Anna’s Accountancy Alerts – Week 34 (23rd – 29th November 2020)

Anna Goodwin Accountancy

Recording Of Coronavirus Financial Support

Payments Received Under The Coronavirus Job Retention Scheme (CJRS)

These are grants and should be recorded as other income

The wages journal should be posted as normal – don’t offset the grants received against wages

Other Grants

If your business has received a £10k cash grant under the Small Business Grant Fund or a £25k payment under the Retail, Hospitality and Leisure Grant scheme these should be treated as other income.

Don’t offset them against the rents and rates expense

Student And Postgraduate Loans Thresholds And Rates From 6 April 2021

The thresholds for Plan 1 and Plan 2 Student Loans are increasing from April 2021.

The thresholds for the current tax year 2020-2021 are:

  • Plan 1 – £19,390
  • Plan 2 – £26,575

The Department for Education has confirmed that from 6 April 2021 the thresholds will increase to:

  • Plan 1 – £19,895
  • Plan 2 – £27,295

The Postgraduate Loan threshold will remain at £21,000. Earnings above £21,000 will continue to be calculated at 6%

New NI Break For Employers

From 6 April 2021 if you take on a former member of the armed forces you’ll be entitled to a twelve-month holiday from employers’ NI in respect of the salary you pay them. This could save you £2,250 on a salary of £25,000.

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.