COVID-19 Update 25 March – Clarity on Isolation, Extension period to file accounts and more…

In these difficult times, our experts are keeping informed with all the changes to support businesses and their owners. Here we provide the latest update.

Deferral of VAT for 3 months

As mentioned before, taxpayers will be given until the end of the 2020/21 tax year to pay any liabilities accumulated during the deferral period. After speaking with HMRC, we understand their advice is to cancel your Direct Debit if you wish to defer your VAT payments. However, if you wish to continue paying your VAT as normal then you can do so.

Clarity on Isolation

The Government has announced some clarity on how employers can request “Proof of Sickness” from employees if they have COVID-19 or have been advised to stay at home.  Employees can now get an “Isolation Note” from the 111 website rather than their GP, which effectively replaces the so-called “fit note” (sick note) for the purposes of COVID-19 related absence.  The form can be accessed here https://111.nhs.uk/isolation-note/

Companies to receive 3-month extension period to file accounts during COVID-19

From 25 March, a business will be able to apply for a 3-month extension for filing their accounts. This will enable a business to focus on managing the impact of COVID-19.

Normally, there would be an automatic penalty issued if you file your accounts late, but as part of these measures’ companies will be automatically granted an extension once approved. Please note you will have to apply for the extension for it to be granted.

Generally, it is good practice to file your accounts as soon as possible after the year-end to assist with your credit rating.  Please feel free to discuss this with your WV contact.

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A proposed amendment to Coronavirus Bill – ‘Statutory Self-Employment Pay’

Whilst we must stress this has not been implemented, we wanted to make you aware that the House of Commons Public Bill Committee has proposed an amendment to the coronavirus bill to support the self-employed.

The bill amendment proposes to ‘top-up’ earning of the self-employed and freelancers to 80% of their regular net earnings. This will be taken on an average of the last 3 years earnings, capped at £2,917 per month. This has now been confirmed.

Coronavirus Job Retention Scheme

As we have received numerous phone calls regarding this scheme, our experts have put together some answers to the most commonly asked questions. You can read this here.

Guidance for Charities

To find out the specific guidance for charities please click here