August 2020

If you're self-employed or a member of a partnership and your business has been adversely affected by Coronavirus (COVID-19), on or after 14 July 2020, use this scheme if you're eligible to claim the grant. You must make your claim for the second grant on or before 19 October 2020. Claims for the first grant are now closed.

Who can claim

You can make a claim even if you did not make a claim for the first grant if your business has been adversely affected on or after 14 July 2020.

You must also meet all other eligibility criteria.

You should not claim the grant if you’re a limited company or operating a trade through a trust.

What you will need

You will need your:

• Self Assessment Unique Taxpayer Reference (UTR) – if you do not have this find out how to get your lost UTR
• National Insurance number – if you do not have this find out how to get your lost National Insurance number
• Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
• UK bank details (only provide bank account details where a Bacs payment can be accepted) including:
  • bank account number
  • sort code
  • name on the account
  • your address linked to your bank account

You must make the claim yourself. You must not ask a tax agent or adviser to claim on your behalf as this will trigger a fraud alert, which will delay your payment.

Please click here for further information or click here to start your claim.

Small businesses with turnover below £150,000 may join the VAT flat rate scheme which makes their VAT accounting much simpler as they merely pay HMRC a percentage of their VAT inclusive turnover.

The temporary reduction in the rate of VAT from 20% to 5% reduces the flat rate percentages for affected businesses as set out:

Note that to use the flat rate percentage for pubs the turnover must be predominantly “wet sales”.

There has been a lot of speculation in the Press that the Chancellor may introduce radical changes to capital gains tax to start to repay the substantial Government borrowings to support businesses and employees affected by the coronavirus pandemic.

It has been suggested that the current £12,300 CGT annual exemption will be reduced and the rates aligned with the rates of income tax. It has also been suggested that the capital gains uplift on death may be abolished following recommendations by the Office of Tax Simplification and the House of Commons Treasury Select Committee.

The Treasury Committee has recently launched a new inquiry called ‘Tax after coronavirus’. That inquiry will consider different ways of raising taxes, in particular a thorough review of UK tax reliefs which has also been recommended by the Public Accounts Committee.

The Chancellor has also hinted that there may be radical changes to the way that the self-employed and directors of family companies may be taxed in future.

Bringing your employees back from furlough is not a straightforward process.

As furloughed employees begin to return to work, business owners and managers need to consider both the practical and emotional aspects of returning to “normal”. The impact of the Covid-19 pandemic has been unprecedented. After several weeks of lockdown and social distancing, some employees may be fearful of commuting or sharing an office space with other people. Others may be living with a vulnerable or high-risk individual.

Managers need to talk to their team members before they return to work to understand their personal situation and to allay any concerns. The key to successfully returning furloughed employees to work is listening to them and communicating with them.

Action plans should be put in place before furloughed employees return to work. Employees should be engaged and the management team should involve them in creating plans to get everyone back up and running in the new normal. Return to work plans should include practical aspects such as how social distancing can continue to be observed as well as logistical and operational requirements.

Employers should also check any agreements they have with trade unions or employee representatives, to see if they need to enter into any formal consultation.

In some cases, employees may not want to return to work because they are worried about catching Coronavirus or perhaps they have issues around childcare etc.

If this happens, take the time to listen to the concerns of the particular employee(s) and take reasonable steps such as offering flexible working arrangements or agreeing some temporary leave if the individual(s) are unable to work for a period of time.

If the employee(s) still do not want to go back to work, they may be able to take some time off as holiday or unpaid leave, although the employer doesn’t have to agree to this. Guidance on how to manage this type of situation is freely available on www.acas.org.uk.  

Returning to work after furlough is going to be a sensitive time for everyone involved. Employees are likely to be nervous but if managers take the right steps and communicate regularly with their teams, things should go smoothly.