Weekly Update - 13th May 2020

CJRS extended to October

The Coronavirus Job Retention Scheme has now been extended to October.

The scheme will also be adjusted from August to allow a part-time return to work, which will also lead to part funding from employers based on days worked.

The detail on how this will work is expected in the coming days.

Self Employed Income Support Scheme

From today, clients can apply for Self Employment Income Support.

Accountants and advisors are not able to apply on individuals behalf.

You will need the following information:

  • Self-Assessment Unique Taxpayer Reference (UTR) - if you do not have this find out how to get your lost UTR
  • National Insurance number - if you do not have this find out how to get your lost National Insurance number
  • Government Gateway user ID and password - if you do not have a user ID, you can create one when you make your claim
  • UK bank details (only provide bank account details where a Bacs payment can be accepted) including:
  • bank account number
  • sort code
  • name on the account
  • your address linked to your bank account

To apply click HERE

Discretionary fund for small businesses through local authorities

The government has announced a further £617million of support will be made available to small businesses through a discretionary fund. This fund will be allocated at local authority level and will be awarded at their discretion.

This fund is designed for businesses that did not receive relief through the grants through the Small Business Grants Funds (SBGF) and the Retail, Hospitality and Leisure Grants Fund (HLGF).

Grants of £25,000, £10,000 and below £10,000 will be made available.

For businesses to be eligible they must:

  • Have under 50 employees
  • Be able to demonstrate that they have seen a significant drop of income due to Coronavirus restriction measures.

More detail will be set out in the coming days.

Lifetime ISA charge change

To help investors withdraw funds from their Lifetime ISA (LISA) during the coronavirus (COVID-19) the withdrawal charge has been temporarily reduced from 25% to 20%.

This change will apply from Friday 6 March 2020 until 11.59pm Monday 5 April 2021.

The reduced withdrawal charge applies to all unauthorised withdrawals. It does not apply if the withdrawal is to buy a first home or the investor has a terminal illness.

This means that LISA investors will only lose the government bonus earned on the amount they withdraw.

LISA managers who have deducted a 25% withdrawal charge will be able to correct this. They can do this when HMRC update the LISA digital service.

They will be able to do this by submitting a new withdrawal charge to supersede the original one.

 

As more detail arises on all schemes we will continue to keep you updated.

 

Andrew Douthwaite

Manager

Hamlyns LLP

E: andrew.douthwaite@hamlyns.com

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