Despite tough external conditions KPB Monarch has moved swiftly, to invest thousands of pounds securing GDPR compliant measures allowing remote working and the seamless continuation of our services. In brief Angela is available for Corporation Tax and Self-Assessment enquiries on 07791831356, Beverley is available for PAYE, NEST and Companies House compliance issues on 07483348325, Nicola and Lauren will be available through our office number 01788550176 to answer all admin issues, bank transfer payments and data processing. With these measures in place, can we ask that clients do not attempt to visit the office for the foreseeable future; however we can assure all our clients that support during this period will be stronger that ever, with a guiding hand through forthcoming legislation, as and when it is revealed.
COVID-19 and GOVERNMENT INTERVENTIONS.
The principle repository containing the very latest legislation for business is to be found here:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Copy, paste, or follow the link, it will take you to the latest provisions for business.
Armed with a Distinction in “Advanced Taxation” from Coventry University. I will pick through some issues not clear from the government website for the benefit of clients.
- The definition of “Furloughed” is exact; derived from the Military term which is the direct antitheses of AWOL, the one absent with permission for a varied unknown time but with the security of engagement upon return, the other is absent without permission with the assurance of reprimand and no security of further engagement! With this in mind do not confuse what the legislation refers to; a worker should be an employee, registered with your PAYE Scheme, hold a contract of employment, the 80% should not exceed £2,500.00 per calendar month, finally the worker must be on your payroll as of the 28th February’s RTI FPS filing.
- There remains confusion over the exact application of the deferral of VAT liability, the government website states the deferral should be from the 20th March 2020 to the 30th June 2020, it doesn’t complete the statement with the provision that payments due from filings within this period will be deferred until April 5th 2021. HMRC refer to the 2020/2021 tax period, with an understanding of it being the strict fiscal period I shall attempt to clarify this for the benefit of all our VAT registered clients. Can I underline HMRC’s statement as to “DD’s”, they will not/can’t, stop DD’s authorised by you for the extraction of money, you must cancel any DD held with HMRC VAT immediately, as it will automatically trigger payment from you Bank.
- “Tax on Account” due as a liability on your Self-Assessment return of April 5th 2019, and payable on 31st July 2020 will now be deferred until 31st January 2021.
- SSP normally difficult to reconcile via HMRC, will be streamlined, issuing payments within 14 days of returns being submitted, however as the information (to trigger this payment) is received through an FPS, at month end, they have not indicated yet, how this will work in practice. I will investigate the eventual rolling out of the provision for swift payments for all our clients as and when it is available.
- Interruption Loans are to be administered by The British Business Bank and will be provided by the top 40 providers, be very wary of these. With the government offering to underwrite 80% of the loan secured, they will be very attractive to the loan industry and may be aggressively sold.
- Interruption Loans, Corporate Finance Facilities, Loans and Grants must be viewed with a forensic eye, all loans need to be repaid, all loans will require adequate supervision of eligibility and all third party providers will want a return on capital, to include the government. The only safe assured provision remains the Grant (if available to you) this will not carry a repayment clause and should be for the development, extension, expansion and continuation of viable business, this being reward enough for the government and the British Economy.
