Coronavirus/COVID-19 July 2020 update. There are some new deadlines and dates for our diaries. This update highlights some of the key measures that may now need your urgent attention.
On your bike!
The Fix Your Bike Voucher Scheme is aimed at getting old bicycles back on the road.
- Demand for this scheme has outstripped supply and the scheme's website was taken offline shortly after its launch by the Energy Saving Trust following high levels of interest.
- Mechanics and repairers can still register to participate in the scheme.
- See Fix you Bike Voucher Scheme
Employee Job Retention Scheme (JRS)
Deadline: 31 July 2020. This is the last day to make a claim for furloughed wages for periods ending on or before 30 June 2020.
The new furlough-work scheme applies from 1 July:
Employers now have the following options:
- Bring employees back to work and cease claiming under the JRS.
- Bring employees back part-time and claim under the JRS for furloughed hours. The Government pays 80% of workers’ furlough wages up to a cap of £2,500.
- Make employee redundant and in which case cease claiming under the JRS.
As an incentive to keep going, the government will now also pay a Job Retention Bonus of £1,000 per employee for each employee brought back from furlough and continuously employed to 31 January 2021. They must earn at least £520 per month on average between 1 November 2020 and 31 January 2021.
See Employee Job Retention Scheme (JRS)
Self-Employed Income Support Scheme (SEISS)
- Two separate taxable SEISS grants are claimable:
- First grant for the period ending 13 July 2020.
- Second grant for the period from 14 July 2020.
- The grant payable is the lower of:
- £7,500 (if claiming for the first grant) and 80% of your average trading profits.
- £6,570 (2nd grant) and 70% of your average trading profits.
HMRC's claims portal for the second grant opens in August 2020.
Claims for the second round of grants at the lower rate may be made from 17 August with a deadline of 19 October 2020.
See COVID-19: Self-Employment Income Support Scheme (SEISS)
Deferring Income Tax payments
Deadline: Income Tax payments on account for 2019/20 tax year under the Self Assessment system would normally due by 31 July 2020.
- The July 2020 payment may be deferred until 31 January 2021.
- This is an automatic offer with no applications required.
- No penalties or interest for late payment will be charged in the deferral period.
See COVID 19: Deferring Income Tax payments
CGT: Soft landing ending on penalties under a new 30-day reporting regime
- UK residents must, like non-residents, report Capital Gains on UK residential property within the new 30-day deadline from 1 August 2020.
See Change to new CGT reporting
New Grant funding for SMEs
- On 30 July 2020, the government has announced a new £20m grant scheme to help Small and Medium-sized Enterprises (SMEs) as part of their package of measures to support businesses during the COVID-19 pandemic.
- The funding will provide grants of between £1,000 and £5,000 to help eligible businesses in England access new equipment and technology as well as professional, legal, financial and any other specialist advice
See £20m in new grants for SMEs
VAT
- Businesses must remember to reinstate their direct debits in time for their first payment due date after 30 June 2020.
See Reminder: Reinstate your direct debits for VAT
Bounce back loan
- A scheme for small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
- The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
See COVID-19 Government Support Tracker
Business taxes: Time to Pay
- All businesses and self-employed people in financial distress and with outstanding tax liabilities may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.
For more measures
See COVID-19 Government Support Tracker and also our Finance Act 2020 Rolling Tracker and Planner.
Both of these track government measures to support individuals and businesses, as we get through COVID-19.