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I hope everyone is keeping safe and well.

We are working hard at Clarke Nicklin to help all our clients with a wide variety of matters linked to the Pandemic and lockdown. The Coronavirus Job Retention Scheme and the Coronavirus Business Interruption Loan Scheme are two areas of the support measures which are a key focus for many clients currently. So the information below may be helpful in relation to some common matters we are dealing with and queries arising.

Coronavirus Job Retention Scheme

As I am sure everyone will be aware, the portal for the CJRS opened this week. Many claims have already been made, with many still to be done with April payroll runs being performed. Some key bullet points to be conscious of would be the following:
• The input process on the portal does work well and is easy to do, albeit can be time consuming with large numbers of employees under 100 because the requirement is to input manually and input each employees details individually.
• Access to the portal has been causing some issues for some businesses. HMRC have streamlined the process in not needing to obtain a code through the post to register for an online account, however some businesses have been experiencing difficulties in logging in if details have been forgotten.
• The basis of calculation for the Employers National Insurance and pension element of the claims has been causing some uncertainty in how to calculate these, and the HMRC worked examples do not explain all scenarios. Overlapping periods across different payroll months does complicate the calculations for National Insurance and pensions also. Check the HMRC worked examples to see what fits in with your scenario.
• Note also that if you have specified a period in a claim already made, the portal will not accept another claim which overlaps the same period, even if you are trying to input for different staff. So care must be taken to include all furloughed staff on the same PAYE reference for a specified claim period in one claim.
• One claim only can be made every 3 weeks.
• The portal doesn’t yet allow for errors to be corrected for claims made, although HMRC have stated that the ability to amend for future claims will be made available.
• Claims should take 6 working days to be paid out and reach business bank accounts.

If you have any queries on the CJRS and calculating or making claims, please get in touch.

Coronavirus Business Interruption Loan Scheme

The CBILS scheme is now in full flow with lenders participating in the scheme, and we are assisting clients with the full range of size of lends.

We are seeing different lenders deal with applications in slightly different ways as you would expect. However, in general for smaller lends the information requested is simplified.

Many applications do require a set of projections being prepared. We would encourage all businesses to prepare projections for their own benefit in any case. It is extremely important in times of uncertainty that businesses look at the “what if” scenarios to help them assess how to manage their way through this crisis under different possibilities. This would help consider the impact of support measures such as CJRS and deferral of VAT payments to analyse what loan support may be needed.

Please let us know if you want any support with the preparation of projections and advice on funding requirements.

Andrew Baggott
Managing Partner

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Clarke Nicklin House, Brooks Drive, Cheadle Royal Business Park, Cheadle, Cheshire, SK8 3TD. Registered Number OC309225.
The firm is registered to carry on audit work in the UK & Ireland. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C001178544. The professional rules applicable are the Audit Regulations and Guidance which can be found at www.icaew.com/regulations, and the International Standards on Auditing (UK and Ireland) which can be found at www.frc.org.uk/apb/publications/isa.cfm.