The Positive Accountant Vol 2 Ed 1
It's Friday. But doesn't feel like it.
In the Olden Days (that'll be up until February), a Friday was a busy night of Ballroom tuition for me. But not any more
More recently it's been a time for contemplating Life, The Universe and Merlot.
But not tonight.
Because this afternoon the Chancellor launched some new stuff on us. So guess what I'm up to !
I'm conscious that it's Friday night for those reading as well - so I'll try and keep it brief.
Theself employed assistance scheme - the SEISS- first. Same rules as before - you have to claim it yourself - but this time it will be 70% of three months average monthly profits (calculated as per before).
The payout date will be during August, more information will come out on 12th June.
And adeadlinehas been imposed - to benefit from the first grant (80% of average monthly profits) the claim has to have been made (by you not us) by13 July at the latest. If you haven't claimed, suggest it's time to do so !
Onto Furlough.
Change number 1 - from 1st July employees can be brought back part timeif the employer decides to. Furlough payments are still claimed back from HMRC on the same lower of 80%/£2,500 basis as now for the non working hours. The cap is scaled according to the proportion of hours worked/furloughed. So someone who normally works 40 hours and under this scheme now works 20 will have a furlough cap of £1,250. (I have no clue how this is going to get policed, I'm quite sure no-one would abuse it though)
Change number 2 - from 1st August the amount claimed back from HMRC remains at the lower of 80%/£2,500 for the furloughed time, but the employer will not be able to claim for the employers' National Insurance nor employers' pension contributions.
Change number 3 - from 1st September the amount that can be claimed from HMRC will drop from the lower of 80/£2,500% to the lower of 70%/£2,187.50, the furloughed employee still gets at least the 80%/£2,500 the gap being paid by the employer
Change number 4 - from 1st October the amount that can be claimed from HMRC will drop again to 60%/£1,875 - the employer makes up the difference
Change number 5- the furlough scheme is restricted to employees who have completed a three week period of furlough prior to 30th June. So the effective date when furlough will need to have started in order to have continued benefit is 10th June
Oh, and a deadline -any period to be claimed for prior to and including 30th June needs to have been claimed by 31st July
More details coming out on 12th June. Can't wait.
Did you miss Volume 1 ? They can be found at
http://www.positiveaccountant.com
What are my positives today:-:
1. We have some clarity on Furlough
See above, enough said already.
2.I didn't get stuck in the new sequel, "Jumanji, Trevor's garden"
I had some books to drop back to Trevor. He decided to socially distance himself by about 15 miles, but his entrance gate has one of those fancy bells where, on ringing it, he can see who is there and hurl insults from a distance, or let you in.
He decided that I looked reliable enough to be let into the garden and leave the books somewhere safe. But warned me that if I simply walked in without a car the system wouldn't let me out again. Presumably I'd be in spirited into some kind of parallel universe, never to return.
Thinking about it, has that happened already ?
3. Dave's books are safe
Whilst I was out, Dave (name changed) called to say he'd dropped his books off at mine. He'd seen my car wasn't there and so had left them safe, near the bins. I couldn't miss them, they were (seriously, not kidding here) in a large black plastic bag.
It's bin collection day today...so what could possibly go wrong ?
A quick phone call home and they were rescued...
What have I been talking to clients about today ?
Debtor management- it is the case, curiously, that many businesses have more cash in their accounts right now than they would normally have. Bounceback loans, CBILS facilities, the business rates grants have all helped to create a temporary liquidity.
So now may be the time to improve your debtor management. And not necessarily feel sorry for the person owing you money and continue to give them extended credit.
Enjoy your weekend. I'm going spend some of it reading a great new book about anti-gravity. I just can't put it down.
Stay safe, stay positive
Adrian
07917 338342
Sunshine and a garden