Smarter Business Blog – Grant & VAT Deferral NEWS

This week the Smarter Accounting Offices have been staffed and several clients have dropped off and collected records. Things will continue this way for the time being. Please if you are dropping off or collecting records, notify us in advance. We will continue to review things as things change.  We would also like to take this opportunity to update you on some clarification and other items of news:

• Furlough Scheme – Last week we promised to update you on the part-time furlough scheme. However, things look a little complicated in this area and we are seeking clarification on some points and will include details in next week’s Business Blog.
• Self Employed Income Support Grant –
  • URGENT Reminder: The first round of this grant will close on the 13 July. If you have not yet made your application, then make sure you do it by 13 July. If you are unsure if you qualify then click on the link below to check >
    • Eligibility Checker
  • Second Grant: As per previous blogs, the Government have announced a second grant and have now released details of this grant
    • The first grant was for a three-month period and was paid at 80% of your last 3 years taxable profits, capped at a maximum of £7,500. This second grant will be paid at 70%, capped at a maximum of £6,570
    • To make a claim your business must be adversely affected on or after 14 July. The 14 July date is clearly very important and anyone making a claim should consider the gov.uk examples of adversely affected:
      • You are unable to work because
        • you are shielding
        • are self-isolating
        • are on sick leave because of Coronavirus
        • have caring responsibilities because of Coronavirus
      • You have had to scale down or temporarily stop trading because >
        • your supply has been interrupted
        • you have fewer or no customers or clients
        • your staff are unable to come in to work
    • You can claim the second grant even if you did not claim the first grant
    • Claims will open in August. We are yet to be notified of the actual date
• Deferral of VAT Payments
  • The scheme to defer VAT payments comes to an end on 30 June. This means that any VAT payments due after 30 June need to be paid on the normal dates i.e. Quarterly / Monthly vat returns ending May are due for payment on 7 July and are not eligible for deferral
  • Any VAT payments previously deferred must be paid by 31 March 2021. We are still awaiting HMRC guidance on how these payments should be made and will advise accordingly once we know
  • Importantly any businesses that have cancelled their VAT Direct Debit should now re-instate these. With Making Tax Digital this process has become more difficult and there are 2 options to reinstate your DD. Please note, our advice is that paying VAT by Direct Debit is the easiest way to manage VAT payments. It allows a few more days to pay and should ensure that you never receive nasty VAT late payment penalties. However, act now to ensure that your Direct Debit is set up in time and in place at least 3 working days before the vat return is submitted
    • If you have your own Government Gateway ID for VAT, then the DD can be set up electronically within the system
    • Manually complete and post a Direct Debit Mandate. Link to form below
      • VAT Direct Debit Mandate

If you want to discuss any issues, or have queries, please don’t hesitate to call, or email us.  Just a reminder that we provide more regular updates via Facebook, therefore, if you want the latest news then like and follow our Facebook page.

Best wishes and stay safe!