Coronavirus Business Support update
As the coronavirus business support starts coming to an end, there have been a number of relevant changes that you should be aware of.
- SEISS update
Claiming the fifth SEISS grant
From mid-July, HMRC will contacting the self-employed who may be eligible for the 5th SEISS grant, to let them know their personal claim date. This will be the earliest date they can make their claim.
The fifth grant will be determined by a turnover test and considers how much your turnover has decreased in the 2020-21 tax year due to the pandemic.
Anyone who was not eligible for the fourth grant, will not be eligible for the fifth grant either.
If you are eligible for the fifth SEISS grant and intend to claim, you will need to calculate your 2020-21 turnover figure.
2. Submit your CJRS claims for June
For June, employers can claim 80% of their furloughed employees’ usual wages for the hours not worked, up to a cap of £2,500 per month.
The deadline for Furlough Claims for June is Wednesday 14 July.
3. Changes to the CJRS from this month
For July, the UK Government will pay 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will reduce to 60% of employees’ usual wages up to a cap of £1,875.
Employers will need to pay the difference, so that they can continue to pay their furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500.
4. VAT deferral new payment scheme has closed
The VAT deferral new payment scheme is now closed. If you are unable to pay your outstanding VAT debt, help is still available – go to GOV.UK and search ‘if you cannot pay your tax bill on time’.
You may be charged a 5% penalty and/or interest if you did not pay in full, did not join the VAT new payment scheme online by 21 June or make an arrangement to pay by 30 June 2021
5. A word about scams
Please be careful if you are contacted out of the blue by someone asking for money or personal information. There are a lot of scams around where fraudsters are calling, texting or emailing claiming to be from HMRC. If in doubt, we advise you not to reply directly to anything suspicious, but to report it to HMRC straight away – search GOV.UK for ‘HMRC scams’.
The National Cyber Security Centre has a helpful new guide on how to stay secure online and protect yourself or your business against cybercrime, which you can find by searching ‘Cyber Aware’.