Summary of updates and changes to financial support
There has been a few changes and additions to support available to businesses over the last couple of weeks. Here is a brief summary:
The Coronavirus Job Retention Scheme is well into its last month, with government contributing 60% to furloughed wages, and Employers paying up to 80%, national insurance and pension costs.
Final date for claims is 30 November.
This scheme is being extended by way of the Job Support Scheme which comes into effect on 1 November. Employers and HMRC will split the cost of hours not worked.
The Job Retention Bonus is a £1,000 one-off taxable payment to the employer for each eligible employee that was furloughed and kept continuously employed until 31 January 2021.
You’ll be able to claim the bonus between 15 February 2021 and 31 March 2021. You do not have to pay this money to your employee.
The Self Employed Income Support scheme closes for claims for the 2nd grant on 19th October. This is available at 70% of average monthly earnings for 3 month period. Paid in a lump sum, capped this time at £6,570 for the period.
You do not need to have made a claim for the initial period to be eligible for the second.
Government announced an extension to this grant for self-employed individuals who are currently eligible for the Self-Employment Income Support Scheme and are actively continuing to trade, but are facing reduced demand due to coronavirus (COVID-19).
The extension will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.
If you need time to pay a Self Assessment tax bill of less than £30,000, this can be set up online, without the need to speak directly to HMRC. You will need to have filed your tax return before making the arrangement.
Businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period.
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.
Members continue to benefit from cash refunds from HMRC via the Research & Development Tax Credits scheme. One member shares their experience and encourage others to explore the potential.