Advice from Contax Law’s Accountants for our Contractors
To all our clients and friends,
I hope you are keeping safe and well as the lock-down chains start to loosen.
The government has announced changes to their assistance measures available to companies and individuals over the recent days - below, I outline my understanding of these measures.
Furlough Extension and Changes
The Chancellor has announced that from 1 July 2020, businesses will be given flexibility to bring furloughed employees back to work. There will also be step changes to the furlough amounts reclaimable over the coming months:
Self-Employment Income Support Scheme (SEISS) Extension
Individuals can continue to apply for the first Self-Employment Income Support Scheme (SEISS) grant until 13 July 2020. Under this grant, individuals can claim a taxable grant worth 80% of their average monthly trading profits - this is paid out in a single installment and capped at £7,500 for three months' worth of profits.
Applications for a second grant will open in August 2020 - this will be for 70% of average monthly trading profits and is capped at £6,570 covering three months' worth of profits.
The eligibility criteria will remain the same for the second grant. An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase. Further guidance on the second grant will be published on Friday 12 June.
As part of the Autumn Budget, it is expected that the government will continue its roll-out of the relief for housing cooperatives under the Annual Tax on Enveloped Dwellings (ATED) and will publish the findings of its fundamental review of business reliefs. We will update you with any further developments of expectations for the Autumn Budget.
Once again, if you need to discuss any of the above please don’t hesitate to call our team – see below for the numbers to call. We are happy to take calls and help or advise where we can. In the meantime take care of yourselves and others and stay safe.
Nick Robbins – M: +44 7921 298 095
Charlie Harris – M: +44 7879 498 548