OnPoint Accounting News – Bounce Back Loans & Self Employed Income Support Launch | Starling Bank Bounce Back Loan
Good evening. It’s Tuesday, the 12th of May, and I just wanted to just give you a quick update on the news we’ve had today from the furlough scheme, from the chancellor of the Exchequer, and also just brief you quickly on what’s going to be going on in the next couple of days regarding the self-employed income support scheme, that’s launching on Friday for grants.
So, first of all, let’s talk about the furlough scheme. Today, the chancellor of the Exchequer announced that the UK furlough scheme would be extended until the end of October, 2020. This is fantastic news for a lot of employers and employees. It’s going to be extended to the end of July in its current model where everyone can be furloughed with up to 80% of their wage covered by the government. But if you’re furloughed, you can’t do work for your current employer. You could go and get work with another employer, however, with your current employer’s permission.
By the end of this month, end of May, we will have an update from the chancellor regarding furlough and what it’s going to look like from the end of July onwards. So, July, August, September, October could be very different. There’s a lot of talk about the chancellor allowing for us to have part-time furlough. So, for example, if someone’s got a 40 hour contract what we might see is that they are allowed to work 20 hours a week paid by the employer as normal. And then the rest of the pay would be covered by furlough grants from the government. This would be a really good way of stimulating the economy and helping businesses start taking steps back towards income and generating income for their businesses. But that detail has yet to be finalized and formalized, but that’s the indication we’re getting from the government at the moment.
Something businesses that are furloughing their staff need to be aware of at the moment is the buildup of holiday allowance. So, furloughing is the same as putting someone on maternity leave. When they are on maternity leave, they still accrue their holiday allowance as they would if they were working normally for you, the same applies to furlough. So, if you’ve got staff that are on seasonal contracts, then those staff will be accruing their holiday and when their contract comes to an end in October, November time, if it’s in the tourism industry, for example, then those staff are going to be entitled to a payout of their holiday. So, the long-term planning now needs to be considered, we’ve secured their jobs, but the financial side of the long-term impacts needs to be considered, such as holiday pay. The other thing I wanted to talk to you about this evening was the self-employment income support scheme.
This is going to be launched on Friday, it goes live. We’ve been told to expect payouts within six working days. Exactly the same as the furlough claims that have gone in. Again, this is brand new system from HMRC, it’s been built completely from scratch, so there will be some teething problems, I’m sure. How many, we don’t really know. There’s a few important key facts that you need to be aware of when it comes to self-employed income support scheme, the first one, and it’s a big one, unlike everything else so far, your accountants and bookkeepers can’t apply on your behalf because we won’t have access for our agent authorization codes. This is something you’re going to have to apply for by yourself. However, I’m sure most accountants and bookkeepers, such as ourselves, will be able to answer questions on the phone and through screenshots and emails and Zoom calls, if necessary.
So, for example, we’re putting a team together to be on standby on Friday and into next week, to answer any questions that come in through the self-employed support scheme applications that our clients are putting together. What you’re going to need for your claim is your UTI number, your National Insurance number and your gateway login. If you’ve not got a government gateway login already, I suggest you get one sorted ASAP. This can all be done electronically and online, so you won’t have to wait for any letters or anything at the moment. It’ll just be issued to you online and be linked to your UTI, UTR, sorry. Ultimately, though, the fundamental part is this is your responsibility to claim for, we as accountants and bookkeepers cannot claim through our portals for this. So, it is on you to do it, but there’s plenty of support and help out there.
The government’s already launched several YouTube videos to explain what to do and how to do it. And the scheme goes live on Friday morning. Just one final bit of news to round up the review from the last few days, Starling Bank have launched their Bounce Back Loan scheme, as of Monday. Within 24 hours, they issued 50 million pounds worth of loans. They’ve done exceptionally well. We had a client that made a claim 9:00 AM Friday … Monday morning, sorry, and they have got their money before 3:00 PM that same day. So, literally a six hour turnaround, which is fantastic compared to most other banks. Starling Bank are also accepting new accounts and then processing those under the Bounce Back Loan process, unlike other banks, which aren’t taking on any new customers at the moment. Starling’s got a really quick sign up process through their app. And then they’ve got a very quick Bounce Back Loan application process as well.
So, we’re recommending anyone that hasn’t got a very quick bank at the moment, hasn’t started an application already, certainly worth looking at Starling Bank as a potential banking provider, anyway. We use them. We think they’re fantastic. They’re totally free. They link really well to accounting software. Their apps are very easy to use. Their apps are very good at notifying you when money’s spent, most of the time before the receipt can be printed out of a till where you’ve spent the money. So, yeah, huge fans of Starling Bank. There’s a link in the description to this video to help you sign up to Starling Bank if you need to. But yeah, big fans of Starling Bank, and they’ve been very good with the Bounce Back Loan as well, which we kind of anticipated expected because of the way they work with everything else within their business. But yeah, really, really impressive service from them.
So, that’s everything from me. As always, stay safe. So, that’s everything from me. As always, if you need any support whatsoever, please do get in touch. Myself and my team are here. We’re not charging for advice or support. We just want to help as many people as we can, survive this and come out bigger and stronger in the future. Please stay safe. Look after yourselves and we will be updating you again soon with some future news.