Advice and Suggestions from Members
Expenses re working from home
This link is for allows to claim tax relief on expenses for working from home… Definitely something everyone should look at to save a few pounds… The accountant suggests that even business owners who are ‘forced’ to operate from home in the circumstances will be able to claim tax relief on laptops, energy bills, telephone etc…https://www.gov.uk/tax-relief-for-employees/working-at-home
Member reports that his payment terms are changing from monthly to weekly. Supplier has confirmed this isn’t a question of creditworthiness, it’s COVID… They are taking the view that many of their customers may go bust over coming months, so are limiting their exposure…(This particular supplier specialises in small/medium businesses who use supermarket forecourts.) If you have also been affected by this or similar, we can try to make representations on your behalf.
Distance Selling Regulations – don’t forget them
Member pulled out all the stops to assist a customer who wanted to be able to work online quickly. Within a short time, the customer’s finances had changed and he opted to return the goods and claim a full refund. There is a 14 day window.
HMRC COVID 19 SUPPORT
The government is committed to doing whatever it takes to support businesses and individuals through the coronavirus pandemic and HMRC has a range of online support for you.
Find out if you can use the Statutory Sick Pay Rebate Scheme, or how to make a claim on the Coronavirus Job Retention Scheme, by joining one of the following live webinars.
They’re interactive giving you the opportunity to ask questions using the on-screen text box.
Coronavirus COVID-19 Statutory Sick Pay Rebate Scheme: Providing an overview of the scheme, this webinar looks at who can claim, when to start paying SSP, employees you can claim for, making a claim, keeping records, and more.
Coronavirus Job Retention Scheme – How to make a claim: This guides you through making a claim, including the essential information you need, what to do before you make your claim, calculating and processing your claim.
These webinars are very popular, so we’ll do our best to answer your questions or signpost you to useful guidance.
If you’ve missed any of our live webinars, you can catch up with our series of recorded webinars on HMRC’s YouTube channel – available at a time to suit you.
We will bring you the most up-to-date information to keep you fully informed of changes as they develop.
Stay at home. Protect the NHS. Save lives.
Chief Executive and Permanent Secretary – HMRC
Covid-19 Update – Self Employment Income Support Eligibility Tool
HMRC have now opened up their eligibility tool for the self-employed income support, on here you can check if you are eligible and then arrange an appointment to apply. Please ensure you are a sole trader or partnership (if you have a Limited company and primary income is as a Director in salary and dividends this will not apply) to be eligible for the claim.
To do this, you will have to follow these steps:-
Go to the HMRC website via this link Self Employment Income Support Link
Press the check now button halfway down the page to check your eligibility
You will need the following details:-
National Insurance Number
Personal Details, for example, First Name, Last Name etc.
This will then let you know if you are eligible to make a claim
You will then need to continue and create a Government Gateway ID and Password online, and you will need one of these accounts to complete the claim. Do this by pressing create now and then following the instructions on the screen. Please make a note of your government gateway ID number as you only get this once and have to keep this for future references
If you already have a government gateway set up sign in and ensure your contact details are up to date
Finally, once either of the above options are complete, you will be given a date and time when you can make the claim
Once this is complete then make a note of the date given, and on this date, you can process your claim, pay-outs are six days after claiming with the first payment run on the 21st May 2020.
When you make your claim you will need the following information:-
Self-Assessment UTR – if you do not have this find out how to get your lost UTR
National Insurance number – if you do not have this find out how to get your lost National Insurance number
Government Gateway user ID and password – if you do not have a user ID, you can create one when you check your eligibility online
Bank account number and sort code you want us to pay the grant into (only provide bank account details where a Bacs payment can be accepted)
You’ll have to confirm to HMRC that your business has been adversely affected by the coronavirus.
HMRC will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate
Certax Accounting Durham LLP aren’t able to complete this for you, it must be done through your gateway, and you must create this yourself. If you need any information, please check your online portal where you sign all documents with us at www.accountancymanager.co.uk. All of your data is stored here under my info section. If you need a portal creating, please send a request to firstname.lastname@example.org. If you have used the portal in the past and have forgotten your password, click the forgot password link.
HMRC Guidance re the extension to the Furlough Scheme – 29th May 2020
oday (29 May) the Chancellor, Rishi Sunak, announced more details about the extension to the Coronavirus Job Retention Scheme (CJRS), with the key details outlined below for you.
From 1 July 2020, you’ll have the flexibility to bring previously furloughed employees back to work part-time – with the government continuing to pay 80% of wages for any of their normal hours they do not work up until the end of August. This flexibility comes a month earlier than previously announced to help people get back to work.
You can decide the hours and shift patterns that your employees will work on their return and you will be responsible for paying their wages in full while working. This means that employees can work as much or as little as your business needs, with no minimum time that you can furlough staff for.
Any working hours arrangement that you agree with your employee must cover at least one week and be confirmed to the employee in writing. When claiming the CJRS grant for furloughed hours, you will need to report and claim for a minimum period of a week. You can choose to make claims for longer periods such as on monthly or two weekly cycles if you prefer. You will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.
If your employees are unable to return to work, or you do not have work for them to do, they can remain on furlough and you can continue to claim the grant for their full hours under the existing rules.
From August, the government grant provided through the job retention scheme will be slowly tapered.
- in June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICs) and pension contributions for the hours the employee doesn’t work – employers will have to pay employees for the hours they work
- in August, the government will continue to pay 80% of wages up to a cap of £2,500 but employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs that they would have incurred if the employee had not been furloughed
- in September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500
- in October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500
- the cap on the furlough grant will be proportional to the hours not worked.
If you are a smaller employer, some or all of your employer NIC bills will be covered by the Employment Allowance, so you should not be significantly impacted by that part of the tapering of the government contribution.
Around a quarter of CJRS monthly claims relate to wages that are below the threshold where employer NICs and auto enrolment contributions are due, and so no employer contribution will be required for these furloughed employees in August.
It’s important to note that the scheme will close to new entrants from 30 June. From this point onwards, you will only be able to furlough employees that you have furloughed for a full three-week period prior to 30 June.
This means that the final date that you can furlough an employee for the first time will be 10 June for the current three-week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.
Guidance and support
Further support for employers and agents on how to calculate claims with this extra flexibility will be available by 12 June, including webinars and detailed online guidance. For information about how to claim, go to GOV.UK and search ‘Coronavirus Job Retention Scheme’. Please do not call us for more information, everything you need to know about this scheme will be published online on GOV.UK.
Protect yourself from scams
Stay vigilant about scams, which may mimic government messages as a way of appearing authentic and unthreatening. Search ‘scams’ on GOV.UK for information on how to recognise genuine HMRC contact. You can also forward suspicious emails claiming to be from HMRC to email@example.com and texts to 60599.