Financial Support for a phased return to work

Chancellor Rishi Sunak had previously announced an extension to the Coronavirus Job Retention Scheme (CJRS), or “Furlough Scheme” as it has become known as, and has now announced an extension to the Self Employment Income Support Scheme (SEISS), allowing for a second claim to be made.

Coronavirus Job Retention Scheme (CJRS)

The current CJRS runs until the 30th June 2020, at which point the new CJRS will begin. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full three-week period prior to 30 June.

This means that the final date by which an employer can furlough an employee for the first time will be the 10 June 2020.

From 1 July, employers can bring back to work employees that have previously been
furloughed for any amount of time and any shift pattern, while still being able to claim
CJRS grant for their normal hours not worked. To be eligible for the grant, employers must agree with their employee any new flexible furloughing arrangement and confirm that agreement in writing.

Key dates to note

• 10 June 2020 – The last day employers can place employees on furlough
• 30 June 2020 – Current Furlough scheme closes to new applicants
• 1 July 2020 – Flexible Furlough Scheme begins
• 1 August 2020 – Employers must pay Employer’s National Insurance Contributions and employer pension contributions for furloughed employees
• 1 September 2020 – From this date the Government will reimburse 70% of salary (up to a maximum of £2190). Employers must top up to 80% (up to a maximum of £2500)
• 1 October 2020 – From this date the Government will only reimburse 60% of salary (up to maximum of £1875). Employers must top up to 80% (up to a maximum of £2500)
• 31 October 2020 – Furlough scheme closes

Self Employment Income Support Scheme (SEISS)

Applications for the first grant opened on 13 May 2020. Applications for the first grant will close on 13 July 2020.

If you are eligible for the SEISS, you will be able to claim a second and final taxable grant worth 70 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profit, and capped at £6,570 in total.
The eligibilty criteria remains the same as the first grant (find out more here), and you do not need to have claimed the first grant in order to make a claim for the second grant. You will need to confirm that your business has been adversely affected by Coronavirus.

You can find out more about the changes to these schemes here.

As always, we’re here to help. You can contact the office on 0114 251 8850, or email your usual Hart Shaw contact.

www.hartshaw.co.uk
www.hartshaw.co.uk/news/covid-19

Poll: What are your biggest challenges as we see an easing of lockdown?

Over the coming weeks, subject to the virus being under control, we will start to see an easing of the lockdown restrictions.

This will have implications for SME businesses.  Please take a moment and participate in our one question poll to help us understand what you consider to be the biggest challenges facing your business as the lockdown restrictions are eased.

Please click here to participate in the poll.

The poll is open until 5pm on Tuesday 12^th May 2020.

Your feedback will be used to identify and escalate the biggest issues for SMEs to the government.

#HereForSMEs

Treasury looking to help business owners who pay themselves via dividend income

We are a member of the UK200Group, and together we’re delighted that the Treasury is urgently looking at ways to help business owners who pay themselves via dividend income, according to their own Twitter account this morning where they say they are ‘looking at proposals’.

At the moment these smaller businesses, often one-person limited companies, feel as though they have been forgotten.

UK200Group have been in contact with the Treasury to share our research with SMEs conducted in recent weeks and have suggested a practical solution that would be in line with measures put in place for the employed and larger businesses.

They suggest the government looks at extending the Self-Employment Income Support Scheme (SEISS) to include salary and dividend income from owner-managed companies, as well as self-employment income, but to exclude any furlough grants received.

This measure would bring support for those affected in line with the support being provided to unincorporated businesses and employees.

This would be fair and equitable, and in fact would improve on SEISS by eliminating double counting where individuals have a mixture of employment and self-employment.

 

www.hartshaw.co.uk
www.hartshaw.co.uk/news/covid-19

Update on Covid-19 Financial Schemes

We are now in the fourth week of lockdown, due to Covid-19, and we want to reassure you that we’re still working as normal, and are available for you if you have any questions/concerns.

As new information becomes available, or deadlines begin to approach we will update you. Here are a few updates this week.

Self Employment Income Support Scheme (SEISS)
The UK Government announced help for people that are self-employed through the Self Employment Income Support Support Scheme (SEISS). As part of this, they extended the deadline to submit 2018/19 from 31st January 2020 to 23rd April 2020.
You MUST have submitted your 2018/19 tax return to be eligible for this scheme.
Our Tax Department are contactable if you have any queries.

The Coronavirus Job Retention Scheme
If you are an employer, you can now access the portal for The Coronavirus Job Retention Scheme which opened on Monday. You’ll need to make sure that you have all the information ready before beginning your application. You can find more information here.

Financial Support Finder Tool
You may be eligible for loans, tax relief and cash grants. The financial support finder tool has been launched to help both employers and the self-employed find out what help is available for them by answering a few short questions. If you haven’t already checked, and aren’t sure if you meet the criteria for any of the schemes, check here.

 

www.hartshaw.co.uk
www.hartshaw.co.uk/news/covid-19

 

Coronavirus and your Business update

The Covid-19 outbreak is understandably causing concern businesses throughout the country and we have provided below the updated information and links on what help is available to you and your business.

Our Specialist Advisory Services, which is made up of our Business Recovery & Insolvency, Corporate Finance and Tax departments, are available to help you, providing advice and support through these unprecedented times and the coming months.

Who to Contact

Christopher Brown
Business Recovery & Insolvency Partner
chris.brown@hartshaw.co.uk
Mob: 07788 186 181

Emma Legdon
Business Recovery & Insolvency Partner
emma.legdon@hartshaw.co.uk
Mob: 07717 727 061

Patrick Abel
Corporate Finance Partner
patrick.abel@hartshaw.co.uk
Mob: 07795 337 113

Steve Vickers
Tax Partner
steve.vickers@hartshaw.co.uk
Mob: 07765 236 690

Business Support Grant

Sheffield City Council have opened the portal for applications for the business support grant for businesses who pay business rates to Sheffield City Council. Click here to start your application.

Time to Pay

Any business that pays tax to the UK government and has outstanding tax liabilities will be able to apply for a Time To Pay Arrangement with HMRC.

HMRC changed the number of its dedicated helpline to 0800 024 1222 The helpline will be open Monday to Friday between 8am to 4pm

Deferment of VAT and Self-Assessment payments

All UK business are eligible, and the scheme will run until 30 June 2020.  Businesses will be given until the end of the 2020/2021 financial year to pay all outstanding VAT liabilities that have accumulated as a result of the 3-month deferral.

HMRC have also agreed that the self-assessment payment due by 31 July 2020 can be deferred if you are unable to make the payment.  This payment must be paid with the next instalment due by 31 January 2021.

If you or your business pays by direct debit for either of these you must cancel the direct debit, whilst remembering to reinstate it for the following payment due date.

Coronavirus Job Retention Scheme

Employers can access the Coronavirus Job Retention Scheme, where either all or some employees are classified as a furloughed worker.

The crucial points are that:

• the employee remains on the payroll;
• those laid off temporarily cannot work for the company during the lay-off;
• the employer must decide to make an employee a furloughed worker, but the employee must agree in a side letter;
• the underlying contract and contractual position between employer and employee is not changed, it’s sort of continuing in the background during the lay-off.

If the employee’s salary is reduced as a result of these changes, they may be eligible for support through the welfare system, including Universal Credit.

The government intends for the Coronavirus Job Retention Scheme to run for at least 3 months from 1 March 2020, but will extend if necessary.

The rebate application will be done on-line through a government portal, which should be operational within a month. Currently the employer pays the salary of the furloughed worker, and can pay 80% of the salary subject to the maximum of £2,500 per month, and claims this back from the government.  An employer can choose to top up the furloughed workers salary.

Further details can be found here, or please contact us for more information.

Self-Employed Income Support Scheme

The Self-Employed Income Support Scheme was announced and will allow such individuals to claim a taxable grant worth 80% of an individual’s monthly earnings calculated using an average from the last three years up to £2500 a month.

To be eligible for the scheme individuals must:

• have trading profits of less than £50,000 a year
• make the majority of their income from self-employment and
• have filed a tax return for the year 2018/19 with HMRC.

If an individual missed the 31st January 2020 tax return filing deadline, the Government will allow a further four weeks from 26th March to submit the relevant return in order to benefit from this scheme and individuals should therefore contact their accountant as a matter of urgency to ensure that this return is submitted within the extension.

Access to these Grants will be available from June 2020 so the Government are encouraging those who need it to look at the Business Interruption Loan Scheme and/or applying for Universal Credit to give the additional support.

Applications cannot be made for the scheme as yet. HMRC will contact individuals if they are eligible and then send an invitation to apply online.  Individuals are advised not to contact HMRC at this stage as doing so will delay the work being undertaken to introduce the scheme.

Once HMRC has received the claim and confirmed that the individual is eligible for the grant the HMRC will contact the self-employed individual to advise the amount to be paid and the payment details.

Coronavirus Business Interruption Loan Scheme (“CBILS”)

The British Business Bank are launching the scheme the week commencing Monday 23 March 2020 to support businesses with a turnover up to £45million, the government are guaranteeing the lender for 80% of the loan amount.  The maximum loan amount has been increased to £5million with no interest charged for 12 months for a period up to 6 years.

Applications should be made to your bank but any questions you have regarding this can be directed to Patrick Abel, Corporate Finance Partner on 07795 337 113 at patrick.abel@hartshaw.co.uk

Hart Shaw Specialist Advisory Services

www.hartshaw.co.uk
www.hartshaw.co.uk/news/covid-19

We’re still here for you

As the Coronavirus pandemic moves forward, as a country we’re slowly getting used to a different way of living and working day-to-day.

We just wanted to remind you that we’re working as normal and are here for you if you have any questions or concerns. Here is who you should contact;

Audit, Accounting and Compliance

Paul Dawson – Senior Partner
paul.dawson@hartshaw.co.uk or 07798 892 999 

Martin McDonagh – Managing Partner
martin.mcdonagh@hartshaw.co.uk or 07798 868 459 

Martin Wharin – Partner
martin.wharin@hartshaw.co.uk

Sarah Brock – Partner
sarah.brock@hartshaw.co.uk

Natalie Bracey – Partner
natalie.bracey@hartshaw.co.uk or 07809 656 165 

Hannah Jones – Partner
hannah.hones@hartshaw.co.uk or 07708 908556 

Business Recovery and Insolvency

Christopher Brown – Business Recovery and Insolvency Partner
chris.brown@hartshaw.co.uk or 07788 186 181 

Emma Legdon – Business Recovery and Insolvency Partner
emma.legdon@hartshaw.co.uk or 07717 727 061 

Corporate Finance

Patrick Abel – Corporate Finance Partner
patrick.abel@hartshaw.co.uk or 07795 337 113 

Taxation

Steve Vickers – Tax Partner
steve.vickers@hartshaw.co.uk or 07765 236 690 

Carla Horsfall – Associate
carla.horsfall@hartshaw.co.uk

You can find more key contacts on our website.

 

Self-Employed Income Support Scheme

Yesterday’s briefing from Downing Street will have hopefully provided some relief to the Self-Employed community during this time of uncertainty.

Chancellor Rishi Sunak has set out plans that will see the self-employed receive up to £2,500 per month in grants for at least 3 months, which means that millions of self-employed individuals will receive direct cash grants though a ground-breaking UK-wide scheme to help them during the coronavirus outbreak.

If you’re eligible for the new Self-Employed Income Support Scheme, you will receive a cash grant worth 80% of your average monthly trading profit over the last three years. This is in line with the Coronavirus Job Retention Scheme announced last week for employees.

To qualify for this scheme you need to have had a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19, and more than half of your income in these periods must come from self-employment.

In a bid to minimise fraudulent applications HMRC will contact you.

The Self-Employed Income Support Scheme will cover 3 months until the end of May 2020 and grants will be paid in one lump sum starting at the beginning of June 2020.

If you are Self-Employed you will still be able to access other available government support, including more generous Universal Credit and Business Continuity Loans.

As further information becomes available we’ll put in on our blog.

This is understandably a very worrying and confusing time for all. If you have any questions regarding the new schemes introduced by the UK Government, or need some advice, our Tax Department are here to help.

Steve Vickers – Tax Partner – steve.vickers@hartshaw.co.uk
Carla Horsfall – Associate – carla.horsfall@hartshaw.co.uk
Luke James – Tax Manager – luke.james@hartshaw.co.uk

Alternatively you can call us on 0114 251 8850 and your call will be passed onto the relevant person.

 

http://www.hartshaw.co.uk
http://www.hartshaw.co.uk/news/covid-19

 

Hart Shaw’s Coronavirus (Covid-19) Update for Clients

Client update – 24th March 2020

We’d like to take this opportunity to update our clients and contacts, amdist the Coronavirus (Covid-19) outbreak.

We are vey proud of the level of service that we provide to our clients, and can assure you that we will continue to provide this same level of service in the safest possible way for you and our staff.

We are keeping ourselves fully informed of any changes regarding public safety from the UK Government and Public Health England (PHE), and acting accordingly.  In a response to the latest UK Government advice our employees are working from home.

Our switchboard is still open on 0114 251 8850 but if you need to contact any of our partners, their contact details are as follows:

Paul Dawson	07798 892 999	paul.dawson@hartshaw.co.uk
Martin McDonagh	07798 868 459	martin.mcdonagh@hartshaw.co.uk
Christopher Brown	07788 186 181	chris.brown@hartshaw.co.uk
Martin Wharin		martin.wharin@hartshaw.co.uk
Steve Vickers	07765 236 690	steve.vickers@hartshaw.co.uk
Emma Legdon	07717 727 061	emma.legdon@hartshaw.co.uk
Sarah Brock		sarah.brock@hartshaw.co.uk
Patrick Abel	07795 337 113	patrick.abel@hartshaw.co.uk
Natalie Bracey	07809 656 165	natalie.bracey@hartshaw.co.uk
Hannah Jones	07708 908556	hannah.jones@hartshaw.co.uk

We hope that you are keeping safe during this time, and further updates will be posted should things change.

Hart Shaw

View the Spring 2020 Budget here

Covid-19: measures for UK businesses

www.hartshaw.co.uk

 

Coronavirus and your Business

The recent Covid-19 outbreak is understandably causing concern for businesses throughout the country.  

The government is holding daily press conferences which include various measures to assist those businesses affected at this time.  

Our Specialist Advisory Services, which is made up of our Business Recovery & Insolvency, Corporate Finance and Tax departments, are available to help you, providing advice and support through these unprecedented times and the coming months. 

 

Who to Contact  

Christopher Brown
Business Recovery & Insolvency Partner
chris.brown@hartshaw.co.uk
Mob: 07788 186 181  

Emma Legdon
Business Recovery & Insolvency Partner
emma.legdon@hartshaw.co.uk
Mob: 07717 727 061  

Patrick Abel
Corporate Finance Partner
patrick.abel@hartshaw.co.uk
Mob: 07795 337 113  

Steve Vickers
Tax Partner
steve.vickers@hartshaw.co.uk
Mob: 07765 236 690

 

Coronavirus Business Interruption Loan Scheme (“CBILS”)  

The British Business Bank are launching the scheme the week commencing Monday 23 March 2020 to support businesses with a turnover up to £45million, the government are guaranteeing the lender for 80% of the loan amount. The maximum loan amount has been increased to £5million with no interest charged for 12 months for a period up to 6 years. 

Applications should be made to your bank but any questions you have regarding this can be directed to Patrick Abel, Corporate Finance Partner patrick.abel@hartshaw.co.uk   

 

Coronavirus Job Retention Scheme  

The scheme is available to all UK employers regardless of size, employers must determine which of their employees are “furloughed workers” and inform these particular employees. HMRC will then reimburse 80% of the furloughed workers wage costs up to a cap of £2,500 per month. The scheme will be backdated to 1 March 2020 and in place for 3 months, before being reviewed. The current guidance state that “You will remain employed while furloughed. Your employer could choose to fund the differences between this payment and your salary, but does not have to.” 

Changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation.  

 

Deferment of VAT payments  

All UK business are eligible and the scheme will run until 30 June 2020. Businesses will be given until the end of the 2020/2021 financial year to pay all outstanding VAT liabilities that have accumulated as a result of the 3 month deferral.  

 

Time to Pay  

Any business that pays tax to the UK government and has outstanding tax liabilities will be able to apply for a Time To Pay Arrangement with HMRC. This applies to all businesses including the self-employed. HMRC have set up a dedicated helpline for this: 0800 0159 559 

Coronavirus Business Interruption Loan Scheme (“CBILS”)

One of the measures outlined in the Government post budget Coronavirus briefings on 17 March 2020 was the Coronavirus Business Interruption Loan Scheme (“CBILS”). 

Whilst the details will not be ready until Monday, as government interacts with the Lenders, this is in effect a rehashing of the Enterprise Finance Guarantee Scheme (“EFG”) launched after the 2008 banking crisis.  The main differences being an increase in guarantees from the government to the Lender from 70% to 80% and the increases in quantum from £1m to £5m.  The Lenders include all the high street banks plus a range of other ones, see attached link. https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/accredited-lenders/ 

Unless the CBILS criteria are relaxed, compared to the EFG scheme, which we should know on Monday, the main question for the Lender would be whether the client is a “good business” that could service the loan repayments.  If it could but the Lender could not support due to lack of tangible security, then the government guarantee is there to support the Lender in order to de-risk that lack of security. 

As was the case with the EFG scheme, it was initially launched in haste and the application of the scheme was left to the interpretation of the various Lenders meaning take-up was low. The lack of initial usage meant that the government expanded the lending panel so that now there are various challenger banks and asset-based lenders operating the scheme. 

We suspect that the banks will focus on their existing clients and therefore they should be the first port of call, but it does mean that there are alternatives this time if the incumbent lender cannot help. 

 

Patrick Abel 

Corporate Finance Partner 

Hart Shaw LLP  

19 March 2020