On 1 August, the government’s Eat Out to Help Out scheme began operating at eateries across the country.
The scheme was announced by Chancellor Rishi Sunak in his Summer Economic Update. It provides a 50% reduction of up to £10, for sit-down meals in participating cafes, restaurants and pubs across the UK from Monday to Wednesday every week throughout August 2020.
Those establishments taking part in the scheme will display stickers and posters in their windows. Diners can take advantage of the offer as many times as they like during the month and do not need to present a voucher.
Chancellor of the Exchequer Rishi Sunak said:
‘Our Eat Out to Help Out scheme’s number one aim is to help protect the jobs of 1.8 million chefs, waiters and restaurateurs by boosting demand and getting customers through the door.
‘More than 72,000 establishments will be serving discounted meals across the country, with the government paying half the bill. The industry is a vital ingredient to our economy and it’s been hit hard by coronavirus, so enjoy summer safely by showing your favourite places your support – we’ll pay half.’
On 21 July, the Treasury set out the next steps in its plan to extend Making Tax Digital (MTD) to all businesses and those taxpayers that file self assessment returns.
Currently, businesses above the VAT threshold of £85,000 are required to comply with Making Tax Digital for VAT (MTD for VAT).
From April 2022, the initiative will be extended to all VAT-registered businesses including those with turnover below the VAT threshold. From April 2023 MTD will apply to taxpayers who file income tax self-assessment tax returns for business or property income over £10,000 annually.
According to the Treasury, the MTD changes will affect the way that taxes are reported, not the level of tax that is collected. They will help to minimise avoidable mistakes, which cost the exchequer £8.5 billion in 2018/19.
Jesse Norman, Financial Secretary to the Treasury, said:
‘We are setting out our next steps on MTD . . . as we bring the UK’s tax system into the 21st century.
‘MTD will make it easier for businesses to keep on top of their tax affairs. But it also has huge potential to improve the productivity of our economy, and its resilience in times of crisis.’
The government has published a call for evidence on the overhaul of the business rates system that applies in England.
The government announced at the 2020 Budget in March that it would conduct a review of the business rates system in England. It is seeking views from businesses, business representative organisations, local authorities, rating agents, others involved in the operation of the system and anyone interested in the business rates or wider tax system.
The call for evidence seeks views on how the business rates system currently works, issues to be addressed, ideas for change and a number of alternative taxes.
The government stated that it welcomes views on the multiplier and reliefs sections of the call for evidence by 18 September 2020, to inform an interim report in the autumn.
HMRC has outlined the eligibility requirements for the Job Retention Bonus (JRB) that follows the furlough scheme as part of the government’s measures to support the economy through the COVID-19 lockdown.
The government’s Coronavirus Job Retention Scheme ends on 31 October 2020 and the JRB aims to provide additional support to employers who keep on their furloughed employees in meaningful employment.
The JRB is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021. Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. Employers will be able to claim the JRB after they have filed PAYE for January and payments will be made to employers from February 2021.
All employers are eligible for the scheme including recruitment agencies and umbrella companies. They should ensure that they have complied with their obligations to pay and file PAYE accurately and on time under the Real Time Information (RTI) reporting system, maintained enrolment for PAYE online and have a UK bank account.
Employers will be able to claim for employees who were furloughed and had a Coronavirus Job Retention Scheme claim submitted for them that meets all relevant eligibility criteria for the scheme.
They must have up-to-date RTI records for the period to the end of January and not be serving a contractual or statutory notice period, that started before 1 February 2021, for the employer making a claim.
HMRC will publish further details about this process before the end of September 2020.
Are you One of the 3.4 million Self-employed individuals eligible for the Income support scheme? Learn about the Covid-19 Self-Employed Income Support Update the Second Installment. The facts.
Did you know?
As at 30th June 2020 75% have made claims totaling £7.4 billion. Construction Workers claimed £3.1 billion of this.
Construction Industry planning progress with Making Tax Digital
The Self Employed grant scheme (SEISS) has been extended. If you were eligible for the first grant and can confirm to HMRC that your business has been adversely affected on or after 14 July 2020, you’ll be able to make a claim for a second and final grant from 17 August 2020.
The scheme allows you to claim a second and final taxable grant worth 70% of your average monthly trading profits, paid out in a single installment covering 3 months’ worth of profits, and capped at £6,570 in total.
As with the first grant HMRC will contact you if you’re eligible. They will work out your eligibility for the second grant in the same way as the first grant.
You can make a claim for the second grant if you’re eligible, even if you did not make a claim for the first grant.
How the grant works
If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work. The grant does not need to be repaid but will be subject to Income Tax and National Insurance and will form part of the Income of your next set of accounts.
Who can claim?
You can claim if you’re a self-employed individual or a member of a partnership and your business has been adversely affected on or after 14 July 2020.
Your business could be adversely affected by coronavirus if, for example:
having caring responsibilities because of corona virus
you’ve had to scale down, temporarily stop trading or incurred additional costs because:
your supply chain has been interrupted
you have fewer or no customers or clients
your staff are unable to come in to work
one or more of your contracts have been cancelled
you had to buy protective equipment so you could trade following social distancing rules
We recommend that you keep evidence to confirm your business was adversely affected at the time you made your claim.
All of the following must also apply. You have:
traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
traded in the tax year 2019 to 2020
intended to continue to trade in the tax year 2020 to 2021
carried on a trade which has been adversely affected by coronavirus
You cannot claim the grant if you trade through a limited company or a trust.
You must make the claim yourself. We as your agent or adviser cannot claim on your behalf as this will trigger a fraud alert, and you will have to contact HMRC. This will cause a significant delay to you receiving your payment.
Deadline Date Eligibility
There is a deadline for claims being made. To claim the second and final grant you must claim on or before 19 October 2020.
and to claim you’ll need your:
Government Gateway user ID and password. If you do not have a user ID, you can create one when you make your claim
UK bank details (only provide bank account details where a Bacs payment can be accepted) including:
bank account number
sort code
name on the account
your address linked to your bank account
You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus on or after 14 July 2020.
How much will you get?
The second and final grant is worth 70% of your average monthly trading profits, paid out in a single installment covering 3 months’ worth of profits, and capped at £6,570 in total. The online service from HMRC will tell you how your grant is worked out. HMRC will calculate the grant amount which will be paid directly into your bank account, in one installment. The online service is not available yet. If you’re eligible you’ll be able to make a claim for a second and final grant from 17 August 2020.
