When we awake to the new year we will no longer be in transition; we will be out of the EU and will have to cope with a wide range of regulatory changes if we buy or sell goods or services to EU suppliers and customers.

The Department for Business, Energy & Industrial Strategy recently sent a “YOU NEED TO ACT NOW” plea to all UK businesses that may be affected by these changes.

Many of these reminders will have found their way to waste bins at a rapid rate of knots or be sitting in post boxes awaiting the return of staff all working from home or required to stay at home as their business is in lock-down.

The circular makes four points:

1. Check the new rules on importing and exporting goods between the EU and GB from 1 January 2021 – different rules will apply in Northern Ireland.
2. If you are planning to recruit from overseas from 1 January 2021 you will need to register as a licensed VISA sponsor.
3. Use GOV.UK to identify changes affecting manufactured goods, such as new marking requirements or approvals needed, to ensure your business is ready to sell them in the EU and UK.
4. If you are moving goods into out of or through Northern Ireland check the latest guidance.

The circular is peppered with red type to underline the importance and urgency of the DBEIS concerns. Presumably, they felt a reminder was necessary due to the expected number of businesses who are not prepared for this momentous change.

If you want to avoid potential disruption to your supply lines after 1 January 2021 it makes sense to take a look at the GOV.UK website and see what you need to do as a minimum to reduce these disruptive risks.

We are leaving and with complications due to COVID we may well be leaving with no formal trade agreement.

If you need help considering your options to protect your business please call.

If you are making claims under the extended furlough scheme from 1 November 2020 you need to be aware of changes in the claims process.

Perhaps the most significant is that claims need to be registered within 14 days of the relevant period end. In their revised guidance on this topic HMRC say:

You can claim before, during or after you process your payroll as long as your claim is submitted by the relevant claim deadline. You cannot submit your claim more than 14 days before your claim period end date.

When making your claim:

• you do not have to wait until the end date of the claim period for a previous claim before making your next claim
• you can make your claim more than 14 days in advance of the pay date (for example, if you pay your employee in arrears)

If you do not finish your claim in one session, you can save a draft. You must complete your claim within seven days of starting it. All claims for periods from 1 July 2020 to 31 October 2020 must be submitted no later than 30 November 2020.

Claims from 1 November 2020 must be submitted by 11.59pm 14 calendar days after the month you’re claiming for. If this time falls on the weekend or a bank holiday then claims should be submitted on the next working day.

But what happens if you cannot submit a claim by the deadline?

HMRC accept that there may be circumstances when a claim cannot be made within the statutory time limits. They confirm that you may have a reasonable excuse if:

• your partner or another close relative died shortly before the claim deadline
• you had an unexpected stay in hospital that prevented you from dealing with your claim
• you had a serious or life-threatening illness, including Coronavirus related illnesses, which prevented you from making your claim (and no one else could claim for you)
• a period of self-isolation prevented you from making your claim (and no one else could make the claim for you)
• your computer or software failed just before or while you were preparing your online claim
• service issues with HMRC online services prevented you from making your claim
• a fire, flood or theft prevented you them from making your claim
• postal delays that you could not have predicted prevented you from making your claim
• delays related to a disability you have prevented you from making your claim
• a HMRC error prevented you from making your claim

HMRC will not consider reasonable excuses in advance of a claim deadline.

Two quarterly grants have been paid to UK self-employed traders that qualify for the Self- Employed Income Support Scheme (SEISS). These covered the periods up to 31 October 2020.

The Chancellor has announced that two further quarterly payments will be made. Traders will still need to qualify for the payments and in particular:

• Have been previously been eligible for the SEISS first and second grant (although they do not have to have claimed the previous grants)
• Declare that they intend to continue to trade and either:
  • are currently actively trading but are impacted by reduced demand due to coronavirus
  • were previously trading but are temporarily unable to do so due to coronavirus

If these conditions are confirmed then a claim can be made for the following periods:

Quarter 1 November 2020 to 31 January 2021

The maximum that can be claimed for this period is 80% of average, qualifying quarterly earnings capped at £7,500. This is an increase on the previously announced amount of 55%.

The online portal to make a claim will open 30 November 2020 and payments should be received before Christmas.

Quarter 1 February 2021 to 30 April 2021

Details of the amount that will be paid for this quarter will be announced January 2021.

Self-employed traders who, for what ever reason, do not qualify for this grant, but are still suffering financial hardship due to COVID disruption, may be able to claim under the Universal Credit.

The SEISS is taxable…

And don’t forget, when you prepare accounts covering any period during which you received an SEISS grant these will need to be added to your taxable earnings in the relevant tax period.

Need help applying?

Please call if you need assistance claiming these additional SEISS grants.

We have reproduced below a list of businesses which must close during the period 5 November to 2 December 2020.

Business based in England and required to close

To reduce social contact, the regulations require some businesses to close and impose restrictions on how some businesses provide goods and services. These include:

• Non-essential retail, such as clothing and homeware stores, vehicle showrooms (other than for rental), betting shops, tailors, tobacco and vape shops, electronic goods and mobile phone shops, and market stalls selling non-essential goods. These venues can continue to be able to operate click-and-collect (where goods are pre-ordered and collected off the premises) and delivery services
• Hospitality venues such as cafes, restaurants, pubs, bars and social clubs; with the exception of providing food and drink for takeaway (before 10pm; and not including alcohol), click-and-collect, drive-through or delivery
• Accommodation such as hotels, hostels, guest houses and campsites. Except for specific circumstances, such as where these act as someone’s main residence, where the person cannot return home, for homeless people, or where it is essential to stay there for work purposes
• Leisure and sports facilities such as leisure centres and gyms, swimming pools, tennis and basketball courts, golf courses, fitness and dance studios, climbing walls, archery, driving, and shooting ranges
• Entertainment venues such as theatres, concert halls, cinemas, museums and galleries, casinos, amusement arcades, bingo halls, bowling alleys, skating rinks, go-karting venues, soft play centres and areas, circuses, fairgrounds, funfairs, zoos and other animal attractions, water parks and theme parks. Indoor attractions at botanical gardens, heritage homes and landmarks must also close, though outdoor grounds of these premises can stay open
• Personal care facilities such as hair, beauty, tanning and nail salons. Tattoo parlours, spas, massage parlours, body and skin piercing services must also close. It is also prohibited to provide these services in other peoples’ homes
• Community centres and halls must close except for a limited number of exempt activities as set out below Libraries can also remain open to provide access to IT and digital services – for example for people who do not have it at home – and for click-and-collect
• Places of worship, apart from for the purposes of independent prayer, for funerals or funeral commemorative events, to broadcast an act of worship, to provide essential voluntary services or urgent public support services, for registered childcare, and to host permitted gatherings.

These businesses and places will also be permitted to be open for a small number of exempt activities, including:

• education and training (for schools to use sports, leisure and community facilities where that is part of their normal provision)
• childcare purposes and supervised activities for children (in community centres and halls, and places of worship; and supervised activities for children in indoor sports and leisure facilities)
• hosting blood donation sessions and food banks (in community centres and halls, places of worship, and libraries)
• to provide medical treatment
• for elite sports persons to train and compete (in indoor and outdoor sports facilities), and professional dancers and choreographers to work (in fitness and dance studios)
• for training and rehearsal without an audience (in theatres and concert halls)
• for the purposes of professional film and TV filming (in retail, entertainment and leisure venues, as well as visitor attractions)

Businesses based in Wales, Scotland and Northern Ireland are subject to regional variations and current restrictions for business owners in these areas will need to be accessed from regional government websites.

What to do if you are placed in a financial position where you do not have sufficient income to meet your monthly outgoings and you are unable to find work to plug the gap.

The main government assistance for those who find themselves in this position is to register for Universal Credits.

The following notes from the GOV.UK website may help you decide if you are eligible to make a claim.

You may be able to get Universal Credit if:

• You are on a low income or out of work
• You are 18 or over (there are some exceptions if you’re 16 to 17)
• You are under State Pension age (or your partner is)
• you and your partner have £16,000 or less in savings between you
• you live in the UK

The number of children you have does not affect your eligibility for Universal Credit, but it may affect how much you get.

You should use the benefits calculator on the GOV.UK website to check what other benefits you could get if you are not eligible for Universal Credit.

If you live with your partner

Your partner’s income and savings will be considered, even if they are not eligible for Universal Credit.

If you are 18 or over and in training or studying full-time

You can make a new Universal Credit claim if any of the following apply:

• you live with your partner and they are eligible for Universal Credit
• you are responsible for a child, either as a single person or as a couple
• you are disabled and entitled to Disability Living Allowance (DLA) or Personal Independence Payment (PIP) and have limited capability for work
• you are in further education, are 21 or under and do not have parental support, for example you’re estranged from your parents and you’re not under local authority care

If you are 16 or 17

You can make a new Universal Credit claim if any of the following apply:

• you have limited capability for work, or you have medical evidence and are waiting for a Work Capability Assessment
• you are caring for a severely disabled person
• you are responsible for a child
• you are in a couple with responsibility for at least one child and your partner is eligible for Universal Credit
• you are pregnant and it’s 11 weeks or less before your expected week of childbirth
• you have had a child in the last 15 weeks
• you do not have parental support, for example you’re estranged from your parents and you are not under local authority care

You can also make a claim if you’re in full-time further education and any of the following apply:

• you do not have parental support
• you have limited capacity for work and you’re entitled to Personal Independence Payment (PIP)
• you are responsible for a child
• you are in a couple with responsibility for a child and your partner is eligible for Universal Credit

If you’re in a couple and one of you is State Pension age

You and your partner can claim Universal Credit as a couple if one of you is under State Pension age and eligible for Universal Credit.

When you both reach State Pension age your Universal Credit claim will stop.

You may be able to apply for Pension Credit or other benefits as a couple when your Universal Credit stops. Ask your Jobcentre Plus work coach what else you could be eligible for.

Government financial support for UK businesses affected by the COVID pandemic have been extended in the past week. Thankfully, relief for employees of affected companies and the self-employed have been announced in tandem. A short summary of the main changes follows:

Coronavirus Job Retention Scheme (CJRS)

This furlough scheme will now be extended until the end of March 2021. Details released 5th November 2020 are:

• Government will cover 80% of hours not worked up to a maximum of £2,500 per person per month. This percentage support may be flexed for February and March 2021 when employers may be asked to contribute.
• Any grants paid must be passed on to the relevant employee in full.
• The previous flexibility to allow employees back part-time will continue until December.
• Employers will only be asked to cover National Insurance and pension costs and wages for time worked. Importantly, they will NOT be required to contribute to hours not worked but they are free to make top-up payments at their discretion.

Which employers/employees can claim or be eligible for this extended support?

• All employers with a UK bank account and a UK PAYE scheme can make a claim.
• There is no requirement that employers or employees have made previous claims for CJRS support.
• Employees must be on employer’s payroll before midnight 30 October 2020.

Previously announced Job Support Scheme (JSS)

As the furlough scheme is now extended to the end of March 2021, This new scheme will be deferred until the extended furlough scheme ends, presumably 31 March 2021.

The Job Retention Bonus

This bonus of £1,000 per employee retained January 2021 will no longer be paid as the furlough scheme now extends to 31 March 2021. However, the Chancellor has hinted that this bonus may be reintroduced when the extended furlough scheme ends.

The Self Employed Income Support Scheme (SEISS)

The Chancellor has announced a corresponding increase in financial support for the self-employed to mirror the benefits of the extended furlough scheme.

For the period November 2020 to 31 January 2021, SEISS support will be 80% of average trading profits capped at £7,500.

The previous eligibility criteria will still apply.

Additionally, SEISS grants will be paid faster. The claims window will open at the end of November rather than the middle of December. This will provide much needed funds for the self-employed before Christmas.

There will be a further SEISS grant for the period 1 February 2021 to 30 April 2021. The amount for this period should be announced January 2021.

Government backed loan schemes

The deadline for submitting applications for government backed loans has been extended to 31 January 2021.

Government have recently promoted their online webinars that aim to support businesses who will be affected by the end of the EU exit transition period, 31 December 2020.

Here’s what the Department for Business, Energy and Industrial activity have to say:

Over 3,000 people have attended government webinars to help them get ready for the end of the transition period, with 86% of those polled saying they would take action to prepare their business as a direct result of the sessions.

With just 63 days to go till the UK begins its new start outside of the EU single market and customs union, the Business Secretary Alok Sharma is encouraging businesses across the UK to sign themselves up for a webinar to help them prepare for the changes and opportunities ahead.

This second phase of webinars – which will run throughout November – will cover key issues that could affect businesses in multiple sectors, including personal data, and regulations on manufactured goods.

To register for the webinars go to https://www.workcast.com/ControlUsher.aspx?pak=2807339524439725

You can also obtain targeted advice on what you may need to do before the end of the year by completing the online questionnaire at https://www.gov.uk/transition.

A final word from government:

When the transition period ends on 31 December 2020, there will be a guaranteed set of changes and opportunities for which businesses need to prepare as the UK leaves the customs union and single market, including changes to the way businesses import and export goods, and the process for hiring people from the EU.

Use the links in the above post to ensure you are fully informed.

Many of us have taken the step from manual to digital accounting systems. But are you making the most of features provided?

Without a doubt, accounts software offers a wealth of reports many of which will likely be of limited use to businesses, however, many will be of use.

There is a temptation to stick with the basics; am I making a profit (the profit and loss statement) and am I solvent (a balance sheet). Job done…

Coronavirus has extended these basic needs to include cashflow reports; when are we going to run out of cash?

What else is available?

Most software will allow you to create a budget, plug these forecasts into the software and produce reports that compare what has actually happened with what you expected to happen. In this way you can see when unexpected changes in your finances occur and take steps to minimise any downside risks.

Another useful feature is to fully utilise reports that flag up when your customers have exceeded their agreed payment terms. This information can be used to generate statements and copy invoices to chase up monies outstanding. As your accounts software usually stores your customer contact details, especially email addresses, these reminders can be sent out at the click of your mouse button.

Other features that may be available:

• Stock management reports
• Departmental reporting
• Key Indicator Reports
• Online links to submit VAT returns
• Automated integration of payroll data

Many accounts software developers offer a range of bolt-on products for specialist businesses and integrations. And last but not least, it is possible to build bespoke reports to highlight specific reporting concerns. As long as data is being collected it can usually be reported on.

Time to review your data forecasting needs.

Using data wisely and with a clear intent to forward your business development during these unprecedented times has to be a winner. Please call so we can discuss your needs and help you maximise the benefits of your investment in data management for your business.

1 November 2020 – Due date for Corporation Tax due for the year ended 31 January 2020.

19 November 2020 – PAYE and NIC deductions due for month ended 5 November 2020. (If you pay your tax electronically the due date is 22 November 2020.)

19 November 2020 – Filing deadline for the CIS300 monthly return for the month ended 5 November 2020.

19 November 2020 – CIS tax deducted for the month ended 5 November 2020 is payable by today.

1 December 2020 – Due date for Corporation Tax payable for the year ended 28 February 2020.

19 December 2020 – PAYE and NIC deductions due for month ended 5 December 2020. (If you pay your tax electronically the due date is 22 December 2020)

19 December 2020 – Filing deadline for the CIS300 monthly return for the month ended 5 December 2020.

19 December 2020 – CIS tax deducted for the month ended 5 December 2020 is payable by today.

30 December 2020 – Deadline for filing 2019-20 self-assessment tax returns online to include a claim for under payments to be collected via tax code in 2021-22.

Brits will be able to get cashback from shops without needing to buy anything under new proposals to protect the UK’s cash system announced 15 October 2020.

Under the government proposals, cashback without a purchase could be widely available from retailers of all sizes in local communities across the UK.

Although cash use is declining, with people increasingly choosing cards, mobile and e-wallets to make payments, it remains crucial for at risk groups across the UK – including the elderly and vulnerable. Many find that cash is more accessible than digital payment methods or that it helps them to budget and manage their finances.

Current EU law makes it difficult for businesses to offer cashback when people are not paying for goods and this has been a barrier to widespread adoption. The government is now considering scrapping these rules once the transition period ends on 31 December 2020.

The government is also considering giving the FCA overall responsibility for maintaining a well-functioning retail cash system given its existing regulatory role and consumer protection objective.

At present, The Bank of England, the Financial Conduct Authority, the Payment Systems Regulator and HM Treasury each have specific roles and responsibilities for oversight of the cash system. Close coordination between these authorities has been highly effective, particularly in managing risks to cash through COVID-19, but there may be significant benefits to giving a single authority overall responsibility for setting requirements to meet the cash needs of consumers and SMEs.