Hi <<First Name>>
Welcome to our first newsletter!
Every month I will be sharing news, views and other items I think will be useful for you.
Enjoy the first read.
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I hoped our first Newsletter would be received in better circumstances but we are in unprecedented times. I want to reassure that you that we are operating as “business as usual” so please get in touch with any concerns you may have.
The two dominating stories of last week were the Corona Virus and the Budget, which on this occasion, seem very much inter-linked.
Covid-19 is causing major disruption and I fear this is going to be a much bigger economic problem than a health one. Many people are going to lose jobs and, unfortunately, many SMEs will not survive either. I can confirm we are already processing P45s directly linked to a rapid downturn in business.
11th March saw Rishi Sunak deliver his first Budget. His £1.2 billion package for supporting small business coupled with the Bank of England’s cut in interest rates will definitely help to see businesses and individuals through the economic disruption. My concern is that in some cases it may take longer to access financial support than cash flow allows. Read my blog here
However, a global pause may give Mother Nature some much-needed respite with flights grounded and our 21-century consumerism habits curtailed. Maybe we would do well to use this time to stop and reflect.
I also hope we may develop more compassion for those we see suffering in more troubled areas of the world. While behaviour such as panic buying toilet rolls, hand sanitizer and pasta, are actions motivated to keep our families safe. I hope it allows us in some way to relate and better understand those that have not been able to access medicines, buy food or felt safe for a very long time.
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SSP for those affected by Covid-19
Statutory Sick Pay (SSP) will now be available for eligible individuals diagnosed with COVID-19 or those who are unable to work because they are self-isolating in line with Government advice. SSP will be payable from day 1 instead of day 4 for affected individuals.
Businesses affected are able to reclaim two weeks SSP per eligible employee. It must be noted that there is currently no mechanism for employers to claim this repayment yet. We will keep you updated with the changes once we know how to access the funds.
Homeworking Allowance
If you are sending employees home to work they can expect the company to pay them £4 a week (going up to £6 a week from 6th April) to cover any additional spending on heating etc. This is a tax-free sum and is added to wages. It is worth noting that employers are not required by law to provide equipment to facilitate this however, most employers do. Check what you have agreed to in your Contract of Employment.
If staff have had to buy equipment for home working, so long as it falls into the “wholly, exclusively and necessary” (HMRC definition) to perform their role then they can claim tax relief on the purchase through a P87 form (if under £2,500).
Business Rates
The government will increase the Business Rates retail discount to 100% for one year and expand it to the leisure and hospitality sectors, and increase the planned rates discount for pubs to £5,000. Note: this is for retail not service business.
To find out if you are eligible, contact your relevant local authority. Guidance for local authorities will be published on 20th March.
One-off Grants
To help meet on going business costs there will be an additional £2.2 billion funding made available to local authorities to support small businesses that already pay little or no Business Rates because of Small Business Rate Relief (SBBR). This will provide a one-off grant of £3,000 to around 700,000 business currently eligible for SBRR or Rural Rate Relief,
Time to Pay Service
HMRC have a new helpline for all businesses and self-employed people in financial distress, with outstanding tax liabilities. They may be eligible to receive support with payment of outstanding taxes through HMRC’s Time To Pay service. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
How we can help…
If we already process your payroll then we will automatically apply for the increase in Employment Allowance on your behalf, this has gone up from 3k to 4k for the 20/21 tax year.
If you have any questions including any about how to assess the government funds for those affected by Covid-19 then please get in touch and we can review and support your situation on an individual basis.
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Check out the Netflix documentary called The Game Changer, a very power and reasoned film to support the vegan movement.
Thank you for reading this far and I hope it's given you something in the process.
With kind regards
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Disclaimer: Advice shared in this newsletter is intended to inform rather than advise. We will accept no responsibility for any financial loss incurred.
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