Anna’s Accountancy Alerts – Week 14 (6th – 12th July 2020)

finance

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The Coronavirus Job Retention Scheme (CJRS) Fraud Under Scrutiny

CJRS has been a massive help for many businesses and their employees. Unfortunately some people have exploited the scheme.

HMRC is seeking powers to hold directors personally liable for bogus or excessive CJRS payments. Ensure your paperwork is sound and backs up your calculations and claims.

Employment Allowance – Claiming It Correctly

New rules which have applied since April 2020 require you to check your eligibility for the employment allowance. The change has been causing confusion so HMRC has issued new guidance on the claims procedure.

https://www.gov.uk/government/publications/employment-allowance-more-detailed-guidance/cl aiming-employment-allowance-further-employer-guidance

HMRC To Collect Some Tax Debts Sooner

If you don’t pay a self-assessment tax bill on time HMRC can adjust your PAYE code to collect it from your salary. It now plans to do this much sooner. If you want to avoid this you need to contact HMRC and arrange time to pay.

HMRC has set up a specific helpline, 0800 024 1222, if you’re concerned that you won’t be able to pay your tax due to coronavirus. The opening hours are Monday to Friday 8.00am to 4.00pm.

When Should You Deduct Bad Debts?

Your firm’s financial year ends soon and while the accounts will show a profit you’re expecting them to include significant bad debts.

Before you can claim a deduction for an unpaid invoice you must take steps to recover the debt. Create a realistic policy that sets out the steps you should take to pursue a debt before giving up. Having followed the policy a deduction can be claimed for debts that remain unpaid at the time you approve your accounts.

Stay Up-To-Date With Coronavirus & Brexit News

Coronavirus has affected us all. Whether you’re a sole trader, employer or employee. Stay up to date with the latest news – including government support, tax implications, and more.