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Mel’s COVID-19 Update: 23rd November 2020
1. Coronavirus Job Retention Scheme (CJRS)
The CJRS has been extended to 31 March 2021 for all parts of the UK and HMRC has updated its guidance.
From 1 November the Government will pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month. The government will review the terms of the scheme in January.
If you have made a claim remember to submit any claims for periods up to 31 October on or before 30 November – they will not be accepted after this date.
Submit any CJRS claims for November, no later than 14 December. You can claim before, during or after you process your payroll as long as your claim is submitted by the deadline.
Remember to keep any records that support the amount of CJRS grant you claim, in case HMRC needs to check them. You can view, print or download copies of your previously submitted claims by logging onto your CJRS service on GOV.UK.
Please talk to us about making a claim, we have helped many clients through these troubled times, and we want you to know we are here to support you!
2. Self-Employment Income Support Scheme (SEISS)
HMRC has issued guidance on the third SEISS grant and specifically how trading conditions affect eligibility.
To be able to claim for the third grant, you must either:
- Be currently trading but are impacted by reduced demand due to coronavirus
- Have been trading but are temporarily unable to do so due to coronavirus
You must also: -
- Intend to continue to trade
- Reasonably believe there will be a significant reduction in your trading profits due to reduced demand or your inability to trade
You must also meet all other eligibility criteria to make a claim.
HMRC states that it expects SEISS claimants to make an honest assessment about whether they reasonably believe their businesses will have a significant reduction in profits.
Please talk to us about making a SEISS claim, we can work through your figures and make an accurate estimate of what you should expect.
3. Pay VAT Deferred Due To Coronavirus (COVID-19)
HMRC has issued guidance on paying deferred VAT.
If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can:
- Pay the deferred VAT in full on or before 31 March 2021
- Opt into the VAT deferral new payment scheme when it launches in 2021
- Contact HMRC if you need more help to pay
If you want to opt into the new payment scheme:
You cannot opt in yet. The online opt in process will be available in early 2021. You must opt in yourself. Your agent cannot do this for you.
Instead of paying the full amount by the end of March 2021, you can make up to 11 smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022.
The scheme will allow you to:
- Pay your deferred VAT in instalments without adding interest
- Select the number of instalments from 2 to 11 equal monthly payments
To use this scheme you must:
- Still have deferred VAT to pay
- Be up to date with your VAT returns
- Be able to pay the deferred VAT by Direct Debit
If you opt into the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.
Get ready to opt into the new payment scheme:
Before opting in you must:
- Create your own Government Gateway account if you don’t already have one
- Submit any outstanding VAT returns from the last 4 years. You will not be able to join the scheme if you have not done so
- Correct errors on your VAT returns as soon as possible. Corrections received after 31 December 2020 may not show in your deferred VAT balance
- Make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid
You should also:
- Pay what you can as soon as possible to allow HMRC to show the correct deferred VAT balance
- Consider the number of equal instalments you will need, from 2 to 11 months
Please talk to us about helping you with your options.
During COVID-19 I want to ensure that everyone is as up to date as possible with regards to Government changes and support that impacts businesses. Please note that this update is correct as of date of publishing (23rd November 2020).