PHTM COVID-19 FINANCE UPDATE JOB RETENTION BONUS:
SELF-EMPLOYED ISS EXTENDED:
The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the Job Retention Scheme, and who remains continuously employed through to 31 January 2021.
Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021.
Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January 2021 and payments will be made to employers from February 2021.
Employers should ensure that their employee records are up-to- date, including accurately reporting their employee’s details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system.
Employers should also make sure all of their Coronavirus Job Reten- tion Scheme claims have been accurately submitted and any necessary amendments have been notified to HMRC.
HMRC will withhold payment of the Job Retention Bonus where it believes there is a risk that Coronavirus Job Retention Scheme claims may have been fraudulently claimed or inflated, until the enquiry is completed.
The bonus will be taxable, so the business must include the whole amount as income when calculating their taxable profits for Corpo- ration Tax or Self-Assessment.
VAT PAYMENT EXTENSION:
Businesses who deferred VAT due from 20 March to 30 June 2020 now have the option to pay in smaller payments over a longer period.
Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest free.
You will need to opt-in to the scheme, and for those who do, this means that your VAT liabilities due between 20 March and 30 June 2020 do not need to be paid in full until the end of March 2022.
Those that can pay their deferred VAT can to do so by 31 March 2021
GOVERNMENT BACKED LOANS EXTENDED: BOUNCE BACK LOANS
1. Applications extended until 30 November 2020. 2. New pay as you grow flexible repayment system. 3. Length of the loan extended from six years to ten years which will cut monthly repayments by nearly half.
4. Interest-only periods of up to six months and payment holidays will also be available.
CBIL LOANS
1. Applications extended until 30 November 2020 2. Term: two to ten years - at the discretion of the borrower and lender
OCTOBER 2020
The grant extension is for self-employed individuals who are cur- rently eligible for the Self-Employment Income Support Scheme and are actively continuing to trade, but are facing reduced demand due to coronavirus (COVID-19).
The extension will provide two grants and will last for six months, from November 2020 to April 2021.
Grants will be paid in two lump sum instalments each covering a three-month period.
The first grant will cover a three-month period from the start of November 2020 until the end of January 2021
HMRC will provide a taxable grant covering 20 per cent of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.
The second grant will cover a three-month period from the start of February until the end of April.2020 HMRC will review the level of the second grant and set this in due course.
The grants are subject to Income Tax and National Insurance Con- tributions/
SELF-ASSESSMENT TIME TO PAY SCHEME:
If you deferred paying your July 2020 Payment on Account, you will need to pay the deferred amount, in addition to any balancing payment and first 2020/21 Payment on Account, by 31 January 2021.
This may be a larger payment than you usually pay in January.
If you're unable to pay your Self-Assessment (SA) bill in full by 31January 2021, and have SA tax debts of:
Up to £30,000, you can spread payments over a further 12 months until January 2022 by setting up a Time to Pay payment plan online without speaking to HMRC.
You can access this Time to Pay facility through
GOV.UK and you will get automatic and immediate approval, without speaking to anyone at HMRC.
Over £30,000, or you need longer than 12 months to repay your debt in full, you will still be able to use the Time to Pay arrangement by calling HMRC.
PROTECT YOURSELF FROM SCAMS
Stay vigilant about scams, which may mimic government messages as a way of appearing authentic and unthreat- ening. Search ‘scams’ on
GOV.UK for information on how to recognise genuine HMRC contact.
You can also forward suspicious emails claiming to be from HMRC to
phishing@hmrc.gov.uk and texts to 60599
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