Self Employed Income Support (SEISS) Grant Closure & VAT News
As last week, the Smarter Accounting Offices have been staffed and several clients have dropped off and collected records. The safety and well being of our staff and clients remain our priority and things will continue this way for the time being. If you are dropping off or collecting records, please notify us in advance. We will continue to review things as things change. Meanwhile, we take this opportunity to update you on some news and clarification as follows:
- Furlough Scheme – From July the furlough scheme will allow part-time or flexible furlough. There are a few things to bear in mind:
- Only employees who have been furloughed for a minimum of 3 weeks prior to the end of June can be furloughed i.e. the scheme is closed to new employees
- The minimum furlough period of 3 weeks is no longer a requirement
- The calculation for part-time furlough is not straight forward and ‘usual’ working hours must be calculated, together with actual hours worked. Records will need to be kept on these calculations. If you are thinking of using a part-time furlough, please ensure you have these details and discuss with us
- Part-time furlough constitutes a further change to employee’s contracts and therefore new written agreements are needed
- Self Employed Income Support Grant (SEISS) –
- 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
- Reinstating your VAT Direct Debit
- As we said last week, any businesses that have cancelled their VAT Direct Debit should now re-instate these. We are now hearing from HMRC that the paper Direct Debit mandate is no longer being accepted (although still showing on their website!). To set up a new Direct Debit it must be done through a Business Tax Account. If you do not already have one then setting up a new one for VAT is straight forward, but please get in touch if you are having problems. Late payment of VAT can incur large penalties!
- Cut in VAT Rates – There are lots of rumours circulating that the Chancellor is considering a temporary reduction in the current VAT rate of 20% in order to encourage consumer spending. We are keeping an eye on the situation and will update you when anything is announced
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!