Information Updated Regularly In Line With Government Announcements
We are providing as much help and support as we can to our clients and anyone else that needs us. We have summarised the Government support available to small businesses and self-employed which is the area of bookkeeping we specialise in. There is also advice on what steps you can take to ensure you see this unprecedented situation through such as accounting software reports and Excel budget spreadsheets and document templates.
Please note that the information is being announced, updated and tweaked at an unprecedented rate which we are doing our best to update. If you plan to make an important decision about your business, contact us first to ensure you have considered all available options.
Spring Budget March 2021
Read our blog here to find out about support, grants, schemes and everything else on offer to businesses and self-employed people.
New Lockdown 3.0 January 2021 Business Support
The Chancellor has announced an extension of the furlough scheme and grants to businesses affected, read more in our blog here.
Error Uncovered Embedded In HMRC Coronavirus Job Retention Scheme (CJRS) Calculator
Employers may need to re calculate January 2021 furlough claims due to an error uncovered in HMRC furlough calculator. Click here for more information.
SEISS - 4th Grant Available
The chancellor announced in the March 2021 Budget that the grant:
- Is 80% of the average monthly profits
- Covers February – April 2021
- Will be paid in one instalment
- Is capped at £7,500
- People that became self-employed in 2019-20 may be able to claim the grant
- There will be a 5th SEISS grant
HMRC Email Regarding Trade For SEISS Grants
HMRC have e mailed some tax payers asking to prove they have traded during the pandemic which is an eligibility criteria following receiving some tax returns with the 'ceased trading' box ticked. The e mail has been missed by many, for more information, click here.
Deferring Self-Assessment Income Tax Payments
Self-assessment income tax - payments due on the 31 July 2020 will be deferred until the 31 January 2021 for tax returns, no penalties or interest for late payment will be charged in the deferral period. Click here for more information.
Further Information On SEISS
Grants from the Self-Employment Income Support Scheme (SEISS) made on or after 6th April 2021 are taxed in the year of receipt. This measure will have effect for the tax year 2021 to 2022 and subsequent tax years.
Remember - Individuals will be subject to a 100% tax charge if they receive a payment to which they are not entitled. This measure will allow HMRC to recover payments where an individual was entitled to the grant at the time of claim but subsequently ceases to be entitled to all or part of the grant.
Home Workers Can Claim £6 Per Week From HMRC
If you are required to work from home due to the coronavirus (COVID-19) or for business needs, you are entitled to claim £6 per week to help with household costs incurred through working from home. See our blog for more information here.
Recovery loan Scheme (RLS)
Launched on 6th April, 2021 to provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic. It replaces other funding options such as the Bounce Back Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS.) Overview:
- Up to £10 million available per business
- Government backed guarantee
- Finance of term loan, overdraft, invoice finance or asset finance
- Terms of up to 6 years (dependant on finance)
For more information, click here.
The one off grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses are available from 1 April 2021.
Eligible businesses in the non-essential retail sector may be entitled to a one-off cash grant of up to £6,000 from their local council. For more information, click here.
If you think you will benefit from additional funding, you should contact your bank in the first instance to see if there is anything they can do to help you. Other potential funding sources (this does not form a recommendation by Cashtrak):
Choice Loans - Sharon Cook and Sean O’Farrell of Choice Loans are based in the High Wycombe area and we have had dealings with them before www.choicebusinessloans.co.uk
Capitalise - https://capitalise.com/
Swoop Funding - https://swoopfunding.com/
MarketFinance - https://marketfinance.com/
Funding Circle - https://www.fundingcircle.com/uk/
Emergency Business Loan Scheme Extended BBLS And CBILS
The emergency business loan scheme was extended to allow businesses to ‘top up’ their borrowing with the hope of helping businesses manage through the second lockdown.
For more information, click here.
For businesses investing in new equipment from April 2021, a new super-deduction will cut companies’ tax bill by 25p for every pound meaning they can reduce their taxable profits by 130% of the cost. This will last 2 years.
Job Support Scheme - JSS Closed And JSS Open
There are now 2 JSS (Job Support Schemes. The first, designed for businesses legally forced to close is now called JSS Closed and the second is for businesses that remain open but with employees working reduced hours, this is called JSS Open. The rules, dependant on your situation, are complex.
Job Retention Bonus (JRB)
*POSTPONED DUE TO FURLOUGH SCHEME EXTENDED UNTIL 31ST MAECH, 2021*
The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021. Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021.
Budgeting - think strategically about the future of your business. Review and update your budgets and forecasts. Xero offers a great budgeting facility or you could try Fluidly who provide an intuitive cashflow management powered by artificial intelligence, they recently released a free lite version of the software, click here to sign up. Click here for their Fluidly Webinar for Business.
If your accounting software if not working for you or you don't have any accounting software, we recommend Xero. It is easy to use, flexible and the reporting options are great. Cashtrak have many years experience setting up and using Xero so we would be happy to help you with the set up or using it, please ask.
Review overheads - the first thing you need to do is categorise expenditure on a personal and business level in to 'essential' and 'nice to have' once this has been completed you are in a better position to evaluate your situation. Xero has a wide variety of reports to assist with this, if you are unsure please ask us.
Ensure homeworking works for managers and staff, see our blog with tips and suggestions www.cashtrak.co.uk/blog/post/10334/How-To-Make-Homeworking-Work-For-Businesses/
Making Tax Digital (MTD) Digital Link Rules Delayed by COVID-19
HMRC announced a one-year delay to its enforcement of rules specifying the digital transmission of MTD for VAT data. Further information here
Mental Health Is More Important Than Ever - Rehab 4 Addiction Have Created An Guide
The Community Outreach team at Rehab 4 Addiction have asked if we could link to their mental health guide as a valuable resource for visitors. Their hope is that this informational guide can be one of many stepping stones for those struggling and their loved ones to better understand their situation and lead them to find a safe and supportive environment, especially during the pandemic. They offer a referral service for people seeking treatment for alcoholism, drug addiction, behavioural addiction, and eating disorders and an online resource to individuals and families dealing with substance abuse. Click here for the guide.
COVID-19 Pandemic Sees A Rise In Cyber Attacks
The most common cyber attacks are on:
malware (software allowing a hacker in to steal money or personal data or damaging your device)
Our video gives tips recommended by the National Cyber Security Centre to protect you and your business.