Lockdown 2: New Support

Well, it looks like we’ve got the “it’s not a lockdown” lockdown starting today and I thought I would let you know of the latest updates and changes that have been made.

Mortgage payment holidays

Mortgage payment holidays will no longer end on 31 October. Borrowers who have been impacted by coronavirus and have not yet had a mortgage payment holiday will be entitled to a six month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.

Business Grants

Businesses required to close in England due to local or national restrictions will be eligible for the following:

For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;

For properties with a rateable value of between £15k-£51k, grants to be £2,000 per month, or £1,000 per two weeks;
For properties with a rateable value of £51k or over, grants to be £3,000 per month, or £1,500 per two weeks.
Your local council should be in touch with you automatically about these grants. For those in Tier 2 or Tier 3 restrictions today, these grants will be backdated to when your area went into the tier.

The Coronavirus Job Retention Scheme (CJRS)

This has been extended until December. This was due to end on 31 October. The Grant will ensure employees receive 80% of their current salary for hours not worked, up to a maximum of £2,500.

Businesses will have the flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time, employers will be asked to cover National Insurance and employer pension contributions.

As with the current CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.

The Government will confirm shortly when claims can first be made in respect of employee wage costs during November, but there will be no gap in eligibility for support between the previously announced end-date of CJRS and this extension.

The Job Support Scheme (JSS), which was scheduled to come in on Sunday 1st November, has been postponed until the furlough scheme ends.

Government increases support for self-employed across the UK

The government is increasing its support to the self-employed over the coming months and ensuring people get paid faster than previously planned.

To reflect the recent changes to the furlough scheme, the UK-wide Self-Employment Income Support Scheme (SEISS) will be made more generous – with self-employed individuals receiving 80% of their average trading profits for November.

To ensure those who need support get it as soon as possible, payments will also be made more quickly with the claims window being brought forward from 14 December to 30 November.

As SEISS grants are calculated over three months, the uplift for November to 80 percent, along with the 40 percent level of trading profits for December and January, increases the total level of the third grant to 55 percent of trading profits. The maximum grant will increase to £5,160.

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

Government loan schemes

More businesses will also be able to benefit from government loan schemes which have been extended to the end of January 2021, while firms can ‘top up’ existing Bounce Back Loans should they need additional finance.

Thanks,

Richard

 

 

CORONAVIRUS (COVID-19)-USEFUL WEB LINKS

USEFUL LINKS

Below are some key Government websites where you can access the latest information:

Government action plan:
https://www.gov.uk/government/publications/coronavirus-action-plan

Guidance on social distancing and stay at home:

https://www.gov.uk/government/topical-events/coronavirus-covid-19-uk-government-response

Travel advice:

https://www.gov.uk/guidance/travel-advice-novel-coronavirus

Support for businesses:

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

Tax helpline to support businesses who are concerned about paying their taxes:

https://www.gov.uk/government/news/tax-helpline-to-support-businesses-affected-by-coronavirus-covid-19

Guide for employees, employers and businesses:

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19

Budget 2020: tax-related documents:

https://www.gov.uk/government/collections/budget-2020-tax-related-documents

NHS Coronavirus (COVID-19):

https://www.nhs.uk/conditions/coronavirus-covid-19/

Universal Credit Calculators

Turn2us – for information on income-related benefits, tax credits, Council Tax Reduction, Carer’s Allowance, Universal Credit and how your benefits will be affected if you start work or change your working hours

https://benefits-calculator.turn2us.org.uk/AboutYou?utm_source=BAdviser&utm_medium=referral&utm_campaign=GovUK

Policy in Practice – for information on income-related benefits, tax credits, contribution-based benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit, how these are calculated and how your benefits will be affected if you start work or change your working hours

https://www.betteroffcalculator.co.uk/free

entitledto – for information on income-related benefits, tax credits, contribution-based benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit and how your benefits will be affected if you start work

https://www.entitledto.co.uk/?utm_source=BAdviser&utm_medium=referral&utm_campaign=GovUK

New VAT rules coming into effect on 1st October 2019 – are you ready?

The domestic reverse charge (referred to as the reverse charge) is a major change to the way VAT is collected in the building and construction industry.

This will affect you if you supply or receive specified services that are reported under the Construction Industry Scheme (CIS).

vat rules 300x182 - New VAT rules coming into effect on 1st October 2019 - are you ready?It comes into effect on 1 October 2019 and means customers receiving the service will have to pay the VAT due to HMRC instead of paying the supplier.

It will only apply to individuals or businesses registered for VAT in the UK (although it will not apply to consumers).

What you need to do to be ready for the start of the
domestic reverse charge

You need to prepare for the 1 October 2019 introduction date by:
• Checking whether the reverse charge affects either your sales, purchases or both.
• Ensuring your accounting systems and software are updated to deal with the reverse charge.
• Considering whether the change will have an impact on your cash flow.
• Ensuring all your staff who are responsible for VAT accounting are familiar with the reverse charge and how it will operate.

What contractors need to do

If you’re a contractor you’ll also need to review all your contracts with sub-contractors, to decide if the reverse charge will apply to the services you receive under your contracts. You’ll need to notify your suppliers if it will.

What sub-contractors need to do

If you’re a sub-contractor you’ll also need to contact your customers to get confirmation from them if the reverse charge will apply, including confirming if the customer is an end user or intermediary supplier.

For further information please do not hesitate to contact one of the team on 01277 314000.