Business Morning

NEWS ROUND UP FOR DECEMBER

  1. VAT reductions to 5% for hospitality continues to the end of March 2021. 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.  

  2. New Job Support Scheme.  This commenced 1st November 2020 and the calculations are mind blowing. They need to be carefully checked and retained for 6 years.  The claims can be done ahead of the payroll day so that funds are in our account before they have to be paid out.

  3. 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.

  4. Deferred VAT payments from March to May 2020 can be paid back over an extended period and do not have to be paid in full in March 2021.  A big relief when cashflows are so tight.

  5.  CBILs and Bounce Back Loans, the application period has been extended to the end of January 2021 and repayment has been extended form 6 years to 10!

  6.  Grants. Further grants have been released called LSRG Local Restrictions Support Grant and ARG Additional Restrictions Grant.

 

NEWS & UPDATES IN THE ACCOUNTING WORLD

EXTENDED CORONA VIRUS JOB RETENTION SCHEME

7the December

Furlough now runs to the end of March 2021

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

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

CBILS AND BOUNCE BACK LOANS

7th December

Applications are now being held open until the end of January 2021 and in some cases repayment can be over 10 years.

Cashflow forecasts and recent accounts including management accounts are usually required when making an application for a CBILS loan.

It is best to approach your current bank first.

This is the link to the list of accredited lenders:

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/current-accredited-lenders-and-partners/

VAT REDUCTION

December 7th

HMRC  announced a reduction in VAT for hospitality, hotel and holiday accommodation and certain attractions from 12th July and have extended the period for this to the end of March 2021

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

JOB RETENTION BONUS

December 7th

This has been deferred for the moment to be reassessed when the latest furlough scheme ends in March 2021

LOCAL RESTRICTIONS SUPPORT GRANT AND ADDITIONAL RESTRICTIONS SUPPORT GRANT

December 7th

HMRC have released new grants for businesses in Tier 2 and Tier 3

If your business has a property with a rateable value of £15,000 or less, you may be eligible for a cash grant of up to £467 for each 14 day period.

If your business has a property with a rateable value over £15,000 and less than £51,000, you may be eligible for a cash grant of up to £700 for each 14 day period.

If your business has a property with a rateable value of £51,000 or above, you may be eligible for a cash grant of up to £1,050 for each 14 day period.

https://www.gov.uk/guidance/check-if-youre-eligible-for-the-coronavirus-local-restrictions-support-grant-for-open-businesses

The Additional Restrictions Grant is discretionary

 
Image by Jude Beck

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McCormick Accounting Limited

07814661727

Reg Office: Pine Tree Close Wimborne Dorset

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