Defer your Self Assessment payment on account due to coronavirus UPDATE
Defer your Self Assessment payment on account due to coronavirus:
You had the option to defer your second payment on account if you were: registered in the UK for Self Assessment and finding it difficult to make that payment by 31 July 2020 due to the impact of coronavirus.
Check what you need to do if, after 31 July 2020, you chose to defer your second payment on account for the 2019 to 2020 tax year.
Job Retention Scheme Extended UPDATE
The Government announced the full furlough scheme is being extended until the end of March 2021, here is what you need to know:
- Main Extended CJRS Guidance
Some of the key points are
- You can claim for any employees who were employed on 30 October 2020, as long as you have made a PAYE RTI submission to HMRC between the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee
- You do not need to have previously claimed for an employee before the 30 October 2020 to claim for periods from 1 November 2020.
- Employers can furlough employees for any amount of time and any work pattern
- For periods from 1 November 2020, you will only need to pay for the cost of employer NICs and pension costs.
- There is no maximum number of employees you can claim for from 1 November 2020.
- Employees continue to maintain all their employment rights and accrue holiday pay as previously
- Check Which Employees Can Be Furloughed
There is separate guidance detailing how the employment status of workers impacts on a businesses ability to furlough them. Some of the key points here are:
- For employees on Fixed Term Contracts, if fixed term contract has not already expired, it can be extended or renewed for claim periods after 1 November 2020
- If the employee’s fixed term contract expired after 23 September, they can be re-employed and claimed for as long as the other relevant eligibility criteria are met.
- Apprentices can be furloughed in the same way as other employees and they can continue to train whilst on furlough.
- For claim periods after 1 November 2020, a new employer is eligible to claim in respect of employees of a previous business transferred if the TUPE or PAYE business succession rules apply to the change in ownership. The employees being claimed for should have been employed by their prior employer on or before 30 October 2020 and transferred from them to their new employer on or before 1 September 2020
- If you made employees redundant, or they stopped working for you on or after 23 September 2020 you can re-employ them and put them on furlough.
- The government is reviewing whether employers should be eligible to claim for employees serving contractual or statutory notice periods and will change the approach for claim periods starting on or after 1 December 2020, with further guidance published in late November.
- Calculate How Much You Can Claim
This is the online calculator that will help you determine how much you can claim. The key points here are:
For Employees on Fixed Pay
- the reference period is the last pay period ending on or before 19 March 2020 for employees who either:
- were on your payroll on 19 March 2020, that is you made a payment of earnings to them in the tax year 2019 to 2020 which was reported to HMRC on a Real Time Information (RTI) Full Payment Submission (FPS) on or before 19 March 2020
- you made a valid CJRS claim for in a claim period ending any time on or before 31 October 2020
- For all other employees, the reference period is the last pay period ending on or before 30 October 2020;
For Employees’ on Variable Pay
- who were on your payroll on 19 March 2020, you should calculate 80% of the higher of:
- the wages earned in the corresponding calendar period in the tax year 2019 to 2020
- the average wages payable in the tax year 2019 to 2020
- For all other employees’ you should calculate 80% of the average wages payable between 6 April 2020 (or, if later, the date the employment started) and the day before they are furloughed on or after 1 November 2020.
Once you have calculated how much you can claim, there is a separate online portal for making an application. The cut-off dates for claims are:
Claim for furlough days in
Claim must be submitted by
14 December 2020
14 January 2021
15 February 2021
15 March 2021
14 April 2021
New guidance on Job Retention Bonus UPDATE
November 2020 Update:
Due to the fact that the full furlough scheme has now been extended until the end of March 2021 the Job Retention Bonus will no longer be paid in February.
Test and Trace Support Payment Scheme UPDATE
Test and Trace Support Payment Scheme
The Government has published guidance on the Test and Trace Payment Support Scheme. People contacted through the Test and Trace system in England and told that they need to self-isolate are eligible for a £500 payment if they meet the following criteria:
• they’re employed or self-employed
• they’re unable to work from home and will lose income as a result of self-isolating
• they’re currently receiving at least one of the following:
• Universal Credit
• Working Tax Credit
• income-based Employment and Support Allowance
• income-based Jobseeker’s Allowance
• Income Support
• Housing Benefit
• Pension Credit
People in England who do not fulfil the above criteria for the Test and Trace Support Payment, could be eligible for a £500 discretionary payment if they meet the following criteria:
• they have been told to stay at home and self-isolate by NHS Test and Trace, either because you have tested positive for coronavirus or have recently been in close contact with someone who has tested positive
• they are employed or self-employed
• they are unable to work from home and will lose income as a result of self-isolating
• they are not currently receiving Universal Credit, Working Tax Credit, income-based Employment and Support Allowance, income-based Jobseeker’s Allowance, Income Support, Housing Benefit and/or Pension Credit
• they are on a low income and will face financial hardship as a result of not being able to work while you are self-isolating
What help is available for the self-employed? UPDATE
Self-Employment Income Support Scheme grant extension
Following the announcement of the four week national lockdown in England and the extension of the full furlough scheme the government announced an enhanced financial package for the self employed:
The UK Government has announced that the self employed grant is increasing to 80% of trading profits covering November to January for all parts of the UK. This provides equivalent support to the self-employed as we are providing to employees through the government contribution in the CJRS. It is calculated based on 80% of 3 months’ average trading profits, paid out in a single instalment and capped at £7,500.
• This is £7.3 billion of support to the self-employed through November to January alone, with a further grant to follow covering February to April. This comes on top of £13.7 billion of support for self-employed people so far, one of the most comprehensive and generous support packages for the self-employed anywhere in the world.
• Timing: HMRC will pay this more generous grant sooner than planned and in good time for Christmas – the window for claiming a grant will open on 30 November, two weeks earlier than previously announced.
• The Government has already announced that there will be a fourth SEISS grant covering February to April. The Government will set out further details, including the level, of the fourth grant in due course.
Updated 7 October 2020
The grant extension is for self-employed individuals who are currently eligible for the Self-Employment Income Support Scheme and are actively continuing to trade, but are facing reduced demand due to coronavirus (COVID-19).
Who can claim
To be eligible for the grant extension self-employed individuals, including members of partnerships, must:
currently be eligible for the the Self-Employment Income Support Scheme (although they do not have to have claimed the previous grants)
declare that they are currently actively trading and intend to continue to trade
declare that they are impacted by reduced demand due to coronavirus in the qualifying period (the qualifying period for the grant extension is between 1 November and the date of claim)
What the grant extension covers
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 until the end of January. 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.
HMRC are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.
The second grant will cover a three-month period from the start of February until the end of April. 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 Contributions.
How to claim
HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.
Where can I go for further information on the support available from Government?
The Government has launched a dedicated website with full details of the support available and more information on how to apply for each of the measures. Please click here to visit this website.
What grants are available?
Leisure, Hospitality and Retail Grants
Earlier this year the UK Government announced a series of grants for businesses based in England. For businesses in the retail, hospitality and leisure sectors with a rateable value up to and including £15,000 are entitled to receive a grant of £10,000 per property.
Businesses in the leisure and hospitality sectors with a rateable value of between £15,000 and £51,000 will be eligible to receive a grant of £25,000 per property.
The Government has published updated guidance on the application of the grants for the retail, leisure and hospitality sectors. British Marine has been working closely with Tourism Alliance to ensure that many of our members, although not mentioned in the guidance, are recognised by local authorities as eligible recipients which fall into the intended category and receive this relief.
We are pleased that following our work with Tourism Alliance, the Local Government Association has subsequently confirmed that marinas, boat hire and passenger facilities do fall into the intended category and should, in its view, be eligible for this relief.
British Marine would advise its members to contact their Local Authority if they are unsure on the classification of their business or would like further clarification.
Guidance issued by the Government to businesses on the grant eligibility can be found here.
For more information on the cash grant for businesses in the leisure, hospitality and retail sectors please click here.
Small Business Grant
The UK Government has also provided additional funding for local authorities to support small businesses that already pay little or no business rates. This is because these firms are either in receipt of small business rate relief (SBRR), rural rate relief (RRF) or tapered relief. Businesses must operate from premises.
This is a one-off cash grant of £10,000 to eligible businesses in England.
For more information on this grant, please click here. Please also contact your Local Authority for more information.
For our members based outside of England, please check the information from the Scottish Parliament, Welsh Government and Northern Ireland Executive. This is because some aspects of business support are devolved. More information can be found on our Coronavirus hub.
What help is the Government providing to employers to enable them to furlough staff and safeguard jobs?
The Government is taking additional measures to protect jobs through the Coronavirus Job Retention Scheme. This began in March.
Employers can claim a grant from HMRC to cover most of the wages of staff who are not working but are furloughed and kept on the company’s payroll system. Individuals on full-time, part-time, agency, flexible and zero-hours contracts are all eligible.
On 12 May the Chancellor extended the scheme until the end of October. Subsequent changes mean that from July staff will be able to return part-time and from August employers will be asked to pay a percentage towards the salaries of furloughed staff. The employer will be responsible for paying in work wages; however, they will be able to submit a claim under the scheme for usual employee hours not worked provided all other criteria is met.
mean that the following will apply for the period people are furloughed:
- June and July: The Government will pay 80% of wages up to a cap of £2,500 as well as National Insurance and pension contributions. Employers are not required to pay anything.
- August: The Government will pay 80% of wages up to a cap of £2,500. Employers will pay National Insurance and pension contributions.
- September: The Government will pay 70% of wages up to a cap of £2,187.50. Employers will continue to pay National Insurance and pension contributions and 10% of wages to make up the 80% total - up to a cap of £2,500.
- October: The Government will pay 60% of wages up to a cap of £1,875. Employers will pay National Insurance and contributions and 20% of wages to make up the 80% total - up to a cap of £2,500.
Our members should be aware that the scheme is closing to new entrants. The last date that an employer could have placed a new employee on furlough was 10 June. As of 1st July, the scheme will only be open to employers that have previously used the scheme.
Further information on the Coronavirus Job Retention Scheme, including details of how to apply and what information you require to make a claim can be found here. You can also use this calculator to help you work out the necessary employer contributions.
What funds are available to firms that are innovating at this time?
The UK continues to invest in highly innovative firms throughout the COVID-19 pandemic. The following measures have been announced to provide additional support.
The Government has established a ‘Future Fund’ for innovative companies which are facing financial difficulty following the COVID-19 outbreak.
Through this fund, the Government will provide loans to UK based companies, subject to at least equal match funding from private investors. These loans will range in value – from £125,000 to £5 million.
To be eligible, firms must have previously raised at least £250,00 in equity investment from third-party investors in the last 5 years. These loans may be applicable to companies which are ineligible for a Coronavirus Business Interruption Loan.
Our members should that, following an announcement by the Chancellor in September 2020, the application period has been extended for some of the loan schemes, including the Future Fund.
Further support package for SMEs which focus on R&D
The UK Government has also announced a financial package worth £750 million. This is being delivered in the form of grants and loans for SME’s which specialise in research and development.
More information on these schemes and details of how to apply can be found here.
I’m not eligible for most of the support announced by Government, can British Marine help?
British Marine is fully aware that some of the measures announced by the UK Government and the Devolved Administrations will not be available to all of its members.
We are absolutely committed to supporting our members throughout the COVID-19 outbreak and will continue to do all we can to ensure they receive the support they need.
Earlier this year we contacted a number of Government departments requesting urgent financial support for small and medium sized businesses in the leisure marine sector. We lobbied heavily to secure support for businesses ineligible for the tourism and hospitality grants, and we also requested assistance with fixed costs; including moorings and annual licenses.
For more information on our lobbying activities, and to get in touch with a member of the public affairs team, please visit our Coronavirus Hub.
Has VAT been reduced?
Yes, but only for the tourism and hospitality sectors. The reduction was announced by the Chancellor in July.
British Marine can advise its members that providers of holiday accommodation are eligible for this reduction. We can also confirm that houseboats are included as a form of holiday accommodation, as are holiday hire boats. VAT across eligible sectors was reduced from 20% to 5%.
The measure came into effect on 15 July and will now, following an announcement in September, end on 31 March 2021.
More information can be found here.
I’ve been refused a grant by my local authority, what should I do?
British Marine is aware that some of its members have been refused the Retail, Leisure and Hospitality grant by local authorities and others are finding it challenging to prove their entitlement.
We would advise our members to appeal any refusal if they are able to, and evidence the statement from the Local Government Association which says that, in its view, marinas, boat hire and passenger boat facilities should be eligible for these grants.
Where this is unsuccessful, we would advise our members to discuss their eligibility for the local authority Discretionary Fund with the council to see if a different form of grant could be obtained. Three types of grant are being offered through this scheme – £25,000, £10,000 and a discretionary figure below £10,000. These grants, each available through the separate discretionary scheme, are for businesses which do not qualify for the Retail, Leisure and Hospitality Grant or the Small Business Grant.
This scheme is designed for small businesses and those with relatively high ongoing fixed property-related costs.
Has the UK Government announced loans specifically for smaller businesses?
Yes. Earlier this year the UK Government announced a new ‘Bounce Back Loan’ for smaller businesses.
The scheme is designed to help small and medium-sized businesses by allowing them to borrow between £2,000 and £50,000. These loans include a 100% Government-backed guarantee.
Our members should note that the Chancellor of the Exchequer announced changes to the loan in September. British Marine can advise members that a new Pay as You Grow flexible repayment scheme is being introduced to provide greater flexibility for firms repaying a Bounce Back Loan. The changes include:
- Extending the length of the loan from six years to ten;
- Permitting interest-only periods of up to six months;
- Introducing payment holidays for businesses most in need
The Chancellor has also announced that the deadline for applying for a Bounce Back has now been extended until the end of November.
The loans are being delivered through a network of accredited lenders.
For information on these loans and details of how to apply can be found here.
I am applying for a loan which is less than £250,000 do I have to provide a personal guarantee?
No. Banks are prevented from asking for personal guarantees on loans under £250,000 through the Coronavirus Business Interruption Loan Scheme.
It is possible that banks may ask for guarantees for loans above this amount, however this will only be applied to the share of the loan which is not guaranteed by the Government. This means that any personal guarantee will be capped at 20% of the outstanding balance of the CBILS after the proceeds of business assets has been applied.
We can advise our members that your Principal Private Residence cannot be used as a form of personal guarantee. More information is available from the British Business Bank.
Have additional discretionary grants been announced?
Yes. Earlier this year the Business Secretary announced further funding for small businesses.
Local authorities may, through this scheme, provide three types of grant - £25,000, £10,000 or a figure under £10,000.
The additional grant funding is aimed at small businesses with ongoing fixed property-related costs. Funds will be allocated at the discretion of local authorities. More detail on the scheme, which applies in England, can be found here
was published to help local authorities deliver the discretionary grant. This guidance confirms that the additional fund is aimed at businesses which were not eligible for the Small Business Grant or the Retail, Leisure and Hospitality Grant.
British Marine would advise its members which found themselves ineligible for the other types of grants to contact their local authority to discuss their eligibility for discretionary funding.
Will I have to pay Business Rates?
The Government is introducing a business rates holiday for all businesses in the retail, hospitality and leisure businesses for the forthcoming tax year. This will apply to all businesses in those sectors and based in England. We understand that local authorities will contact eligible businesses directly to discuss the business rates holiday and any rebilling required.
Is my business classified as a Leisure Business / Does my business qualify for the Governments 12 month Business Rates Holiday?
The Rates relief is a billing authority (Local Authority) matter and not set by central Government.
Government guidance to Local Authorities outlines which properties will benefit from the relief. These include hereditaments mainly used:
a. as shops, restaurants, cafes, drinking establishments, cinemas and live music venues,
b. for assembly and leisure; or
c. as hotels, guest & boarding premises and self-catering accommodation.
Chandleries and boat showrooms would fall within the scope of shops.
The Government has published updated guidance on the application of business rates relief for the retail, leisure and hospitality sectors. British Marine has been working closely with Tourism Alliance to ensure that many of our members, although not mentioned in the guidance, are recognised by local authorities as eligible recipients which fall into the intended category and receive this relief.
We are pleased that following our work with Tourism Alliance, the Local Government Association has subsequently confirmed that marinas, boat hire and passenger facilities do fall into the intended category and should, in its view, be eligible for this relief. This advice applies in England and Wales.
British Marine would advise its members to contact their Local Authority if they are unsure on the classification of their business or would like further clarification.
I am a small boating business with no premises, and I don’t pay business rates. Do I qualify for any of the grants?
The UK Government has announced a package of grants for businesses in the leisure and hospitality sectors. These grants are intended for businesses which have premises and, under normal circumstances, would be required to pay Business Rates. Regrettably, businesses in these sectors which do not have premises (and therefore do not pay Business Rates) are ineligible for these grants.
British Marine recognises the importance of providing financial support to businesses in the industry which do not qualify for these grants. This is why we are lobbying Government to request specialist financial support for the industry, which takes into account the costs that our members do have to pay. More information can be found on our lobbying page.
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