As the twelfth week of lockdown ends, on the Coronavirus Job Retention Scheme we are waiting for the promised further guidance from HMRC about partial returning to work (“flexible furloughing”) from July. It is due to be issued today so do keep watching our channels for updates on this.
Wednesday was the last day for businesses to be able to furlough employees who have not yet been furloughed, so effectively that marked the start of the gradual wind down of the scheme.
I have seen reports this week that the Future Fund launched by the government a few weeks ago has been almost three times oversubscribed. Initially the Chancellor announced £250 million being made available for the scheme, but Treasury officials have said the amount will be based on demand and could be up to £1 billion. As a result, the government could end up owning small slices of a very large number of smaller, growing businesses. The scheme provides for the government to make convertible loans to eligible businesses which can be converted to shares if not repaid within the initial loan term (typically around one year).
More guidance has been issued by HMRC about the deferral of self-assessment payments on account due by 31 July. As with the VAT payment deferral, there is no need to formally claim for this, if HMRC do not receive the payment by 31 July they will automatically assume that the deferral is being claimed, and the individual can make the payment at any time up to 31 January 2021. There will be no interest or penalties as long as it is paid by this date.
However, if anybody has an existing Time To Pay arrangement with HMRC and wishes to add the deferred payment to this formal arrangement, they should contact HMRC to arrange this.
Finally, a reminder that the 6 July deadline for filing of P11D expenses and benefits and Employment Related Securities submissions is fast approaching. There are no planned extensions to this deadline and penalties for late submission of these returns can get very large very quickly. In particular, if you need to report any share issues to employees or directors and have not done so before, it can take a couple of weeks to set up the “scheme” before you can submit a return, so action is needed now if nothing has been done yet.
As ever, please contact us for help and support on any of these or other tax and financial areas – our office is still closed but the phone line is manned and a callback can be quickly arranged.
James Geary is head of Corporate Tax and is happy to help with any questions or concerns you may have at this time – you can contact James on email@example.com or 01242 776000 to arrange a call back.