Business Morning

NEWS ROUND UP FOR JULY AND AUGUST

  1. VAT reductions to 5% for hospitality. Please make sure you have the facility to get the bookkeeping right or you may lose out on the benefit or prepare an incorrect VAT return.  We have already noticed that iZettle does not amend the VAT when it is feeding into quickbooks.

  2. Furlough penalties:  HMRC are beginning to investigate furlough claims and they have said they will recover 100% of the amount due and may issue penalties of up to 100%.  It is really important to check the calculations made and ensure you have support for the claims for at least 6 years.

  3. Self Assessment Payments on Account:  31st July was the deadline for payments on account for those under self assessment. The deferral of the payment on account is only for those who are self employed and not for everyone so please remember to check if you still need to make the payment

  4. Self Employment Income Support Scheme, the next applications can be made from 17th August.  https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme    

  5.  Grants. Further grants are being finalised to help businesses in the coming months. I will keep adding information here as I find out more.

 

NEWS & UPDATES IN THE ACCOUNTING WORLD

CORONA VIRUS JOB RETENTION SCHEME

7th August

Furlough has now been extended to October 2020. The old scheme closes for claims on 31st July so now is the time to be making that claim.

August Rules

The employer must now pay the national insurance and pension contributions for any furloughed employee.

September Rules

The contribution reduces to 70% of wages up to a cap of £2,187.50.

The level of government support is reducing over the coming months.

This is the link to HMRC page to begin to calculate the claim:

https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme

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SELF EMPLOYED INCOME SUPPORT SCHEME

7th August

This scheme has now been extended to 31st October.

The new application is due to open on 17th August.  If you were eligible in the first round you will be eligible again if your business continued to be adversely affected.

This is the link to the HMRC site to check your eligibility.

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

VAT REDUCTION

July 25th

HMRC  announced a reduction in VAT for hospitality, hotel and holiday accommodation and certain attractions from 12th July.

The rate has dropped to 5%.It is really important to speak to your merchant provider to ensure the VAT rates are amended.  Your accounting system also needs to link to the till to ensure everything feeds through correctly.

This is the link to the detailed advice.

https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions

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SUPPORTING JOBS

August 7th

The latest announcement for supporting businesses is a grant for employers who retain employees.

If an employer has furloughed staff, retains those staff and they are on your payroll in November, December and January earning more than £520 per month on average, then the business will be able to claim a grant of £1000 per employee.

Remember to build this into your cashflow.


https://www.gov.uk/government/news/rishis-plan-for-jobs-will-help-britain-bounce-back

 
Image by Jude Beck

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McCormick Accounting Limited

07814661727

Reg Office: Pine Tree Close Wimborne Dorset

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