In these unprecedented times, we have been receiving a high volume of calls from our clients asking for advice. As a result, we have put together a series of guides as a way to update everyone with the latest news and guidelines.

Please also refer to our News pages by following this link.

All information on this Summary will be regularly updated in line with Government advice as it is published.

We are trying to provide information to our clients as these new schemes are being announced and so we hope the below library will provide a good starting point. We shall endeavor to update these links as new detailed provisions emerge.

Sophie Howard FCA

Job Support

The Coronavirus Job Retention Scheme (CJRS) will be followed by a Job Retention Bonus which will be introduced to help firms keep furloughed workers in employment. UK employers will receive a one-off payment of £1,000 for each furloughed employee who is still employed as of 31 January 2021. In order to qualify for the payment employees must earn above £520 per month on average between the end of the CJRS and the end of January 2021.

The Chancellor also launched a £2 billion Kickstart Scheme that will aim to create subsidised six-month work placements for young people aged 16-24 who are claiming Universal Credit.

In order to support the UK’s tourism and hospitality industry, the Chancellor announced a cut in the rate of VAT from 20% to 5% for the sector. This applies to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises, as well as supplies of accommodation and admission to attractions, including theme parks and zoos, across the UK.

Additionally, the Eat Out to Help Out scheme will entitle every diner to a 50% discount of up to £10 per head on their meal at any participating, eligible food service establishment from Monday to Wednesday. Participating establishments will be fully reimbursed for the 50% discount.

Last Updated: 09 July 2020

VAT

HMRC have agreed to defer Value Added Tax (VAT) payments for 3 months and all UK businesses are eligible. 

The deferral will apply from 20 March 2020 until 30 June 2020 and this is an automatic offer with no applications required. 

Businesses will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. 

Please note HMRC will still expect you to submit your VAT returns to them on time, but will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement.

Deferred VAT Payments

If you’re a UK VAT-registered business that deferred VAT payments between 20 March 2020 and 30 June 2020, you now need to do the following:

  • set-up cancelled Direct Debits in enough time for HMRC to take payment
  • continue to submit VAT returns as normal, and on time
  • pay the VAT in full on payments due after 30 June

Any VAT payments you have deferred between 20 March and 30 June should be paid in full on or before 31 March 2021.

If you have cancelled your Direct Debit to HMRC to take advantage of the deferral, you will need to set up a new Direct Debit arrangement in time for the first payment after 30 June.

Payments due after 30 June must be paid in full as normal and you must continue to file your VAT return on time.

Last Updated: 09 July 2020

Income Tax

All Income Tax Self Assessment payments due on the 31 July 2020 will be deferred until the 31 January 2021.  

This is an automatic offer with no applications required. Please note the following:  

  • No penalties or interest for late payment will be charged in the deferral period. 
  • HMRC have also scaled up their ‘Time to Pay’ offer to individuals who have outstanding tax liabilities.  

If you need to speak to HMRC regarding a tax payment, we recommend that you call HMRC direct on 0800 015 9559.

If you prefer to pay regularly throughout the year, HMRC can offer a budget payment plan.

Last Updated: 15 April 2020

Companies House and Extended Filing Deadlines

From 27 June 2020, more companies will get an extension to their accounts filing deadline. Companies House have extended your company’s filing deadline if it falls any time from 27 June 2020 to 5 April 2021 (including these dates).

For a Private company the filing deadline will be extended from 9 to 12 months.

Please note you must apply before your filing deadline date.

You can do this online by following the below link: 

https://beta.companieshouse.gov.uk/extensions?_ga=2.146329780.1639197876.1585129996-1637025097.1577738477

Alternatively, phone Crowthers for assistance with this.

Last Updated: 9 July 2020

Other Financial Support

You might also be able to get New Style Employment and Support Allowance if one or the following applies:

  • you or your child might have coronavirus or you’re recovering from it
  • you or your child are self-isolating because you came into contact with someone who might have coronavirus
  • you have been told to stay at home for at least 12 weeks by the NHS because you’re at high risk of severe illness

For more information on how to claim please see the following link:

https://www.gov.uk/employment-support-allowance/how-to-claim

Last Updated: 05 June 2020