living
in the UK and EU from 11.00pm on the 31 December 2020. Our aim is to provide
you with information and resources to help you manage the change as smoothly as
possible.
The UK Prime Minister, Boris Johnson, UK Chief negotiator David Frost and EU negotiator Michel Barnier continue to offer differing messages to the public about Brexit, some are positive, some ambivalent and occasionally negative remarks about the negotiations. It is hard to see through the comments made and whether we can take them at face value as, after all, there is a negotiation going on.
So
what can we expect with less than 43 days to go?
Firstly,
remain positive about the UK and EU reaching some kind of free trade deal or
arrangement. It does not benefit anyone for the UK to leave the EU without a
deal of some kind.
Secondly,
if there is no deal, expect both parties to return to the negotiating table in
the new year.
Whatever
the outcome there are significant changes ahead for travel and trade.
Travel
If
you are travelling to the EU from the UK after the 1 January 2021 then check
out the Government website “Visit Europe from 1 January 2021”. This page tells
you how to prepare if you’re planning on travelling to Europe from 1 January
2021. It will be updated if anything changes.
See:
https://www.gov.uk/visit-europe-1-january-2021
Trading
If
you haven’t made your business preparations, check out the Brexit transition
website:
See: https://www.gov.uk/transition
If
you trade with the EU and have not yet made preparations then here is a summary
of actions to take:
·
If you move goods to or from the EU register (unless you already
have) for an Economic Operator Registration and Identification (EORI) number
- https://www.gov.uk/eori
·
Consider an agent to help with completing import/export forms – www.export.org.uk
·
If you export goods see the step by step guide here: https://www.gov.uk/prepare-to-export-from-great-britain-from-january-2021
·
Export rules are specific by sector so review “The transition
period ends in December” Government website. There you can get a personalised
list of actions and can subscribe for email updates: https://www.gov.uk/transition
·
The VAT reporting rules for EU sales can be found here: https://www.gov.uk/guidance/vat-how-to-report-your-eu-sales
·
If you import goods then see the guidance “Starting to
import”: https://www.gov.uk/starting-to-import/moving-goods-from-eu-countries
·
There is a step by step guide on importing here: https://www.gov.uk/prepare-to-import-to-great-britain-from-january-2021
·
Guidance on paying VAT on imports can be found here: https://www.gov.uk/guidance/vat-imports-acquisitions-and-purchases-from-abroad
·
Review HMRC YouTube videos on international trade here: https://www.gov.uk/guidance/help-and-support-for-international-trade
WHAT
ACTIONS HAS THE GOVERNMENT TAKEN TO DATE?
New
Legislation
Post-Brexit
legislation preparing the UK for life outside EU institutions next year have
been drafted or are being reviewed by Parliament. The immigration Bill received
Royal Assent last week. This ends freedom of movement on 31 December and
replaces it with a new points-based system.
If
your business relies on EU or other non UK workers then check out the
transitional arrangements to 30 June 2021 and the new rules here: https://www.gov.uk/settled-status-eu-citizens-families
Last
week the Agricultural Bill was debated and eventually passed through
Parliament. This removes the Common Agricultural Policy and replaces it with
new UK supports for farmers. The Government agreed that farmers will receive
the same level of support as they currently do through the Common Agricultural
Policy until 2024, while the current system of subsidies is gradually phased
out.
See: https://services.parliament.uk/Bills/2019-21/agriculture.html
We
can expect to see further progress to bring existing EU laws and rules into UK
legislation before the end of the transition period. For example, the Financial
Services Bill was introduced on the 21 October to maintain the UK’s regulatory
standards and openness to international markets.
This
Bill is the first step in shaping a regulatory framework for the UK’s financial
services sector outside of the EU.
See:
https://www.gov.uk/government/news/financial-services-bill-introduced-today
New
Trade deals
In
addition to passing legislation to ensure UK rules and regulations are
transparent at the end of the transition period, the Government is also negotiating
new trade deals. Whilst the UK was an EU member, the UK was part of 40 trade
deals which the EU had with more than 70 countries. More than 20 of these existing deals, covering
50 countries or territories, have been rolled over and will start on 1 January
2021.
It
is worth noting fifty-two countries currently have free trade deals in place
with the UK for the end of the Brexit transition period. These agreements
account for only 10 per cent of the UK’s total cross-border trade, according to
last year’s figures from the Office for National Statistics (ONS).
On
23 October, the Government signed a new trade agreement with Japan, which means
that 99% of UK exports there will be free of tariffs.
There
are further trade talks with Australia, the US and New Zealand. If and when
these talks come to a trade deal only time will tell.
EU-UK
trade accounts for half of overall UK trade and seven of the UK’s top ten
trading partners are EU members. That is the main reason why we all hope a
trade deal happens!
See: https://www.bbc.co.uk/news/uk-47213842
In
Summary
We
must all be prepared for changes in the way we travel and trade with Europe.
Even if there is a free trade deal the key thing to remember is that there will
be a UK border which will mean paperwork and border checks.
Businesses
that trade with the EU must get familiar with customs declarations as these
will be essential for accounting for VAT.
Depending
on what contracts a business has with its customers in Europe, it may have to
factor in that goods could take longer to get there, meaning extra costs and
administration.
In
the short term there will probably be delays at the border, so it is important businesses
map out supply chains and think about how to do things as efficiently as
practicable post transition.
Please talk to us about your plans post transition, we can assist in a number of ways including helping you account for VAT, looking at your accounting systems and pointing you in the direction of specialists to assist with the Trading administration.
Businesses that have been required to close due to the national restrictions introduced in March 2020, and which have not been able to re-open, may be eligible for LSRG (Sector).
Eligible businesses are entitled to a cash grant from their local council for each 14-day period they are closed. This funding is available from 1 November 2020 and is not retrospective.
Eligibility
Eligible
businesses include:
·
nightclubs, dance halls, and discotheques
·
adult entertainment venues and hostess bars
Your
business may be eligible if it:
·
is based in England
·
occupies property on which it pays business rates (and is the
ratepayer)
·
has been closed since 23 March 2020 because of national
restrictions
Eligible
businesses can get one grant per non-domestic property.
The
grant will be based on the rateable value of your property on 1 November 2020.
If
your business has a property with a rateable value of £15,000 or less, you may
be eligible for a cash grant of £667 for each 14-day period your business is
closed.
If
your business has a property with a rateable value over £15,000 and less than
£51,000, you may be eligible for a cash grant of £1,000 for each 14-day period
your business is closed.
If
your business has a property with a rateable value of £51,000 or above, you may
be eligible for a cash grant of £1,500 for each 14-day period your business is
closed.
The
grant will be extended to cover each additional 14-day period of closure. If
your business is closed for 28-days, or 2 payment cycles, it will receive
£1,334, £2,000 or £3,000, depending on the rateable value of the property.
20th November 2020 – Hillmans Weekly Update
Below I have summarised all the main tax related updates we have seen this week.
If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.
I hope you have a good weekend.
Stay safe and well.
Kind regards,
Steve
Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
HMRC have contacted approximately 24,000 self-employed business owners by email who have claimed a self-employed income support grant (SEISS) asking whether they are still trading.
This email was sent last month in October, and those in receipt of an email
must respond to HMRC’s email about their business by the 20th November 2020 or
they won’t be able to make a further claim for another SEISS grant.
HMRC has only sent emails to taxpayers who it believes have ceased trading, and
therefore not eligible for the SEISS grant. Any taxpayers who have received an
email, have been asked to respond to HMRC by the 20th November completing an online form (link to
the form will be in the email).
We’d advise checking your junk/spam boxes for emails from HMRC ASAP.
In a change of policy the Government has announced the Self-Employment Income Support Scheme (SEISS) grant extension in the form of 2 further grants, each available for 3-month periods covering November 2020 to January 2021 and February 2021 to April 2021.
To be eligible for the grant extension, self-employed individuals, including members of partnerships, must:
• have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
• declare that they intend to continue to trade and either:
• are currently actively trading but are impacted by reduced demand due to coronavirus
• were previously trading but are temporarily unable to do so due to coronavirus
The extension will last for 6 months, from November 2020 to April 2021. Grants will be paid in 2 lump sum instalments, each covering a 3-month period.
The third grant will cover a 3-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant calculated at 80% of 3 months average monthly trading profits, paid out in a single instalment and capped at £7,500 in total. This is an increase from the previously announced amount of 55%.
The Government are providing the same level of support for the self-employed as is being provided for employees through the Coronavirus Job Retention Scheme which has also been extended until March 2021.
The Government has already announced that there will be a fourth grant covering February 2021 to April 2021. They will set out further details, including the level, of the fourth grant in due course.
SEISS Claim Estimator
If you want us to help you estimate your claim then please ask us – we have an Excel SEISS claim estimator.
See: https://www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension/
As we enter the third week of lockdown in England and reflect on improved testing, new vaccine trial results and a host of experts talking on the news about the timing of rollout and when Covid-19 will no longer be a threat to normality, it is worth remembering our lives are and will remain different for the remainder of 2020 and most of 2021. With that in mind we need to be resilient as individuals, families and businesses.
The latest indicators for the UK economy found nearly half (49%) of currently trading UK businesses reported a decrease in their turnover below what is normally expected for this time of year. On 8 November, overall UK footfall dropped to 33% of the level seen on the equivalent day last year as national restrictions were introduced in England.
Clearly we are living in tough times and it makes sense to take advantage of Government supports both directly such as the extended job retention and self-employed support schemes, deferring tax and using bounce back loans. There are also grants available to help firms with Brexit changes for import and export administration.
We have helped many businesses apply and claim for these supports and if you need any assistance, please contact us.
Business planning for 2021 will be difficult as we don’t know the timings for mass vaccinations and whether they will truly work but there are some practical steps you can take to minimise potential disruption to your business:
1. Review your Budgets and set realistic and achievable targets for the remainder of 2020 and for 2021.
2. Get your employees involved in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues.
3. Use ‘bottom up’ budgeting where everyone in the business gives input on areas over which they have control – target a 10% cost saving.
4. Review and flowchart the main processes in your business (e.g. Sales processing, order fulfilment, shipping etc.) and challenge the need for each step.
5. Encourage team members to suggest ways to streamline and simplify processes (e.g. sit down and brainstorm about efficiencies and cost reduction).
6. Put extra effort into making sure your relationships with your customers are solid.
7. Review your list of products and services and eliminate those that are unprofitable or not core products/services.
8. Review efficiency of business processes and consider alternatives such as outsourcing certain activities locally or overseas.
9. Agree extended payment terms with all suppliers in advance.
10. Pull everyone together and explain the business strategy and get their buy-in.
Please talk to us about cashflow planning for the next six months, we can help with a template so you can do this yourself or work together to produce estimates for a variety of scenarios.
All the best,
Steve
Steven Hillman ACA
Chartered Accountant
Tel: 01934 444100
Any CJRS Furlough claim may be subject to HMRC
retrospective audit and therefore it makes sense to note the date and reasons
for the Furlough decision. We appreciate that it will be obvious for some
businesses (Government orders closure) but for some businesses especially
Director / Shareholder businesses it is prudent to note details. This will also
serve as evidence of the date of the decision.
Please feel free to use and edit the sample board meeting minutes as you
see fit for your business.
==============================================================
BOARD MEETING MINUTES
Name of Company or LLP or business:
Company Registration number:
Date:
Present:
The Director(s) met to discuss the
Corona Covid-19 Pandemic and the effect of the Government Actions regarding
restrictions on movement and closure of workplaces.
The Director(s) note that the business is unable to trade / has reduced or
restricted trade / severe decline in turnover / supply chain broken /
employee(s) unable to travel to work / work inside etc. (edit as applicable) whilst the lock-down is in place and
have therefore Furloughed the following Directors and employees as per The
Corona Virus Job Retention Scheme from 1 November (as applicable) 2020.
The Board / partners / owners also
noted that they had discussed and agreed changes in employment conditions with
employees all who were subject to Furlough or flexible Furlough.
The Directors noted some employees will
be able to work during the [lockdown / immediate period / next month] and
have engaged their accountants XYZ & Co. to record the details and make the
flexible / full furlough claims to HMRC as required.
(See list attached to this Board Minute or detail name
and employee reference number below – if applicable).
Signed: Secretary /Chairman of the Board / Director (as
applicable)
Date:
==============================================================
If you are Furloughing employees from 1 November then you must agree any changes in their terms of employment with them in advance.
Employers should discuss with their staff and make any changes to the employment contract by agreement. When employers are making decisions in relation to the process, including deciding who to offer furlough to, equality and discrimination laws will apply in the usual way.
To be eligible for the grant, employers must have confirmed to their employee (or reached collective agreement with a trade union) in writing that they have been furloughed. You must:
• make sure that the agreement is consistent with employment, equality and discrimination laws
• keep a written record of the agreement for five years
• keep records of how many hours your employees work and the number of hours they are furloughed (i.e. not working)
The employee does not have to provide a written response and you do not need to place all your employees on furlough.
You can:
• Fully furlough employees - they cannot undertake any work for you while furloughed full time
• Flexibly furlough employees - they can work for any amount of time, and any work pattern but they cannot do any work for you during hours that you record them as being on furlough
If you flexibly furlough employees, you will need to agree this with the employee (or reach collective agreement with a trade union) and keep a new written agreement that confirms the new furlough arrangement. You will need to:
• make sure that the agreement is consistent with employment, equality and discrimination laws
• keep a written record of the agreement for five years
• keep records of how many hours your employees work and the number of hours they are furloughed (i.e. not working).
Employees cannot undertake any work for you during time that you record them as being on furlough.
Where consistent with employment law, any flexible furlough or furlough agreement made retrospectively that has effect from 1 November 2020 will be valid for the purposes of a Coronavirus Job Retention Scheme claim as long as it is made according to the conditions above. Only retrospective agreements put in place up to and including the 13 November 2020 may be relied on for the purposes of a claim.
See: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme#agreeing-to-furlough-employees
