Just when we though there was light at the end of the tunnel, the dreaded second wave has begun. Not just that- it’s almost time to put the heating on and it’s getting harder to get up in the morning as it’s still dark! There has been talk in the news this week about the Winter Economy Plan, what the government will have in place to support the economy moving forward and what the end of the furlough scheme means for millions of employees and employers. This post has all of the recent information laid out by Rishi Sunak this week. The Chancellor has been under pressure to help businesses more and has now announced further support. A new Job Support Scheme (JSS) From 1st November 2020 for 6 months the government will top up wages for those employees working shorter hours than their ‘normal hours’ for businesses facing lower demand due to COVID-19. Employees must work at least 33% of their usual hours. For every hour not worked- Government will cover 33% of employee’s usual pay (capped at...

What is this thing which my accountant keeps on talking about?  After the financial year end of your limited company, one topic which often gets discussed is something called a Director’s Loan Account. But do you even know what it is? Let’s go over the key areas. What is it? As a small business and if you’re trading as a limited company, that limited company is a separate legal entity. That means that you personally (Mr or Misses Smith), as the director and owner of a business are separate from your company and any money exchanged within it. Any money which goes into and out of the company via you (Mr or Misses Smith) needs to be recorded in a Directors Loan Account. In layman’s terms, all of the ins and all of the outs between you and your company are registered in this one account. See it as a separate ‘bank’ account within your business that simply records everything which comes in and everything which goes out via you personally. Money into a Directors Loan Account What is mo...

  I often hear plumbing and heating businesses ask: “What should my payment terms be?” That’s a very broad question but hopefully this blog will open your mind and give you the tools needed so that you can answer the question yourself. Because ultimately, you- being the business owner, you have to set the payment terms and stick to them. First of all, it is very important to get your payment terms right, your lively hood depends on it.    There’s a saying in business that goes:  'sales is vanity, profit is sanity, cash is king.'  Sales is vanity: Broken down, it basically means that all of your sales in your business, your top line ie what you invoice out to your customers is all for show,   – it doesn’t actually mean anything. Now you could invoice £10,000 a month, £20,000 a month, or even £100,000 a month in your plumbing and heating business. But that’s all it is- an invoice, an email or a piece of paper! Profit is sanity: You should know th...

  HMRC CJRS Compliance Letter It has come to my attention that HMRC have started to send out Coronavirus Job Retention Scheme compliance letters to selected employers where they believe that CJRS grant claims contain errors or have possibly been ‘fraudulently’ made. The letters appear to be pretty vague, stating that the employers CJRS claim maybe incorrect perhaps because ineligible employees were included or too much was claimed for some other reason. No details are given as to how much might have been over claimed or who is possibly ineligible or even which of the claims made is coming under scrutiny. The letter also sets a tight deadline to respond by otherwise it threatens opening up a HMRC compliance review which could result in penalties being triggered. The letter goes on to state that if the employer believes the claims are correct to phone HMRC and state that view. HMRC will then, in time, allocate an officer to the case to carry out a review. If the employer thinks...

  I hope you are all keeping safe and well. As the new ‘rule of 6’ comes into force and local lockdowns are popping up all around the country, it seems like an ideal time to update you on additional support that has become available.   As the weather cools, I feel that we will all face new business challenges so thinking ahead and planning for the winter months is always a good idea. My mum used to say to me “failing to plan is planning to fail”. Perhaps she was right!   For now, I have included some information about grants and initiatives that have become available. Please don’t hesitate to get in touch if you have any questions or want to talk anything over.       England Local Lockdown Grant As local lockdowns are becoming more prevalent, which will cause more businesses to close yet again, the Government in England have announced a Local Lockdown Grant Scheme. This has been trialled in places like Blackburn with Darwen, Pendle and Oldham who...

What is the aim of the Kickstart Scheme? It is to provide work experience for individuals (aged 16-24) on Universal Credit and deemed to be at risk of long-term unemployment. Who can make the Kickstart application (KSA)? Any organisation in England, Scotland and Wales but not in Northern Ireland. An employer providing a minimum of 30 job placements can make the application themselves. If you are providing less than 30 job placements, you must register an interest through a nominated representative. The nominated representative must have a minimum of 30 job placements before they can make a KSA. Who is the nominated representative (NR)? It could be a group of employers coming together and nominating one of them to process through the KSA. The Government have yet to set the qualifying criteria for this sort of ‘NR’. Existing approved NRs are local authorities, chambers of commerce or trade bodies. You can also contact your local Job Centre Plus to obtain details of your local NR. What wi...