Need to Know: Important HMRC updates for businesses

We bring you the latest news from Government, the legislation you need to know, and what’s going on in the wider GCMA world… This week: HMRC update issues its monthly Employer Bulletin including updates and information on Covid-19, the Job Retention Scheme, VAT deferral and the National Minimum Wage Update CORONAVIRUS JOB RETENTION SCHEME The Government is continuing to pay 80% of employees' usual wages for hours not worked, up to a cap of £2,500 per month, up to the end of June. HMRC say that: "For periods in July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875. "You will need to continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. This means, for periods between July and September, you will need to fund the difference between this and the CJRS grants yourself. You can also top up wages above the 80% if you wish, but you are not required to do so. "You must continue to pay the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay from your own funds." Key deadlines to be aware of for CJRS claims: April 2021 claims must be submitted no later than Friday 14 May 2021 HMRC also say that, for periods from May 1, 2021, employers will be able to claim for eligible employees employed and on PAYE payrolls on March 2, 2021. "This means you must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying us of earnings for that employee. You and your employees do not need to have benefited from the scheme before to make a claim, as long as you meet the eligibility criteria." For more information on the Job Retention Scheme, click here. For detailed advice on how to claim, click here. VAT DEFERRAL NEW PAYMENT SCHEME Clubs that deferred VAT payments due between March 20 and June 30 last year, and have been unable to pay in full by March 31, 2021, are able to use the online VAT deferral new payment scheme to spread payments. The scheme allows businesses to pay deferred VAT in equal monthly instalments and interest free. How many months you can spread payments across depends on when you join the scheme. HMRC say the later a business joins, the fewer instalments that are available. It currently spreads out as follows... 10 instalments if you join by 21 April 2021 9 instalments if you join by 19 May 2021 8 instalments if you join by 21 June 2021 Clubs that haven't joined the scheme yet can do so quickly on online. The service closes on June 21, 2021. Those that have a time to pay...
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