Additional COVID Support Announced for Businesses

Additional COVID Support Announced for Businesses

Two new COVID support schemes have now been made available to businesses

 

  • Restart and Recovery Fund
  • Supply Chain Grants

 

Restart and Recovery Fund

From Wednesday 2nd December businesses will be able to apply for the Restart and Recovery Fund. This £1.1m fund is limited and is on a first-come first-served basis. This fund is aimed toward businesses who have been required to adapt how they have traded during the COVID-19 lockdown due to being unable to trade conventionally.

 

Supply Chain Grants

This new grant will support businesses that rely on the hospitality, accommodation, leisure, and entertainment sectors for their trade, and is available where they have lost business as a result of the COVID-19 restrictions placed on business in those sectors. Those eligible will be able to apply for a grant of up to £2,100. The amount received will depend on the business’s fixed property costs. Local councils will be publishing application information early this week.

 

Lockdown Support Grants Still Available

Businesses that are unable to trade to due national lockdowns and local restrictions will continue to be able to apply for the Lockdown Support Grant worth up to £3,000.

 

How can we help?

At Hawsons we have a dedicated team of accountants at our offices in Sheffield, Doncaster, and Northampton. If you any questions about any of these schemes please do not hesitate to 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

Simon Bladen

Partner, Sheffield

0114 266 7141
The Impact of a Second National Lockdown on Charities

The Impact of a Second National Lockdown on Charities

Due to the combination of increasing demand and the decreasing income it is estimated that a funding gap of around £10bn has been created across the charity sector over the past six months. Recent research conducted before the second lockdown was announced showed that around 10% of charities are likely to close and 80% are predicting that they will not deliver on their planned objectives. The second national lockdown will almost certainly not help improve these figures, especially with many charities scaling down their workforce with the Job Retention Scheme as they await calmer waters which will hopefully come in early 2021.

 

Job Retention Scheme Extension

Due to pressure arising from a second national lockdown, the government has committed to an extension of the Job Retention Scheme until March 2021. Furthermore, businesses in England that are forced to close may be eligible for up to £3,000 a month to cover costs (via the Local Restrictions Support Grant). However, this has fallen under some criticism in the charity sector with many arguing that charities, in particular, should be encouraged and assisted to operate more during this difficult time. Some believe that scaling down the charitable workforce is not in the nation’s best interests and will impact local communities. More difficult operational decisions are on the horizon for many and there are no easy answers either way.

 

How can we help?  

At Hawsons we have a dedicated team of accountants at our offices in Sheffield, Doncaster, and Northampton. Our dedicated team fully understands the complex, ever-changing regulatory requirements of the charity and not-for-profit sector. Irrespective of your size we wish to support you to maximise the benefits you could achieve through our specialist professional advice.

More from our charity experts

You can find all of our latest charity 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
The Construction Sector Bounces Back?

The Construction Sector Bounces Back?

Homebuilding is increasing

There has been an increase in home building in October with construction firms starting new projects. This could be due to the Government’s cut in Stamp Duty Land Tax (SDLT). This cut is saving home buyers thousands of pounds which is increasing demand very quickly. In fact, the number of new orders has increased at the quickest pace for almost five years. This increase in demand for homebuilding in construction is one of a few sectors that are managing to bounce back from the coronavirus pandemic. With many sectors struggling as we go into a second national lockdown.

 

How is the overall construction sector performing?

The construction industry is in a much better place than it was earlier in the year. The backlog of work kept many construction workers employed during the summer months. But, now this backlog is reducing. Overall construction activity has declined in October even though homebuilding has increased. But, the industry did report that new orders had increased suggesting that the outlook is bright for the construction industry. The increase in orders is mainly down to projects that were delayed by the global pandemic now being given the go-ahead. It has been indicated that the rate of job cuts in the construction industry would be lower than in the second quarter of 2020.

 

New VAT reverse charge rules

From 1 March 2021, the domestic VAT reverse charge must be used for most supplies of building and construction services. The charge applies to standard and reduced-rate VAT services:

  • for individuals or businesses who are registered for VAT in the UK
  • reported within the Construction Industry Scheme

Find out more about these changes on the HMRC website.

If you have any questions regarding the VAT change or would like any advice, please contact our specialist VAT consultant Tony Nickson by email: [email protected] or on 0114 266 7141. Tony was formerly a VAT Officer in Customs and Excise and then Higher Officer in HMRC. After working in the VAT office for 20 years, Tony has gained a wealth of knowledge and experience in VAT processes.

 

How can we help?

At Hawsons we have a dedicated team of property and construction accountants at our offices 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

Stephen Charles

Tax Partner, Sheffield

0114 266 7141
Enhanced Payment Plans for Self-Assessment Taxpayers

Enhanced Payment Plans for Self-Assessment Taxpayers

Self-assessment taxpayers are now able to benefit from enhanced payment plans and can apply online for additional support to help spread their tax bill into monthly payments.

The online payment plan service was already able to set up installment arrangements for paying tax liabilities up to £10,000. From 1 October 2020, HMRC increased the threshold to £30,000 for self-assessment customers following Rishi Sunak’s announcement on 24 September 2020.

As part of that speech, the Chancellor announced that self-assessment taxpayers could pay their deferred payment on account bill from July 2020, any outstanding tax owed for 2019/20 and their first payment on account for 2020/21 in monthly instalments, up to 12 months, via this self-serve tool.

Taxpayers who wish to set up their own self-serve Time to Pay arrangements must meet the following requirements:

  • they have no outstanding tax returns, other tax debts or other HMRC payment plans set up
  • the debt needs to be between £32 and £30,000; and
  • the payment plan needs to be set up no later than 60 days after the due date of a debt.

Taxpayers using self-serve Time to Pay will be required to pay any interest on any outstanding balance from 1 February 2021.

Financial Secretary to the Treasury, Jesse Norman, said:

‘We are supporting jobs by giving more breathing space to up to 11 million self-assessment taxpayers when managing their tax affairs.

‘Enhancing Time to Pay should ease the financial burdens and protect the livelihoods of these taxpayers, as they navigate the months ahead.’

HMRC is also warning taxpayers to be aware of scams claiming to be from HMRC, offering to help set up payment plans to pay any tax owed. These scams are trying to harvest taxpayers’ details, in order to steal their money.

Please contact us for advice on meeting your tax payments.

Internet link: Gov.uk news

 

How can we help?

At Hawsons we have a dedicated team of personal accountants at our offices in Sheffield, Doncaster, and Northampton. Our team of personal tax accountants works together to provide proactive, well-rounded, technically robust tax advice to private clients including individuals to help ensure that their tax affairs are in order and are correctly dealt with.

Visit our personal tax page here

Free initial meeting

Jenny Brown

Senior Tax Manager, Sheffield

0114 266 7141

[email protected]

Indicators Suggest Smaller Charities are Struggling

Indicators Suggest Smaller Charities are Struggling

Recent polls and fundraising data have indicated that donations to NHS charities have risen dramatically since March. Whilst this is perhaps not surprising other charity sectors have seen a decline in donations, this includes homeless and animal shelters as well as disability support groups.

 

Why are small charities struggling?

A recent report conducted by the Charities Aid Foundation (CAF) indicates that overall donations to charities had increased by £800m in 2020 compared to 2019. However, CAF has said that although donations in 2020 increased overall, smaller charities did not see this growth. During lockdown, many people started to donate to frontline services of the pandemic such as NHS charities. For example, Captain Tom Moore’s fundraising campaign which raised over £32 million for NHS charities. However, these campaigns have left other charities at greater risk. For example, animal charities have seen their largest year-on-year decline in donations. There are similar stories across a number of other charity sectors. The current economic strain caused by COVID-19 has caused many individuals and businesses to reduce their charitable giving whilst also re-directing donations that are made to the sectors directly combatting the pandemic.

 

What support is available to charities?

The government-supported charities with a £750m bailout in April, however, there have been calls for additional support. In addition, the Small Charities Coalition (SCC) noted in a recent poll that only half of their member organisations have received additional support after applying. This funding was due to cover 6 months of operational costs and the impact on the charity sector as a whole is not expected to be seen until the early months of 2021.

Further Coronavirus guidance for the charity sector can be found here:

https://www.gov.uk/guidance/coronavirus-covid-19-guidance-for-the-charity-sector

How can we help?

At Hawsons we have a dedicated team of charity and not-for-profit accountants at our offices in Sheffield, Doncaster, and Northampton. Our dedicated team fully understands the complex, ever-changing regulatory requirements of the charity and not-for-profit sector. Irrespective of your size we wish to support you to maximise the benefits you could achieve through our specialist professional advice.

Free initial meeting

Simon Bladen

Partner, Sheffield

0114 266 7141