Anna’s Accountancy Alerts – Week 8 (25th May – 31st May 2020)

Mature Woman Accounting

Coronavirus Job Retention Scheme (CJRS) Tackling The Tax And NI Consequences

NI Payroll Issues

Where you claim the employment allowance (EA) it reduces the liability (by up to £4,000 for 2020/21) which means you can’t claim under the CJRS.

Tax Issues – Is The CJRS Grant Taxable?

Employers, companies and unincorporated businesses must record the grant received as taxable income for corporation and income tax purposes respectively.

VAT Issues

HMRC has not provided guidance on how businesses should treat CJRS payments received for VAT purposes. However, generally grants are outside the scope of VAT as they are not paid in return for a supply of goods or services.

Make sure you record the grant income as “outside the scope of VAT” and not as “exempt”.

Mentor Benefits

You’re very good at the core of your business but find the day-to-day stuff – like managing people, controlling cash flow, insurance, etc. – more challenging. Could a mentor help and what qualities should you look for in one?

How To Choose A Mentor?

The type of mentor you need depends on what kind of support you are after; services range from business-focused guidance to help with the mental and emotional pressures of running (or starting) a small company.

What Makes A Good Mentor?

You’ll need to be able to trust and respect them, they will want to know a lot about your business because only by going back to basics can they help you. You’ll also need to be comfortable talking to them, so it’s best to have a chat with them and make sure this is the case.

Coronavirus: Which Rules Have Been Relaxed?

There are many rumours surrounding the coronavirus outbreak and what businesses can and can’t do. The government is continually reviewing the rules and changing or relaxing them where necessary.

Use this link to see what has changed:

https://www.gov.uk/guidance/rules-that-have-been-relaxed-to-help-businesses-during-the-coronavirus-pandemic

It covers the latest relaxed rules on, for example, annual leave, delivery drivers’ hours, personal protective equipment requirements, taxable expenses whilst employees are working from home, protection for commercial tenants and temporary changes by Companies House, e.g. to filing requirements.

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.