Remember Remember the End of September
The end of September marks major changes to, a number of economic measures brought in to support businesses through the COVID-19 pandemic.
End of Coronavirus Job Retention Scheme (CJRS )
The Coronavirus Job Retention Scheme (CJRS), or furlough scheme as it is more commonly known, is scheduled to run until 30 September 2021. It has been in place since March 2020, and has been extended several times.
The government has reported that almost three million people have moved off the furlough scheme since March this year, as businesses have reopened. However, estimates are that 1.6 million people are still relying on this scheme.
If you still have some of your staff on furlough you will need to let them know about their return to pre furlough work. Here are some frequently asked questions that you may find helpful.
What do I need to do when the scheme closes?
You need to:
- bring employees back to work on their agreed terms and conditions
- agree any changes to their terms and conditions with them, or
- consider ending their employment.
When is the deadline for claiming CJRS?
The last day that you are able to claim for to is 30 September. These final claims for September must be submitted by Thursday 14 October.
Can I claim CJRS grants for employees on notice?
You cannot claim CJRS grants for any days an employee is serving a contractual or statutory notice period, including notice of retirement, resignation or redundancy.
What support is available for my employees if I can no longer offer them a job?
There’s UK Government support available for employees through the JobHelp website.
Normal redundancy rules and protections apply to furloughed employees. If you are already a client of GWA and would like more information or guidance on the redundancy process please get in touch.
You can find out more about the CJRS here.
Self-Employed Income Support Scheme Grant (SEISS) Application Deadline
If you are eligible for the fifth and final Self-Employed Income Support Scheme grant (SEISS) you have until 30 September to apply.
Everyone who is eligible for the last SEISS grant should have received a personal start date from HMRC in recent weeks. If you were not eligible for the fourth grant, you will not be eligible for the fifth grant either.
Here is a quick overview on some key points:
- the grant covers 1 May to 30 September – five calendar months although, as per the previous grants the payment is for three months
- the deadline to claim is 30 September (less than three weeks away)
- the maximum grant amount you can claim is capped at £7,500. How much you receive is based on a calculation of 80% of your average trading profits over three months. The grant will also depend on how much your turnover has dropped
- there is an exception for anyone who became newly self-employed in 2019/20 (providing you also meet the other eligibility criteria). The amount you can claim will be based on solely 2019/20 tax returns. You will be entitled to 80% of your average trading profits over three months (still capped at £7,500) but without regard to turnover
- SEISS grants are taxable and subject to National Insurance contributions
- you will need to report any SEISS grants received on or before 5 April 2021 on your 2020-21 Self Assessment tax return (filing deadline for this is 31 January 2022). For most, this means the first, second and third grants will be reported on your 2020-21 return. The fourth and fifth grants should go on your 2021-22 return (filing deadline of 31 January 2023).
Like all other accountants, GWA are unable to claim SEISS grants on behalf of our clients. You must apply via the GOV.UK directly using your government Gateway Account. You can find more details and how to apply for SEISS here.
That being said, we do appreciate that this final grant is possibly the most complex yet and there are serious implications if you overclaim. If you are in anyway unsure, please do get in touch with us and we will be able to provide you with the appropriate support and advice.
Changes to VAT Reduction
The hospitality and tourism sector has been enjoying a reduced rate of VAT (5%) since 15 July 2020.
This will come to an end on 30 September 2021. The rate will then rise to 12.5% for another six months before returning to the full 20% rate in April 2022.
For businesses affected it will also mean an amendment to accounting software and possibly prices. More details can be found here.
If you or your business is affected by any of these changes and would like to discuss the practical impacts they may have or would like reassurance as to your next steps, please get in touch.
We are still continuing to maintain COVID precautions at our offices to keep both our clients and our team safe as possible. You can contact us by phone and email and should you prefer to a face-to-face meeting this can also be arranged. As we are limiting the use of our meeting rooms, we would ask that you contact us in advance to arrange a suitable date and time for any appointment.
Finally, please be aware that there are still fraudsters calling, emailing or texting individuals claiming to be from HMRC. If you are in anyway suspicious, we recommend that you do not reply directly or click on any links provided. You can contact us or HMRC – more details can be found here on the GOV.UK website.
The National Cyber Security Centre website also offers really some helpful resources for your business, your employees and your family on keeping cyber secure.
Thank you once more for your continued support. Please do get in touch if you require any assistance, as always we are here to help.