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CJRS Changes and Bonus, Phase 2 SEISS Funding and more…

11th August 2020 | Written by In Accountancy | Categories : CoronaVirus, Limited Companies, News, Small Business Advice, Sole Traders, Tax Advice
CJRS Changes and Bonus, Phase 2 SEISS Funding and more…

It’s a while since I’ve written, so I thought it might be time to bring you up to date with some of the changes coming up, particularly in relation to the Coronavirus Job Retention Scheme (CJRS) and the second round of Self Employed Income Support (SEISS) grants.

Scroll down if you would like to jump to this information.

But first, I promised to introduce you to some more of our business clients who have been doing good over the last few months…

The Funky Monkey Coffee Company  

https://www.facebook.com/funkymonkeycoffeeco/?fref=ts

Heather, Marcus and the team have been beavering away since they took the very difficult decision to shut up shop in Davenport and furlough all of their employees at the beginning of lockdown.

Always on the lookout for a silver lining or a way to help others, Heather quickly launched a crowdfunding page and she and the team brought on board other local businesses to work together to supply literally thousands of free meals delivered to local hospitals, carers, key workers, The Christie to name but a few.

They really are a small business with a HUGE heart, at the heart of their local community and working tirelessly to do good, as well as supply the most amazing coffees and food.

They’re back open, with a new look take away hatch and outdoor seating as well as plenty of space indoors, and would love to welcome you there – whether that be to participate in the Eat Out to Help Out scheme and grab yourself a bargain brunch, or for Friday Night pizzas and cocktails, you can be sure of fun, laughter and good vibes.

Instilled 

www.instilled.co.uk

A Stockport based specialist WordPress and Branding agency, Sue and Inness of Instilled have been seen out and about as lockdown eased, holding their board meetings outside at iconic Stockport venues… be it in front of Bramhall Hall, Stockport Town Hall, the Market Hall, the train station or even under umbrellas by the Pyramid, they have brought a smile to many a face.

Rightly proud of their home town, they also used this time when the streets were quiet to build a photo library of free to download images which can be used in any presentations or websites, in their words ‘to show those poor souls who don’t live or work here what a great place it is’. They even partnered with local charity Supportability https://www.supportability.org.uk  so that anyone wishing to make a contribution for their use of the photographs could do so and give a little back.

If you are interested in using, or even just viewing the photo library, you can access it here: 

 https://instilled.co.uk/resources/

The Cheshire Bakehouse

https://www.thecheshirebakehouse.co.uk

The Cheshire Bakehouse have been selling their wares at local food markets for a couple of years now, and were just starting to establish their reputation as a fabulous artisan baker with their range of hand crafted savoury pastry rolls with a very modern twist.

Then Covid-19 happened, and all markets ceased to trade…

Thankfully the Makers Market http://www.themakersmarket.co.uk quickly set up a home delivery service and so the Cheshire Bakehouse have been able to continue to supply their loyal customers directly to their homes and places of business.

In fact, they have been doing so well that they are now on the lookout for premises or shared space from which to bake their produce and supply their customers, and Susan is hoping to get her home kitchen and oven back!!

We were lucky enough to have some samples delivered to the office, and I can say with absolute authority that they were fabulous!!

Conronavirus Job Retention Scheme Update

Just a reminder of changes to what you can claim via the CJRS in coming months

August 2020

Claims for the month of July must be made by 31 August 2020.

For claims for the month of August, Employers can no longer claim for Employer’s National Insurance Contributions or Employer’s Pension Contributions

Flexible furlough remains in place and claims for the month of August must be made before 30 September 2020.

September 2020

Claims for the month of August must be made by 30 September 2020.

For claims for the month of September, Employers can only claim up to 70% of the employees’ wages for the period during which they are furloughed. 

You must make these wages up to 80%, and pay your employees’ NICs and pension contributions. You are not required to make up to 100%. 

Flexible furlough remains in place and claims for the month of September must be made before 31 October 2020.

October 2020

Claims for the month of  September must be made by 31 October 2020.

For claims for the month of October, employers can only claim up to 60% of the employees’ wages for the period during which they are furloughed. 

You must make these wages up to 80%, and pay your employees’ NICs and pension contributions. You are not required to make up to 100%. 

Flexible furlough remains in place and claims for the month of August must be made before 30 September 2020.

November 2020

Claims for the month of October must be made by 31 November 2020, at which point the scheme will close.

Job Retention Scheme Bonus (JRSB)

Eligibility criteria have now been released regarding who can claim the Government’s Job Retention Bonus payment of £1,000 per furloughed employee, and how to process that claim.

Which Employers are eligible?

  • All employers
    • Including recruitment companies and Umbrella Agencies
    • Including ‘new’ employers where employees have been transfers under TUPE or business succession regulations before 31 October 2020
  • Employers MUST have filed and paid PAYE accurately to be eligible
  • For employees who have at one stage been furloughed, and a successful claim for furlough funds has been made by the employer

Which employees are eligible?

  • All employees including office holders, company directors and agency workers who:
    • Have been placed on furlough and had a successful claim processed
    • Been continuously employed since the most recent claim and until at least 31 January 2020
    • Been paid at least £520 per month average between 31 November 2020 and 31 January 2021 (with relevant earnings processed in each month)
    • Have up to date RTI (Real Time Information) for the full period
    • NOT be serving a notice perios which started before 1 February 2021

How and when to make a claim

  • This will be done in a similar way as you have made your CJRS claims to date, namely via the www.gov.uk website and your tax account
  • It can be done after you have filed your PAYE for January 2021
  • Payments will be made to employers from February 2021

Please remember to keep all records relating to any claims you may have made to date.

Self Employed Income Support (SEISS) Grants – Phase 2

As I am sure you are aware, the SEISS has been extended for a second round of funding.

This may apply to you under the following circumstances:

  • If you were eligible for the first grant
  • If you can confirm that your business has still been adversely affected ON OR AFTER 14 JULY 2020

This round of funding will be calculated at 70% of your average monthly trading profits, covering three months’ worth, paid out in a single instalment and capped at £6,750 total.

So long as you are eligible, you can make a claim for this second grant even if you didn’t claim for the first grant.

As with the first grant, you may continue to work while claiming the grant, and the grant itself will be treated as taxable income.

This will be the final round of SEISS grant funding and claims must be made ON OR BEFORE 19 OCTOBER 2020, at which point the scheme will close.

If you have any questions, please do not hesitate to contact either myself (Sarah) or any of the IN Accountancy Team, who will be happy to help.