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The Deadline Has Now Passed For New Furlough Applications

Last Wednesday was the deadline for new applications for the Coronavirus Job Retention Scheme, commonly known by everyone as the furlough scheme. This scheme was created so that companies would not make wholesale redundancies and in the main it has worked pretty well, certainly it doesn`t bear thinking about what the economic landscape would look like now if the furlough scheme had not been swiftly introduced.

Coronavirus Job Retention Scheme

Furlough Scheme To Be Phased Out In October

As we have been told the government is going to be phasing out the scheme which will end completely in October. From August businesses will have to pay Employer National Insurance and resume pension contributions for their employees, which equates to, on average, approximately 5% of gross employment costs.

Following on from this, in September, the government will only contribute 70% of employees wages for businesses, instead of the 80% they are contributing now, capped at £2,187.50 with the other 10% to be paid by the employer.

Then in October furlough pay will be decreased by the Chancellor to 60%, capped at £1,875.00, with businesses expected to pay 20% of their employers wages to make it up to 80% of their usual monthly pay packet.

Bringing Back Part-Time Staff

One other important point to note is that from July employers will be able to bring back staff part-time without it impacting on their present furlough status.

If you manage or own a business are you ready for the changes to the furlough scheme that are coming over the horizon? Do you have a business plan to see you through the next few months to ensure you will come out the other side stronger and ready to grow?

Business Plans & Financial Projections

If not we at WHR Accountants are here to help you, we specialise in helping businesses with business plans and financial projections. So if you require any help or advice please just give our friendly team a call in the first instance by ringing us on 028 3752 2909.

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Number Of Accounting Firms In Decline In UK But Not Northern Ireland

Despite many accountancy firms coming to the rescue of a great deal of businesses, giving them crucial financial advice which has helped them navigate the last few perilous months, news comes to us that the number of accountants has actually declined over the past 2 years of so.

Accountancy Firms

Some Smaller Accountancy Firms Have Perished

Statistics recently published stated that between 2017 to 2019 the UK had a net loss of 490 accountancy firms. The larger firms seemed to have flourished but quite a few of the smaller ones have perished.

But it is good to see that the trend has been bucked in Northern Ireland where there was an increase of 15 over the same 2 year period.

Helping Struggling Businesses Stay Afloat

Colin Hewitt, CEO of cash flow company Float, is quoted on the Daily Business Group website as saying:

“Accounting firms have demonstrated their immense value during the COVID-19 pandemic, helping struggling businesses stay afloat and informing them of their financial options. Which is why many will be concerned to see the number of UK accounting firms in decline.

“However, it’s important to note that a lack of growth does not necessarily mean the industry is in poor health.

“The UK accounting industry now has a smaller number of more profitable accounting firms, following years of growth at the lower end of the market.

“We witnessed a great accounting boom in the UK this decade, with it being easier than ever to set up and run a new firm. This appears to have tailed off more recently, as we also saw increased market consolidation over the last two years which has contributed to a net reduction in firms.”

He added: “While accounting firms have seen a net decrease, bookkeepers remain in an accelerated growth phase. I’m not surprised since solid, regular bookkeeping is the cornerstone of any business’ financial data.

“We’re also in the middle of a technological revolution that represents an incredible opportunity for bookkeepers. Cloud accounting services, smartphones and the introduction of Open Banking mean bookkeepers can scale up like never before.

An Experienced Accountants By Your Side

It stands to reason that an experienced accountancy firm can make a huge difference to any businesses` bottom line,which is what we at WHR Accountants have been doing for our clients for many years. If you need an experienced accountants by your side to partner you give our offices a call on 028 3752 2909.

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Claiming Back Statutory Sick Pay Payments

From May 26th employers could register to claim back certain Statutory Sick Payments (SSP). You can make the claim using the online service using your ID number from when you registered for PAYE online. If you haven`t registered for the PAYE online service yet you will need to do so if you wish to make a claim.

Claiming Statutory Sick Pay Payments

There are alternative ways to make a claim if you do not want to, or can`t, claim online, but the online service is very easy to use, and you can also get an agent to claim on your behalf.

What Information You Need To Make A Claim

Here are the things you will need if you wish to make a claim for SSP payments:

  1. Your PAYE reference number from when you registered online.
  2. Details of your bank account where you can accept BACS payments to.
  3. A contact name and telephone number where they can contact you if they have any queries about the claim.
  4. The total amount of SSP you have paid out to your employees since the Covid-19 pandemic broke out and the scheme was launched.
  5. The total number of employees that you are putting in a claim for.
  6. The start and end date of the claim period. The start date of your claim is the start date of the earliest pay period you are claiming for and the end date of your claim is the end date of the most recent pay period. you are claiming.

The Importance Of Keeping Records

The above shows the importance of keeping records of all the SSP you have paid out over the claim period if you want to claim this money back. As with everything in business, records of all financial activities are essential to be on top of all the work, keep a tight ship and be in a position to grow your business in a safe and secure manner. The most successful businesses know their incomings and outgoings on a weekly basis and are therefore able to plan accordingly.

For SSP purposes you will need records of the dates any employee was off sick, which of those days were actually qualifying days to claim back the money, the reason why they were off work sick, and the employee`s National Insurance number.

A Partner Who Will Give You Sound Business Advice

If you need an agent to sort out your SSP, or an accountant to help secure and grow your business over the coming weeks and months, and who will partner with you to ensure you get the very best financial help and advice, we are here to help you.

WHR Accountants have a wealth of knowledge and experience in helping both large, medium and small business enterprises realise their potential. If you need a reliable, professional accountancy team right now with an unrivaled reputation in the business please get in touch with the team by giving us a call on 028 3752 2909, we would very much like to hear from you.

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Easing Of Lockdown Sees Shops Beginning To Open

Here we are on June 1st 2020 and today is the day when such businesses as outdoor markets and car showrooms are being allowed to open again now lockdown is being slowly eased.

Outdoor Markets & Car Showrooms Opening Today

Outdoor markets and car showrooms have been chosen first as they are businesses where it is easier to adhere to the social distancing guidelines. And as Covid-19 is a lot less likely to be caught out in the open air then it makes sense that outdoor markets should be one of the first non-essential businesses to reopen.

Big concerns such as Marks & Spencer and Ikea have confirmed that they are opening up their stores, saying that they are laying down strict social distancing measures, with areas such as clothes fitting and make-up remaining closed in M&S for the time being.

Businesses Must Be Covid Secure

However most high street shops, department stores and shopping centres will have to wait a further two weeks before they open for business on June 15th, providing of course there isn`t a steep increase in the number of infections between now and then. Also all businesses that do reopen will have to prove that they are Covid-secure and have taken all the necessary steps to prevent infection being passed around on their premises.

It will not be until at least July that businesses such as pubs, restaurants, clubs, hairdressers, nail bars and beauty salons can open once again, these being the type of places where social distancing can be quite a challenge.

Businesses Must Get Back To Some Sort Of Normality

Of course these have certainly been challenging times for all businesses. Now the furlough scheme has been given an end date by the Chancellor in October, with a scaling down of payments by the government up to that time, it is vital that businesses can reopen and get back to some sort of normality as soon as possible. If they don`t then the possibility of wide scale redundancies is very much on the cards. This is very much make or break time for so many businesses, large and small.

As ever we are here to provide expert advice and support during this rocky time. If you need any advice on grants or loans which may be available for your business, or you need help with your short, medium and long term business plan then get in touch with our team here at WHR Accountants by ringing 028 3752 2909.

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The End Of The Furlough Scheme & Extension Of The Self-Employment Income Support Scheme

There has been lots of news to keep up with over the last few days with the most important snippets being the announcement by the Chancellor Rishi Sunak that the furlough scheme will end once the October payments are made, along with news on a final grant for the self employed in August.

Furlough Scheme Extended Into October

Although the furlough scheme is being extended into October employers will find that they will be contributing more towards keeping their employees furloughed each month. There will also be some flexibility within the furlough scheme in July aimed at part-time employees.

It is also worth noting that employers will have to place any new employees on the furlough scheme before June 10th which is less than 2 weeks away.

How The Furlough Scheme Tapers Off Into October

Here are some details on how the furlough scheme will pan out over the next few months, these details have been copied from the Mortgage Solutions website:

“In June and July the government will pay 80 per cent of wages up to a cap of £2,500 as well as employer National Insurance (NICs) and pension contributions. Employers are not required to pay anything.


“In August the government will pay 80 per cent of wages up to a cap of £2,500. Employers will pay employer NICs and pension contributions. Treasury said for the average claim, this represented five per cent of the gross employment costs the employer would have incurred had the employee not been furloughed.


“In September, government will pay 70 per cent of wages up to a cap of £2,187.50. Employers will pay employer NICs and pension contributions and 10 per cent of wages to make up 80 per cent total up to a cap of £2,500. Treasury added that for the average claim, this represented 14 per cent of the gross employment costs the employer would have incurred had the employee not been furloughed.


“Finally, in October government will pay 60 per cent of wages up to a cap of £1,875. Employers will pay employer NICs and pension contributions and 20 per cent of wages to make up the 80 per cent total up to a cap of £2,500. For the average claim, this will be around 23 per cent of the gross employment costs the employer would have incurred had the employee not been furloughed.”

Self Employment Income Support Scheme Grant

As for the Self Employment Income Support Scheme those people who are eligible will be able to access a second and final grant which will be capped at £6,750 in August.

For more help and advice on the latest government measures and how it will affect you and your business get in touch with the WHR Accountancy team by calling us on 028 3752 2909.

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NI Micro-business Hardship Fund

The Northern Ireland Executive has recently launched the NI Micro-business Hardship Fund in an effort to aid Northern Ireland based micro-businesses and also social enterprises during these unprecedented times. This fund is for those businesses who are unable to access other Covid-19 support measures.

Access The Online Eligibility Checker

To find out more about this fund and to access an Online Eligibility Checker to find out if you are one of the businesses that can apply for this fund go to the NI Business Info website.

Here is a snippet from the website giving a summary of the scheme along with details on who is eligible to apply:

Summary Of The Scheme

“The funding is available to businesses unable to access the £10,000, £25,000 and Covid-19 Childcare Support grant schemes.

In order to ensure that the £40 million budget is not exceeded, the final amounts awarded will depend on the number of successful applications.

The level of Hardship Fund grant will be up to £10,000 for businesses which pay business rates on premises and up to £5,000 for those that do not pay business rates. Businesses within each category will receive the same amount.

Only one grant will be paid to each eligible business, irrespective of how many properties the business occupies.

Eligibility – Who Is Eligible

Businesses should ensure they meet the following criteria before applying to the fund:

-The business must be based in Northern Ireland.
-At 29 February 2020, the business must have employed between one and nine employees paid via PAYE. Businesses, where the sole employee is the business owner or company director, are not eligible for this scheme. The number of employees will be based on headcount.
-Since 1 March 2020, the business must have experienced a reduction in turnover in excess of 40% as a direct result of the COVID-19 pandemic or associated Government restrictions.”

We hope the above information proves useful to you. We keep a track on all the various grants and funds available to businesses both large and small so if you want to know what may be available to your business please get in touch with us here at WHR Accountants. We can also help you with any other accountancy related issues if required.