Skip to main content

Government support for businesses affected by Omicron

Dear customer,I am writing to tell you the government has announced additional economic support to help businesses most affected by the Omicron variant of coronavirus:
businesses in the hospitality and leisure sectors in England will be eligible for one-off grants of up to £6,000 per premises, and more than £100 million discretionary funding will be made available for local authorities to support other businesses
the government will also cover the cost of Statutory Sick Pay for coronavirus-related absences for small and medium-sized employers across the UK
£30 million further funding will be made available through the Culture Recovery Fund, enabling more cultural organisations in England to apply for support during the winter.
There is also continuing financial support. You can find more information by searching for 'Omicron support for businesses' on GOV.‌‌UK.
Statutory Sick Pay Rebate Scheme
If your client is an employer with fewer than 250 employees, and they’ve paid Statutory Sick Pay (SSP) to their employees for absences linked to coronavirus-related sickness or self-isolation, they could be eligible for support. They will receive repayments at the relevant standard rate of SSP that they paid to their current or former employees for any eligible periods of sickness starting on or after 21‌‌ December 2021. Your client will be able to reclaim the costs for up to two weeks of SSP for an employee who takes time off because of coronavirus, regardless of whether they claimed for that employee under the previous scheme.They will be able to make claims retrospectively from mid-January. You can make claims on behalf of your client. Full guidance, including eligibility and how to make a claim, will be published on GOV.‌‌‌‌UK in due course. In the meantime, you can find out more information by searching for 'COVID-19 economic support package' at GOV.‌‌UK. 
Time to Pay arrangements  
If your client is facing difficulty in making a tax payment, HMRC stands ready to support any business impacted by the coronavirus pandemic through our Time to Pay arrangements, where your client can pay what they owe in affordable instalments.  We will consider offering businesses in the hospitality and leisure sectors in particular the option of a short delay, and payment in instalments, on a case-by-case basis, as part of this. Search GOV.‌‌UK for more information about 'Time to Pay'.
What else is happening
Corporation Tax and VAT 
Earlier in December, we ran a trial reducing the hours on some of our telephony services. This meant we could dedicate the time to work post that has built up over the past year. To test the approach, we closed our Value Added Tax (VAT) (with the exception of the bereavement line), and Corporation Tax (CT) phone lines on 3,‌‌10‌‌ and 17‌‌ ‌‌December.  By dedicating colleagues to post queues, we have been able to focus on delays in processing CT repayments and VAT post which we acknowledge were areas of concern for customers and agents. We made solid progress and worked through 14,000 post items.Over the coming weeks, we will analyse the data from this trial in more detail and commit to sharing an update in January detailing our findings and next steps. We will not undertake any new shuttering until the end of January at the earliest.
Webchat
We are pausing most of our webchat for three months from Tuesday‌‌ 4‌‌ January 2022. We’ll use this pause to fully review our services to make sure we are helping our customers in the most effective way possible.Webchat is effective when we use it to answer simple queries, which supports customers to use our digital services. Supporting customers with complex queries has proven to be inefficient – for example supporting PAYE, customers with coding queries takes 84% longer via webchat than it does over the phone. Other examples include payments in Child Benefit and Registrations in VAT both taking around 50% longer. Webchat is most effective when we use it to educate and coach customers in using our digital tools, and we know that this is what we need to build on. We’ll use this pause to fully review our services to make sure we are helping our customers in the most effective way possible. The following lines will remain open:
Online Services Helpdesk
Self Assessment
National Clearance Hub
Imports and Exports
Debt Management
extra support
support for pandemic-related activity will continue.
Dashboard
We are developing a dashboard to give agents a high-level overview of our service status. We will launch this in mid-January and we will give you more detail in the new year.
What happens next? 
We will continue to keep a close eye on our progress, responding to any issues as we go.
A word about scams 
 We’re urging people to be on their guard if they are contacted by someone saying that they’re from HMRC, wanting you to urgently transfer money or give personal information. HMRC will also never ring up threatening arrest. Only criminals will do that.  Tax scams come in many forms. Some threaten immediate arrest for tax evasion, others offer a rebate. Contacts like those should set alarm bells ringing, so take your time and check HMRC scams advice at GOV.‌‌UK.You can also contact HMRC directly but make sure you use the phone numbers from our contacts details on GOV.‌‌UK.The National Cyber Security Centre has a helpful guide on how to stay secure online and protect yourself against cyber crime, which you can find on GOV.‌‌UK by searching 'Cyber Aware'.  Yours faithfully
Jim Harra Chief Executive and First Permanent Secretary – HMRC

www.sba.tax 

Comments

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...

Tariffs on UK electric cars.

  The European Commission has confirmed that it will continue with its plan to impose tariffs on electric cars exported between the UK and EU starting next year. This is due to the "rules of origin" requirement that mandates EVs traded across the English Channel to have 60% of their battery and 45% of their parts sourced from the EU or UK or face a 10% tariff. A senior Commission official, Richard Szostak, recently informed parliamentarians from the UK and EU that the bloc's battery investment has significantly declined, making the tariffs necessary to encourage domestic production. In 2022, the EU's share of global investment in battery production shrank from 41% to only 2% after the US offered substantial subsidies through its Inflation Reduction Act. Starting in 2024, car manufacturers in the UK will need to have 22% of their sales come from zero-emission vehicles, which means they may need to import EVs from the continent to meet this requirement. If EU carmakers ...