MHA Carpenter Box - October 2020 Newsletter
Published: 04 Nov 2020
Supporting businesses through the Brexit transition and beyond
The UK’s withdrawal from the European Union and subsequent international trade deals continues to dominate the UK political landscape. Businesses are facing a growing challenge to get all the information and help they need to plan for, and succeed, in a post-Brexit world.
Our Brexit Hub contains insights and publications to help you prepare and guide you through the transition period and beyond.
- UK Brexit Planning Checklist
- VAT and Duty issues that will impact businesses
- Preparing for a no deal Brexit
- Customs training grants
- Customs warehousing
- Preparing your Amazon business for Brexit
Brexit webinar: Are you ready?
Date: Wednesday 25th November
Delivery: Zoom (registration required)
What are the key actions to prepare for the customs and tax changes from 1 January 2021?
With the end of the transition period fast approaching, a number of tax and trading changes will arise once the UK leaves the EU Single Market and Customs Union.
In this webinar with law firm DMH Stallard, we will discuss the key tax and contract considerations you should be aware of, answer the questions businesses are asking and provide practical steps you can take to prepare for the changes ahead.
- What will the changes to the UK VAT system mean for your business?
- How will leaving the transition arrangements affect trade in and out of the EU?
- Will your contracts be legally frustrated by Brexit? If so, how can you change them to make trading more level?
- Will the data laws change in 2021?
Job Support Scheme (Open) and (Closed) explained
The Job Support Scheme (JSS) was amended on Thursday 22nd October by the Chancellor.
The JSS was originally announced on 24 September in the Winter Economy Plan as the successor for the Coronavirus Job Retention Scheme (CJRS) which ceases on 31 October 2020.
The JSS as originally announced was criticised widely because the overall level of support that it provided employers who were being affected by coronavirus restrictions was comparatively low compared to the CJRS.
The key changes which have been announced by the Chancellor are as follows:
- The JSS is being split into two different types: Open and Closed
- Large employers will have to show reduced sales to use the JSS (Open)
- No JSS claims by large employers where shareholder distributions made
The updated JSS will operate through the same period as previously intended, from 1 November 2020 to 30 April 2021.
Self-Employment Income Support Scheme: Grant extension
As part of the Winter Economy Plan the Self-Employment Income Support Scheme (SEISS) is to be extended on the same basis as the Job Support Scheme.
The SEISS continues to be a key part of the financial support that the Government, via HMRC, is providing to many self-employed people to help get through the economic downturn caused by COVID-19 and the lockdown.
To be eligible for the scheme you must meet the following criteria:
- Currently be eligible for the SEISS (although you do not need to have claimed the previous grants).
- Declare that you are currently actively trading and intend to continue to trade.
- Declare that you are currently impacted by reduced demand caused by COVID-19 in the period of 1 November to the date of your claim.
Coronavirus Job Retention Bonus Scheme
The Coronavirus Job Retention Bonus Scheme is a £1,000 one-off taxable payment made to an employer for each employee that they have furloughed and made an eligible claim for through the Coronavirus Job Retention Scheme (CJRS).
To claim the bonus, the employee must have been kept continuously employed until 31 January 2021. You can claim the bonus between 15 February 2021 and 31 March 2021. You do not have to pay this money to your employee.
If HMRC are still checking your CJRS claims, you can still claim the bonus, but the payment may be delayed until the checks are complete. You can also apply for the bonus if you make a claim for that employee through the Job Support Scheme.
HMRC will provide an update by the end of January 2021 with details on how to access the online claim service.
State of the Sector: MHA Construction Sector Webinar recording
Hear our views on the state of the UK construction industry and its future outlook
While the industry entered 2020 in a strong position, the latest MHA Construction Sector Report shows a stark divide in today’s Construction sector, between those who were able to capitalise on the opportunities presented by COVID-19, and those who struggled to finance their way through lockdown.
In this special webinar, the experts from our national MHA Construction team discussed how the sector is responding to current challenges, what support the government needs to provide and the way forward for the industry.
Preparing your Amazon business for Brexit
On 1 January 2021, the UK will formally leave the EU’s Single Market.
Although UK-EU negotiations are ongoing, from that date there will be a customs border between the UK and EU. This border will affect businesses like Amazon sellers who transfer goods across it.
Amazon has recently announced changes to it’s fulfilment services (FBA) as a result of Brexit.
From 1 January 2021, Pan-EU FBA will no longer include the UK and inventory transfers between the UK and EU region will stop. However, it will be possible for traders to hold stock in an Amazon fulfilment centre in the EU, for example in Spain, Germany, France or Italy and transfers under the Pan-EU FBA service will continue within the EU region.
Charity Fraud Awareness Week
This month we marked Charity Fraud Awareness Week which takes place between 19th to 23rd October.
All charities, NGOs and Not for Profits are susceptible to fraud and can be targeted. Those providing services and supporting local communities may be especially vulnerable to fraudsters attempting to exploit current national and global crises to carry out fraud and cybercrime. This means that now, more than ever, charities need to be fraud aware and take steps to protect their money, people and assets from harm.
International Charity Fraud Awareness Week brings together everyone involved in the Charity and Not for profit sectors to raise awareness and share good practice in tackling fraud and cybercrime.
Our blog highlights some simple steps charity's can take to protect themselves against fraud and signposts a Charity Fraud Awareness Hub which contains useful resources and help sheets.
Cash flow checklist for business resilience
The latest Office for National Statistics results reveal that nearly half (48%) of trading businesses have seen their turnover fall to below what is normally expected for this time of year. This is not a surprise given the COVID-19 pandemic.
So, if you are running a business and turnover is down, what should you be doing to ensure resilience?
Clearly we are living in tough times and it makes sense to take advantage of Government supports. These include the new Job Support Schemes, as well as deferring tax and using Bounce Back Loans. There are also grants available to help firms with Brexit changes for import and export administration.
Business planning for the unknown can be very difficult but there are some additional practical steps you can take to minimise potential disruption to your business.
Startup expenses: what you can and can’t claim
Money’s tight when you’re a startup. The last thing you want is to miss out on reclaiming expenses you incur as you start to build your business.
But while you’re busy assembling a team, working on developing your product or service, marketing your brand and doing all the other things that new business owners need to do worry about, it’s easy to forget about keeping an eye on the finances.
Read our roundup of the most common areas where you can (and can’t!) claim expenses for your startup.
MHA Carpenter Box Financial Advisers news update
Read the October newsletter!
We don’t know if it’s just us, but this year has flown by. Perhaps it is because this year has been so different to a ‘normal’ year; but time has taken on a life of its own.
After a September in which we experienced something of an ‘Indian Summer’, the nights are drawing in and the trees are turning red, brown and gold. Autumn is really here.
This month's newsletter covers:
- Recent financial movements within the UK, including industry updates and the state of the economy
- Brexit and European news
- A global overview: the US, Far East and Emerging Markets
- Business Support Guide: Autumn 2020
- UK Brexit Planning Checklist
- Customs Training
- MHA Construction Sector Report 2020
- MHA Legal Sector COVID-19 Survey Report
- MHA Real Estate Matters – Issue 16
- MHA The Engine – Issue 7
- Not for Profit Update – October 2020
- Financial Update October newsletter
- Electric car tax considerations for companies
- Tax Rates 2020-21
For a full listing of our resources and information sheets, visit our resources page on the MHA Carpenter Box website.
31 Oct 2020
- Paper deadline for self-assessment
- Company accounts filing deadline
- Corporation tax return
01 Nov 2020
- Corporation tax payment
07 Nov 2020
- VAT return
19 Nov 2020
- Monthly postal PAYE/class 1 NICs/student loan payment
- CIS return
22 Nov 2020
- Monthly electronic PAYE/class 1 NICs/student loan payment
30 Nov 2020
- Company accounts filing deadline
- Corporation tax return