Coronvirus Update - Wednesday 20th May 2020

Hello everyone

Happy Wednesday… does the week seem to be flashing by for you too?

I have to say I’m looking forward to Nicola Sturgeon’s statement tomorrow – just to see what’s going to happen next.

A couple of updates today.

Okay – statring with support for smaller house builders.

Liquidity Support for SME House Builders

I have to say I hadn’t spotted this one before but I came across a gov.scot webpage today (which was published 7^th May) with details of loan support for smaller house builders.  Smaller is defined as:

·         A non-public organisation

·         Complete five or more homes in Scotland per year

·         Annual turnover of less than £45M

·         Financially viable before COVID-19

·         Can’t get funds from banks or own cash

·         Have tried to get funds from Scottish and UK governments or other COVID-19 schemes before applying

These are loans… but here are the highlights:

·         loans of between £50,000 to £1 million, which will normally be limited to a maximum of 25% of annual turnover

·         fixed interest rates of 2% per annum

·         flexible repayment terms, with the option for capital and interest payments to be offset for 12 months – the majority of loans are expected to be repaid within 24 months

To apply it’s an email to the Scottish Government – I’ve added a link below.  Scroll down the page a bit and there’s a list of information needed to apply and an email address to send your applications to.

Here’s the link:

https://www.gov.scot/publications/coronavirus-covid-19-liquidity-support-sme-housebuilders/

Pivotal Enterprise Resilience Fund and Creative, Tourism and Hospitality Fund

Applications for these grants have now closed.

Applications are being reviewed right now and emails (apparently) have already started going out with one of three responses: accepted, rejected or more information needed.

Responses should be out to you if you applied within ten days of your application and it’s not first come, first served.  The success of applications is based on needs, not how fast the application was submitted.

If your application has been successful you only get three days to accept the offer of funding so keep an eye on your emails!  By the way, if you are successful in winning a grant you might get offered less than you applied for.

Finally, on the webpage I’ve been reading there doesn’t appear to be an appeals procedure but (a little bizarrely I thought) there is a complaints process.

To read more detail about all of this you can have a look at this page:

https://findbusinesssupport.gov.scot/coronavirus-advice/further-information-on-your-application

Opening up offices again

Of course we don’t know what Nicola Sturgeon is going to say on Thursday yet but I guess there will be some news about plans to get everyone back to work whether it’s this week, next week or sometime in the future.

We’re just thinking about a couple of things relating to our office… we’re lucky in that we have a big space and we can spread our team out – we just need to think about making sure we have the office wired properly, tape on the floor and the right PPE available…

By the way, the government has zero rated (effectively removed VAT) from PPE equipment relating to COVID-19 protection.  The zero rating covers the period 1^st May to 31^st July 2020.  If you sell PPE and need help setting up your bookkeeping system for zero rated supplies, let me know and I’ll sort.

If you are in a similar situation where you have to make physical changes to your office or workspace let me now and I can put you in touch with one of our clients who can help.

Second point: we’ve remained fully functional (albeit spread across the Lothians, Edinburgh and Fife) and that remains the case. 

If you’d like us to get started on your tax return and can give us your records electronically just email them to me – or give me access to DropBox.  If you have records in paper format and want to drop them off at the office you can put through the letter box or if too big we can arrange a drop off – just get in touch and we’ll arrange a time just for you so you can leave the records with us whilst staying a safe distance.

That’s it for today.

Enjoy the weather (if you can) and we’ll see you very soon.

Rowena

Coronavirus Update - Monday 18th May

Hello, hello…

Apologies for the lateness of today’s email… I had one or two other things crop up this morning!

A couple of them were even non-Coronavirus related; a reminder that other life is still going on.

Okay, there are a couple things that I need to report to you today.  Perhaps a little bit obscure but nevertheless important.

Let’s start with Statutory Sick Pay…

Statutory Sick Pay

There has been a temporary change to Statutory Sick Pay (SSP)… at least in relation to Coronavirus.

In the good old days before Coronavirus (i.e. before 13^th March 2020) SSP used to kick after four days off sick and was claimed by an employer via their National insurance contributions.

There’s been an awful lot more sickness… or if not sickness per se then self-isolation and shielding so the government made a temporary change to the SSP rules.

Although there’s a bit more to it the essentials are these.  SSP can be claimed from the first day of sickness and for up to two weeks will be covered.  But!  The sickness must be Coronavirus related.  Specifically:

·         The employee needs to have or have had Coronavirus symptoms

·         Or be self isolating because someone they live with has symptoms

·         Or they have been shielding – with a letter from their GP or the NHS to confirm

Because HMRC is anticipating a lot of claims they’ve built – or more accurately are still building – a new portal.  It’s almost ready and we’ll be making claims soon… latest info is that the new online portal will be ready by 26^th May.

In the meantime if you want to read more about SSP (and who wouldn’t?) you can read it here:

https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19

If you have an SSP claim to make we’ll be out to you soon with details of how it’s going to work.

Self Employed Coronavirus Income Protection Scheme

It has to be said that mostly the claims process has been very smooth.

However, we’re getting a few questions about how HMRC are calculating the grant amount.  Unfortunately, if you were self employed for only part of a year HMRC is averaging profits across that whole year which has an impact on the grant amount… let me show you how that works:

Let’s say you made £25,000 profit in the tax year 2018/19 but became self employed in February 2018 – so you had £5,000 profit for that period.

Logically you might think that you’d been self employed for fourteen months (two months in 17/18 and twelve months in 18/19) so that would be the period HMRC would average your profit over.  In this case it would be: £30,000/14 = £2,142.86 average monthly profits.

But what actually happens is this…

HMRC takes your total profit from self employment over the period you’ve been self employed and simply divides by the number of years… so same scenario as above: £30,000/24 = £1,250 average monthly profit.

The difference in grant is a fair amount.

There is an appeals process with HMRC for both the amounts and whether someone is eligible at all.  As yet we’ve no feedback on whether appeals are being entertained or whether HMRC’s attitude is simply ‘them’s the rules’.

We’ll keep you posted on that one.

Bounce Back Loans

Just a real quickie on this one to finish today’s email.

After initially getting some very positive reports in terms of the speed loans were being processed and money was coming through there now seem to be a few delays.

I think this is because in the first few days people were thinking about the loans and not wanting to take on extra borrowing… however, now that lockdown has extended reality is striking home and more people are deciding to take on the Bounce Back Loan.

So, if you are thinking about applying for a loan give yourself a bit of time between applying and needing the money to come through.

Okay, that’s it for today – stay safe out there and hopefully we can catch up soon… I was just listening to the news on the radio (whilst writing this) and it seems as though the Scottish Government is going to announce how the lockdown is going to be slowly eased on Thursday.

Rowena

Temporary Changes to Statutory Sick Pay

Statutory Sick Pay

There has been a temporary change to Statutory Sick Pay (SSP)… at least in relation to Coronavirus.

In the good old days before Coronavirus (i.e. before 13^th March 2020) SSP used to kick after four days off sick and was claimed by an employer via their National insurance contributions.

There’s been an awful lot more sickness… or if not sickness per se then self-isolation and shielding so the government made a temporary change to the SSP rules.

Although there’s a bit more to it the essentials are these.  SSP can be claimed from the first day of sickness and for up to two weeks will be covered.  But!  The sickness must be Coronavirus related.  Specifically:

·         The employee needs to have or have had Coronavirus symptoms

·         Or be self isolating because someone they live with has symptoms

·         Or they have been shielding – with a letter from their GP or the NHS to confirm

Because HMRC is anticipating a lot of claims they’ve built – or more accurately are still building – a new portal.  It’s almost ready and we’ll be making claims soon… latest info is that the new online portal will be ready by 26^th May.

In the meantime if you want to read more about SSP (and who wouldn’t?) you can read it here:

https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19

If you have an SSP claim to make we’ll be out to you soon with details of how it’s going to work.

Top 5 Tips For Successful Home Working

Some of us are used to working from home but for others the Coronavirus crisis is providing them with their first opportunity for a new way of working.

Working from home often seems like a great idea but it can be tricky to stay focused and remain productive... and after all, being productive is very, very important to everyone - to business owners who want to survive, to team members who want to keep their jobs and to society in general which has to continue to function after the crisis is over.

So here are our top five tips to make working from home a success.


Get up, get dressed, get out

Humans love routine.

We set our alarms for the same time everyday (we then snooze them for the same number of times), we do the same things every morning.  We even take the same journey to work every day.

It may seem very tempting to roll out of bed a bit later and fetch up in front of the PC still in pyjamas.

Try to avoid this.  

Set your alarm for the same time and try to follow your morning routine as closely as possible.  Of course, you won't be commuting to work but leave the house for a walk at the same time.

Psychologically by following the same routine you will be preparing yourself for work.

Separate work from home

If possible have a separate place in your home so you can 'go to work'.

When you are 'at work' be in your workplace.  When you are on your lunch break or at the end of the day switch off your PC and leave work.  Close the door on your work space.

If possible, at the end of the day, go for a walk.

This will give you the psychological separation which will allow your mind to switch off from work.

There will be distractions

Being at home you will be surrounded by things you like doing.  Watching TV, playing on a games console or checking out social media.

Make it hard (or at least harder) to get distracted: lock away the things that might stop you being productive.  Put the games console away and unplug the TV... sign out from social media.

Allow yourself a time when you will indulge yourself - but stick to the time and then get back to your work space.

Finally, set some rules with family members - for example, if the door's closed, don't come in, I'm working!

Stay connected

In these times when we are being asked to self isolate we do tend to focus on the word 'isolate'.

I know it's obvious but the isolation in this case is physical.  There are lots of ways to stay connected to the rest of your colleagues.

Don't be shy when you need to speak with someone; pick up the 'phone to your boss or even schedule a video call.  Zoom is a brilliant free app that allows you to have a 'meeting' with more than one person at a time.

Schedule in calls with your boss, too, so you can go over the work you have done and what you are still to do - set yourself goals and share them - and share the results too!

Stay out of the kitchen

One of the the things that people say when they first move out of an office into a home work space is they were shocked about the number of visits they made to the fridge.

It is very easy to graze, especially when you get distracted.

If you think you'll be a grazer, fill your fridge with healthy snacks.

By extension home working may make eating more a temptation; it may also lead to less exercise.  More food and less exercise could have a catastrophic effect on your waistline.

So force yourself out for a walk at least once a day but preferably at the start, in the middle and at the end of the day.

Finally - enjoy it.  At home we try to create an environment we like to live in.  Having the opportunity to spend more time in that environment is a bonus so don't be too hard on yourself and stay focused.

Some Changes to Road Fund License, Benefits In Kind and Cars Generally

‘Should I buy a car through my company?’

It’s a question we’re often asked and often it’s just not clear cut.

The Benefit In Kind you pay personally is often outweighed by the potential for a company to arrange finance more cheaply.

Claiming 45 pence per mile personally can often be more beneficial than having the company pay for individual motoring expenses.

Having said all that, some changes are afoot, especially if you want to join the electric revolution.  The changes reflect the government’s desire to drive down CO2 emissions and to encourage fleet managers to clean up their act.

So, from 6^th April 2020 for the 2020/21 tax year the Benefit In Kind on most electric vehicles drops from 16% to 0%.  It then increases to a minuscule 1% and 2% over the next two years. 

After that it’s a bit less certain but clearly this is a huge incentive to at the very least consider the electric option.

But what about the other side of the environmental coin… the fossil fuel guzzling gas monsters.  Or, in other words, petrol and diesel cars.

Well, from 1^st April 2020 all new registrations will have their new official emissions figures.  A lot of cars are going to show an increase which in turn could well affect the Road Fund License and Benefit In Kind calculations.

I think you can probably see what the government is trying to get at here… so, if you’re wedded to the idea of petrol or diesel it might well be worth taking a pre-registered or stock vehicle.

If you’re a titan of the new environmental age then you might want to consider an electric vehicle after 6^th April…

As always, if you’d like to talk through your options do drop us a line or give us a call and we’ll happily talk through your business options.

You can get us on: 0131 202 9888

or email us on: westedinburgh@taxassist.co.uk

Making Tax Digital

Well, it finally arrived on 1st April and without that much of a fanfare...

But it's here with us nevertheless.  Making Tax Digital is live and compulsory although for the moment only for VAT registered businesses with turnover of over more than £85,000... with a few exceptions.

Other VAT registered business, corporation tax and even personal tax will be coming on stream with MTD over the next couple of years.

Like anything new we're experiencing a wide spectrum of responses... from the 'great, this is a brilliant new system' to the 'I'll just keep doing it the way I used to do it' (which isn't an option, by the way).

The main change for the moment is the way that businesses file their VAT returns.

What this means is that a business has to use Functional Compatible Software to file their VAT returns.

What is Functional Compatible Software?

Well, in lay mans's terms - which, to be entirely honest, is the only way I can understand it - it's software that can communicate directly with HMRC and can receive information from HMRC in return.

The software could be one piece of software or linked software.  But if it's linked it has be via what's been dubbed a 'digital connection'.  So an upload of information directly from a bank feed to a bookkeeping package is a digital link.  A copy and paste from one spreadsheet to another isn't.

In a practical sense this is a pretty major change.  What used to happen with VAT returns is that we'd calculate the VAT figure - either on spreadsheets or in cloud based bookkeeping systems - and then we'd type to same information into HMRC's website.

And it's this typing that HMRC is keen to get rid of.

What's going to happen in the future is that VAT returns are going to be compiled on Functional Compatible Software (or on a platform which has the same functionality) and filed directly to HMRC.

With me so far?

No?

Okay - if you are subject to MTD you essentially have two choices.  Either you start using a cloud based bookkeeping system which has been signed off by HMRC or you buy what's known as Bridging Software.

Bridging Software is a piece of code that is embedded in a spreadsheet which allows it to communicate with HMRC.

What's our stance on this (I think) I hear you ask?

Well, bridging software is fine but there's a cost attached and that cost only gives you the ability to file your VAT returns, in other words to do what you already do.

However, cloud based bookkeeping software has a cost but gives so many enhanced features that will save you time and effort (such as hooking up your bank accounts so that all you do is categorise and match transactions) that we believe in the vast majority of cases a move from spreadsheets to digital bookkeeping is the best thing for a business.

If you'd like to find out more about our cloud based bookkeeping and enhanced data capture software just give us a buzz and we'll arrange a demo with you.

0131 202 9888

Come Dine With TaxAssist

So another year (to be fair only the second year) of Come Dine With TaxAssist has come to a close.

Just to give you a little bit of background so you know what on Earth I'm talking about:

Each Autumn we run Come Dine With TaxAssist.  Team members either pair up with other team members, husbands, wives, girlfriends, boyfriends or even just mates.

We then randomly draw names out of hat and the pairings are up against two other groups.

Each group hosts the other two who then score them out of ten for food, entertainment and overall how much they enjoyed the night.

This time round we had an Australian and s*%t jumper night which just happened to be on hallowe'en and therefore (obviously) involved dookin' for miniatures... obviously.

We had French Night which featured some pretty terrible French Cafe music and charades.  One of the films was Free Willy... I leave to your imagination to work out how that one was mimed out.

There was Oriental Night with some pretty fantastic cooking and finally, last week, Eighties Night.

Eighties Night involved a fair amount of plastic jewelry, espadrilles, leg warmers and Lycra!

It also featured two game shows from my youth - Bulls Eye and Play Your Cards Right!

All brilliant nights out; this year the team have really thrown themselves into the event and loads of effort was put into each evening by both the hosts and it has to be said the guests.  Amazon has done very well out of us this year.

Except for Eighties Night... Richard seemed to have most of his outfit already in his wardrobe!

So all that's left now is to announce the winners which we'll do at our Christmas Night out.

All just a bit of fun through the Autumn and in the run up to Christmas but I just wanted to say a big thank you to everyone who put in so much effort to make this year's event such a good one.

Onward and upward next year with even more couples taking part and more 'interesting' and varied themed nights!