COVID-19 Support Update January 2021

ICS Accounting is dedicated to supporting you through the current global pandemic, ensuring you are fully up to date with the financial impact of coronavirus. Below we have set out a summary below of the government’s current support options for you and/or your business.

Support for Employers

The third version of the Coronavirus Job Retention Scheme (CJRS V3) came into force on 1 November 2020 and is expected to run until 30 April 2021.

Under the latest Coronavirus Job Retention Scheme, employers can claim 80% of furloughed employees’ current salary for hours not worked, up to a maximum of £2,500. Employers will continue to cover the cost of any hours worked by their employees.

Employers will have to cover the cost of employer National Insurance and pension contributions for any hours not worked.

Further information on the current Coronavirus Job Retention Scheme can be found here.

Spread the Cost of Self-Assessment Liability

If you are unable to pay your self-assessment bill that falls due on 31 January 2021, you can set up a time to pay arrangement online if they meet the following requirements:

  • You have no outstanding tax returns (the 2019/20 tax return must have been filed, and it must also have been processed by HMRC which can take 72 hours for a return filed online).
  • You must have no other tax debts, or HMRC payment plans set up.
  • The debt must be between £32 and £30,000.

The payment plan must be set up no later than 60 days after the due date of debt, so 1 April 2021. However, to avoid late payment penalties, the payment plan must be set up by the trigger date for late payment penalties which is 30 days after the due date, so 2 March 2021. Interest will be applied to any outstanding balance from 1 February 2021. 

This is a self-service system, which cannot be completed by your agent, which you can find here.

Loans & Funding

There are a number of loans and funding facilities have been introduced which are summarised as follows: 

Business Rates

There are business rates holiday opportunities for business in the following sectors:

Self Employment Income Support Scheme

The Self Employed Income Support Scheme (SEISS V3) has been extended for the third time. 

The general basis for SEISS V3 is that if you didn’t qualify for the grant the first or second time, then you won’t be eligible for SEISS V3.

The SEISS V3 grant is 80% of your average monthly trading profits. 

The grant equates to 3 month’s profit and is paid in one amount. The grant is capped at £7,500. The grant is subject to income tax and National Insurance as if it were taxable business income.

The online service to apply for SEISS V3 grant is now open here.

If you’re eligible, you must make your claim for the third grant on or before 29 January 2021.

Can’t Pay Your Taxes?

All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.

These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559.