Covid-19 Government Support News June 2021
Claim for wages through the Coronavirus Job Retention Scheme (CJRS)
The CJRS has been extended until 30 September 2021
Claims for furlough days in May 2021 must be made by 14 June 2021.
See: Claim for wages through the Coronavirus Job Retention Scheme - GOV.UK (www.gov.uk)
Find examples to help you calculate your employees' wages - CJRS
HMRC have published examples to help you calculate your employee's wages, National Insurance contributions and pension contributions if you are claiming through the CJRS.
Specifically the example for how to calculate the amount you should claim for an employee who is flexibly furloughed during June 2021 has been updated.
See: Find examples to help you calculate your employees' wages - GOV.UK (www.gov.uk)
Self-Employment Income Support Scheme (SEISS) update
SEISS fourth grant
Claims for the fourth grant have now closed. The last date for making a claim was 1 June 2021.
SEISS fifth grant
A fifth grant covering May 2021 to September 2021 will be open to claims from late July 2021.
The grant is taxable and will be paid out in a single instalment. Guidance for claiming the grant will be available by the end of June 2021.
To be eligible for the grant you must be a self-employed individual or a member of a partnership.
You must have traded in the tax years:
• 2019 to 2020 and submitted your tax return on or before 2 March 2021
• 2020 to 2021
You must either:
• be currently trading but are impacted by reduced demand due to coronavirus
• have been trading but are temporarily unable to do so due to coronavirus
To work out your eligibility for the fifth grant, HMRC will first look at your 2019 to 2020 Self-Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
If you’re not eligible based on your 2019 to 2020 tax return, HMRC will then look at the tax years 2016 to 2017, 2017 to 2018, 2018 to 2019 and 2019 to 2020.
You must declare that:
• you intend to continue to trade
• you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus from May 2021 to September 2021
You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.
How the fifth grant works
The amount of the fifth grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021. HMRC provide more information and support by the end of June 2021 to help you work out how your turnover was affected.
The amount of the grant
Turnover reduction How much you will get Maximum grant
30% or more 80% of 3 months’ average trading profits £7,500
less than 30% 30% of 3 months’ average trading profits £2,850
When can you claim the grant?
The online claims service for the fifth grant will be available from late July 2021.
If you are eligible based on your tax returns, HMRC will contact you in mid-July 2021 to give you a date that you can make your claim from.
See: Self-Employment Income Support Scheme fifth grant - GOV.UK (www.gov.uk)
VAT deferral – apply online by 21 June 2021
The VAT deferral new payment scheme is open for all businesses who deferred paying VAT due between 20 March and 30 June 2020 and were unable to pay in full by 31 March 2021.
If you apply to spread your payments between 20 May and 21 June you can pay in eight instalments.
21 June is the deadline for you to join this scheme.
You may be charged a 5% penalty and/or interest if you do not sign up to the VAT deferral scheme by the deadline of 21 June, or pay in full by 30 June, or get in touch with HMRC to make an alternative arrangement to pay by 30 June 2021.
See: Pay VAT deferred due to coronavirus (COVID-19) - GOV.UK (www.gov.uk)
Coming to the UK for seasonal agricultural work on English farms
Advice for seasonal agricultural workers coming to England to pick fruit and vegetables on farms, and their employers, has been updated with new guidance on travelling from a country or territory listed as red, amber or green.
See: Coming to the UK for seasonal agricultural work on English farms - GOV.UK (www.gov.uk)
Red, amber and green list rules for entering England
Countries rated as red, amber or green for Coronavirus (COVID-19) and the rules you must follow to enter England.
See: Red, amber and green list rules for entering England - GOV.UK (www.gov.uk)
The Rawcliffe & Co team is available via phone or email Monday to Thursday 9-5pm and 9 – 4:30pm on Fridays.
Tel: 01253 798812
Email: info@rawcliffeco.com