COVID-19 Update 20th April

COVID - 19 an update on government help

20 Apr 2020
Sophie Kwiatkowski
A 10 minute read
by Sophie Kwiatkowski

And just like that, we reach another Monday.

We hope that you and your families are all keeping safe and well still, and are ready for another 3 weeks of lockdown!

As the lockdown extension is announced, some of you may have additional concerns about your financial stability over the upcoming months. If this is the case, please let us know, as between the accountancy and financial advice teams, we should be able to help.

So, what new announcements have we had this week?

1. Employers

This week HMRC announced some further details on the Job Retention Scheme. The main change was that HMRC have extended the date from which employees needed to be registered on the payroll scheme from. This has changed from 28th February to 19th March. Employees can also now be placed on furlough if they were on PAYE payroll on/ before 19th March 2020, and where HMRC was notified of them on an RTI submission on/before 19th March 2020.

Making a Claim

The portal is set to go live on 20th April. Below is some of the information that has been released to aid putting forward a claim:

• Where employers have less than 100 furloughed staff, they will be required to enter the details of each employee they are claiming for directly into the system. The information required will be name, National Insurance number, claim period and amount and the payroll/employee number (optional).

• All records and calculations should be kept in respect of the claims.

• Agents who are authorised to act for their clients for PAYE purposes will be able to make claims on their behalf, but file only agents won’t. Agents will also need the details of the bank accounts that employers would like the grant to be paid into.

2. NHS contracts

The NHS released their 4th preparedness letter to practice owners. This didn’t contain much new information, and was merely confirming some of the items that had been announced in the previous week. Just as a recap:

• Contract holders wishing to claim against additional government support schemes should ensure this is in relation to their proportion of private revenue only.

• Practices will be expected to declare that they have not applied for any duplicative government funding and provide evidence of the proportions of NHS/private income used in any applications for additional support.

2019/20 contract reconciliation

o Practices may agree with their commissioner to use the following activity from the Compass system as the basis for 2019/20 contract reconciliation:

a) 11 months April 2019 to February 2020 plus

b) in agreement with commissioners, an additional month that may be one of:

• March 2019 (default)

• March 2020 or

• average UDA delivery over an appropriate three-month period in 2019/20 agreed with their commissioner.

• Any clawback repayments relating to contract year 2019/20 may be payable over the financial year, with full balance payable by 31 March 2021.

3. Self-employment government grant

A reminder that if for any reason you did not file your 2019 return on time, you have until 23rd April to ensure this is submitted to make you potentially eligible for the grant.

This week HMRC released clarification as to how they will be working out if you are eligible for their self-employment grant. The link below explains in detail how HMRC will be working out the figures. In short, as we have been advising our clients, the profit from self-employment from your tax calculation is the most appropriate figure to use.

Click here for info on how HMRC will be working out the self-employed grant figures

As always, we are here to help, so please just get in contact with a member of the team. Keep safe, and we wish you all a lovely week. Let’s hope it stays sunny!