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CLICK HERE FOR GOVERNMENT GUIDANCE FOR EMPLOYERS AND BUSINESSES ON COVID-19
GRANT CLAIM DEADLINES, FLEXIBLE FURLOUGHING AND GENERAL UPDATE
As businesses prepare to reopen, we are here to help and support you to get things back up and running, so please do not hesitate to get in touch with us.
CORONAVIRUS JOB RETENTION SCHEME (CJRS)
CLAIM DEADLINE 31ST JULY 2020
Please note the deadline for claim periods ending on or before 30‌‌‌ ‌June is 31‌‌st July, 2020 – after that date you will be unable to make a claim. HM Revenue & Customs are urging employers to make a claim as a matter of urgency.
FLEXIBLE FURLOUGHING IS HERE FROM TOMORROW, 1ST JULY
What is changing?

For July, the grant is on the same basis as now (the lesser of 80% of pay or £2,500) but the government is increasing the employer’s contribution over the final months of the scheme covering the months from August to October.

From August, the CJRS will continue to pay 80% of wages  but the scheme will no longer cover the cost of employers’ National Insurance and pension contributions applicable to the grant.  

From September, the CJRS will pay 70% of wages, meaning employers will have to pay the other 10%.

And from October, the CJRS contribution will reduce to 60% with employers paying the remaining 20%.

Employees who were previously furloughed for a minimum of 3 weeks before 30th June 2020 will be able to return to work on a flexible part-time basis to suit your business needs.

For staff who are furloughed part-time, employers will pay the cost of time worked but the grant will cover the cost of their furloughed hours.

From 1st July, claim periods will no longer be able to overlap calendar month ends and a new minimum reporting period of one week will apply from that date. 

Working out the hours for partially furloughed employees is quite complicated, especially where employees do not have a regular working pattern. Detailed guidance with worked examples can be found from HM Revenue & Customs’ guidance (please see link below). You will need the exact hours your flexi-furloughed employees have worked during the pay period and, where applicable, their usual hours worked. You will also need to split this if the pay period straddles two calendar months.

A single claim covers both fully and partially furloughed workers.

Version 2 of the Coronavirus Job Retention Scheme will end on 31st October 2020.

https://www.gov.uk/guidance/steps-to-take-before-calculating-your-claim-using-the-coronavirus-job-retention-scheme#include
DO YOU HAVE STAFF ON LONG TERM FURLOUGH LEAVE, OR ARE YOU THINKING YOU MAY NEED TO MAKE STAFF REDUNDANT?
Holiday pay and furlough leave

Employees on furlough are accruing holiday pay. An employer can serve appropriate notice to furloughed employees to take holidays whilst on leave. Although wages have to be topped up to the full pay, reducing an employee’s post furlough holiday entitlement might be useful to ensure staff are there when you need them and reduce overall payroll costs.

Redundancies

Some businesses will not bounce back to pre-lockdown output quickly so you may need to think about having to reduce your workforce. If redundancies are going to be inevitable, you need to act now.

It is our understanding that employees can serve notice whilst on furlough, and whilst you may need to pay their full contractual pay, the CJRS grant should partially cover the cost. 

As a starting point you may like to look at the article below from Citizens Advice, which is very clearly written. We are not legal experts so would always recommend that you seek appropriate professional advice to prevent any potential claim against you for unfair dismissal. If you are thinking about redundancies, please get in touch so we can help you get the right advice.

https://www.citizensadvice.org.uk/work/coronavirus-being-furloughed-if-you-cant-work
VAT PAYMENT DEFERRALS
URGENT ATTENTION NEEDED FOR VAT QUARTERS ENDED 31ST MAY 2020
If you cancelled your VAT Direct Debit to defer the VAT due up to 30th June, please remember to reinstate your Direct Debit for the next VAT payment which is due as normal.  

This is done through your VAT online account and needs setting up at least three working days before your VAT is due.  

If you do not have a VAT online account this will have to be done on a paper form which takes longer.

If your VAT quarter ended on 31st May 2020 your VAT is due on 10th July 2020, so you need to act now.

If you are not able to pay your VAT on time will need to contact HM Revenue & Customs on 0800 024 1222 before the due date.
SELF EMPLOYMENT INCOME SUPPORT SCHEME
CLAIM DEADLINE 13TH JULY 2020
The first claim for the months of March, April and May has to be made by 13th July 2020. Claims after that date will no longer be possible. If you have not claimed and are unsure if you qualify, please get in touch now.
SELF EMPLOYMENT INCOME SUPPORT GRANT
GOOD NEWS FOR RECENT PARENTS
Self-employed parents whose trading profits dipped in 2018/19 because they took time out to have children will be able to claim the SEISS grant.

The Treasury has ensured parents, including mothers, fathers and those who have adopted, who took time out of trading to care for their children within the first 12 months of birth of the child or within 12 months of an adoption placement, will now be able to use either their 2017-18 or both their 2016-17 and 2017-18 self-assessment returns as the basis for their eligibility for the SEISS.

You will also need to meet the other standard eligibility criteria for support under the SEISS. Further details of the change for self-employed parents was promised by the start of July but the guidance has not been updated at the time of writing.

As the claim deadline of 13th July is fast approaching, please get in touch if you think this applies to you so we can assess your situation as soon as the detailed guidance becomes available.

https://www.gov.uk/government/news/self-employed-new-parents-can-claim-support-grant
PROTECT YOURSELF FROM SCAMS
HM Revenue & Customs are advising the public to stay vigilant about scams, which may mimic government messages as a way of appearing authentic and nonthreatening. Search 'scams' on GOV‌‌‌‌.UK for information on how to recognise genuine HMRC contact.
WE ARE HERE TO HELP
We are here to help. If you need any advice please get in touch.
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