Bookkeeping Bites – Fancy a Big G Bonus?

Fancy a bonus? Yeah? Its a Job Retention Bonus to be precise, worth a thousand quid… Not to be sniffed at, non?

So….

WHAT is it all about ? 

💥 A one-off payment from Big G to EMPLOYERS that have used the furlough scheme

WILL ALL employers be able to get it? 

Nope. Unlikely. It is ONLY available to EMPLOYERS who have employees that:

💥 Earn at least £520 a month ON AVERAGE for November, December 2020 and January 2021

💥 Were furloughed and LEGITIMATELY claimed under the furlough scheme

💥 Are continuously employed until at least 31st January 2021

HOW will employers get their MITTS ON THE DOSH? 

💥Through a CLAIM to Big G from FEBRUARY 2021

BUT! Be warned, this is reliant on ACCURATE Real Time Information (RTI – the thing that happens when you tell Big G who you have 💷paid 💷, and what you have 💷 paid 💷them) being received on the 31st January 2021.

🤓 What do you think?
🤓 A good idea?
🤓 Will you be eligible?

Would love to hear your thoughts.

Stay safe everyone, we love ya! 😍😍😍

Bookkeeping Bites – ‘Eat Out to Help Out’

‘Eat Out to Help Out’ – Could this be the NEW Corona term to usurp our new favourite word ‘Furlough’???

Love it or loathe it, Big G has pulled out many stops in today’s announcement for the ‘2nd PHASE’ of support for businesses…… And the ‘Eat Out to Help Out’ scheme is just one of those….

The MAIN headlines for you EMPLOYERS:

💥 Did you furlough employees? Then bring them back to work + still employed at the end of January = £1000 JOBS RETENTION BONUS 🎁🎁

💥 ‘KICKSTART’ – wage assistance for all new 16 – 25 year old employees for employers who meet certain conditions (yet to be revealed my friend!)🙋‍♀️🙋‍♂️🙋‍♀️🙋‍♂️

💥 Traineeship and Apprenticeship initiatives from £1k to £2k….. 📝🛠⚖️☎️

The STUFF for us ALL as 💷 CONSUMERS 💷 and 🏠 HOME OWNERS 🏠:

💥 ‘Eat Out to Help Out’ 🥗 🥘🍝🍜🍲– up to 50% off per person, to a maximum of £10 per person, in all participating restaurants for August only…..

💥 For ‘Food (think eat in, hot food), Accommodation (y’know, your Faulty Towers and all that) and Attractions (Alton Towers – pukearama alert)’ a VAT reduction 👇👇from 20% to 5% from NEXT WEDNESDAY the 15th July to 12th January 2021

💥 NO STAMP DUTY 🚫🚫 up to £500,000, raised from £125,000 – WOWSERS!

💥 ‘Green Home Grants’ for insulating your properties

Cost? A total of £30 BILLION for these alone to, as Big G put it:

🤓🤓 PROTECT – SUPPORT – CREATE 🤓🤓

Watch this space people! I am off for a lay down 😂😂

Bookkeeping Bites – Pirate VAT is Back!

☠️☠️ Don’t let Pirate VAT cause a problem for you ☠️☠️ If you have a VAT payment due from the 1st July onwards, you need to COUGH UP!

The VAT deferral scheme, set up as part of Big G’s Corona Virus support, is now over. Yep, that’s right. Done. Finished. Concludio. Kaput. Ended.

🤓 Worried about not being able to pay the VAT you owe?

💥 Get ahead of the game NOW 💥Contact Big G and asked about a TIME TO PAY (TTP) arrangement 💥 Be proactive 💥Turn Up 💥 Start the conversation 💥

This article by the awesome AccountingWeb sums it up nicely, particular the first section on ‘Payment Support Services’:

https://www.accountingweb.co.uk/tax/business-tax/vat-holiday-payment-window-snaps-shut?utm_medium=email&utm_campaign=AWPOTW240620&utm_content=AWPOTW240620+CID_acdeaf8a223ac4abd9b0a86df1d077f2&utm_source=internal_cm&utm_term=Read%20more

Not sure you if you will have to pay?

🤓 Did your VAT quarter ended on 31st May? Yep?
🤓 You need to file your return by the 7th July
🤓 The usual Direct Debit is taken on the 12th July

💥 So, YES, that is YOU 💥 It is UP TO YOU to reinstate your Direct Debit 💥

(And Big G ain’t interested in any ‘Oooooooh, so sorry, thought you did that bit’ tomfoolery 🙈)

Hope this helps – don’t let ☠️ Pirate VAT ☠️ catch you out!

Stay safe everyone 😍😍😍😍😍

Bookkeeping Bites – The ‘USUAL HOURS’ Conundrum

Consider this……. Employee A, contracted to 40 hours a week, @ £500 a week, returns to work on FLEXI-FURLOUGH 20 hrs a week, doing 4 hrs a day.

For a four week month, you will pay for the 80 hrs they work, Big G will cover the 80 hrs they don’t work, via a claim for flexi-furlough.

🤓 Question: How much would each of you contribute to employee A’s monthly pay?

🤓 Did you say “You £1000, Big G £800 (80% of £1000)”?

NOPE. Wrong.

The correct answer is actually:

💥 YOU: £1000.00

💥 BIG G: £769.03

WHY? “USUAL HOURS” people “USUAL HOURS”!

“Usual Hours” is a new friend of furlough and is the basis of ALL flexi-furlough calculations……. And without calculating this correctly, it could lead to incorrect furlough claims being made…..

To see a Big G example in full flow, check 3.8 out in the link below:

https://www.gov.uk/government/publications/find-examples-to-help-you-work-out-80-of-your-employees-wages/examples-of-how-to-work-out-80-of-your-employees-wages-national-insurance-contributions-and-pension-contributions#min-pay-flexi

Don’t get caught out by YOUR USUAL!

Stay safe everyone 😍😍😍

Bookkeeping Bites – Minimum Wage & Furlough Pay

The new minimum wage for 2020 came into force on the 1st April 2020……..
Are YOU up to date? How does it work with furloughed staff?
 
The new National Minimum Wage (NMW) for over 25’s, from 1st April is 💥 £8.72 💥
 
See below for the details of all of the new NWM:
 
So, how does this work with furloughed staff?
 
Big G is clear on this, they state that:
 
🤓 “Furloughed workers who are not working can be paid the lower of 80% of their wages or £2,500 even if, based on their usual working hours, this would be below their appropriate minimum wage” 🤓
 
 
Basically, the 80% furlough pay does NOT need to be adjusted to reflect the new National Minimum Wage……
 
BUT! WATCH OUT!!! As soon as your staff:
 
🤓 Carry out any TRAINING on periods of furlough
 
🤓 Return to ANY working hours after their furlough period has ended
 
💥 they MUST be paid the appropriate hourly minimum wage amount 💥
 
Hope this helps, if this throws up any questions, just shout – always happy to help.
 
Stay safe everyone 😍😍😍

Bookkeeping Bites – What could make your FURLOUGH FRAUDULENT?

🧐 If employers ask their employees to work whilst they are furloughed 💥 FRAUDULENT! 💥

🧐 If employers make a furlough claim for an employee who isn’t furloughed? 💥 FRAUDULENT! 💥

🧐 If employers do not pay the amount claimed in the furlough claim to the employee? 💥 FRAUDULENT! 💥

So, who says? Well, Big G says, and this week there has been alot of gas about this.

Why? Well, what do you reckon?

How much actual FRAUDULENT FURLOUGH is going on out there?

As ‘accountingweb’ detailed in a recent article (link at the end of this showdown peeps 😍), a recent survey found that 34% (yes, you did read that right, 34% – one in three employees) have been asked to work whilst they were furloughed…..

💥💥 Come on BIG G! 💥💥 Crack the whip! Kick butt! Let’s FREAK these FURLOUGHING FRAUDSTERS out!! (there is ALOT of FFFFFFF’s in today blog 😂😂😂)

We hear ya! But! What is Big G planning to do about this?

PENALTIES. Simple, expensive penalties for this down-right dirty deed…..

🤓 Deliberate incorrect claim = PENALTY!

🤓 Failed to pay employee furlough claim = PENALTY!

And the penalty?

💷 💷 30 – 100% of the tax charge that claws back the grant, IF it is a VOLUNTARY “errm, ‘scuse me Big G, I might of made a mistake’ kind of thing

💷💷 50 – 100% of the tax charge if it is a NON-VOLUNTARY “Oh hello Big G, oh shucks, you found me out’ kind of thing

Over claimed by mistake in one of your furlough claims? Claimed for NI or Pension by mistake in one of your furlough claims? 💥 DO NOT WORRY!! 💥You can make an adjustment in your next claim so that this overpayment is ‘paid back’ (so to speak).

Stay safe people 😍😍😍

To read the ‘accountingweb’ article in full, click here:

https://www.accountingweb.co.uk/tax/hmrc-policy/cjrs-fraud-and-penalty-regime-explained?utm_medium=email&utm_campaign=AWTAX220620&utm_content=AWTAX220620+CID_9f8c868bb2ee455f69c5cebe0bf7ae66&utm_source=internal_cm&utm_term=Read%20more

Bookkeeping Bites – “To pay VAT, or not to pay VAT?” That IS the question!

So way back when all of this Corona Virus took hold, Big G announced a VAT support measure to businesses…

Basically, it was don’t bother sending us any dosh, for a certain period of time, we don’t want it (well, something along those lines anyway 😂).

Well, that DEAL IS OVER PEOPLE! Take note of why:

🤓 Deferral of VAT payments applied to any payments due between 20th March and 30th June

🤓 So, any VAT payments due AFTER the 30th June, you need to cough up

🤓 In VAT quarter terms, this means if your VAT quarter ended on the 31st May, you will have until the 7th July to file your submission, with the Direct Debit payment on the 12th July

🤓 12th July = AFTER 30th June, so yep, you do need to pay!

If you DID cancel your Direct Debit to take advantage of the VAT deferral……

💥💥YOU (yes, YOU) 💥💥

💥💥Need to reinstate your Direct Debit at least three working days before the next payment is due 💥💥

If you DIDN’T cancel your Direct Debit and paid as normal, then you, folks, have NADDA to do, just carry on as normal.

Think you are going to struggle to pay your VAT? Then contact HMRC and discuss whether the ‘TIME TO PAY (TTP)’ option is available for you.

For more information on the VAT deferral scheme, use the link below:

https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

Stay safe everyone 😍😍😍

 

Bookkeeping Bites – Who is Fran?

Who is Fran? Why is she Frantic-Fran at the moment? It is soooooo simple…

🤓 Fran KNOWS how to run her business – she is ON IT with making her product and SELLING IT, alllllll day long!

🧐 Fran is ALWAYS speaking with her UK customers for feedback and always speaking to her US based suppliers to ensure best quality… This is a 24 HOUR LIFE BABY!!!

What happens when you add 🤓 + 🧐 people?

= ABSOLUTELY NO TIME FOR ANYTHING ELSE!!

💥 Fran is now playing catch up with her 2019/20 tax return

💥 Fran is now FRANTICALLY-FRANICKING – where is her paperwork? Where are those receipts she put away?

💥 What Fran REALLY wants to do is just HAND THIS OVER… GET RID…. GET IT DONE…. (But not by Fran)

Here is what WE would say to Fran:

❤️❤️ “There is a simple solution to this little Fran-tastic-quandry, and it is US my dear….”❤️❤️

In the form of our NOW ONE-OFF support for sole traders like Fran, she can have last year’s bookkeeping and tax return SORTED….

And once that is done, she can move onto one of our IN TAX YEAR support packages, so that she KNOWS it is ALL TAKEN CARE OF….

Do you want stop chasing your tax return tail? Then why not drop us a line now?

Stay safe everyone 😍😍😍

Bookkeeping Bites – Who Cares When you Claim? Big G Does!

‘Ah, I am just going to do my claims for furlough pay another day, it doesn’t matter when I do it….’

💥💥 NOOOOOOOOOOOOOOOOO! STOP!💥💥

‘Oh, that claim for my self employment grant can wait, they will always pay out’

💥💥 NOOOOOOOOOOOOOOOOO! STOP! 💥💥

There are KEY DATES for every bit of financial support being offered by BIG G – and you NEED to KNOW THEM!!

🤓🤓 FOR YOUR FURLOUGHED EMPLOYEES 🤓🤓

💥 For all furloughs claims UP TO 30th JUNE…..

💥 FINAL DEADLINE TO CLAIM 31st JULY

(For furlough claims from 1st July, first time you will be able to claim for these is 14th July….)

🤓🤓 FOR CLAIMING UNDER THE SELF-EMPLOYED INCOME SUPPORT SCHEME 🤓🤓

💥 For ROUND ONE of this scheme –

💥 Claims CLOSE on 13th July

(for round two, claims will not open until August – date TBC)

Please DO NOT MISS OUT on any of this financial support because of a missed date……. Big G is UNLIKELY to wiggle for you if you do!!!

Stay safe everyone, shout if you need help 😍😍😍

Bookkeeping Bites – The NEW Furlough FACTS!

New shoots? Phone ☎️ ringing again? Emails pinging through once more? Is it time to RE-GROW your STAFF NUMBERS after Corona Virus?

Well, never fear, the new, all improved, singing and dancing Corona Virus Job Retention Scheme (CJRS) is here, and wow, it has just the bells and whistles you need!

Ok, Ok, perhaps not sparkly bells and whistles you want to ACTUALLY play with 🙈 BUT! The changes to the furlough scheme, due in on 1st July might just help you get your staff back on the front line, where you need them, when business starts again….

WHY? Well, here’s the thing:

🤓 From 1st July, you can start to bring your furloughed employees back on a PART-TIME basis

🤓 Big G will pay for part of the days your staff can’t work

🤓 You pay for the days they do work…

🤓 Simples? No? And a super help if you are looking for that stepping stone back before bringing staff in full time again

What IS the catch? Well, none really, OTHER THAN:

🧐 For any staff to be eligible for this, they MUST have been previously furloughed for a minimum of THREE WEEKS BY the 30th June….

(BTW, that is kinda why we were harping on about the 10th June deadline last week 😊)

What about……?

🤓 Big G will CONTINUE to cover 80% of your furloughed staff’s wages AND your NI and pension contributions for JULY

🤓 In August, Big G still pays the 80% but YOU pay your NI and pension contributions (sounds fair to us)

🤓 In September, Big G will pay 70% and YOU will pay the remaining 10% of your furloughed staff wages… NI and pensions still down to you…

🤓 In October, Big G will pay 60%, you 20% and you are still covering the NI and pensions

After October? Nada, nowt, nitch, nil – this scheme will close on the 31st October…….

If you want to find out more, then check out this link here:

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Watch this space TOMORROW for a run down of the all important DATES to do with furloughing AND the self-employed income support scheme!

Stay safe everyone 😍😍😍