Coronavirus support: Bounce Back Loans

Today the chancellor, Rishi Sunak has announced a new loan for smaller businesses needing a simpler, quicker solution. “Today, we’re announcing a new loan scheme. A simple, quick, easy solution for those in need of smaller loans.   Businesses can apply for new Bounce Back Loans up to a maximum of £50,000, or 25% of turnover, with the government paying the interest for the first 12 months. We’ve been in close talks with the banks in recent days and these loans will be available from 9am next Monday.   There will be no forward-looking tests of business viability; no complex eligibility criteria; just a simple, quick, standard form for businesses to fill in. For most firms, loans should arrive within 24 hours of approval.   And I have decided, for this specific scheme, that the government will support lending by guaranteeing 100% of the loan.   We shouldn’t ask taxpayers to bear all the risk of lending almost unlimited sums to businesses who may have very little prospect of paying those loans back – and not necessarily because of coronavirus.   So, I don’t think it’s right to provide 100% guarantees on all our schemes.   Instead, the new Bounce Back Loans carefully target that extraordinary level of state support at those who need it most.   And the £50,000 cap balances the risk to the taxpayer with the need to support our smallest businesses.”   We’ll publish more information as the detail is...

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How to claim – Coronavirus Job Retention Scheme

Coronavirus Job Retention Scheme  Yesterday, HMRC released further details of how you can claim for your employees’ furloughed wages.  If we are registered with HMRC as your PAYE agents we can make the claim on your behalf.    What you’ll need to make a claim  Employers should discuss with their staff and make any changes to the employment contract by agreement. Employers may need to seek legal advice on the process. If sufficient numbers of staff are involved, it may be necessary to engage collective consultation processes to procure agreement to changes to terms of employment.  To claim, you will need:  your employer PAYE reference number  the number of employees being furloughed  National Insurance Numbers for the employees you want to furlough  Names of the employees you want to furlough  Payroll/works number for the employees you want to furlough  your Self Assessment Unique Taxpayer Reference or Corporation Tax Unique Taxpayer Reference or Company Registration Number  the claim period (start and end date)  amount claimed (per the minimum length of furloughing of 3 consecutive weeks)  your bank account number and sort code  your contact name  your phone number  You will need to calculate the amount you are claiming. HMRC will retain the right to retrospectively audit all aspects of your claim.  If you use an agent who is authorised to act for you for PAYE purposes, they will be able to make a claim on your behalf. If you use a file only agent (who files your RTI return but doesn’t act for you on any other matters) they won’t be authorised to make a claim for you and you will need to make the claim yourself. Your file only agent can assist you in obtaining the information you need to claim (which is listed above). We are making the claim process as straightforward as possible.  Claim  You should make your claim using the amounts in your payroll – either shortly before or during running payroll. Claims can be backdated until the 1 March where employees have already been furloughed.  If appropriate, worker’s wages should be reduced to 80% of their salary within your payroll before they are paid. This adjustment will not be made by HMRC.  Minimum furlough periods  Any employees you place on furlough must be furloughed for a minimum period of 3 consecutive weeks. When they return to work, they must be taken off furlough. Employees can be furloughed multiple times, but each separate instance must be for a minimum period of 3 consecutive weeks.  After you’ve claimed  HMRC will check your claim, and if you’re eligible, pay it to you by BACS to a UK bank account.  You must pay the employee all the grant you receive for their gross pay in the form of money.  Furloughed staff must receive no less than 80% of their reference pay (up to the monthly cap of £2500).  Employers cannot enter into any transaction with the worker which reduces the wages below this amount. This includes any administration charge, fees or other costs in connection with the employment.  When the government ends the scheme  When the government ends the scheme, you must make a decision, depending on your circumstances, as to whether employees can return to their duties. If not, it may be necessary to consider termination of employment (redundancy).  HMRC will process all claims made before the scheme ends.  You can find...

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Coronavirus Job Retention Scheme – A little bit of detail

We’re being asked the same questions by several of our clients regarding the amounts of pay they can claim using the Coronavirus Job Retention Scheme. Here’s a little detail for you: Full time and part time employees For full time and part time salaried employees, the employee’s actual salary before tax, as of 28 February should be used to calculate the 80%. Fees, commission and bonuses should not be included. Employees whose pay varies If the employee has been employed (or engaged by an employment business) for a full twelve months prior to the claim, you can claim for the higher of either: the same month’s earning from the previous year average monthly earnings from the 2019-20 tax year If the employee has been employed for less than a year, you can claim for an average of their monthly earnings since they started work. If the employee only started in February 2020, use a pro-rata for their earnings so far to claim. Once you’ve worked out how much of an employee’s salary you can claim for, you must then work out the amount of Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions you are entitled to claim. This information has been taken from the government guidance which you can read more about here: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme As always, we’re still here and we’ll do our best to help you through this difficult...

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Covid-19 – Small Business Grant

The application forms for the small business grant are now available online for: Wakefield Council: https://www.wakefield.gov.uk/business/business-rates/reliefs/small-business-grant Leeds Council: https://forms.leeds.gov.uk/SmallBusinessGrants/ Kirklees Council advise they will write to every qualifying business, any queries can be directed to: business.rates@kirklees.gov.uk Bradford Council also advise that there is no need to apply, they will also write to the qualifying businesses. Sadly, it now looks as though businesses which are not ratepayers in the Business Rates system are not included in this scheme.  ...

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Covid-19 – Wakefield Council Cash Grant Info

I have had a very constructive conversation with the Wakefield Council business engagement team: They have released the below regarding claiming the business grant. They have also said that if you are unsure whether or not you qualify, please email info@wakefieldfirst.com So if you rent commercial premises but think the landlord gets the rates bill this would a good example, it’s better that they have your details than not. They may be able to support you when they get clarity from the government. “Applying for a Covid-19 cash grant Wakefield Council are working hard to introduce an online application process for the Covid-19 business grants. If you believe you meet the below eligibility criteria to apply for one of the business grants, then please email us on info@wakefieldfirst.com with the name of your business, your name and your email address and we will send out the relevant e-form as soon as it’s available. Eligibility Criteria: Businesses that pay little or no business rates are eligible for a one-off grant of £10,000 if: your business is based in England you are a small business and already receive SBBR and/or RRR you are a business that occupies property Businesses in retail, hospitality and leisure sectors are eligible for a grant of up £25,000 per property.  For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000. Businesses in these sectors with a rateable value of between £15,000 and £51,000, will receive a grant of £25,000. You are eligible for this grant if: your business is based in England your business is in the retail, hospitality and/or leisure sector Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used: as shops, restaurants, cafes, drinking establishments, cinemas and live music venues for assembly and leisure as hotels, guest and boarding premises and self-catering accommodation”...

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COVID-19 Government Support Measures

Covid-19 Courtley West Update The government have released a new page with further detail for the support being made available to business. This includes details of: Coronavirus Business Interruption Loan Scheme Business Rates Holiday for Retail, Hospitality and Leisure Cash Grant for Retail, Hospitality and Leisure Coronavirus Job Retention Scheme (The portal is not open yet.) Small Business Grant Funding Statutory Sick Pay Rebate Time to Pay Covid-19 Corporate Financing Facility Business Rates Holiday for Nurseries VAT Deferral Income Tax Deferral for the Self-Employed You can read more here: https://www.businesssupport.gov.uk/coronavirus-business-support/ In addition, if you can’t file your company accounts on time due to the Coronavirus, you may be granted an extension. More details and how to apply can be found here: https://www.gov.uk/government/news/coronavirus-if-your-company-cannot-file-accounts-with-companies-house-on-time  ...

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