How are businesses and individuals affected by the pandemic?
Further Technical updates in relation to Coronavirus - 1/6/20
Monday 1 June, 2020
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Coronavirus Job Retention Scheme Changes: The Flexible Furlough Scheme (FFS)
The key points for employers
• 10 June 2020 will be the last day that employers can place employees on furlough.
• from 1 July, 'flexible furlough' is being introduced, meaning employees will be able to work part-time and be furloughed part-time. Businesses will decide how that will work (in terms of the time split)
• from 1 August, employers will have to pay employee's national insurance contributions and pension contributions and can no longer reclaim them through the CJRS.
• from 1 September, the government will only reimburse 70% of salary (up to a maximum of £2,190). Employers are required to top-up to 80% (or more, depending on what the employer agreed with the employee)
• from 1 October, the government will only reimburse 60% of salary (up to a maximum of £1,875), and employers will continue having to top up to 80% (or more).
• the furlough scheme will close on 31 October 2020.
Also announced - the self-employed grant is being extended, with applications opening in August for a second and final grant. There will be parity with the reducing furlough scheme, paying 70% (not 80%) of average earnings up to £6,750
Useful Website
Regulatory Update on Centralised Retirement Propositions
- Rory Percival webinar on CRPs and the FCA focus on retirement income. Hosted by Money Alive
https://www.moneyalive.co.uk/webinar/retirement-income-scrutiny/?webinar-capture=false
Financial Planning Update
- Article in New Model Adviser on how to calculate the Tapered Annual Allowance
Trustee Investment
A useful series of articles on Trusts and Trustee Investments.
Tax Planning
- Business and personal tax planning will continue to be a significant focus especially as the HMRC tax take has reduced by 42% Year on Year to April 2020.
