COVID-19 Business Support
Self-Employment Income Support Scheme
The 4th grant is now available to be claimed by those who are eligible. The deadline for all applications is the 1st of June 2021.
To be eligible you must:
- You must have traded in both the 2019-20 and 2020-2021 tax years.
- Be a self-employed individual or a member of a partnership. So, you cannot claim the grant if you trade through a limited company or a trust.
- Be currently trading but are impacted by reduced demand OR, have been trading but are temporarily unable to do so due to COVID-19.
- You need to declare that you intend to continue trading.
- Have reason to believe that there is a significant reduction in your trading profits between 1st February 2021 and 30th April 2021. Evidence must be kept as proof.
There are some circumstances that will affect your eligibility. Please follow this link for more information.
You will receive 80% of three months’ average trading profits, paid as a single taxable instalment but this is capped at £7,500.
Details to note for SEISS
If you have made an amendment to your tax return on/after 3rd March 2021, your grant eligibility may be affected. You have 90 days to tell HMRC if this is the case.
When deciding whether the reduction in trade is significant, you will need to consider your wider business circumstances.
For more information, please visit SEISS Gov Page.
Coronavirus Job Protection Scheme (Furlough)
Claims for May are now open. You must claim for May by the 14th June 2021.
Eligible employees must NOT do any work for the hours that you are claiming furlough for them. If your employee is furloughed, you need to have confirmed this with them in writing. If they are flexibly furloughed, you must agree with them what hours they will work.
Employers must continue paying employees taxes and pension contributions.
Changes to the furlough scheme
As of July 2021, there will be a reduction to the amount that you can claim. The employee will still receive 80% of their wages, but the employer will now need to contribute to this amount.
- July 2021 – Gov. contribution = 70%, Employer = 10%
- August 2021 – Gov. contribution = 60%, Employer = 20%
- September 2021 – Gov. contribution =60%, Employer = 20%
The scheme is set to end in September 2021.
VAT Deferral Scheme
The new payment scheme for VAT deferral is now open for all business who deferred VAT due between 20th March 2020 and 30th June 2020.
You can apply to spread these payments out. If you join by 19th May 2021, you can spread your payments over 9 instalments. After the 19th of May to the 21st of June, you have the option to spread them over 8 monthly instalments.
The deadline to join this scheme is 21st June 2021. If you miss this deadline and have not paid in full by 30th June 2021, you may be subject to a 5% penalty and/or interest.
For more information on this scheme, follow this link.
Working from home tax relief
If you haven’t already done so, you can claim here for tax relief if you have been working from home. As a result of working from home, either full or part time, the government has recognised that you will have incurred additional costs, such as a rise in your heating bill.
You can now claim for periods up to 5th April 2022. If you complete a Self Assessment tax return, you will need to claim this as working from home expenses on the employment income pages on your tax return.
If you needed to buy equipment for work, you may also be able to claim tax relief on this. Find out more here.
At Big Hand, we offer our business expertise to those who need it. From accounting queries to doing tax the right way, we can handle all of your requests. To find out more – or simply just pick our brains – get in touch on 0161 327 2911.