September 2020 Newsletter

Published 1st September 2020

IT Issues

With many people working from home you might come across some IT issues. AiMtech may be able to help you should you run into any difficulties

AiMTech provides first-class IT services for SMEs. Our focus is on customer experience, taking care of your IT while leaving you to concentrate on business. We don’t just provide one-off solutions, we create an IT strategy for our clients to ensure long-term success and an approach to technology that evolves with your business.

• When was your last overall health check for your IT systems?
• Are you worried about cyber security?
• Still worried about data breaches or losses?
• We manage our customers networks and carryout regular IT health checks, preventing and combating the ongoing threat of data fraud and cyber-crime.

Get in touch for a free scan of your IT network, we can then report to you how healthy and secure your devices are. Call: 07593 140250 or Email: kevin@aimtech.ltd.

SEISS penalty

HMRC announced how they were going to punish wrongdoers who misused the Self-Employment Income Support Scheme (SEISS) scheme. On the face of it, it’s not too problematic since all they are asking people to do is take a close look at the claim they made and, with the benefit of hindsight, consider whether the claim was either appropriate or excessive.

If you believe this to be the case then you will need to tell HMRC no later than:

• 20th October 2020
• 90 days after they received the grant

Payment of the outstanding balance of any overclaim is to be made in full by

• 31st January 2022.

Information on how and where to notify HMRC can be found HERE

It cannot be emphasised enough that the first two dates above are the ones to be observed if clients are to avoid the potential for a severe penalty loading.

VAT deregistration strategy

If you are presently registered for VAT but your turnover has dropped below £83,000 you could deregister for VAT. However, you do not have to deregister.

Disadvantages and advantages of deregistration

• If you buy significant amounts of goods and services that include a VAT charge, then if you deregister you will not be able to recover any VAT charged.
• If most of your sales are zero-rated or most of your customers are registered for VAT and can recover the VAT you charge, deregistering means you will lose any recovery of input VAT on purchases and your customers will gain no advantage.
• If, however, you sell to the general public who cannot reclaim the VAT you charge, and if the VAT on your purchases is not significant, then deregistering could provide an opportunity to reduce your prices and regain a competitive advantage.

The process of deregistration is quite straightforward, but it is worth considering any knock-on effects before taking this option. Please call as we can help you crunch the necessary numbers.

Redundancy pay

If you are faced with making employees redundant, the terms that determine the amount payable may be written into your staff contracts of employment.
Otherwise, employees will normally be entitled to statutory redundancy pay if they have been working with you for two years or more.

Entitlement is usually based on:

• half a week’s pay for each full year you were under 22 years of age,
• one week’s pay for each full year you were 22 or older, but under 41
• one and half week’s pay for each full year you were 41 or older

Length of service is capped at 20 years.

Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice.

Coronavirus furlough scheme

If an employee was furloughed prior to being made redundant the average weekly pay is their normal wage rather than any reduced amount they may have been paid during furlough.

According to HMRC sources, if you were made redundant on or after 6 April 2020, your weekly pay is capped at £538 and the maximum statutory redundancy pay you can get is £16,140. If you were made redundant before 6 April 2020, these amounts will be lower.

Also, please note that employees are not entitled to statutory redundancy pay if you offer to keep them on or if you offer suitable alternative work which an employee refuses without good reason.

Take advice

Free email support is available to all our clients from Lindsey at BC360. Please email lindsey@bc360.uk with any questions.

Tenants protection under the Coronavirus Act 2020

From the 26 March 2020, the following rights of landlords and tenants regarding eviction apply. A summary of the provisions is set out below:

• The Coronavirus Act 2020 protects most tenants and secure licensees in the private and social rented sectors by putting measures in place that say where landlords do need to issue notices seeking possession, the notice period must be for three months. Landlords can choose to give a longer notice period. Any claims in the system or about to go into the system will be affected by the stay of possession hearings and orders. Court actions to evict a tenant will not be progressed before 20 September 2020.
• At the expiry of the three-month notice, a landlord cannot force a tenant to leave their home without a court order. When the three-month notice period expires, a landlord would still need to take court action if the tenant was unable to move.

The government strongly advise landlords not to commence or continue eviction proceedings during this challenging time without a very good reason.

Tax Diary September/October 2020

1 September 2020 – Due date for Corporation Tax due for the year ended 30 November 2019.

19 September 2020 – PAYE and NIC deductions due for month ended 5 September 2020. (If you pay your tax electronically the due date is 22 September 2020)

19 September 2020 – Filing deadline for the CIS300 monthly return for the month ended 5 September 2020.

19 September 2020 – CIS tax deducted for the month ended 5 September 2020 is payable by today.

1 October 2020 – Due date for Corporation Tax due for the year ended 31 December 2019.

19 October 2020 – PAYE and NIC deductions due for month ended 5 October 2020. (If you pay your tax electronically the due date is 22 October 2020.)

19 October 2020 – Filing deadline for the CIS300 monthly return for the month ended 5 October 2020.

19 October 2020 – CIS tax deducted for the month ended 5 October 2020 is payable by today.

31 October 2020 – Latest date you can file a paper version of your 2020 self-assessment tax return.