Coronavirus Job Retention Scheme
All UK employers will be able to access support to continue paying part of their employees’ salary for employees who would have otherwise been laid off due to Covid-19.
All businesses are eligible for this. To access the scheme you will need to:
- Designate affected employees as ‘furloughed workers’ and notify them of this change. This change of status may be subject to negotiation, depending on the employment contract.
- Submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal.
HMRC will reimburse 80% of furloughed workers wage costs with an upper limit of £2,500 per month. There is currently no system in place to facilitate payments to employers, we will update you with further information once we receive this.
We will be able to assist you with submitting this information through the portal once it is up and running. Please contact us if you will require this service.
VAT and Income Tax Payments
VAT payments due to HMRC as at 20th March 2020 have now been deferred until 30th June 2020. All UK businesses are eligible for this. It will be an automatic process, with no applications required. VAT refunds will be paid by the government as normal.
The self-assessment payments due by 31st July 2020 will now be deferred until 31st January 2021. As long as you are self-employed, you will be eligible. Again, this is an automatic offer, no applications are required. There will be no penalties or interest charged in the deferral period.
We will endeavour to keep you updated as changes to this information are announced.
If you have any queries regarding this information, please do not hesitate to contact us. SAS Accounting can help you manage your accounts virtually, provide a remote payroll function, and help make applications to any funding schemes that you are eligible to apply for.