Keeping You In The Loop

With Our Latest News And Blog Posts

We'll look to keep everyone up to date with all general goings on here at Spirare as well as offer our take on
industry related news

Job Retention Scheme update

Directors are now eligible under the scheme. So, you can be furloughed and undertake general matters such as emails and your statutory duties. This enables at least some support for directors which is positive news. However, it was confirmed that dividends do not form part of the scheme. Directors usually have a strategy of low salary and dividends to make up their remuneration package. So, this is not good news for Directors.

Further detail has been released on who can claim. The furloughed employees must have been on your payroll on 28 February 2020 and can be on any of the following type of contract:

  • Full-time employees
  • Part-time employees
  • Employees on agency contracts
  • Employees on flexible or zero hours contracts

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Self Employed Income Support

Who can apply for the grant?

On 26 March 2020 the Chancellor Rishi Sunak unveiled the Governments long awaited emergency package to support 5 million self-employed workers throughout Britain.

The scheme will be available to self-employed individuals or members of business partnerships. To apply you must have:

  • submitted a Self-assessment tax return for 2018/19
  • Traded in the 2019/20 tax year
  • Trading at the time of application
  • Intend to trade in the 2020/21 tax year
  • Have lost profits as a result of COVID-19

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CORONAVIRUS JOB RETENTION SCHEME

CORONAVIRUS JOB RETENTION SCHEME

What we know so far.

The Coronavirus Job Retention Scheme will be a government grant to reimburse employers for 80% of the furloughed workers wage costs to a cap of £2,500 per month.

Our understanding is that employers can choose to top up the employees pay for either the unfunded 20% or the amount above £2500 for higher earners.

Employers can backdate to 1st March.

The scheme will be open for 3 months but it will be extended if the Government deems this to be necessary.

The scheme is designed to support business and assist them in trying to retain staff through this period.

All UK business are eligible , large, small, charitable and not for profit.

Employers have to designate employees who are going to be furloughed.

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VAT

The deferral for VAT payments announced by the Chancellor apply from 20 March 2020 until 30 June 2020.

All VAT registered traders are eligible for this deferral.

All VAT registered traders will be eligible to defer of one quarter’s VAT: the payment due on 7 April, 7 May or 7 June 2020 or the monthly payments due on each of these dates. This is an automatic offer and no application is required. Businesses will not need to make a VAT payment during this period.

For clarification, this means, for example, that if you had a VAT period that ended on 29 February 2020 and payment is due by 7 April 2020, this can be deferred. All future VAT periods are required to be paid in the usual way.

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Income tax

The deferral for self-assessment income tax applies to the second payment on account for 2019/20 due on 31 July 2020 which is deferred until 31 January 2021.

Eligibility for the deferral is limited to the self-employed and does not apply to those that are in self assessment but are not self-employed. The Tax Faculty has sought clarification from HMRC, but the current understanding is that the deferral applies to any taxpayer who was self-employed in the 2018/19 tax year on which the payment on account is based. 

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COVID-19


Starting your own business is one of the toughest decisions an individual will make. There are many decisions to make at the beginning and on a daily basis, but the Coronavirus pandemic across the globe is not one which would have been at the top of any business plan.


In the words of the Chancellor ‘The economic intervention that I’m announcing today is unprecedented in the history of the British state’ and the ‘planned economic response is one of the most comprehensive in the World’


The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.

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