Welcome to our round up of the latest business and Covid-19 news for our clients. Please contact us if you want to talk about how these updates affect your business. We are here to support you through these tough times.

Changes to the Coronavirus Job Retention Scheme (CJRS)

Calculations

Government guidance on calculating how much you have to pay your furloughed employees for hours on furlough and how much you can claim back has been updated with new maximum wage tables and claim dates.

See: Calculate how much you can claim using the Coronavirus Job Retention Scheme – GOV.UK (www.gov.uk)

Find examples to help you calculate your employees’ wages

Check examples to help you calculate your employee’s wages, National Insurance contributions and pension contributions if you’re claiming through the Coronavirus Job Retention Scheme.

See:  Find examples to help you calculate your employees’ wages – GOV.UK (www.gov.uk)

Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme

The Section on employee transfers under TUPE and on a change in ownership has been updated.

See: Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme – GOV.UK (www.gov.uk)

Steps to take before calculating your claim

The section about employee reference dates added and changes made throughout the page to include employee reference dates.

See: Steps to take before calculating your claim using the Coronavirus Job Retention Scheme – GOV.UK (www.gov.uk)

Penalties for not telling HMRC about CJRS overpayments – CC/FS48.

If you have received a grant but were not eligible or you have been overpaid, find out what penalties you may have to pay if you do not tell HMRC.

See:  Penalties for not telling HMRC about Coronavirus Job Retention Scheme grant overpayments – CC/FS48 – GOV.UK (www.gov.uk)

 

Self-Employment Income Support Scheme (SEISS) Update

This guidance has been updated with information about the fourth SEISS grant. The online service to claim the fourth grant will be available from late April 2021. If you are eligible based on your tax returns, HMRC will contact you in mid-April to give you a date that you can make your claim from. It will be given to you either by email, letter or within the online service. You must make your claim on or before 1 June 2021.

See: Claim a grant through the Self-Employment Income Support Scheme – GOV.UK (www.gov.uk)

 

How HMRC works out trading profits and non-trading income for the SEISS

HMRC look at your trading profits and non-trading income on your Self-Assessment tax returns to check if you meet the eligibility criteria for the fourth grant. They also use your average trading profits to work out how much grant you will get.

See:  How HMRC works out trading profits and non-trading income for the Self-Employment Income Support Scheme – GOV.UK (www.gov.uk)

If you need help in claiming the fourth SEISS grant please contact us. We have access to accurate calculators to work out your likely claim amount.

 

Recovery Loan Scheme update

The Recovery Loan Scheme supports access to finance for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic.

Up to £10 million is available per business. The actual amount offered, and the terms are at the discretion of participating lenders.

The government guarantees 80% of the finance to the lender. As the borrower, you are always 100% liable for the debt.

The scheme is open until 31 December 2021, subject to review.

Loans are available through a network of accredited lenders, listed on the British Business Bank’s website.

Eligibility

You can apply for a loan if your business:

  • is trading in the UK

You need to show that your business:

  • would be viable were it not for the pandemic
  • has been adversely impacted by the pandemic
  • is not in collective insolvency proceedings (unless your business is in scope of the Northern Ireland Protocol in which case different eligibility rules may apply)

Business that received support under the earlier COVID-19 guaranteed loan schemes are still eligible to access finance under this scheme if they meet all other eligibility criteria.

Who cannot apply

Businesses from any sector can apply, except:

  • banks, building societies, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • state-funded primary and secondary schools

What you can get

  • term loans or overdrafts of between £25,001 and £10 million per business
  • invoice or asset finance of between £1,000 and £10 million per business

No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.

How long the loan is for

The maximum length of the facility depends on the type of finance you apply for and will be:

  • up to 3 years for overdrafts and invoice finance facilities
  • up to 6 years for loans and asset finance facilities

How to apply

Find a lender accredited to offer Recovery Loans from the list on the British Business Bank website: Recovery Loan Scheme: current accredited lenders – British Business Bank (british-business-bank.co.uk)

There is more detailed information on our website www.shaikhandcoaccountants.com

That’s all for today, keep safe , healthy and busy

CategoryCovid-19
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