Two of our directors recently recorded a 4 minute video on what they feel you need to be prioritising right now and how best make sure your business bounces back.
Reinstate VAT Direct Debits
The deferral of VAT payments due to coronavirus comes to an end on 30 June and you may need to take action to reinstate your direct debit mandate.
The VAT payment deferral means that all UK VAT-registered businesses have the option to defer VAT payments due between 20 March and 30 June 2020 until 31 March 2021.
However, we are all reminding businesses that they need to take steps to reinstate their direct debit mandates so that they are in place in time for payments due in July 2020 onwards. Any outstanding returns should be filed, and three working days should be allowed to elapse before reinstating the direct debit mandate.
HMRC will issue guidance on the end of the VAT deferral period very soon but, to be effective, direct debit mandates usually need to be set up three working days before a VAT return is filed.
HMRC has confirmed that it will not collect the outstanding balance of deferred VAT when direct debit mandates are reinstated.
We cannot set up direct debit mandates on your behalf; you needs to set up the mandate through your business tax account.
HMRC has made the necessary systems change to avoid any deferred payments being taken prematurely for businesses in MTD for VAT.
Flexible Furloughing from July
We have previously outlined the announced changes to the Coronavirus Job Retention Scheme (CJRS) so this should just act as a reminder.
From 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.
This first change marks the gradual scaling back of the scheme before it closes in October. The key dates and changes are:
1 July – flexible furloughing introduced
1 August – NIC and Pension payments pass back to the employer
1 September – Government contribution drops to 70% (10% employer)
1 October – Government contribution drops to 60% (20% employer)
31 October – scheme closes
Changes to the Coronavirus Job Retention Scheme (gov.uk)
Worried about whether your business can cope?
Here’s what Ben and Neil had to say about the proactive support available to you from your accountant. Get your numbers working for you and plan ahead with confidence.