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COVID-19 Update - 27 March

Friday 27th March 2020

 

Welcome to the second newsletter of the second week of us all working remotely.

Fortunately, all our team reman in good health currently and as we said, are working on VPNs and all of our internal systems, software and files are accessible by the team and we will be working normally and will be available to assist you by telephone and email.

In the meantime, please communicate with us electronically, post is being monitored, but will be slower than emailing us.

 

Our contact details are
 

Khushal      khushal@kingsleymaybrook.com      07894 200077    
Ian  ian@kingsleymaybrook.com  07930 354786
Anjana  anj@kingsleymaybrook.com  07768 920188
Agata  agata@kingsleymaybrook.com  07805 916064
Qunay  qunay@kingsleymaybrook.com  07539 225943

 

You should have all had the second newsletter which outlined all the measures the government has brought in to support businesses, this is an update on the current situation.

 

Coronavirus Job Retention Scheme

 

Also called the “furlough” scheme, and further details have been announced, but as yet no way to apply, but that is imminent.

 

  1. Employees MUST be laid off, not working for the company or you in any way
  2. Must have been hired before 28-2-2020 and can be full time, part time or zero hours contracts
  3. Not self-isolating (they get SSP) but can be furloughed when they are due to come back from SSP.
  4. Based on salary as at 28-2-2020 or if variable, average of 19-20 or same month last year
  5. Employers NI and Pension contributions will be claimable as well
  6. Maximum 80% of salary or £2,500 per month per employee
  7. 80% salary is allowed to take workers under the NLW or NMW as they are not working.
  8. All other employment rights continue during the furlough period.
  9. Claim monthly, or every 3 weeks (minimum furlough period)
  10. Any monies received will be taxable income to the business, as all the money has to go out as costs.

 

You will need to issue employees with a letter putting them on furlough leave subject to their contracts.

 

Further details here

 

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

 

As soon as the online portal is open, we shall give you further details.

 

For the self-employed

 

The government has announced a funding scheme for the self-employed but there are some rules.

 

  1. You must have 50% or more of your total earning from self-employment, and NOT be earning more than £50,000 a year in 18-19 (or the average of three years ending 18-19)
  2. You must have submitted your 18-19 tax return, and you have a window of one month until 23-4-2020 to do so if you are late.
  3. It does NOT cover persons paid through salary and dividends in small companies.
  4. It will be calculated by averaging your last 3 years net profit, and you will get 80% of the average monthly income, not to exceed £2,500 a month, for a maximum of 3 months.
  5. The grant must be paid into your business or trading bank account in a single lump sum, and will be taxable income
  6. It will not be paid until early June 2020
  7. You cannot apply, unless HMRC write to you and invite you to apply for the grant, and this is at least 6 weeks away probably sometime in May 2020.

 

Overall it’s a welcome addition to the overall government packages, there is however a “sting in the tail” as the Chancellor also stated that they would be looking at “equalising tax contributions” from the self-employed, when the crisis is over. We hope that if they are going to equalise tax then they equalise benefits at the same time, as these have long been a very sore point for self-employed people.

 

 

Coronavirus Business Interruption Loan Scheme (CBILS)

We have had reported, and in fact the BBC is reporting, appalling behaviour from the banks with regard to these loans. Not only are they almost impossible to contact with customers reporting many hours on the phone, but the banks are asking for personal guarantees alongside Government Guarantees.

 

This is completely against the British Business Bank guidelines, which state quite openly that additional security will not normally be sought.

 

It would appear there are some short memories out there from institutions that we gave £850bn to in 2008 from the public purse.

 

 

VAT

 

No application is needed for this government initiative, simply do not pay any VAT owed from now until 30th June. It will need to be paid by 31st March 2021.

 

 

Self-Assessment Tax

 

Your payment on account for July 31st 2020 is cancelled, instead it will be payable on the 31st January 2021.

 

 

Paying Income and Corporation Taxes and NI

 

The government has said that they will look kindly on time to pay schemes, they have published a contact number of 0800 0159 559. We have not yet had any experience of this service and we will feedback as it becomes clearer. We still have no experiences of this new helpline, we will keep you updated as to how HMRC are treating things.

 

 

One of our clients has produced several really informative videos about topical subjects, and we are happy to share these with you.

 

Working from home part one

 

Covid 19 information film – Dur: 1’07

 

Handwashing properly

 

We will continue to monitor developments and will be emailing updates as they happen. The Kingsley Maybrook team is here and supporting you through what will undoubtably be a difficult time for many businesses.

 

Stay healthy, practice social distancing and follow government advice please.

 

Kind regards

Kingsley Maybrook