November 25, 2020
There have been many changes that the government has been forced to make in light of the Covid 19 pandemic. In fact, the severity and the infectiousness has been disarming as one can see by the frequently changing government policy. On one hand the government was preparing for businesses to get back to some semblance of economic normality, and on the other, we find that a full-scale lockdown has been deemed prudent in light of the possibility of 4000 more cases a day. Due to this the government has had to make several modifications to schemes. For instance, the Wage Subsidy Scheme no longer figures. The Job Support Scheme (JSS) that was scheduled to start on 1st November 2020 has now been pushed to December 2020. The Furlough scheme [under the auspices of the Coronavirus Job Retention Scheme (CJRS)] that was to end on 31st October 2020 has received its second extension coincidentally on 31st October 2020.
For employers all these changes are very difficult to cope with as the calculations of wages and taxes changes and then one has to consider the fact that there has been no relaxation given to payroll related reporting. Thus, many employers find themselves considering employing a tax advisor or an accounting firm to look after these loose ends. Doshi Accounting deals not only with payroll related services (furlough claims, compliance checks and etc.) but also caters to accounting, bookkeeping, VAT and tax services. Many small business owners are unsure as whether being a small business merits them for accountancy services, after all, why bother? But with the changes to the legislation, being compliant has become increasingly more difficult for everyone. The HMRC has also launched compliance checks to see if furlough claims have been properly made with penalties starting from £500 for claims they consider fraudulent.
The New Winter Measures – What Aid You Can Expect from the Government
The Coronavirus Job Retention Scheme-
Thus, the total employment costs will only be 5% which is very much less than the 1/3rd wage cost that had been earlier proposed in the former draft of the Job Support Scheme. Also, employers can choose to top-up the employee’s wages on a voluntary basis as per their discretion. Flexible furlough though is much more challenging to calculate. Doshi Accounting does file furlough claims and in case of any CJRS Compliance Check from the HMRC, it does assist its clients with the same. The HMRC after all, only wants to confirm if the right amount has been claimed. If you have been filing the claims yourself and would like an expert’s opinion you could always connect to us as we are happy to assist.
The Job Support Scheme
For the self-employed (and other relief measures)
Holidays towards paying those hefty mortgage payments are to continue in light of the new restrictions. If you are yet to take one you can avail a six-month mortgage holiday. For those who have already taken one they can avail a further six months without it adversely affecting their credit score.
Grants have been offered starting from £667(bi-weekly) to £3,000 per month depending on what the rateable value of the property is.
Thus, with all these changes employers are finding it difficult as to how to work out the taxes and payments to liable to their staff while individuals are getting confused as to how much to pay in self-assessment. Doshi Accountants can assist you in navigating in this complex web of changes and compliances.