Companies House 3-month Extension to File Accounts
If your accounts will be late because your company is affected by COVID-19, you can apply for an immediate 3-month extension to file your accounts. This will be applied automatically.
It is important to note that your filing deadline cannot have passed for your company to apply for this. Also, any companies that have already extended their filing deadline, or shortened their accounting reference period, may not be eligible for an extension.
If you would like us to extend your filing deadline with Companies House, please let us know.
Small Business Grant Funding
Some local authorities have now began sending out forms requesting further information from businesses occupying premises which qualify for the small business rate relief.
You should complete and send these forms back as soon as possible to ensure there is no delay in receiving your grant.
Coronavirus Job Retention Scheme
Although the online service has not yet been set up to enable employers to make a claim, there has been some further information regarding furloughing employees and the funding available.
Employers can use a portal to claim for 80% of furloughed employees’ usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage.
The scheme will also cover employees who were made redundant since 28th February 2020, if they are re-hired by their employer.
Which Employees are Eligible for Furlough Claims?
To be eligible for the subsidy, an employee can not undertake work for or on behalf of the organisation whilst on furlough. This includes providing services or generating revenue. The wage payable will be subject to usual income tax and other deductions.
If an employee is working, but on reduced hours, or for reduced pay, they will not be eligible for this scheme and you will have to continue to pay the employee through payroll as normal.
To be eligible for the subsidy employers should write to their employee confirming that they have been furloughed and keep a record of this communication.
Employees hired after 28th February 2020 cannot be furloughed or claimed for, neither can employees placed on unpaid leave before 28th February 2020.
What Happens if an Employee is on SSP During Coronavirus?
If your employee is on sick leave or self-isolating, they should receive Statutory Sick Pay, but can be furloughed after this. Employees who are shielding in line with public health guidance can be placed on furlough.
If an employee is on or due to begin Maternity Leva, Paternity Leave, Shared Parental Pay or Contractual Adoption Pay, then they will continue to be entitled to statutory pay at the usual rates. If, however you offer enhanced pay, this is included as wage costs that you can claim through the scheme.
Working out what you can claim
Fees, commission and bonuses should not be included when calculating how much can be claimed.
Employers can opt to top up their employees’ salaries whilst on furlough but are not obliged to.
Full time and part time employees
For full time and part time salaried employees. The employee’s actual gross salary as of 28th February 2020 should be used to calculate the 80%.
Employees whose pay varies
If the employee has been employed for a full twelve months prior to the claim, you can claim for the higher of either:
The same month’s earnings from the previous year
Average monthly earnings from the 2019-20 tax year
If the employee has been employed for less than a year, you can claim for an average of their monthly earnings since they started work.
Should you require any assistance with either calculating the 80% due to employees, or applying for the scheme through the portal, please do not hesitate to contact us.
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 are a full-service accountancy practise in Colchester, Essex. If we manage your accounts for you, rest assured that we are on hand to work through your grant funding claims, and incorporate changes to your payroll as we go.
Should you need advice or support about managing your payroll, claiming for grants or keeping in control of your finances during lockdown, please give us a call!