Total Accounting

Total Accounting We undertake a range of services including producing Accounts, Bookkeeping, Payroll Services, Tax Re

30/03/2020

UPDATE

**VAT deferment**

You are entitled to defer payment of any VAT that is due upto 30-06-20, but HMRC have now announced that to stop them asking your Bank for the Funds, you MUST STOP the Direct Debit that you will have set up for automatic payment

**So any direct debit payer must contact their bank immediately to cancel the payment.**

HMRC has yet to confirm their position. But the likely payments dates will be, depending on return due dates: 31 March 2021; 30 April 2021; or 31 May 2020. I am unsure as to whether the VAT for the Feb quarter has to be met! I suggest you cancel any DD mandate and we will deal with afterwards!!

There will be no interest or default surcharges due on deferred VAT. VAT credits and refund will be paid as normal during the period.

Peter

28/03/2020

UPDATE
Support for Businesses

**Self-employment Income Support Scheme**

In yesterdays post I commented that there was a condition that there was an overriding limit of 50% of taxable Income from your self-employment. This has now been more correctly understood as being that: -

1) your self-employed profits must be 50% of your overall (including any other source i.e Property Income) Taxable Income
2) it is not relevant to just your self-employed Income

Sorry for the misunderstanding. This will mean far more can get the above Support and is not as restrictive as was first interpreted.

Peter

27/03/2020

UPDATE
Support for Businesses

**Self-employment Income Support Scheme**

You can apply if you’re a self-employed individual or a member of a partnership and you:

a) have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
b) traded in the tax year 2019-20
c) are trading when you apply, or would be except for COVID-19
intend to continue to trade in the tax year 2020-21
d) have lost trading/partnership trading profits due to COVID-19

The big issues are that: -

1) You wont be able to claim if your profits exceed £50K
2) Your profits must be more than one-half of the total taxable income

These calculation are for the 18/19 tax year or an average of the three years 16/17 to 18/19

**The latter one is a big problem where you run a Business that has costs involved in determining your profits i.e. you buy and sell cars, for example. The fact that your turnover is substantial but your profits are low once the cost of the Cars is taken into account, mean you WONT be entitled to claim!**

I am trying to ascertain who will and who wont be able to claim and I will advise you as soon as possible.

HMRC advise that the payments for the first three months will be made in June.

27/03/2020

UPDATE

Support for Employers

**Reimbursement**

Employers will be able to use a portal to claim for: -

1) 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month,
2) the associated Employer National Insurance contributions
3) minimum automatic enrolment employer pension contributions on that wage.

Furloughed employees must have been on your PAYE payroll on 28 February 2020, and can be on any type of contract, including:

a) full-time employees
b) part-time employees
c) employees on agency contracts
d) employees on flexible or zero-hour contracts

Employees hired after 28 February 2020 cannot be furloughed or claimed for in accordance with this scheme.

26/03/2020

UPDATE
Support for Business

**Furlough for DIrectors - Owner/managed companies**

Many owner managed company director/shareholders pay small salaries and the balance of income as dividends. The scheme does not extend to dividends. Only the salary is relevant to the scheme.

This is in the additional information that is, according to a Accountancy governing Body, going to be included in the guidelines that will be published tonight.

Peter

26/03/2020

UPDATE
Support for Business

**Updated guidance on Grants**

Small Business Grant Fund (SBGF) – £10,000 available to those eligible for the small business rate relief scheme or rural rate relief scheme– essentially firms occupying properties with a rateable value of less than £15,000.

Retail, Hospitality and Leisure Grant (RHLG) – enhanced grant created for businesses that qualified for the Expanded Retail Discount announced all the way back in late January. Retail, hospitality and leisure businesses with a rateable value of up to £15,000 will get a grant of £10,000, while those with property valuations between £15,000 and £51,000 will be eligible for £25,000.

Some of the key conditions affecting both schemes include:

1) Effective from 11 March 2020. Businesses that were dissolved before that date will not be eligible
2) Only available for companies in England
3) Premises occupied for personal uses will be excluded, along with car parks and parking spaces
4) Local authorities can choose to withhold or award grants where they feel their valuations for a property were inaccurate on 11 March 2020. “This is entirely at the discretion of the local authority and only intended to prevent manifest errors,” the BEIS advised.

I understand that City of Lincoln Council have now issued a questionnaire asking for info and I will be working through my clients within the Council area today to make a claim.

Peter

25/03/2020

UPDATE
Support for Self-employed

**Measures for the self-employed coming tomorrow**

The Chancellor will set out measures to support self-employed workers hit by the coronavirus outbreak on Thursday, Downing Street has confirmed.

While measures for employees have already been published, the Chancellor previously said there were "principled and practical reasons" why it was difficult for the Government to hammer out aid for the self-employed.

Announcing it is clear, the important part will be how and when this is delivered and when you can make a claim! Ill keep you informed

Peter

25/03/2020

UPDATE
Support for Businesses

**Workplace Pensions**
We have today been advised by NEST, who are our biggest provider of Workplace Pensions of the following: -

"Presently, employers’ duties remain unchanged, so please where possible continue to follow your normal processes and pay contributions when they are due.

The government has recently announced a range of measures aimed at helping businesses continue to keep employees on their workforce and payroll in these difficult times.

Although we don’t yet know how this will affect auto enrolment contributions, we’re working closely with the government to see how we can support our many employers. We understand they will provide clear direction on workplace pensions shortly. We’ll communicate any decisions made to our customers as soon as possible."

Clearly they are unaware of how the Furlough scheme will work as well!!

Peter

25/03/2020

UPDATE
Support for Businesses

**Furloughed Pay**
Whilst there has been no further information issued at this stage and therefore we are still working very much in the dark, we will be following the following criteria in calculating your staffs pay.

1) We will separate their pay as normal and furloughed pay on a time basis, so you will need to tell us when the staff have been furloughed
2) We will then calculate the 80% pay (If you are reducing staffs pay to this level) for the furloughed element
3) We will the calculate the tax and NI on the revised total amount

Your employees will therefore pay Tax/NI/NEST on the reduced amount paid to them.

You should note that if any Employees have been over 2 years with you, then you need to seek their agreement to the reduced amount as it is a change of their contract and potentially they could say no and therefore redundancy provisions may "kick in".

Hopefully we will soon get more guidance on this but as we are now paying some weekly paid staff, we have had to make a decision as to how to proceed.

If you have any queries regarding this matter please do not hesitate to contact me.

Peter

25/03/2020

UPDATE
Support for Vehicle Owners

**Vehicle MOT**
From 30 March 2020, MOT due dates for cars, motorcycles and light vans will be extended by 6 months. This is being done to help prevent the spread of coronavirus.

There are different temporary rules for MOT tests for lorries, buses and trailers.
What you need to do

You do not need to do anything to extend your vehicle’s MOT expiry date if it’s on or after 30 March 2020. However, you must keep your vehicle safe to drive.

Peter

24/03/2020

Office Situation

Obviously we have now closed our Office and all staff are working from home. Whilst we have tried to change the phone message, this has been "problematic". Can I therefore ask that you ring me on 07718 108577 if you have any queries

Peter

24/03/2020

UPDATE
Support for Business

**Coronavirus Business Interruption Loan Scheme**

The key points are:
• Loans are available from £25,001 to £5m
• Available from 1-6 years
• No interest is Payable for 12 Months
• Capital Repayment Holidays are available for 12 months as well – so some clients will have no payments to make in the first year
• Loans are limited to 25% of the business’ turnover in 2019, or double the annual wage bill
• The Loans are unsecured borrowing, underwritten by the Government

Whilst it is clear that you will have to make the application, all the High Street Banks are making Loans available. You should initially go to the Banks website and make an application online.

Peter

Address

The Old Booking Office, Station Approach
Saxilby
LN12HB

Opening Hours

Monday 9am - 5pm
Tuesday 9am - 5pm
Wednesday 9am - 5pm
Thursday 9am - 5pm
Friday 9am - 4pm

Telephone

+441522703344

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