Wallace White Accountants

26/12/2021

Dear Client,

You will be aware that new Covid-19 restrictions are coming into place due to the fast spread of the Omicron variant. So far, the UK Government has resisted calls to reintroduce the Coronavirus Job Retention Scheme (furlough).

However, the following support schemes have been announced -

Statutory Sick Pay Rebate Scheme

The Statutory Sick Pay Rebate Scheme means businesses with fewer than 250 employees will be reimbursed SSP for Covid-related absences, for up to two weeks per employee, effective from 21st December.

Claims can be made retrospectively from mid-January and if we process your payroll, we will be able to make claims on your behalf.

The rate of SSP in this tax year (21/22) is £96.35 per employee per week.

Support for Hospitality and Culture

The Scottish Government announced that grants will be available to businesses that operate in the hospitality sector, however, details of how to apply have not yet been published. One Government statement from a few days ago said that eligible businesses will be contacted directly by Local Authorities and they would not need to apply directly.

However, this is a fast-moving environment with debate over how much money will be made available. It is understood that the grants are primarily aimed at pubs and restaurants.

As soon as the Scottish Government confirm how you can access this funding we will be back in touch.

For clients in England, eligible businesses in the hospitality and leisure sectors will be able to apply for one-off grants of up to £6,000 per premises. Again, local authorities will deliver these grants.

More details - £1 billion in support for businesses most impacted by Omicron across the UK - GOV.UK (www.gov.uk)

Creative freelancers Fund

In Scotland, a £21 million support package will help cultural and events organisations and freelancers who have experienced cancellations due to Covid-19 restrictions.
Creative freelancers can apply for between £500 and £2,000 from the cancellation fund which opens at 2pm on Thursday, 6 January 2022.

More details - COVID-19 Cancellation Fund for Creative Freelancers | Creative Scotland

Could Furlough come back?

Possibly, however, the latest Omicron data suggests whilst it is more transmissible than earlier strains, it is less likely to result in hospitalisation. In addition, the booster rollout programme across the UK has gathered pace.

At the time of writing, it has just been announced that Nightclubs in Scotland will close for three weeks from 27 December. If the restrictions across various sectors are extended beyond the next three weeks, then it is difficult to see the Government not taking further action.

Finally

Whilst the Covid-19 news is not what we would wish or indeed have expected a month ago, Wallace White will be there to support you and your business.

Wishing you a very Merry Christmas and a Happy New Year from everyone at Wallace White.

GOV.UK - The place to find government services and information - simpler, clearer, faster.

13/09/2021

Dear Client,

As Summer 2021 draws to a close, it is remarkable to think that we have been living with the Coronavirus for over a year and half. Early last year few had heard of a strange disease originating in China and if you had mentioned ‘Furlough’ or ‘Bounce Back Loan’, you would likely have been met with a blank stare.

There have been a number of recent announcements regarding the various Governmental Covid support schemes and we are now beginning to see that there will be a price to pay for the billions that were pumped into the economy during the pandemic…

Coronavirus Job Retention Scheme (Furlough)

The furlough scheme is due to end by September 30th and unlike last year, it appears highly unlikely that there will be a last minute Government U-turn and it will be extended.

Could it be reintroduced over the Winter? Possibly, especially if a new variant emerges which is resistant to the current vaccines.

However, you should plan on the basis that the scheme will close at the end of this month and the last date for claims is the 14th of October 2021.

The Government quietly dropped the Furlough Bonus Scheme at the beginning of the year (£1,000 per furloughed employee kept on payroll) and there has been no indication that it will be resurrected.

Bounce Back Loans

New laws are progressing through the UK Parliament which, if passed, will give the Insolvency Service new powers to investigate and disqualify Directors of dissolved companies which previously fraudulently claimed Bounce Back Loans. This power will be retrospective, enabling conduct that took place before the law comes into force to be investigated.

These powers are in relation to Directors who were ineligible to apply for Bounce Back Loans on behalf of their Limited Company or who may have borrowed more than entitled to.

Corporation Tax/National Insurance/Dividends

The UK Government has announced that from April 2022 there will be a 1.25% increase in both Class 1 and Class 4 National Insurance Contributions (NICs), to help fund Social Care costs and is projected to raise £36billion over 3 years. The 1.25% increase will also apply to all dividend rates, with the basic rate increasing from 7.5% to 8.75%

In addition, from April 2023, the rate of Corporation tax will increase from 19% to 25%.

Tax rises are here to stay.

HMRC Powers

From next year HMRC will have new powers to compel organisations such as Amazon, Ebay and Airbnb to provide financial information, without asking the users consent to do so. HMRC believe that tax revenue is being lost due to earnings from 3rd party websites not being declared.

This is part of HMRCs plan to ‘Make Income Tax Digital’, with quarterly income tax returns becoming a requirement from 2023. Expect to hear a lot more from us as the implementation date approaches.

Capital Gains Tax

A reminder that there if you’re a UK resident and sell a residential property in the UK, you’ll have 30 days to tell HMRC and pay any Capital Gains Tax owed.

The new 30 day rule applies when an individual or a trust is selling a residential property, but not when a Limited Company is making a disposal.

In most circumstances, this will not apply if you are selling the home you live in, as Principal Private Property Relief will likely apply. The new 30 day deadline has been brought in to target the sale of second homes or rental properties so that HMRC can gather any tax due quicker than before.

If you are planning on disposing of a residential property, or have done so since April this year, then please let us know as quickly as possible. We will be able to advise you on what your obligations are, help you calculate any 'gain' and complete the HMRC UK Land Tax Return.

VAT: Reverse Charge for Building and Construction Services

The reverse charge has now been in force for 6 months. It has meant that many clients operating in the Construction Industry have found themselves in a VAT refund position.

However, there remains widespread confusion in the industry regarding how and when it works and please let us know if you wish to discuss the charge or any of the issues mentioned in this newsletter.

03/03/2021

Dear Client,

Today is UK Budget day and the Chancellor has made a number of important announcements. These are the headline items however in the case of Grants, we will have to wait for the Scottish Government to determine how they will act.


Coronavirus Job Retention Scheme (Furlough)

The Coronavirus Job Retention Scheme (Furlough), originally due to end on the 30th of April 2021, will be extended until the 30th of September 2021.

The scheme will run on the same terms as currently in place until the 30th of June but will be tapered from 1st July as set out below.

1st May 2021 until 30th June 2021 - Employees will receive 80% of their current salary for hours not worked. Employers have to make National Insurance and Pension Contributions.

1st July 2021 until 31st July 2021 - Employees will receive 80% of their current salary for hours not worked, but employers will be required to make a 10% contribution. Employers have to make National Insurance and Pension Contributions.

1st August 2021 until 30th September 2021 - Employees will receive 80% of their current salary for hours not worked but employers will be required to make a 20% contribution. Employers have to make National Insurance and Pension Contributions.


Self Employed Income Support Scheme (SEISS)

A fourth SEISS grant will be launched, worth 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500 in total. The grant will cover the period February to April and can be claimed from late April. Self-employed individuals must have filed a 2019- 20 Self Assessment tax return to be eligible for the fourth grant.

There will be a fifth and final SEISS grant covering May to September. The value of the grant will be determined by a turnover test, to ensure that support is targeted at those who need it the most as the economy reopens. People whose turnover has fallen by 30% or more will continue to receive the full grant worth 80% of three months’ average trading profits, capped at £7,500. People whose turnover has fallen by less than 30% will receive a 30% grant, capped at £2,850. The final grant can be claimed from late July.


VAT - tourism and hospitality

The temporarily reduced rate of 5% VAT for goods and services supplied by the tourism and hospitality sector will be extended until 30 September 2021. To help businesses manage the transition back to the standard 20% rate, a 12.5% rate will apply for the subsequent six months until 31 March 2022.


Loan Schemes - New Recovery Loan Scheme

With both the Bounce Back Loan and CBIL Schemes due to end on the 31st March 2021, the Government has announced a new ‘Recovery Loan Scheme’.

The government will guarantee 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses.

Details of the Scheme are:

• Term loans and overdrafts between £25,001 and £10 million per business.
• Invoice finance and asset finance will be available up to £10 million per business.
• Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
• No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.

More details will be announced on the 6th of April 2021.

Grants

There were a number of announcements relating to Government grants but these were specific to England. We now await the Scottish Government’s response and will be in touch when we have more information.


Corporation Tax

From April 2023, the rate of corporation tax will increase to 25% on profits of over £250,000. The rate for small businesses with profits under £50,000 will remain at 19%.


Analysis
• There have been rumours for some time that the furlough scheme would be extended and this has now been confirmed. However, it gives some indication as to the scale and potential length of the ongoing Covid restrictions that the Government is projecting as far as the end of September.

• Employers should begin to consider how the requirement for furlough contributions from 1st July will impact them.

• The fifth and final SEISS Grant will have a higher eligibility threshold and will not be available until July.

• The hospitality industry has been one of the worst affected by the Covid pandemic and the extension and then tapering off the VAT rate is to be welcomed.

• This is a good reminder that the Bounce Back Loan Scheme ends this month and you do not have much time should you wish to apply. This also applies to CBILs.

• The new ‘Recovery Loan’ scheme is likely to be attractive to many but given Government fears over fraud with the Bounce Back Loan Scheme, the criteria and application process is likely to be much more complicated. Unlike Bounce Back Loans, the Government is only guaranteeing 80%.

• We will have to wait and see how the Grant announcements play out and look forward to the Scottish Government’s response.

• The projected rise in Corporation Tax for large businesses from 2023, is one of the first indications as to how the Government plan to recoup the billions they have spent supporting the economy during the pandemic. This could be the first in a number of such measures.


As ever, if you would like to discuss any of these announcements then please do not hesitate to get in touch.

22/12/2020

As you will now be aware, from the 26th of December the vast majority of local authorities in Scotland will move into Tier 4, which is the most severe of the Coronavirus lockdown restrictions.

These restrictions will be in place for an initial 3 weeks, however this may be extended.

Under Tier 4 only essential shops will be allowed to stay open.

This is a link to the restrictions in full - https://www.gov.scot/publications/coronavirus-covid-19-protection-levels/pages/protection-level-4/

Business Support

If you have been required to close by law under Tier 4 restrictions, then you may be eligible for financial support delivered via your local authority - this is known as the Coronavirus Strategic Framework Business Fund.

There are restrictions and exclusions to which businesses can apply and the fund appears to be aimed at Hospitality.

You can check if you are eligible by following this link

- https://www.gov.scot/publications/coronavirus-covid-19-strategic-framework-business-fund/pages/eligibility/
Coronavirus (COVID-19): Strategic Framework Business Fund - gov.scot
mobile close contact services* - specifically beauty and nail services (including make-up services), hair removal services, tattoo, piercing and body modification services, fashion design, dress-fitting and tailoring services, indoor portrait photography and art services, massage therapies, complementary and alternative medicine services requiring physical contact or close physical proximity ...
www.gov.scot

If you are eligible, you should then visit your local authority website to apply. This is an example from Edinburgh Council of what an eligible business could receive.

'If your business is required to close by law you could be entitled to a temporary closure grant, every four weeks, of one of the following:
• £2,000 if your business premises has a rateable value of up to and including £51,000
• £3,000 if your business premises has a rateable value of £51,001 or above.
Some of you have already experienced Tier 4 restrictions and have received these grants in the past. The guidance suggests that you will not have to re-apply but it is worth confirming with your local authority.

Tourism and Hospitality Support

Separately, the Scottish Government has announced a £104 million package of support for the Tourism and Hospitality industries.

This will include

• £19.2 million to provide one-off grants for hospitality businesses
• £50.8 million for businesses with a rateable value of more than £51,000 that have not received support from the Pivotal Enterprise Resilience Fund or Hotel Support Programme and some additional support to smaller businesses impacted by restrictions
• £11.8 million for international inbound, coach tourism and domestic tour operators
• £7 million for self-catering
• £5 million for visitor attractions
• £2.5 million for outdoor tourism
• £2.3 million for hostels
• £2 million for ski centres
• £1.5 million for travelling show people ineligible for other support
• £1.2 million for Destination Management Organisations
• £1 million for B&Bs and guest houses excluded from the latest Non Domestic Rates scheme
There is no detail yet as to how to apply to this fund and it is unlikely to go live until January.

This is the link to the Scottish Government announcement - https://www.gov.scot/news/gbp-104-million-tourism-and-hospitality-lifeline/

£104 million tourism and hospitality lifeline - gov.scot
Tourism and hospitality businesses across Scotland are to benefit from a £104.3 million package of support in the New Year. The funding is part of the short term response to the Scottish Tourism Recovery Taskforce recommendations and follows lengthy discussions with industry to target support specifically where it is needed the most.
www.gov.scot

We are happy to assist with any of these applications, however in the first instance you should confirm with your local authority that you are eligible. For clients in England, please call to discuss the options available to you.

It is also worth noting that the furlough scheme remains available.

Kind regards

Wallace White

Targeted support package for key sectors.

05/11/2020

The Job Retention Scheme (furlough) has been extended until the end of March 2021.

The terms are the same as those in place for November 2020 and employees will be able to be flexibly furloughed.

• The Government will pay 80% of an employees salary for hours not worked, up to £2,500 per month.
• Employers will have to make National Insurance and Pension Contributions for hours not worked.
• This scheme will be available regardless of whether you are in lockdown, either local or national.

However, the Job Retention Bonus, which would have paid employers £1,000 per furloughed employee kept on the payroll at the end of January 2021, will not now come into force.

In addition, the third round of the Self-Employed Grant Scheme, covering November to January 2021, will be calculated at 80% of average trading profits, up to a maximum of £7,500.

Things to Consider

• The furlough scheme will be reviewed in January 2021 and the Chancellor has said that the Government may at that time ask employers to start contributing to the wages of furloughed staff again, as was the case in August and September this year.
• If you have made business decisions on the basis that the furlough scheme was due to end in October 2020, or indeed November 2020, it may be possible to bring employees who have been made redundant back onto payroll. They could then be furloughed. This is the detail of what would be required

‘Employees that were employed and on the payroll on 23 September 2020 (the day before the Job Support Scheme announcement) who were made redundant or stopped working afterwards can be re-employed and claimed for’.

• If you are considering re-employing and we process your payroll, please check with us in the first instance so we can confirm eligibility.
• HMRC have said they will publish details of all employers who make use of the scheme from December onwards. This is likely aimed at large employers who may be considering using the scheme but also rewarding high profile owners or employers. However, if you apply from December onwards you will be publicly listed.

More detail on these changes is due to published in mid-November.

We will shortly be in touch with our payroll clients to discuss these changes. If we do not process your payroll but you have any questions, please do not hesitate to get in touch.

If you require assistance with the Self-Employed Grant Scheme please contact Andrew White direct on [email protected]

Many thanks

Andrew

02/11/2020

Dear Client,

Chancellor, Rishi Sunak, made an announcement following the UK Government decision to introduce a 1 month national lockdown in England.

For the month of November, the furlough scheme will be available and will operate in the same way as it did for the month of August this year.

• For hours not worked by the employee, the Government will pay 80% of wages up to a cap of £2,500. The grant must be paid to the employee in full.
• Employers will pay employer NICs and pension contributions and should continue to pay the employee for hours worked in the normal way.
• Employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.
• Flexible furloughing will be allowed in addition to full-time furloughing.

The furlough scheme will be available to employers based in Scotland, even though the national lockdown announced last night does not apply to Scotland.

Things to Consider

• The furlough scheme in November will be more generous than it was in September and October. It is also less complicated than what was due to come in - JSS Open and JSS Closed. Will the furlough scheme be extended again into December and next year?
• The Government extended the scheme at the last minute after previously saying they would not. They would not have done so had the Scientific advice regarding the Covid-19 transmission rates not been alarming.
• It is not clear how this will affect the Job Retention Bonus, scheduled for February next year.
• The Chancellor also announced that Mortgage payment holidays will no longer end yesterday. Borrowers who have been impacted by coronavirus and have not yet had a mortgage payment holiday will be entitled to a six month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.

𝐏𝐥𝐞𝐚𝐬𝐞 𝐝𝐨 𝐧𝐨𝐭 𝐡𝐞𝐬𝐢𝐭𝐚𝐭𝐞 𝐭𝐨 𝐠𝐞𝐭 𝐢𝐧 𝐭𝐨𝐮𝐜𝐡 𝐬𝐡𝐨𝐮𝐥𝐝 𝐲𝐨𝐮 𝐰𝐢𝐬𝐡 𝐭𝐨 𝐝𝐢𝐬𝐜𝐮𝐬𝐬 𝐚𝐧𝐲 𝐨𝐟 𝐭𝐡𝐞𝐬𝐞 𝐦𝐚𝐭𝐭𝐞𝐫𝐬.

Tel: 0141 221 4345
Email: [email protected]

28/10/2020

Dear Client,

We are living through a time of tremendous change and it is sometimes difficult to remember what life was like before the Coronavirus.

However, in the background Government policy is still being changed and new HMRC reporting requirements have either come into place or are on the horizon.

As a firm we are also making some changes as to how we best support you and we hope you find this summary of the present situation useful.

𝐕𝐀𝐓: 𝐑𝐞𝐯𝐞𝐫𝐬𝐞 𝐂𝐡𝐚𝐫𝐠𝐞 𝐟𝐨𝐫 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐚𝐧𝐝 𝐂𝐨𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐨𝐧 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬

Originally due to come into force this month, the reverse charge is now scheduled for the 1st March 2021. This could mean that if you are engaged in the Construction Industry you will not be required to add VAT on to your sales but will continue to claim back VAT on purchases and submit VAT returns.

In some ways this could make life simpler but will likely present cash-flow challenges for firms who will have to adjust to not holding onto an extra 20% of income for a number of months before submitting a VAT Return.

More information

https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services

𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐆𝐚𝐢𝐧𝐬 𝐓𝐚𝐱

Earlier this year we wrote to you regarding a new reporting requirement and this is a reminder.
Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value. In most cases this will relate to residential property; HMRC previously allowed anywhere between 10 months and 22 months after the date of sale for the 'gain' to be reported and paid.

However, this tax year (6th April 20 onwards), if you’re a UK resident and sell a residential property in the UK, you’ll have 30 days to tell HMRC and pay any Capital Gains Tax owed.

The new 30 day rule applies when an individual or a trust is selling a residential property, but not when a Limited Company is making a disposal.

In most circumstances this will not apply if you are selling the home you live in, as Principal Private Property Relief will likely apply. The new 30 day deadline has been brought in to target the sale of second homes or rental properties, so that HMRC can gather any tax due quicker than before.

If you are planning on disposing of a residential property, or have done so since April this year, then please let us know as quickly as possible. We will be able to advise you on what your obligations are, help you calculate any 'gain' and complete the HMRC UK Land Tax Return.

More information

https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

𝐌𝐚𝐤𝐢𝐧𝐠 𝐓𝐚𝐱 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝟐

VAT Registered clients will well remember the first incarnation of Making Tax Digital last year, where HMRC began requiring businesses to submit returns via 3rd party software.

Now HMRC are turning their attention to personal tax and the self-assessment returns that are due each January. A pilot scheme has been running in the background and the Government has said they would like this completely rolled out by 2023.

𝐖𝐡𝐚𝐭 𝐰𝐢𝐥𝐥 𝐭𝐡𝐢𝐬 𝐢𝐧𝐯𝐨𝐥𝐯𝐞?

It is likely that personal tax will have to be reported quarterly via software. This will mean a huge change from reporting once a year in January and will no doubt mean an extra burden on the tax-payer.

When we have more information about what will be required, we will be in touch.

𝐁𝐫𝐞𝐱𝐢𝐭

Regardless of how we leave the EU at the end of the year, if you want to trade with the EU from 1st January 2020 you will need an EORI number.

𝐇𝐌𝐑𝐂 𝐬𝐭𝐚𝐭𝐞

‘You’ll need an EU EORI number if your business will be making customs declarations or getting a customs decision in the EU’.

We can help you apply for an EORI and at the moment applications are taking weeks rather than days.

𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐬 - 𝐄𝐥𝐞𝐜𝐭𝐫𝐨𝐧𝐢𝐜 𝐒𝐢𝐠𝐧𝐚𝐭𝐮𝐫𝐞𝐬

We will shortly be rolling out a new system for signing Company Accounts, using a software package called ‘Docusign’. Once we have agreed and finalised the Company Accounts with you, you will receive an alert from Docusign asking you to electronically ‘sign’ the Accounts.

We have made this change so that our systems are more efficient and to cut back on the traditional method of posting, which we have found less reliable since the Coronavirus. Should you require a ‘wet-signature’ for any reason, we will still be able to supply you with hard-copy Company Accounts.

𝐏𝐥𝐞𝐚𝐬𝐞 𝐝𝐨 𝐧𝐨𝐭 𝐡𝐞𝐬𝐢𝐭𝐚𝐭𝐞 𝐭𝐨 𝐠𝐞𝐭 𝐢𝐧 𝐭𝐨𝐮𝐜𝐡 𝐬𝐡𝐨𝐮𝐥𝐝 𝐲𝐨𝐮 𝐰𝐢𝐬𝐡 𝐭𝐨 𝐝𝐢𝐬𝐜𝐮𝐬𝐬 𝐚𝐧𝐲 𝐨𝐟 𝐭𝐡𝐞𝐬𝐞 𝐦𝐚𝐭𝐭𝐞𝐫𝐬.

Tel: 0141 221 4345
Email: [email protected]

What Capital Gains Tax (CGT) is, how to work it out, current CGT rates and how to pay

12/10/2020

Dear Client,

The UK Government has announced new support for businesses required to close as a result of Coronavirus restrictions.

• The government will support eligible businesses by paying two thirds of each employees’ salary (or 67%), up to a maximum of £2,100 a month.

• Under the scheme, employers will not be required to contribute towards wages and only asked to cover NICS and pension contributions.

• Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days.

• The scheme will begin on 1 November and will be available for six months, with a review point in January.

• The scheme is UK wide and the UK Government will work with the devolved administrations to ensure the scheme operates effectively across all four nations.

• This scheme will cover businesses that, as a result of restrictions set by one or more of the four governments in the UK, are legally required to close their premises.

• This includes businesses that are required to provide only delivery and collection services from their premises, or food and drink outdoors from their premises.


Things to consider


• To be eligible, your business must have been forced to close by Government. An example would be the measures the Scottish Government is enforcing from tonight in the central belt of Scotland for Pubs and Restaurants. However, this new package is not available until 1st November and businesses forced to close in October will have to access the old furlough scheme, which is now operating at a rate of 60%.

• The support announced today by the UK Government appears to be distinct and separate from the £40m package we are expecting from the Scottish Government to help the Hospitality industry. Businesses in England are being offered Grants.

• This package is much more generous than the new furlough scheme that becomes available on the 1st of November but applicants will have little control or warning of when they can use it. Businesses who apply cannot open at all and an order to close may come at short notice and be subject to changes. This will make it difficult to plan ahead.

• This new support comes hot on the heels of the announcement just two weeks ago in relation to the new furlough scheme. It has only been made because Coronavirus is once again on the rise and more local lockdowns will likely be brought in. Given the speed at which it has been announced, there may be pitfalls and it will be important to see the fine details


As ever, please get in touch if you would like to discuss.

0141 221 4345

03/08/2020

Today the UK Government has published new information regarding the Job Retention Bonus (furlough scheme).

As previously advised, employers will be able to claim £1,000 for every employee who they previously claimed for under the Job Retention Scheme (furlough), and who remains continuously employed through to 31 January 2021.

• Eligible employees must earn at least £520 a month on average between 1st November 2020 and 31st January 2021. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021.
• Employers will have to be up to date with both PAYE filing requirements and payments to HMRC
• Each bonus claimed is taxable and will have to be declared as income
• Employers can claim the Job Retention Bonus for all employees who meet the criteria, including Company Directors.

Applications can be made from February next year and we will be in touch nearer the time to set out what we will need to make a claim on your behalf.

As ever, if you would like to discuss then please do not hesitate to get in touch.

Kind regards

Wallace White

12/05/2020

Today the UK Government announced the extension of the furlough scheme for employees (also known as the Job Retention Scheme) until the end of October.

In a statement to Parliament, the Chancellor Rishi Sunak said

• the scheme will continue in it's current form until the end of July
• from the start of August, furloughed workers will be able to return to work part-time, with employers being asked to pay a percentage towards the salaries of their furloughed staff.

We do not have the detail of how the scheme will work from August onwards, but it would appear that

• employers will have new costs
• there will likely be scope for employees to work part-time and be furloughed for the remainder of their normal hours/days
• employees will continue to receive 80% of their salary, up to a maximum of £2,500, but the Government will not pay the entire 80%. The Chancellor said 'We will ask employers to start sharing, with the Government, the costs of paying people's salaries'.

The Government has promised more detail on the post-July changes by the end of the month. As soon as they do, we will be in touch.

Separately, the Chancellor failed to mention the support scheme for the self-employed, which goes live this week. It is unclear if there will be a similar extension or whether it will end in June.

As ever, if you would like to discuss anything then please do not hesitate to get in touch.

Kind regards

Wallace White