Hospitality Sector to reopen from 4 July

Hospitality Sector to reopen from 4 July

Hospitality Sector to reopen from 4 July

From 4 July the 2m social distancing will be relaxed. The prime minister Boris Johnson has said that people should keep a distance of “one metre plus”.

 

Hospitality

The Prime Minister also announced that the hospitality sector will be able to reopen on 4 July. They must follow the safety guidelines. Any indoor hospitality must provide table service; customers will have to provide contact details when entering a pub or restaurant.

Hotels, Bed & Breakfasts, cottages, campsites and caravan parks will also be allowed to reopen.

Hairdressers are allowed to reopen on 4 July, if they take appropriate precautions.

 

What can reopen from 4 July?

  • Pubs
  • Bars
  • Restaurants
  • Hotels
  • Holidays apartments
  • Campsites
  • Caravan Parks
  • Hair Salons
  • Barbers
  • Libraries
  • Community centres
  • Bingo halls
  • Cinemas
  • Museums
  • Galleries
  • Funfairs
  • Theme parks
  • Adventure Parks
  • Amusement arcades
  • Skating rinks
  • Model villages
  • Indoor animal attractions

 

What will remain closed?

  • Nightclubs
  • Casinos
  • Bowling alleys and Indoor skating rinks
  • Indoor play areas including soft-play
  • Spas
  • Nail bars, beauty salons and tanning salons
  • Massage, tattoo and piercing parlours
  • Indoor fitness and dance studios, and indoor gyms and sports venues/facilities
  • Swimming pools including water parks
  • Exhibition or conference centres must remain closed for events such as exhibitions or conferences, other than for those who work for the business or organisation who run the venue.

 

The government have said in their recent guidance that each business will need to manage and assess their own risks to their workers and customers. As an employer, you have a legal responsibility to protect your employees from risks to their health and safety. Therefore, you will need to do everything that is reasonably possible to reduce these risks. (The government do recognize that it is impossible to completely eliminate the risk of COVID-19).

 

Businesses that are able to open on 4 July will need to assist the NHS track and trace system by keeping a temporary record of your customers and visitors for 21 days. This is to help the NHS to contain clusters or outbreaks. If you are reopening your business which is surrounded by many neighbouring businesses, you will need to consider the impact of a large number of venues reopening in a small area. This will mean you will need to work with the local authorities, neighbouring businesses, and travel operators. This could result in:

 

  • Lowering your capacity
  • Staggering entry times to avoid large queues
  • Arranging one-way travel routes between transport hubs and venues
  • Advising your customers to avoid particular forms of transport or routes to avoid crowded areas when in transit to the venue.

 

Read the full guidance here

 

How can we help?

Hawsons has a dedicated team of specialist leisure and hospitality accountants in Sheffield, Doncaster and Northampton.

As the sector continues to become ever more challenging, with changes in the fierce global, nation and regional competition leading to unrelenting pressures to maintain margins, it is more crucial than ever to seek sound and proactive advice.

 

Free initial meeting

Richard Burkimsher

Richard Burkimsher

Partner, Northampton

01604 645 600
VAT deferment Period Closes – Reinstate Your Direct Debit

VAT deferment Period Closes – Reinstate Your Direct Debit

VAT deferment period closes on 30 June – Reinstate your direct debit!

In March, the Chancellor announced that businesses could defer VAT payments due between 20 March and 30 June 2020 until 31 March 2021.  This temporary change to the payment dates was introduced to help businesses manage their cashflow.

The VAT deferment period is now drawing to a close, therefore if you cancelled your direct debit or other payment method this needs to be reinstated.

Please do this well in advance of your normal VAT payment date so the payment is collected on time.  If the payment is late, HMRC could charge interest and penalties.

If you are struggling to pay your tax bill on time, you may be eligible for HMRC’s Time To Pay service.  This can allow a business to clear tax debts by making instalments over a 3 to 12 month period.

Businesses should continue to file their VAT returns as normal by the due dates.

If you have any questions about your VAT, please contact us.

 

More from our tax experts

You can find all of our latest tax articles and tax resources here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Craig Walker

Tax Director, Sheffield

0114 266 7141

Tony Nickson

VAT Consultant, Sheffield

01604 645 600
Deadline for SDLT extended for main residence disposals

Deadline for SDLT extended for main residence disposals

Deadline for SDLT extended for main residence disposals

In 2016 the Government introduced a 3% surcharge on purchasing second homes. If you buy a new home and your previous home has not sold at the time of the purchase, this charge applies. But it is possible to claim the 3% surcharge back if you sell your old home within three years of purchasing your new home.

But, because the coronavirus lockdown has brought the property market to a halt, HMRC has decided to extend this three-year deadline, if the disposal of your property has been delayed because of coronavirus. To be eligible for a refund after the three-year deadline you will need to provide evidence that the delay in selling your previous home was due to reasons outside your control. Additionally, the previous home must be sold as soon as reasonably possible.

HMRC announced this relaxation especially for coronavirus but it could also cover different reasons. For example, a public authority preventing the sale of a property. HMRC have said that they will consider each application separately. If you are unsure if your situation qualifies as an exceptional circumstance, you can see further details and examples here.

Please note that this announcement only applies to England only.

How can we help

Hawsons has a dedicated team of specialist property and construction accountants in Sheffield, Doncaster, and Northampton. Having an accountant who understands the challenges of this dynamic sector and is able to help you plan for the future is an advantage in a competitive environment. At Hawsons we have a great deal of experience in advising and helping businesses in property and construction and we can assist you as your business grows.

Free Initial Meeting

More from our property experts

You can find all of our latest property and construction sector news here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Stephen Charles

Tax Partner, Sheffield

0114 266 7141
Smaller law firms hardest hit by lockdown

Smaller law firms hardest hit by lockdown

Smaller law firms hardest hit by lockdown

The legal sector has held up fairly well compared to the wider economy with revenue down by just 5% in April according to official statistics. However, experts caution we have not yet seen the full impact of the pandemic.

A recent survey has shown that small law firms have been hit hardest by the lockdown. With a high amount of firms of up to 10 employees seeing around a 25% reduction in business. The practice areas most affected in terms of a reduction in workload include conveyancing, company and commercial, and crime. Areas that were least affected include wills and probate, personal injury, immigration and family, and employment although there is likely to be some time lag in many of these areas of work.

Interestingly the survey also showed that smaller firms were less likely to use the furlough scheme, even though their workload has been affected the most by the lockdown. Additionally, they were less likely to have staff working from home. This is perhaps not unexpected given that larger firms are likely to have an advantage in that they will in all likelihood already have the technology and infrastructure set-up for remote office working.

It should also be noted that some smaller niche practice law firms are still performing very well and many others are agile enough to absorb a short term downtown. The advantage larger firms often have is a diversified service offering. So whilst some areas are down others are performing well which helps to balance out the firm as a whole.

How can we help

At Hawsons we have a dedicated team of solicitor accountants at our offices in Sheffield, Doncaster, and Northampton. We act for a large number of law firms across all three of our offices and offer a wide range of services that are tailored to meet their individual needs. Our legal client base consists of a multitude of firms of varying structure and size, from sole traders to limited companies and LLPs with corporate members.

More from our legal sector experts

You can find all of our latest legal sector news and newsletters here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Simon Bladen

Partner, Sheffield

0114 266 7141
Relevant Life Cover

Relevant Life Cover

Relevant Life Cover

 

Life cover for individuals with tax advantages included….

To put it simply, relevant life cover is a single person death in the service life policy.  Some providers will also offer the option of adding significant illness cover making this an even more comprehensive policy.

Relevant Life is especially valuable for the following groups of people: –

  • Small Businesses
  • High Earning Employees
  • Members of Group Life Schemes wishing to top up their cover

If set up correctly it has much more favorable tax advantages than if the individual paid for the cover themselves.

Seeking professional advice should always be the preferred starting point to ensure your eligibility, affordability, and health is assessed properly at the outset.

Here are the main reasons individuals take out relevant life cover: –

  • Directors with a need for individual life cover
  • Directors with dependents
  • Directors who wish to save tax
  • High earners who are a member of a registered death in a service group scheme

If you are in any of the above categories, relevant life cover is likely to be perfect for you.

 

Let’s elaborate…

Relevant life cover does not count as a P11d benefit to the individual.

Some group life cover schemes (death in service) are very restrictive and may not include bonuses, dividends, or overtime meaning the cover is not a realistic amount of the actual financial implications of the death occurring whilst in service.  Relevant life can be used to top up or replace this benefit.

High earners – watch out! Registered group life schemes (death in service) fall under pension legislation.  This means that in the event of a claim, the value of this is added to the value of the individual’s pension benefits.  Anything over the lifetime allowance (currently £1.073m) would then be taxed at 55%! Any payment from a relevant life policy that is set up correctly would not be included within the calculation and therefore could save a fortune in tax.

Additionally, some high earners might also have protected their lifetime allowance to avoid the lifetime allowance tax charge.  However, in return for this enhancement, they often can’t make any further contributions to their pension.  Doing so would lose protection.  Joining a registered group life scheme would count as an additional pension contribution, taking away the protection as a consequence.  You cannot reverse this once it has happened, plus you could be fined if you don’t inform HMRC.  Relevant life cover does not count as a pension contribution and would stop this happening.

As an individual, to pay a £200 per month life cover policy you would need to earn significantly more as a gross figure.  This is because you would pay income tax and national insurance (NI) on this earned income.

Your company can pay for the Relevant Life policy and have the premium offset against the taxable profit of the business.

Ask yourself; ‘Would I rather have my life insurance put through the business as a tax-deductible expense or pay it personally out of my net pay?’

Seeking professional advice is key to ensure the policy is set up correctly.  This way, the company, the individual life assured and their family will receive the best possible outcome.

 

Natasha Fathers Senior Independent Financial Advisor

Natasha has achieved Chartered status and is a senior member of the team at Hawsons Wealth Management. You can contact her or the team at [email protected] or 0114 2296557.

Free initial meeting

Natasha Fathers, Director of HWM

Natasha Fathers

Director of Hawsons Wealth Management Limited, Sheffield

0114 229 6557
Matthew Whittam, Senior Financial Advisor

Matthew Whittam

Financial Advisor, Sheffield

0114 229 6557

[email protected]