Key Points from the Summer Economic Update
The Chancellor of the Exchequer Rishi Sunak presented his 'Plan for Jobs' on Wednesday 8 July 2020 to outline how the government will boost job creation in the UK.
The next stage of the Government's recovery plan has begun with Boris Johnsons "Build, build, build" speech and Chancellor Rishi Sunak has now delivered his 'Plan For Jobs'.
The Chancellor declared "we are entering the second phase of our economic response" before announcing £30bn worth of measures designed to protect, support and create jobs.
Some of the key points from the announcement include:
- Job Retention Bonus
- Eat Out to Help Out scheme
- Temporary VAT cut in the hospitality industry
- Temporary Stamp Duty Land Tax cut
- Green Homes Grant
- Kickstart Scheme
- Infrastructure improvement
Last chance to have your say: MHA Construction & Real Estate Survey
The MHA Construction & Real Estate specialist team is undertaking a national survey to gauge what is happening in the sector now and what may lie ahead in the months to come.
Our short survey consists of 6 sections and should take no more than 10 minutes to complete.
- Recruitment and employment
- Looking forward
Your responses to our survey will remain anonymous and be used to compile benchmark data, which will help us better understand how the sector is responding to current challenges. The survey closes Friday 31 July.
Eat Out to Help Out Scheme
In the Summer Economic Update the government announced an Eat Out to Help Out Scheme to give a boost to some of the hospitality sector for the month of August.
Registration for the Scheme opened earlier this month, and is currently due to close on 31 August. The service you'll use to claim reimbursements will be available on 7 August 2020 and that service will close on 30 September.
The Eat Out to Help Out Scheme is to be used to offer a discount to diners and encourage them to eat at your restaurant or pub.
Starting from Monday 3 August 2020, you can use the Scheme all day every Monday, Tuesday and Wednesday until 31 August 2020. You can offer a 50% discount, up to a maximum of £10 per person for food or non-alcoholic drinks to eat or drink in (alcohol and service charges are excluded). You then claim this money back from the government.
There is no limit to the number of times customers can use the offer during the period of the Scheme.
Coronavirus Job Retention Scheme: key dates
Since the Coronavirus Job Retention Scheme was announced on 20 March, 9.5m jobs have been furloughed and nearly £30bn in claims have been made, according HMRC's latest statistics.
With the scheme due to wind down over the next few months, there are a number of key dates and actions you need to be aware of:
- 31 July 2020: the deadline to submit your CJRS claim for periods ending on or before 30 June 2020. You need to have made a claim on or before 31 July to be able to claim for future months.
- 1 August 2020: from this date the scheme will no longer fund employers' National Insurance and pensions contributions for furloughed employees.
- 1 September 2020: you will be required to start contributing to the wages of your furloughed employees. Grants will be for 70% of wages but furloughed employees are entitled to receive at least 80% of their wage, subject to the £2,500 cap.
- 1 October 2020: grants will be for 60% of usual wages in October but furloughed employees will continue to be entitled to receive at least 80% of their salary.
- 31 October 2020: the scheme is due to close.
Deferred tax payments
HMRC have announced that the second self-assessment payment on account (due 31 July 2020) can be deferred by up to six months to ease financial difficulties during the pandemic.
If you wish to defer your payment, you do not need to notify HMRC; the deferment to 31 January 2021 is automatically applied. No interest will be applied if the payment is deferred. HMRC say if you want to make the payment before 31 January 2021, then you can do so.
Please note that if you accept the deferred payment it may mean that you have a larger than usual tax bill to pay in January, depending on your financial circumstances. If you need any help or further advice, please contact your usual MHA Carpenter Box contact or get in touch through our website.
Academy Workshop Series
Our MHA colleagues have provided a series of complimentary online workshops on key areas and governor responsibilities for Academies.
These workshops are primarily aimed at School Business Managers and the Senior Leadership Team as well as Governors with specific responsibility for financial and governance matters.
We have the recordings from these workshops on our website and they include:
Academies Accounts Direction (AAD) 2020
This webinar covers the latest Academies Accounts Direction update including the Trustees' Report requirements and disclosure information.
Preparing for Audit
This webinar covers the audit process and how this will look during the pandemic, the Trustees' Report requirements and disclosure information.
Academies Financial Handbook 2020
This webinar provides a brief overview of the Financial Handbook and the main changes for 2020-2021 which apply from 1 September 2020.
Internal Scrutiny / Internal Audit
This webinar covers the implications of the revised FRC Ethical Standards on the provision of internal scrutiny and internal audit services. It also looks at the risk and control framework, transition arrangements and options available for academies from 1 September 2020.
Legal Sector COVID-19 Survey Results
Towards the end of May 2020, whilst still in the midst of the COVID-19 lockdown period, MHA undertook a survey of the legal sector focusing on the impact of coronavirus, how this is affecting law firms, and the influence on future plans.
Following the headline results we shared in June 2020, we have developed a short report which goes into more detail of the findings and further key statistics.
The report focuses on 7 key sections, including fee income, cash flow, business strategy and working practices going forward, and answers crucial questions such as:
- How are law firms changing their current business strategy and what are they focusing on?
- What have we learned from home working?
- How will we change our working practices going forward?
- What has been the impact on fee income and what should firms be thinking about now?
You can use this report to benchmark your practice against others nationally, as well as looking at the key next steps and action points that you should consider going forward.
Making Tax Digital extension announced
In December 2018, the government published the Making Tax Digital (MTD) roadmap, which set out plans to make fundamental changes to the UK's tax compliance system.
MTD would mean businesses, landlords and individuals would record and report income and expenses to HMRC digitally, and more frequently, rather than simply filing one return. The initial plans to transform the tax system from 2020 onwards included:
- Taxpayers would need to use compatible software to file returns quarterly
- A further final submission would need to be filed to complete the year
- A minimum of five submissions would be required annually
On 21 July 2020, the Treasury set out key dates to continue with the digitisation of the tax system and a timetable for further implementation of MTD, including:
- All VAT registered traders, regardless of their turnover, will need to follow MTD rules for their first return starting on or after April 2022
- Self-employed individuals and landlords with turnover above £10,000 will need to follow MTD rules for their next accounting period starting on or after 6 April 2023
We are finalists in the Accounting Excellence Awards!
We are extremely proud to be announced as finalists in the 2020 Accounting Excellence Awards for Large Firm of the Year and for Nathan Keeley as Practice Pioneer of the Year.
Now in their 10th year, these national awards recognises and celebrate all things excellence in the accounting profession. Despite a global pandemic, the awards have seen as many entrants entering as in previous years.
The Large Firm of the Year category is for accountancy firms with a broad range of service lines and locations across multiple regions. Judges chose finalists that demonstrated strength and quality in their firm and client vision. The winners of this award will have defining qualities that help them to stand out in a highly competitive market.
The Practice Pioneer of the Year category is for practice pioneers who are not only experts in their field, but show a genuinely innovative approach to the wider challenges facing the accounting profession.
Utilising tax incentives to maximise cash flow
Given the impact of the COVID-19 pandemic and associated lockdown, it is more vital than ever for businesses to ensure that they maximise their reliefs and take full advantage of the government's offerings.
These incentives and reliefs can reduce tax payments owed to HMRC, retain cash or potentially generate repayments from HMRC. There are a range of valuable options available to help provide generous tax deductions and reduce profits or increase taxable losses (some of which can be converted into cash payments).
Accelerating tax claims to reduce payments due to HMRC
Accelerating work needed to claim the tax relief means less tax will be payable to HMRC when this becomes due. Future payments may also be reduced because of this.
If a company shortens their accounting period, they are able to crystallise the relief at an earlier point and could significantly improve their cash flow.
Episode 7: What is sustainable investing?
The latest episode of our financial planning podcast, The Retirement Gym, is now available to download.
Roy Thompson speaks with Phoebe Stone, Head of Sustainable Investing at LGT Vestra. In this episode, Phoebe explains what sustainable investing is and the effect it can have on financial returns.
- The incorporation of non-financial factors in investing (Environmental, Social and Governance)
- Academic research that has shown that sustainable investing can produce stronger financial returns for the investor
- The effects of Covid-19 on sustainability decisions
- How investment markets can influence corporate governance
- The future of impact investing
How to listen
Listen to this podcast and all other podcasts in the series on your favourite podcast streaming service (including Apple Podcasts, Spotify and Stitcher) or on our website.
Subscribe on your favourite platform to hear the latest episodes as soon as they're released!
MHA Carpenter Box Financial Advisers news update
Read the July newsletter!
As we write this, the UK is beginning to emerge from a period of unparalleled restrictions. Aided by long summer evenings and (hopefully!) warm weather, we should all feel a sense of freedom that we haven't felt for some time.
Of course, whether measures continue to be relaxed rests on that all important 'R' number. But with the government having lowered the country's alert level from 4 to 3 at the end of June, we remain optimistic.
As always, we will maintain a close eye on the situation and will keep you informed about major developments.
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
Not for Profit news update
Read the latest Not for Profit newsletter from the sector team.
In this edition we provide an update on specific areas of gift aid which have recently been relaxed, updated guidance on Serious Incident Reporting requirements by the Charities Commission, the Job Retention Scheme update by the government and new environmental considerations for fundraising.
Additionally, this edition looks at remote accounting software training available by MHA, and opportunities charities can seek in internal controls as we all adapt to the 'new normal' way of working.
- MHA Legal Sector COVID-19 Survey Report
- MHA Real Estate Matters - Issue 15
- MHA The Engine - Issue 7
- MHA Academy Advisor - Summer 2020
- Financial projections and funding support for your business
- Coronavirus: Wealth planning checklist
- Tax Rates 2020-21
- Financial Update July newsletter
- Not for Profit July newsletter
31 Jul 2020
- Company accounts filing deadline
Filing deadline at Companies House of accounts for private companies with a year ended 31 October 2019 and for public companies with a year ended 31 January 2020.
- Corporation tax return
Filing deadline for corporation tax return self-assessment form CT600 for period ended 31 July 2019 to be submitted to HMRC.
- Non-mandatory deadline for self-assessment (payment on account)
Deadline for second payment on account for tax year ended 5 April 2019. Businesses struggling to make their payment as a result of COVID-19 can choose to defer until 31 January 2021.
01 Aug 2020
- Corporation tax payment
Corporation tax payment due for year end 31 October 2019, for those companies not liable to pay their liability by instalments.
07 Aug 2020
- VAT return
Due date for June VAT returns unless exempted.
14 Aug 2020
- EC sales list
Deadline for paper monthly or quarterly return filing.
19 Aug 2020
- CIS return
Construction Industry Scheme: monthly return due for period up to 5th of previous month.
- Monthly postal PAYE/class 1 NICs/student loan payment
If you pay by cheque through the post, monthly payments due for PAYE, class 1 NICs and student loan deductions from July 2020.
21 Aug 2020
- EC sales list
Deadline for online monthly or quarterly return filing.
Due date for payment of supplementary declarations for July 2020.
22 Aug 2020
- Monthly electronic PAYE/class 1 NICs/student loan payment
If paying electronically, pay PAYE, class 1 NICs, student loan deductions and deductions from payments to subcontractors for the month up to the 5th of this month.
31 Aug 2020
- Company accounts filing deadline
Filing deadline at Companies House of accounts for private companies with a year ended 30 November 2019 and for public companies with a year ended 28 February 2020.
- Corporation tax return
Filing deadline for corporation tax return self-assessment form CT600 for period ended 31 August 2019 to be submitted to HMRC.