Now that the economies around the world are opening up slowly with an effort to fight the pandemic and the financial meltdown, a lot of measures are being taken by the states to counter the fallout of the lockdown.
New steps are taken and businesses and austerity measures in the form of financial push in and other measures are being taken. The UK is no exception. The government has been taking certain steps to bring in the economy back to track. Here on this page, we discuss in short, a few such steps.
Expansion of Job Support Scheme to Help Firms facing closures…
Rishi Sunak, the Chancellor of the Exchequer has made an announcement of a new Job Support Scheme (JSS) in place of the Coronavirus Job Retention Scheme (CJRS), which will be put into effect from 1st November 2020. The new scheme has been particularly designed and expanded for protecting jobs and supporting businesses that were getting perilously close to closure, due to the COVID-19 restrictions. This new scheme is supposed to run alongside the JSS and will be in effect for 6 months. The austerity measures will be made in arrears, through an HMRC claim service, which will be available from December. Thus, it is the responsibility of the accountants in Reading who are being hired by various businesses, to help them make the most of this new scheme.
What does it mean?
Minimum work: For enjoying a rebate on an employee’s pay under this scheme, the workers will have to work at least 33% of their normal working hours and should NOT be under redundancy notice. This minimum threshold eligibility will come into effect for the initial three months of the scheme, following which the government will decide whether to extend it. Thus, the employers will have the option of cycling their employees on and off the scheme and they do not have to maintain the same pattern of duty or working hours every month. However, every short-time working arrangement has to cover at least seven days, as a minimum coverage period.
Contribution for the unworked hours: For every hour that is not worked, the Employee as well as the government will have to pay one third of the usual pay of the worker, and the government contribution will have to be £697.92 every month. In other words, the employees can receive at least 77% of their pays, wherein the government contribution is not capped. The grant, thereby will not cover the NI or pension contribution of the Class 1 employers, though these contributions will remain payable by the employers.
The Closure of the Coronavirus Job Retention Scheme (CJRS)
The decision to close down the Coronavirus Job Retention Scheme (CJRS) has left the business fraternity in a dilemma. However, the truth is that there is simply nothing to be worried about. The CJRS was originally designed and incorporated for encouraging the employers, to furlough their staff, rather than firing them. The scheme is set to expire on and from 31st October 2020. Thus, if you run a business and if you have plans to get its benefit, you must take your final claim before 20th November 2020 for the periods ending before 31st October for avoiding possible penalties.
Moreover, in case you have overclaimed any grant, you must notify the HMRC (Her Majesty’s Revenues and Customs) about it, using the steps that are notified under the scheme.
Self-assessment taxpayers are being offered extra 12 months for payment
This is another measure that the government is rolling out for the benefit of the taxpayers, wherein those in self-assessment get the option of spreading their payments over 12 months. Indeed, the self-assessors, who were finding it difficult to pay, could postpone their payment on account for July 2020 till 31st January 2021 because of this pandemic. However, the scope of this liberty has been extended further for those who were required to pay up to £30,000. Those individuals who qualify for this scheme will have the option of using the ‘Time to Pay’ service of HMRC, for payment throughout another 12 months. However, for that, the taxpayers need to discuss in detail about the formalities with HMRC, in regards to their assets and the reason behind their failure to pay on time. Thus, it is the responsibility of the tax advisors in Arborfield to discuss things with the HMRC, at the behest of their clients. Here is where the experience of these tax advisors comes into play. And here is why you need to hire a company that is reputed and experienced. What better name can you opt for than Biz Accounting Solutions Ltd for this? To summon, call us at 44 7877224964 or 01183 671854 during our office hours.