Latest update coming shortly.
As we are now 10 weeks post lockdown, we are all getting used to a new normal. McGinty Demack commenced working from home from 17th March. This involved adopting new methods of working. Now we are planning our gradual return to the office. Please find our Covid 19 support update.
Working from home for us, like many of our clients who have been able to carry on working has been difficult, and at times challenging. We have all had to adapt to new ways of working, new environments and new technology. We have also had to quickly learn about all the new rules and regulations. Equally important is understanding the help available. So we have been focused on being best placed to help our clients on this. Our clients who have been forced to close have received some support from the government. In most cases, even if very limited, support is through Universal Credit. However, they will in due course face the difficult task of re-opening with new rules and regulations to deal with.
Our Employees Perspective
Christine our payroll expert has given us her personal insight into the challenges she faced………..
“It was a request from the government to work from home if possible and therefore one I accepted even though it is not for me and has proved to be stressful and mentally challenging.
Clients have been on the whole understanding and very grateful for the help and advice offered to them. I have had many emails thanking me which is what makes my job worthwhile.
I feel we have helped each other through these unprecedented times. Dealing with the JRS and calculating furlough pay has also proved to be a challenge with many updates from HMRC and the calculations can be complex.
The processing of the claim to HMRC is relatively straight forward when you have all the information together. The main thing to be aware of is that the claim period must not overlap and therefore sometimes many calculations must be performed and then added together before the claim can be submitted.”
Business Support Available
As a practice we have done our bit to help clients through this difficult time. We are making no charge for the furlough claims we have done and submitted. We passionately want to help them survive this crisis.
The Self Employed grants have been slightly easier to navigate round. But we have seen some clients who have fallen between the cracks. This is because of business changes. In this instance they have been unable to obtain any support other than Universal Credit.
The Business Grants paid by the council have in the main been distributed and the councils do have some funding still available for Businesses that did not meet the criteria, these are more difficult to obtain and a business has to show that it has suffered hardship due to the COVID position – if you feel you meet this criteria then it is worth making an application to your local council.
The SE Scheme and the Furlough scheme (CJRS) have also been extended and new flexible arrangements have been introduced on the CJRS see our summary below
Please remember any money received is taxable and will need to be declared in your next accounts after the date you received the money.
Below is our Covid 19 support update
Self-Employed Income Support Scheme
The Chancellor recently announced updates to the furlough scheme.
- The self-employed income support scheme has been extended to a second and final grant for the 3 x months ending 31 August 2020. This will be paid in August 2020.
- It will only cover 70% of average monthly trading profits whereas the first grant covered 80%.
- We expect the claims process to be like the first time around.
- 30% of the self-employed who are eligible for the grant still haven’t claimed it, let us know if you’re struggling with yours.
Furlough Scheme Changes
From 01 August 2020 the government are going to start reducing the amount of financial support they are paying to businesses with furloughed staff.
https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme
Further details on the changes will be published on mid June 2020.
Summary
- The furlough scheme has been extended to 31 October 2020.
- You can bring back furloughed staff part time from 01 July 2020. You’ll only pay for the hours that they work in the business.
- You must put an agreement in writing to access the part time hours furlough scheme.
- Detailed guidance will be issued on 12 June 2020.
- The furlough scheme is closing for new entrants on 30 June 2020.
- Anyone who wants to be on the scheme after that date must have been furloughed for at least 3 weeks prior to 30 June 2020, which would make the 10 June 2020 the cut-off date for furloughing your staff if you want to make a claim.
- A claim for these employees must be made on or before 31 July 2020.
- From 01 August 2020, government payments will start to reduce. They will no longer pay employers NI & employers pension, which you will need to cover.
- From 01 September 2020, the government will pay 70% of wages up to a cap of £2,187.50, with employers paying 10% up to a total pay of £2,500.
- From 01 October 2020, the government will pay 60% of wages up to a cap of £1,875, with employers paying 20% up to a total pay of £2,500.
So, please be very aware of the 10 June 2020 cut-off date, although it is very unlikely if you have not furloughed someone already you will need to now.
If you know anyone who you feel may benefit from this Covid 19 support update then please share it with them. For more information download our information brochure
For further information or help please email: info@mcgintydemack.co.uk or call: 01942322767
