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As we continue to move forward, our team are slowly returning to spending more time in the office and we look forward to once again seeing all our lovely clients. In the meantime, as always, there is a lot going on with VAT and payroll that we would be more than happy to help you with.
Vat Deferral New payment Scheme
Around a year ago many businesses decided to defer their VAT payments for payments due between 20 March and 30 June 2020 to help with their cash flow. You may be one of those businesses that took up this option and are still struggling to clear the debt. If this is you then there is still time to take action and sign up to the VAT deferral new payment scheme.
The scheme closes on 21 June 2021 and allows you to spread your deferred VAT payments for a period of up to 8 months interest free, although you can opt for fewer months if you prefer. To avoid incurring any penalties and interest you need to either opt into the scheme before 21 June 2021 or pay the full deferred amount of VAT by 30 June 2021.
To opt into the scheme, you will need to use your government gateway account, ensure all your VAT returns are up to date within the last 4 years and know how much of the deferred VAT you still owe as you may have already made some payments towards it.
By opting into the VAT deferral new payment scheme, you are entering into a direct debit agreement and the first instalment will be required to be paid when you sign up. If you fail to pay the direct debit at any stage in the agreed term, then the agreement will be cancelled, and you will incur penalties and interest as well as being required to repay HMRC the VAT owed in full.
Many VAT businesses are already signed up to this scheme so please ensure you do not miss the deadline!
Think you can give a young person a job placement to give them the experience they need and get it fully funded by the Government? Well, if you think your business could help a 16 to 24 year old on Universal Credit who is at risk of long term unemployment then there is a scheme called the Kickstart Scheme which not only pays 100% funds for the participant's wages (up to 25 hours a week to cover National Minimum Wage or National Living Wage dependant on the participants age) but also funds £1,500 per job to cover the set up costs and time in providing training in your workplace. The scheme can only last up to 6 months per participant with the closing deadline being 31 December 2021, but employers can spread the job start dates up to 31 December 2021 with the last job ending on 30 June 2022 if a young person starts on 31 December 2021.
Funding is also provided for the associated employers National Insurance contributions and the minimum automatic enrolment pension contributions.
To apply for the scheme please see https://www.gov.uk/guidance/apply-for-a-kickstart-scheme-grant for more information. You can either apply online yourself or apply using a Kickstart Scheme Gateway which is an intermediary who already works with the Kickstart Scheme. Information will be shared with DWP for the job you have to offer and through the Jobcentre Plus they will try and find matches for your required role. It will be your choice who you want to give the opportunity to gain work experience in your workplace and hopefully make them an overall more employable person in their future careers. Your role as an employer will be to not only give the candidate the workplace experience but you will be expected to help the young person with career advice for long term work, perhaps setting goals. You will also be required to provide support with their curriculum vitae (CV) and help with interview preparations.
The job vacancy must not replace planned or existing vacancies and it must not cause existing employees, apprentices, or contractors to lose work or reduce their working hours.
New Furlough Rates
The Coronavirus Job Retention Scheme has been extended until 30 September 2021 and the level of grant available to employers under the scheme will stay the same until 30 June 2021. As of 1 July 2021, the level of grant will be reduced and you will be asked to contribute towards the cost of your furloughed employees' wages.
From July 1st employers can claim 70% of the employee's usual wage for hours not worked up to a cap of £2,187.50.
For August and September employers can claim 60% of the employee's usual wage for hours not worked up to a cap is £1,875.00.
If we can be of any assistance with regards to VAT, payroll, pensions, or any other matter then please feel free to get in touch.
The AMR Team