This Weeks Updates - 14th August 2020
So, its official – we are in a recession. The UK seems to have fared worse than the majority of EU countries but as the UK is predominately service-based (four-fifths of the economy) and this sector suffered the biggest quarterly decline on record, it’s not really surprising.
SEISS phase two – opens next week
The Self-Employment Income Support Scheme (SEISS) opens again for claims from 17 August, when eligible self-employed customers can claim their second, and final, taxable SEISS grant.
The taxable grant is worth 70% of average monthly trading profits, paid out in a single instalment covering three months worth of profit.
HMRC will contact customers (by letter, SMS and/or email) to invite them to claim from a specified date, if they meet the eligibility criteria. The eligibility criteria for the second grant is the same as for the first grant – so as long as their business is still being adversely affected by coronavirus, customers eligible for the first grant will be able to apply again. Applicants will be asked to confirm that their business has been adversely affected by coronavirus at any time since 14 July, and that they intend to continue trading this tax year.
The Job Retention Bonus
Employers will be able to claim a one-off payment of £1,000 for every employee they have previously received a grant for under the Coronavirus Job Retention Scheme (CJRS) and who remains continuously employed through to the end of January 2021.
To be eligible, the employee must have received earnings in November, December and January, and must have been paid an average of at least £520 per month, and a total of at least £1560 across the three months.
Employers will be able to claim the bonus after they have filed PAYE information for January 2021, and the bonus will be paid from February 2021. More detailed guidance, including how employers can claim the bonus online will be available by the end of September.
P11d warnings issued in error
HMRC have an 8-week backlog processing P11d submissions so if you have received a warning letter for a failing to submit on time this is likely to be incorrect. Please get in touch if you need clarification.
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Wishing you a great weekend ahead.
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Whilst the situation continues to change daily, I will endeavour to update you via this newsletter and the website. If you have any questions or concerns, please do call us on 01732 449888 and myself and the team would love to chat and see how we can help.
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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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