Anna’s Accountancy Alerts – Week 24 (14th September – 20th September 2020)

Small business

Kickstart Scheme Opens For Applications

On 2 September 2020, the government’s £2 billion Kickstart Scheme opened for employer applications.

The Kickstart Scheme aims to create work placements for young people who are at risk of becoming unemployed for the long-term. Businesses can join the scheme, with the government paying employers £1,500 to help set up support and training. Funding is available following a successful application process. Applications must be for a minimum of 30 job placements.

Businesses that are unable to offer this many job placements can partner with other organisations to reach the minimum number.

Selected out-of-work young people will be offered six month work placements for at least 25 hours a week to help them gain experience, skills and confidence. The scheme is designed to be a stepping stone to further employment.

Employers will receive funding for 100% of the relevant National Minimum Wage (NMW) for 25 hours a week, plus associated employer national insurance contributions (NICs) and employer minimum auto-enrolment pension contributions.

The scheme, which will be delivered by the Department for Work and Pensions, will initially be open until December 2021, with the option of being extended.

Check if you can apply for a grant through the Kickstart Scheme here.

Self Employment Income Support Scheme Grants

The second and final taxable grant is worth 70% of an individual’s average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.

Applications for the second and final grant are now open. The grant is only available to businesses that have been adversely affected on or after 14 July 2020. Taxpayers must make a claim for the second grant on or before 19 October 2020.

HMRC will work out businesses’ eligibility for the second grant in the same way as the first grant.

Taxpayers are able to make a claim for the second grant if they are eligible, even if they did not make a claim for the first grant.

HMRC have confirmed that taxpayers can:

  • continue to work
  • start a new trade or take on other employment including voluntary work and duties as a military reservist.

The grant does not need to be repaid if a taxpayer is eligible, but will be subject to both income tax and self employed National Insurance.

Companies House Bank Details Have Changed

From 1 September 2020 all customers who make payments by bank transfer (BACS) will need to use the new bank account details.

For customers who need to make a BACS payment, any letters Companies House sends from 1 September 2020 will include the new bank account details and instructions on how to pay Companies House.

They have also updated their bank details in any online guidance and emails.

The old bank account will stay open for six months to make sure that all customers transition successfully to the new account.

The old account will close at the end of February 2021.

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