Coronavirus Support Update – 28 August 2020

Please find below updates on Making Tax Digital (yes that beast has reared its ugly head again), Coronavirus Support Schemes as well as other information you might find useful.

Our offices have been open for nearly two months now, so we are happy to meet face-to-face if you are comfortable to do so. The office is furnished with all the facilities you would expect, in line with the latest government guidance, to ensure the safety of our clients and our team. However, we are still happy to have meetings over the phone or electronically, depending on your preference. Technically you need to wear a mask to our offices, but we have them to hand and ready to supply if you need them.

Coronavirus Support Scheme Updates and Reminders

Here are some of the headlines in terms of the support schemes, since we last wrote to you:

• The Second and final Self-Employed Income Support Scheme (SEISS) is now available for those adversely affected on or after 14 July 2020. It is worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total. The deadline for applying for this is 19 October 2020. The application process is the same as the first grant but get in touch with us if you are unsure. Only apply if you are eligible and were adversely affected.
• The Coronavirus Job Retention Scheme or Furlough scheme continues to be phased out despite a lot of pressure to the contrary. This remains our favourite diagram to illustrate this:

• As things stand, the Small Business Grants Fund, Retail, Hospitality and Leisure Business Grants Fund and the Discretionary Grants Fund will all close today, unless the deadline is changed, with any unclaimed funds returned to the central government. If you are/might be eligible, we recommend you get in touch with them today, if you haven’t already.
• Further support to help smaller businesses recover from the coronavirus pandemic has been announced through the Regional Growth and Local Government, including the Kickstart Grant Scheme, aimed at boosting tourism, for renewal and recovery, and investment in new equipment and technology, is now open across many local authorities. The EU-funded Grants of up to £5,000 can be provided and used to fund specialist professional advice such as accountancy, HR, legal, financial, or IT support. It can also be used to purchase equipment or new technology in order to continue to deliver or diversify business activity. Applications will be submitted via the regional Growth Hub website and, with the expected high demand for the grants, will be assessed and awarded in the order they are received, so get your applications in fast.
• More lenders continue to get approved across the Bounce Back Loan (CBBLS), Business Interruption Loan (CBILS) and Large Business Interruption Loan Scheme (CLBILS), which are all administered and support by the British Business Bank. Based on the latest data, CBBLS remains the most popular government support scheme, with 1.17 million firms receiving £35.4bn, while 516 companies have accessed £3.5bn through CLBILS, with more than 1.23 million businesses helped overall. Many of these will be coming to an end from the end of September, so do get in touch with your main bank, or another approved lender, if this could assist you at this difficult time.
• The Future Fund is open for applications until the end of September. However, the criteria sadly have not been amended since the end of May, so it remains a rather niche offering.
• On income tax, the Second Payment on Account was due to be paid by 31 July 2020. This is not required, and you can defer this to 31 January 2021 without application. However, we recommend that if you can afford it, you do pay it before 31 January 2021, otherwise you could find that a lot of taxes are due at the same time, which could prove problematic.
• The temporary reductions VAT and Stamp Duty have already changed some of the market activity. If you are not sure how this might impact you, please get in touch with us.
• Don’t forget, Monday will be your last opportunity to Eat Out To Help Out, so see which local restaurants are participating by clicking here, although you might need to book.

Fraud is Fraud

As a final note, please remember that fraud is fraud, no matter what the circumstances. Over 4,000 employers are already being investigated for fraud under the furlough scheme (with over 8,000 already reported by their employees). Only apply if you are eligible and the criteria all apply to you and your business. HMRC are resourcing up for record levels of checks and enquiries next year.

Making Tax Digital Update

Making Tax Digital is the HMRC initiative attempting to transform the UK tax system, with more regular and detailed submissions of information and payments of tax to HMRC electronically.

The first wave is underway, with VAT registered businesses, with a turnover over £85,000 undergoing the change. Put simply, these businesses need to be submitting their VAT returns either through compliant software, such as Xero or QuickBooks or a bridging software. If the business is VAT registered but turnover is beneath the limit, they can opt-out of MTD.

It has always been the Government’s intentions to expand this beyond VAT to Corporation Tax and Income Tax, but there have been various delays due to a number of factors. However, last week HMRC unveiled their roadmap for the latest attempted roll out:

• VAT-registered businesses with a taxable turnover below £85,000 will be required to follow Making Tax digital rules for their first return starting on or after April 2022;
• Self-employed and unincorporated landlords will be required to follow the Making Tax Digital rules for income tax purposes from April 2023.

Whilst it is possible that these deadlines could be subject to change again, we have to work with the information we have available to us. The Government also insist that they are committed to the digitisation of the UK tax regime, so regardless one would expect it is a question of when, rather than if this happens.

If this is you or someone you know, please get in touch with us to talk through how this could impact your business and record-keeping. We will be specifically reaching out to you all individually closer to the time. Please see more information in the Software Promotion section below.

Quick Books Webinar

• An Overview of the QuickBooks Mobile App;
• Quick Invoicing & Quicker Payments;
• How to Snap your Receipts with Receipt Capture; and
• Q&A.

Software Promotion

Are you interested in using Cloud-Based Accounting Software in your business but don’t currently use one? Or are interested in changing your existing provider? If so, we are offering 50% off if you sign-up to either Quick Books or Xero through us for the rest of the calendar year (Quote: SOFTWARE50).

Especially with the updates in Making Tax Digital noted above, we really encourage you to get onto cloud-based accountancy software.

Some of the many advantages of cloud-based software include:

• Access to your financials anywhere in the world with wi-fi, from your computer, tablet, or phone;
• Better controls of your financial processes at your fingertips;
• Bank feeds to greatly reduce time doing your books, including bank rules to automate bank reconciliations;
• Additional functionality through endless Apps;
• Cost and time-effective solution, which is easy to share and collaborate with;
• High levels of security with no need to back-up; and
• Less paperwork so better for the environment

…to name but a few of the advantages.

Do get in touch with us if you are interested in finding out more, setting up a demo or booking some training.

Big Belly Buster

In our latest Charity Challenge (AKA humiliation of Jon), in the first month of the Big Belly Buster Challenge Jon has managed to lose two stone five pounds, so although good progress there is still a long way to go. However, he’s keeping motivated by the £’s we are raising for every pound he loses, as it is all for the amazing Ark Cancer Centre Charity, in Basingstoke. Thank you very much to everyone who has already kindly donated.

Your donation will help to provide the care and support that local cancer patients, their families and loved ones need and deserve. The cancer treatment centre enhances the care received by patients and their families throughout their cancer treatment. Core treatments together with complementary therapies are provided in a calm and uplifting environment for patients, their friends and family.

Black and White Accounting

This is a difficult time for everyone and we must come together to get through this. Our thoughts are with you, your family and your friends especially at this time.

If there is anything we can do to help you at this difficult time, please do get in touch by contacting Black and White Chartered Certified Accountants, populate the “Got a Question” form on the right, or call us on 0800 140 4644.