1stJun
News article

IPSE gives cautious welcome to extension of self-employed scheme

The government's decision to extend COVID-19 support for self-employed workers has met with a cautious welcome from the Association of Independent Professionals and the Self-Employed (IPSE).

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The government's decision to extend COVID-19 support for self-employed workers has met with a cautious welcome from the Association of Independent Professionals and the Self-Employed (IPSE).

Chancellor Rishi Sunak has announced that the Self-Employment Income Support Scheme (SEISS) will run again in August.

In August, those eligible under the SEISS will be able to claim a second and final grant.

The grant will be worth 70% of their average monthly trading profits, paid out in a single instalment covering three months' worth of profits, and capped at £6,570 in total.

Commenting on the extension, Andy Chamberlain, Director of Policy at IPSE, said: 'It will be an overwhelming relief for many self-employed people that the government has heeded our calls and extended SEISS. The scheme is a vital lifeline for millions of people and it is absolutely right that the government keeps it running.

'However, it is disappointing that there will still be two months when employees can access support and the self-employed cannot. The government should watch the situation carefully and be ready to step in if the UK's self-employed need more support.

'It is also vital that the government does not ignore the self-employed who cannot access this scheme. At the moment, groups like freelancers working through limited companies and the newly self-employed have patently been forgotten. We urge the government to consider these groups and also help them through the coming months.'

1stJun
News article

Chancellor announces changes to Job Retention Scheme

Chancellor Rishi Sunak has announced changes to the government's Job Retention Scheme (JRS), which will be slowly wound down over the next few months.

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Chancellor Rishi Sunak has announced changes to the government's Job Retention Scheme (JRS), which will be slowly wound down over the next few months.

The changes mean businesses will be able to bring furloughed employees back on a part-time basis from 1 July.

Furloughed staff will continue to get 80% of their salary throughout until the scheme finishes at the end of October. However, employers will be expected to gradually contribute more towards furloughed employees' salaries.

In August, the taxpayer contribution will stay at 80% but employers will have to pay national insurance and employer pension contributions.

In September, employers will be asked to start paying 10% towards people's wages, which will rise to 20% in October.

The cut-off for JRS applications is 30 June, after which new firms will not be able to join and others unable to furlough additional employees.

Commenting on the scheme, Dame Carolyn Fairbairn, Director-General at the Confederation of British Industry, said: 'Introducing part-time furloughing as more stores and factories start to open will help employees to return to work gradually and safely. Many more businesses will feel supported during this vital restart phase.

'Firms understand the scheme must close to new entrants at some point and that those using it in future will need to make a contribution to help manage the costs. However, previously viable firms not able to open until later, particularly in leisure, hospitality and the creative industries, may need further assistance in the coming months.'

Further guidance on the JRS can be found here.

29thMay
News article

Data shows 5.2 million people have fallen victim to scams during coronavirus crisis

Research carried out by insurer Canada Life has revealed that 5.2 million people in the UK have fallen victim to scams during the coronavirus (COVID-19) pandemic.

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Research carried out by insurer Canada Life has revealed that 5.2 million people in the UK have fallen victim to scams during the coronavirus (COVID-19) pandemic.

Canada Life's research showed that the most common financial scams are banking scams, followed by insurance scams and pensions scams.

Victims lost an average of £566 per scam, the research found. 48% of people surveyed said that the scams are so convincing they are difficult to spot. 55% stated that falling victim to a scam has taken a toll on their mental health.

Commenting on the research, Andrew Tully, Technical Director at Canada Life, said: 'Falling prey to a scam can be devastating, not only for the individual involved but also for their family and friends.

'The COVID-19 pandemic has provided a fertile opportunity for 'lowlifes' to prey on not only the vulnerable but also people who are worried and anxious about both their health and their wealth.

'We all need to be on our guard for any signs of fraudulent activity as scammers continue to evolve and adopt ever more sophisticated and ingenious ways of encouraging people to part with their hard-earned money.'

29thMay
News article

FSB calls for government to give company directors more support

The Federation of Small Businesses (FSB) has urged the government to supply company directors with additional support during the coronavirus (COVID-19) pandemic.

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The Federation of Small Businesses (FSB) has urged the government to supply company directors with additional support during the coronavirus (COVID-19) pandemic.

The FSB has written a letter to Small Business Minister Paul Scully, highlighting that self-employed company directors, who often pay themselves a salary supplemented with company dividends, do not have access to the government's Self-employment Income Support Scheme (SEISS). The SEISS permits eligible individuals to claim 80% of earnings, up to a maximum of £2,500 per month.

The business group stated that directors of limited companies can furlough themselves using the Coronavirus Job Retention Scheme (CJRS), but they are only allowed to claim for loss of Pay as You Earn (PAYE) income and not dividends.

To be able to claim this, directors who pay themselves annually would have needed to submit the information to HMRC by 19 March. However, many directors were unaware that this would be necessary.

'The business support measures currently in place help the vast majority, but they don't help everyone,' said Mike Cherry, National Chairman of the FSB.

'Business owners who have contributed for years through corporation and dividend tax are now suffering purely because of the way they pay themselves. They need help, and they need it fast.'

28thMay
News article

Coronavirus Statutory Sick Pay Rebate Scheme goes live

On 26 May, HMRC opened up its Statutory Sick Pay (SSP) rebate claim service. Eligible employers are able to recoup up to two weeks' worth of SSP payments made to employees off work for coronavirus (COVID-19)-related reasons since 13 March 2020 (16 March 2020 if the employee was shielding). This is an ongoing scheme for which an end date has not yet been announced.

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On 26 May, HMRC opened up its Statutory Sick Pay (SSP) rebate claim service. Eligible employers are able to recoup up to two weeks' worth of SSP payments made to employees off work for coronavirus (COVID-19)-related reasons since 13 March 2020 (16 March 2020 if the employee was shielding). This is an ongoing scheme for which an end date has not yet been announced.

The scheme is potentially worth up to £191.70 per employee that an employer has made SSP payments to for COVID-19-related reasons.

For the purposes of making a claim, it doesn't matter whether the employee was displaying symptoms themselves or was living with someone who was displaying symptoms. It also doesn't matter whether the employer topped up their earnings (although only the SSP element is eligible for the rebate).

A rebate cannot, however, be claimed in relation to employees who were furloughed at the time of illness or absence, and for whom the separate Coronavirus Job Retention Scheme (CJRS) grant was claimed.

Employers will be eligible for an SSP rebate if they had a Pay as You Earn (PAYE) scheme as at 28 February 2020, and (along with any connected employer) employed fewer than 250 employees as at that date. Employers must also be within their State Aid limits under the EU Commission temporary framework.

More information can be found here: www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19.

28thMay
News article

Data reveals retail sales 'remain depressed' in year to May

Data published by the Confederation of British Industry (CBI) has revealed that retail sales volumes remained 'deeply depressed' in the year to May.

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Data published by the Confederation of British Industry (CBI) has revealed that retail sales volumes remained 'deeply depressed' in the year to May.

According to the data, supply disruptions have worsened since April. 58% of retailers reported shortages of some goods, whilst 64% reported increased cost pressures. 44% stated that they have experienced shipping delays and a further 60% have faced capacity constraints.

80% of retailers reported cashflow difficulties, down from April's figure of 96%.

The CBI said that sales volumes are expected to fall at a slightly slower pace next month.

'The retail sector is at the sharp end of a crisis, with many businesses up against it,' said Rain Newton-Smith, Chief Economist at the CBI.

'The government's support packages are making a real difference, with more shops reporting that jobs have been furloughed rather than lost. The furlough system will need to adapt as more businesses open their doors in the months ahead.'

27thMay
News article

Changes to insolvency and company law to take effect

The government has made changes to insolvency and company law as a result of the coronavirus (COVID-19) pandemic.

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The government has made changes to insolvency and company law as a result of the coronavirus (COVID-19) pandemic.

The Corporate Insolvency and Governance Bill outlines that struggling companies will be given extra time to consider rescue plans presented to them. As part of the changes, companies will have 20 business days to consider a rescue plan, which can be extended to 40 days at the discretion of creditors or the Court.

The Bill stipulates that a company will remain under the control of directors; however, the insolvency process must be overseen by a licensed insolvency practitioner.

Additionally, restructuring plans have been introduced in the Bill, which will bind creditors and allow the insolvency process to adjust as the COVID-19 pandemic changes.

'This Bill represents the biggest change to the UK's insolvency and restructuring framework for almost 20 years,' said Colin Haig, President of insolvency trade body R3.

'The measures contained in this Bill will support the profession's efforts to help businesses navigate the enormous economic damage caused by the pandemic.'

The Bill is currently undergoing its second reading in the House of Commons. Further information on the legislation can be found here.

27thMay
News article

Government publishes revised Coronavirus Job Retention Scheme legislation

The government recently published revised legislation on the Coronavirus Job Retention Scheme (CJRS).

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The government recently published revised legislation on the Coronavirus Job Retention Scheme (CJRS).

On 22 May, Chancellor Rishi Sunak altered CJRS legislation to reflect the extension of the scheme. On 12 May, the Chancellor announced an extension to the CJRS until the end of October and confirmed that employees will continue to receive 80% of their monthly wages, up to £2,500.

However, Mr Sunak said companies will need to start sharing the cost of the scheme from August.

The changes to the CJRS are needed to ensure the scheme 'works as intended'. The Treasury Direction submitted by the government outlines that the written agreement between an employee and their employer for the employee to cease all work must be retained by the employer until at least 30 June 2025.

The agreement must specify the main terms and conditions; be assimilated into the employee's contract; and be made or confirmed in writing.

The Treasury Direction also stipulates that any training activities undertaken by an employee must not provide a service to the employer or generate income for the employer.

Additionally, where an employee was employed by a former employer in a qualifying Pay as You Earn (PAYE) scheme on 28 February 2020, the Direction now permits the new employer to claim a CJRS grant where a Real Time Information (RTI) submission was made on or before 19 March 2020.

26thMay
News article

Survey suggests one in ten firms cannot implement coronavirus guidance safely

A survey carried out by the British Chambers of Commerce (BCC) has suggested that one in ten UK businesses feel they cannot implement government coronavirus (COVID-19) guidance safely.

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A survey carried out by the British Chambers of Commerce (BCC) has suggested that one in ten UK businesses feel they cannot implement government coronavirus (COVID-19) guidance safely.

Results from the BCC's latest Coronavirus Business Impact Tracker revealed that 83% of businesses polled know some or a lot of details about government guidance on working safely. 37% of firms said that they can implement the guidance and restart business operations, whilst 45% stated that they can partially restart.

85% of survey respondents have received payment from the government's Coronavirus Job Retention Scheme (CJRS). Meanwhile, 54% of applicants for the Bounce Back Loan Scheme (BBLS) reported that they were successful in securing a loan, and 38% were awaiting a decision on a loan.

'While businesses have welcomed the publication of official guidance on how they can reopen premises and restart operations, some sectors still require greater clarity from the government on when and how they will be allowed to do so,' said Dr Adam Marshall, Director General of the BCC.

'Companies at all levels of readiness to restart, of all sizes, and in every part of the UK will need sustained government support as they navigate the 'new normal' with reduced demand and restrictions still in place.'

26thMay
News article

Government borrowing at record high, data reveals

Data published by the Office for National Statistics (ONS) has revealed that government borrowing reached a record high of £62 billion in April following heavy spending as a result of the coronavirus (COVID-19) pandemic.

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Data published by the Office for National Statistics (ONS) has revealed that government borrowing reached a record high of £62 billion in April following heavy spending as a result of the coronavirus (COVID-19) pandemic.

The deficit was larger in April than forecast for the whole of 2020 at the time of the Budget. The data showed that the cost of the government's Coronavirus Job Retention Scheme (CJRS) alone was £14 billion in April.

The Office for Budget Responsibility (OBR) predicts that borrowing could reach £298 billion this year.

Commenting on the data, Charlie McCurdy, Researcher at think tank the Resolution Foundation, said: 'The latest borrowing figures offer a stark illustration of the fiscal costs of the coronavirus and the lockdown measures required to contain it, with the government borrowing as much last month as it did during the whole of last year.

'But while there is significant pressure on the public finances, there are no signs that the government is struggling to find the cash. Record low interest rates mean the UK's higher debt burden should remain more than manageable.'