As many government guidelines, schemes and deadlines have seen a change in the last few weeks, please see below a summary of schemes that may be relevant to you.
If you deferred paying any VAT that was due to HMRC between 20 March and 30 June, then previously you had to pay this value in full by the end of March 2021. HMRC have now extended this period. You can now pay in smaller instalments up to the end of March 2022, interest free. This can be done by you calling HMRC on 0300 200 3835 and setting up a Time to Pay Arrangement.
2. Self Assessment
HMRC have already permitted you to defer any personal SA tax payments that were due by the 31st July. These can now be delayed for payment until the 31st Jan 2021 without receiving any interest or Penalty. Once your 2020 Tax Return is lodged, if you will still find it difficult to pay by the 31st Jan 2021, then HMRC are permitting you to pay via Instalments via their ‘ Time to Pay Instalment Arrangement’. Please advise your Tax Manager if this will be required.
3. Job Retention/Furlough Scheme
This ends at the 31st October.
4. Job Support Scheme
This Scheme starts on the 1st Nov for 6 months. Employees need to work a minimum of 33% of their usual hours. For every hour not worked, then the Employer and the Government, will each pay one third of the employees usual pay (the government contribution is capped at GBP 697.92 per month). Therefore the Employer will pay for the actual hours worked, plus the Employer will pay for a third of the hours not worked and the government will pay for another third of the hours not worked. The final third is unpaid hours. We will contact you in November to claim for any employees you have on this Scheme.
This Scheme has now been extended to cover those Businesses that have been forced to close due to Coronavirus restrictions for a minimum of 7 days. For these Businesses the government will now pay two thirds of the employees salaries. The Employer will only be asked in these cases to cover NI contributions and Pension.
Please remember to agree the new short-term working arrangement with your employees and agree the changes to be made to their Employment Contract in writing.
5. Job Retention Bonus Scheme
If you are eligible we can claim this Bonus for you between 15 Feb 21 and 31 March 21. This is a one-off taxable payment to the Company of £1,000 for each eligible employee that you Furloughed. This is assuming that you made a successful claim for that period of Furlough and then kept that employee continuously employed from the end of the Furlough period until the 31st Jan 2021. You cannot serve notice before the end of Jan 2021 and you have to pay that employee a minimum of GBP 1560 Gross between 6th Nov and 5th Feb 2021. You must also pay your employee a taxable payment in each of the 3 months of Nov, Dec and Jan. We will get back to you at end of Jan 2021 to ensure we capture all those where we can claim a Bonus for you.
Please note that this does cover office holders of the Company too.
6. Statutory Sick Pay
If an employee is off sick due to Covid or self-isolation, then you can claim SSP from Day 1. We can then reclaim that for you from HMRC.
7. Reduced VAT rate for Hospitality, Holiday Accommodation and Attractions
These Businesses can apply a reduced rate of VAT, to 5% and is applicable for the period 15th July 2020 until the 12th Jan 2021. This has now been extended to be the 31st March 2021.
Please note that if you are struggling to pay any outstanding TAX to HMRC you can call them on 0300 200 3835 and setup a Time to Pay Arrangement. This then agrees a payment plan with them for smaller values and should not have interest applied or Penalty for late payments. Please also find help and support here.
This relates to VAT, PAYE, Corporation Tax and Self Assessment Tax.
If you have any questions or queries, please don’t hesitate to contact us.