Measures that could help you during the pandemic

SUPPORT for employees and the self-employed to help ease the financial implications of the Coronavirus is set to continue over the coming months with a wide range of measures made available by the government. Find out below the business support that you may be entitled to receive through the winter.

Job Support Scheme (JSS)

The latest Covid-19 support measures started to take effect from November 1. The Job Support Scheme (JSS) will open on that date and run for six months until April 30, 2021. The recently reviewed scheme will now provide support to businesses that are open, where employees are working shorter hours due to reduced demand. Employees will need to work at least 20% of their usual hours and will be paid by their employer for hours which are actually worked. The government will then contribute 61.67% of the usual hours not worked, up to a maximum of £1,541.75 per month. In addition, the employer will pay 5% of the usual par for the hours not worked, up to a maximum of £125.00 per month. This will mean that employees still receive at least two-thirds of their usual wages for hours not worked. For businesses which are legally required to close (due to Covid-19 restrictions), the government will fund two-thirds of employee’s usual wages for time not worked, up to a maximum of £2,083.33 per month. In both instances detailed above employers NIC and pension contributions will continue to be paid in full by the employer.

Job Retention Bonus (JRB)

Employers will be able to claim a one-off payment of £1,000.00 for every eligible employee who was furloughed during the initial Coronavirus Job Retention Scheme as long as those employees are kept in continuous employment until at least January 31, 2021. Once received, employers do not have to pay this money onto their employees. Employers are able to claim this bonus between February 15 and March 31, 2021. To do this you must have submitted PAYE information via RTI for the period up to February 5, 2021 on time.

Coronavirus Job Retention Scheme (CJRS)

Please note, this scheme formally closes on October 31, 2020. Employers need to make any final claims due under this scheme by November 30. Further claims will not be allowed to be made under this scheme after that date. Employers must keep records supporting the CJRS grants which have been claimed in case HMRC needs to check the validity of claims made.

Covid-19 Loans

The Bounce Back Loan scheme and the Coronavirus Business Loan Interruption Loan scheme will now both remain open for applications for longer than originally planned. Businesses can now apply for either of these up to November 30, 2020. The Bounce Back Loan scheme can be used to provide finance of between £2,000.00 and £50,000.00. Repayment of these loans has now also been extended, effectively reducing monthly repayments by nearly half. Interest only periods of up to six months will also be offered. There will also be the opportunity to pause repayments entirely for up to six months.

Covid-19 Self-Employment Income Support Scheme

Further assistance has been provided for self-employed workers coping with reduced turnover due to the ongoing Covid-19 pandemic. This assistance comprises two taxable grants and lasts from November 2020 to April 2021. It is available to the self-employed and members of partnerships. To qualify for the additional grants, you must be able to declare that you are currently actively trading and intend to continue to do so and that also you are being impacted by reduced demand due to the ongoing Covid-19 pandemic during the qualifying period (November 2020 to April 2021). Grants will be paid in two lump sums, each covering a three-month period.

The first covers the period November 2020 to January 2021 and the second covers the period February to April 2021. Each grant is based on 20% of average monthly trading profits and is to be capped at £1,875.00.

2019/20 Self-Assessment Tax Returns

Paper tax returns need to be received by HMRC on or by October 31, 2020. All tax returns filed online must be filed by midnight January, 31, 2021 and all tax liabilities owing on those returns must also be paid and received by HMRC at the same time.

If you require help, assistance or advice with completing your 2019/20 tax return, please call or e- mail us through this website, at any time. Similarly, if you have any other queries or enquiries regarding your accounts, please don’t hesitate to get in touch. We’re here to help...