Business Morning

NEWS ROUND UP FOR SEPTEMBER

  1. VAT reductions to 5% for hospitality. This is now extended 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 commences 1st November 2020 and the calculations are going to be mind blowing. They need to be done ahead of November to understand how best to keep your workforce and the most economic way to do so.  What if scenarios need to be setup.

  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 November and repayment has been extended form 6 years to 10!

  6.  Grants. Further grants have been released to Kick Start the economy.  They are being assessed by Dorset Growth Hub.

 

NEWS & UPDATES IN THE ACCOUNTING WORLD

City Center

JOB SUPPORT SCHEME WILL REPLACE CORONA VIRUS JOB RETENTION SCHEME

25th September

Furlough runs to the end of October and is then to be replaced by the highly complex Job Support Scheme

September Rules

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

Part time is available though

October Rules

The contribution reduces to 60%.  Part time options continue

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

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

This is the link to the detail on the Job Support Scheme

https://www.gov.uk/government/publications/job-support-scheme

Credit Card

CBILS AND BOUNCE BACK LOANS

25th September

Applications are now being held open until the end of November 2020 and in some cases repayment can be over 10 years.

VAT.jfif

VAT REDUCTION

September 25th

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

Supporting jobs.jfif

JOB SUPPORT SCHEME

September 25th

The new Job Support Scheme aims to keep only jobs with a long term viability. The calculations are set to be very complex and need to be done ahead of time to make the most economically effective decision. In addition there is a grant for employers who retain employees into 2021.

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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