• Andy Nash

Dear all

Apologies we haven’t done a full email update or blog update for a while – there’s been so many changes almost on a daily basis, but I wanted to send an update on where things stand now and a few helpful pointers!

Most importantly though we hope you, your teams, and your families are faring well during this time.

I’ve split it as follows:

  • Update on HMRC schemes

  • Update on wider funding options

  • Update on our ANAC family

Update on HMRC schemes

Here’s our update on the relevant HMRC schemes for our clients:

Coronavirus Job Retention Scheme (a.k.a.) the furlough scheme – the scheme has now been live for claims for nearly a month, although there are tweaks ongoing. On the whole the system is relatively easy to use, although the calculations can be a bit of a pain! A few pointers from us:

  • If you are claiming employment allowance in the period of your claim you cannot claim back the employers NIC through the CJRS claim as well

  • There are very set rules on how to calculate part months and how to calculate the claimable employers NIC and pension if you are topping up – the full guidance is here buts it’s a lengthy read!

  • Most of the payroll software providers, including Xero have released products that attempt to calculate the furlough scheme elements but none of them are quite right so please be careful – Xero have issued an update in the last few days


If you are a payroll client we will do your claim for you on a monthly basis at the start of the next month. This seems to be a quieter time to do it and we’ve found the grant is normally in our client’s account within a week.

If you aren’t a payroll client and would like us to help please let us know – we can either process the claim for a small fee to cover costs, or we’ve developed a claim calculator that we are happy to share with clients for free.

Coronavirus SSP relief - we are still waiting for HMRC to release a system for reclaiming the 2 weeks of SSP for COVID-19 related sickness leave. They are posting updates here, but please make sure you keep the following for all employees you wish to claim for:

  • The reason why an employee could not work

  • Details of each period when an employee could not work, including start and end dates

  • Details of the SSP qualifying days when an employee could not work

  • National Insurance numbers of all employees who you have paid SSP to

We’ll update you once the system is live.

Deferral of VAT payments – for the few of you who are VAT registered please remember that you can defer any VAT payments due between 20 March 2020 and 30 June 2020. This is automatic and you don’t have to claim however if you currently pay your VAT by direct debit you do need to remember to cancel your direct debit before your due date. Please remember this is only a deferral – you still have to pay the VAT by 31 March 2021.

Update on wider funding options

There are now lots of sector specific post of money available and depending on your activities you may have access to more specific pots such as the pots from the Heritage Fund, Arts Council of Wales/Cyngor Celfyddydau Cymru, Arts Council England, Crisis (currently closed to new applicants but likely to reopen) amongst many others.

There are also multiple general pots including:

A lot of grant funders, however, have now temporarily paused new applications but we expect them to open again in the next few weeks and months.

Here, however are a couple of items that we are finding clients are not aware of:

  • Small Business Grant Fund – in both England and Wales if you are a business rates accounts holder and eligible for small business rates relief (generally those with a rateable value below £15,000) or rural rates relief you will be eligible for a grant of £10,000 through your local council – to access go to your council’s business rates website - you’ll need to know your business rate account number.

  • Bounce back loans – we would urge all clients to be incredibly careful with taking on debt at this time, and our normal guidance still stand that you must check you governing document allows you to take out loans and also that you have considered section 4.9 of Charity Commission guidance document CC8 on financial controls, but if your concerns are solely cashflow then it is worth considering the bounce back loan scheme in particular as this offers a government backed loan, at fixed interest rates.

Update on our ANAC family

As a business based predominantly in Wales we are still in full lockdown and all staff are currently working from home. Even when restrictions start to lift this is unlikely to change overnight as all our staff our young parents and so until schools and nurseries reopen we will working as is. In addition, as many of you are aware, I am currently having to work a condensed week as on Thursdays I am on childcare duties as my wife is a paediatric nurse and we have been unable to get emergency childcare provision for that day and this will continue until nurseries and schools fully reopen, however Lowri, our newish qualified accountant is covering on those days. This has had very little impact on our work and I am confident this will continue to be the case.

We are however continuing to priorities work based on financial situation of clients in the environment and external filing deadlines so please bear with us as we help those clients that most need our support during this time.

We do have two exciting updates though:

  • Office move - our office move is going ahead and the build has nearly finished so we are hoping to move into our new permanent home in the Goodsheds Barry (www.goodshedsbarry.co.uk) in July! We’re working with local design agency ongl design to create a flexible space that local charities can also come and use for board meetings and training sessions – we’re really excited and hope to share more over the next few months – keep an eye on our twitter feed for more!

  • New staff member – next week we will be growing our family here again with a new addition – Laura Hathaway joins us as a PA to me (poor lass!)/administrative assistant. Please do give her your normal lovely warm welcome!

Also, on an administrative note, we will be re-issuing all our engagement letters over the next month – the main changes are around formatting and increasing the services we offer, as well as updating our privacy policy, but the most important change is that we will be adding a notice period to all contracts of 28 days although this will be allowed to be shortened if agreed by both parties.

As always any questions please do shout!

Many thanks/Diolch


Andy

Dear all

Having said we would only do one update a week, yesterday evening HMRC issued detailed guidance on the Job Retention Scheme (furloughing). The full details can be found here:

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Key points that have been clarified/changed

You will be able to claim the lower:

  • 80% of the gross salary (as of 28 February for fixed pay clients – for variable pay the calculation methods are relatively straight forward and in the article)

  • £2,500

PLUS

  • The associated employers NIC

  • The associated minimum 3% employer contributions on qualifying earnings – note if you pay a higher employer % or on full salary you cannot claim the extra

They expect the scheme to be up and running by the end of April


The scheme will run for at least 3 months backdated to the 1 March 2020 – i.e. it will run to at least 31 May 2020


There’s a specific section on volunteering:


  • A furloughed employee can take part in volunteer work or training, as long as it does not provide services to or generate revenue for, or on behalf of your organisation.

  • However, if workers are required to for example, complete online training courses whilst they are furloughed, then they must be paid at least the NLW/NMW for the time spent training, even if this is more than the 80% of their wage that will be subsidised.

I’d actually say this is less flexible then I would have hoped it to be – what does it mean to provide services to/on behalf of? We have asked for additional guidance to be issued for charities on this.

Any questions please yell!

Many thanks


Andy

Registered company in England & Wales - 09967708

© 2019-2020 by Andy Nash

Accounting & Consultancy Ltd

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