November 2020 News Update – featuring additional news developments from our newsletter series

The Coronavirus Job Retention Scheme has been extended until March 2020, which sees employees receiving 80% of their current salary for hours not worked, plus further economic support announced. The Chancellor announced that businesses across the UK will be provided with additional financial support due to the government‘s latest plan for the next phase of its response to the coronavirus outbreak. This extension to the Coronavirus Job Retention Scheme (CJRS) also known as the Furlough Scheme was announced a few hours before it was due to end and make way for the Job Support Scheme. The Job Support Scheme, which was scheduled to begin on Sunday 1st November, has been postponed now, until the Furlough Scheme ends, with the amount of 80% , subject to review in January. 

This month the government has increased the amount of funds available to self employed workers still being affected by Coronavirus, via the Self Employment Income Support Scheme (SEISS). To reflect the recent changes to the furlough scheme, the UK-wide SEISS has been made more generous – with self-employed individuals receiving 80% of their average trading profits for November, raised from the expected 40% that was originally announced. Additionally, to ensure those who need support get it as soon as possible, payments will also be made more quickly with the claims window being brought forward from 14 December to 30 November.

As our valued clients are aware, Prestige Business Management has been collecting a donation of £25 for small furlough applications that we process, and up to £200 for larger claims. Most of our amazing clients agreed to this donation, during such a hard time for everyone, thank you so much! This has raised a grand total of £2,725 so far for our designated charity Bikers Against Child Abuse. We have come to the difficult decision, that during November we ask that all of our furlough applicants commit to this donation. This is in recognition of the lengthy processing time for us, from calculating to submitting with HMRC. We have contacted everyone by email whom this directly affects. Thank you for your understanding and ongoing business and support. We all deserve a socially distanced pat on the back. 

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What You Missed From Our Blog – Summary

Furlough Scheme Extended and Further Economic Support Announced 

The Coronavirus Job Retention Scheme has been extended for a month with employees receiving 80% of their current salary for hours not worked and further economic support announced. This extension to the Coronavirus Job Retention Scheme (CJRS) also known as the Furlough Scheme was announced a few hours before it was due to end and make way for the Job Support Scheme. The Job Support Scheme, which was scheduled to begin on Sunday 1st November, has been postponed now, until the Furlough Scheme ends. Under the extended scheme, the cost for employees of retaining workers will be reduced compared to the scheme which has just ended. Business premises forced to close are to receive grants worth up to £3000 per month under the Local Restrictions Support Act. £1.1bn is being given to Local Authorities. For homeowners, mortgage holidays have also been extended. The current Furlough Scheme will end in December, when England comes out of lockdown, the government says. Regions will then be classed into tears as before, based on the coronavirus risk level, and the Job Support Scheme will kick in as planned. Michael Gove says it is his “fervent hope” that England’s new lockdown will end on 2 December – but that ministers will be “guided by the facts”. Click here to read more. You can read the Chancellor’s guidelines in full here.

Enhanced Self-Employment Payment Plan 

Last month the Chancellor announced that HM revenue and customs (HMRC) will allow self-employed workers more flexibility to pay their personal self-assessment tax bills with an enhanced self-employed payment plan known as time to pay.

A time to pay arrangement with HMRC is a debt repayment plan for self-employed workers outstanding taxes. Recently HMRC announced an increase in the threshold for paying tax liabilities from £10,000-£30,000 for self-assessment customers. The aim is to help ease potential financial burden due to the ongoing COVID-19 pandemic.

As part of the Government’s package of support for business and self-employed workers, the deadline for any self assessment tax payment due by 31 July 2020 was deferred until 31 January 2021. Self-employed tax payers do not have to contact HMRC and will not have to pay a penalty and they can settle their deferred July 2020 payment on account in full any time between now and 31 January 2021 using the online service.

Anyone unable to pay in full by 31 January 2021 can pay in instalments by applying for a time to pay arrangement. HMRC advises anyone able to do so, to file their tax return as early as possible, so the amount of tax can be calculated. That will allow those eligible to apply for a Time to Pay instalment plan. Click here to read more.

Enhanced Capital Gains Tax Raid

Throughout the pandemic outbreak of COVID-19 during 2020 there has been much speculation around how HM government will manage the soaring deficit.

Unprecedented government spending to combat the coronavirus has sent the accumulated borrowing for the first five months of the fiscal year to almost £174bn. The highest level for the period since the office for National statistics records began in 1993 and overtakes the total borrowed in an entire year at the peak of the financial crisis. Britain’s national debt rose above £2tn, Or more than 100% of GDP, as spending has sought and tax receipts have collapsed dramatically.

A recent government review urges a major overhaul of Capital Gains Tax in an effort to raise revenue. The Office for Tax Simplification (OTS) report commissioned by Rishi Sunak said that cutting exemptions and doubling rates on capital gains tax could raise £14 billion for the Treasury. Recommendations include a ‘tax raid’ on buy to let properties and other forms of wealth. Click here to read more.

To find out more visit our website – https://www.prestigebm.co.uk/

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