Hello, and welcome to this week’s news update from OnPoint Accounting for small businesses across the UK.
My name’s Johann Goree, I’m the Managing Director of OnPoint Accounting.
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So it’s the 2nd of July 2020, and I am just going to bring to you all the latest news and what’s coming up in the coming weeks to make you aware of what might impact on your small business.
As of yesterday, the Flexible Furlough scheme came into place. This allows employees that are on furlough currently to be brought back into work on a part-time basis where they will work some hours, at a hundred percent pay as paid by the employer, and the rest of the hours will be covered by furlough pay at 80%, which the government will reimburse you for.
So this is a really good opportunity to get your business building up gradually and without too much financial risk.
If you’ve not started using this scheme yet and bringing staff back, and you want to, but you’re not sure how or why then get in touch with us via our website at www.jgbc.co.uk, there’s a contact form there, or give us a call on 0330 124 8002.
Also this week, the government on the 26th of June, very quietly signed in a new piece of legislation that impacts Companies House. So in turn impacts on all limited companies.
Limited companies have now been given an extra three months grace to file that annual accounts in. So they’ve been given a three month extension to their usual timeframes for filing accounts.
This came into force on the 27th of June, and it impacts on anyone who’s filing deadline was from the 27th of June 2020, the 5th of April 2021. If your accounts were due to be filed within that period of time, you’ve now got an extra three months to file those accounts so you can focus on growing and developing your business at this time during the Coronavirus.
For more information on exactly how that works and how it might impact on you, we’ve got a blog on our website, so visit jgbc.co.uk and have a look at our blogs.
We’ve just today had an update from the Scottish government that has confirmed as of the 3rd of July, the five mile rule for travel for leisure activities has been lifted, which means people in Scotland can now travel pretty much anywhere they want. There is a flare up in certain areas of Scotland, so those areas are restricted, but anyone else can travel within the Scottish borders and that won’t be an issue at all.
As of the 6th of July self contained accommodation or self-catering accommodation as it’s more formerly known and outdoor hospitality areas where cafes, pubs, et cetera, have outdoor areas for customers to sit and enjoy the food and drink will be able to open as well. So we can start going back to our leisurable activities.
HMRC have started issuing letters to people that should be MTD, or Making Tax Digital compliant for VAT returns. The first letters came out this week.
There’s no fines or anything like that attached to these, it’s just the letter prompting you to sign up to use the Make Tax Digital software, as you were meant to back in April 2019.
If you haven’t done this yet, and you need any help, do get in touch. There’s plenty of great softwares out there, but we are big fans of QuickBooks and their filings to HMRC have always been very seamless for us. If you need a QuickBooks license, get in touch and we can find you one at a really good price.
I saved the biggest bit of news to last.
It’s been confirmed we are to expect an emergency budget on the 8th of July from the UK government.
In the emergency budget, it will change certain things between now and autumn when the next budget is due to, traditionally falls.
The areas that have been expected to be discussed and announced changes on are VAT rates, we are expecting to see a drop. There’s lots of media speculation about what that drop is going to be, but it’s highly likely that the VAT rate will be dropped as this is a usual go-to stimulus for the economy when the economy is struggling.
In line with Boris Johnson’s announcements earlier this week with our new Build Build, Build campaign, we’re expecting changes to the apprenticeship levy to help encourage people into apprenticeships. We’re also expecting a change for business rates. We’re expecting a huge amount of reform to be announced for business rates, to make them more favorable to businesses.
And finally, we’re expecting a change to the R&D tax credits. That’s for research and development tax credits. This is normally done to encourage new inspiration and new ideas, new technologies to be developed within the UK and to reward those companies financially with credits towards a corporation tax.
R&D tax credits is something very few small businesses consider or contemplate for their corporation tax. It’s something that every business is entitled to claim if they’ve got a project that falls within the research and development definition of tax credits.
If you’re not sure if you’ve got a project for this, get in touch with us, it could be something as simple as researching and developing new recipes for your menus, developing a cookbook, developing a piece of software, anything like that could be counted towards research and development. So get in touch, we’ll check it out and let you know if there’s a claim there to be had.
That’s it for the news from us today for the small businesses in the UK. Hope you have a good weekend.
Thank you very much for joining us. Remember, if this has been helpful subscribe and like the channel.
Stay safe and I’ll talk to you next week.