News,May 2018

Furlough vs Layoff

Furlough vs Layoff: Explaining the Difference

03/06/2021Covid -19 , Payroll & PAYE

Coronavirus pandemic has adversely affected the business industry by reducing the resources of the business owners. Consequently, business owners are contemplating for employees’ furlough or lay off. Let’s kick off with the difference between Furlough vs Layoff.   Furlough vs Layoff- Differences   Due to a great downfall of the world’s economy whilst the Covid-19 pandemic, we have seen an awful decline in business activities. As a result, many businesses are shut off, and those who’re operating are with the least number of employees. In such a situation, as a business owner, you might wonder to furlough or lay off your staff. A furlough is a forced, unpaid leave, hour reduction that is done by the business temporarily. The employer does furlough to reduce the cost of their payroll when a business faced financial trouble or an economic downturn. A furlough can be a layoff, but in layoff employees are not retained. On the contrary, Layoff is the permanent or temporary termination of the employees. Though there is a possibility for the rehiring but generally a layoff is considered a permanent separation. We can call furlough as a pause, whereas layoff is the permanent termination. Want someone to manage your payroll to reduce your extra costs? Contact us right away! Wondering which might be the best for you during the ongoing pandemic? Let’s dive deeper into the difference between Furlough vs Layoff to know which one is the best. The major difference includes:   1) Time limit   A furlough is a temporary absence or leaves of employees that the employer provides for a short time. On the other hand, in layoff, the employer can terminate the employees on a temporary or permanent basis. The time limit of furlough is addressed by the employer but a layoff can be for an indefinite period. In furlough, the employer might not cut pay for a continuous period, rather it can be a temporary pause of hours in a day or a week in a month. An employer who wants a permanent dismissal of his employees would go for layoff rather than furlough.   2) Employee’s Benefits   If a business is furloughed, an employer might pay the paid time off benefits to its employees.  Here, the employees might also receive health insurance, etc. Contrarily, benefits like health insurance and time-off benefits might not be given to the layoff employees. However, it may vary based on the state payout laws.   3) Employer’s Duties   In furlough, the employer stays in touch with the employees and let them know if he wants to extend the furlough’s period. On contrary, if an employer goes for a layoff his responsibilities increase as he’d need to pay the termination payments that are generally given at the time of employees’ termination.   4) Return to Work   In furlough, the employees return to work after the furlough ends. Contrarily, layoff employees are replaced and rehired by the employer. In furlough, employees might search for other jobs but most of them don’t as they are aware that it’s a temporarily leave. Opposingly, in a layoff, the employees search for new jobs and get hired there. Get premium accounting and taxation services with CruseBurke. Talk to our accountants to know how we can flourish your small business!   What should I do during the Coronavirus Pandemic?   You should do the relevant changes to your staff based on your business conditions. During the Covid outbreak, it is reported that almost 50% of small business have gone for layoff. We recommend you furlough your business if your business is viable enough to face the hard days during the pandemic. So that you’d revive your business activities after the hard times. Furloughing helps you to: Avoid layoff Reduce your business cost Avoid termination pay Immediate restart your business If your business is permanently closed due to the pandemic. Laying off would be the better option to save your finances. In future, if there is a need you can rehire them for your business.   Quick Sum Up   As a small business or medium-sized business owner, you need to figure out the impacts and implications of the coronavirus pandemic on your business. While choosing between furlough vs layoff, consider the impacts each will be leaving on your business. If you are unable to select between the one, contact our business accountants for in-depth advice! Don’t hesitate to get in touch with us, we’ll get back to you in the fastest possible time.   Disclaimer: This blog is intended for general information about furlough vs layoff.

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bounce back scheme

Here’s All you Need to Know About Corona Virus Bounce Back Loan Scheme

30/03/2021Covid -19 , Uncategorised

Apply for the coronavirus bounce-back scheme before it’s too late. You can apply up till 31st March 2021.    The main aim of the scheme is to make sure businesses get instant cash during these tough times. One interesting point to note is that currently sole traders and limited companies are getting the most out of this scheme. According to the stats, these segments needed a lot of help. So they had to be helped.   What Can you Expect?   You’ll be happy to know that you can get a loan of £2,000 as a starter to pay to your employees or support your business in whatever way you’d like to support. If you like talking in terms of percentages, let’s just say that you can get around 25% of the turnover of your businesses. The maximum threshold of the loan is around £50,000.    We all know what COVID brought on many businesses. A lot of cafes, restaurants, pubs, stores closed around our vicinity. A good £50,000 is good for any business to save their sinking ship.    What’s a Good Time to Pay Back?   The government has allowed you to pay the loan back interest-free in 12 months. If you pay your loans after that time period, you’ll have to pay an interest rate of around 2.5% in a year. If you need help, and you’ve not already applied for any coronavirus support, now is a great time to get started and apply for the Bounce Back Loan Scheme.   What if you’ve Already Taken Up Additional Loans?   You can take up a bounce-back loan scheme if you’ve already claimed other schemes. It’s just that you’ll be topping-up an additional amount to your scheme.    What Makes you Eligible for the Scheme?   You can apply for the scheme if: Your business is based in the UK.  Your business took off before 1st March 2020.  Your business faces the worst in the pandemic.    What Makes you Ineligible for the Bounce Back Loan Scheme?   You cannot apply for the scheme if you fall under the following categories:    Banks and Insurance companies excluding brokers. Public Institutions. Primary and secondary schools funded by the government.    Please note that if you’ve applied for any of the following schemes, you might not be able to claim the bounce back loan scheme:   Coronavirus business interruption loan scheme. Coronavirus large business interruption loan scheme.  COVID-19 corporate financing facility,    Do not forget the important dates i.e 31st March 2021. If you’re looking forward to applying, you need to fill in a brief form along with a self-declaration. The best part about the loan is that the lender gets to decide, whether to pay you the loan or help you out with another kind of finances. 

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Webinars for business promotion in the covid times

The Importance of Webinars for Business Promotion in the COVID Times

01/01/2021Accountants , Covid -19 , Misc

With corona on the rise going out has decreased and the only thing that has traveled this year seems to be COVID 19. This virus has flipped everyone’s life upside down and would not be wrong to say when once we had a choice to stay at home, we’d run for it but now we just want to run away from our homes because it has just gotten too much. Many see work from home as a blessing in disguise, let’s be honest sitting back on your sofa in your pajamas while you do your work in your own comfort; there definitely is a plus side to this pandemic too. However, there have been many other things that have rose in this pandemic and one of those is; business webinars i.e. web conferencing. The COVID-19 circumstance has made it difficult to lead face to face gatherings, presentations or meetings. Accordingly, the prevalence of webinars expanded impressively. Numerous webinar software previously existed on the lookout. In any case, there is consistently space for a market top choice. However, in the long haul, business owners have various perspectives on supplanting face to face gatherings with webinars. Because of the Corona-virus pandemic, promoting activities of organizations moved to online stages. webinars were at that point being utilized, yet they went to the spotlight during the lock-down. As business activities couldn’t be closed down totally, proprietors and advertising chiefs began leading webinar platforms for their meetings and associating with customers and their audience. Business webinars are the most secure choice for the momentum situation, yet a significant speculation sum goes into facilitating a consistent webinar. The venture is the ideal opportunity for arrangements and the capital for purchasing/leasing the gear. However, in many cases, you really don’t require much just a laptop and good WiFi. In any case, it is likewise important to make sure the webinar locks in. Include surveys, Q&A meetings, and visual guides to make the introduction fascinating. A webinar should be forthright and of a sensible time span with the goal that the participants don’t lose interest.

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Expect No Late Filing Penalties on Missed Out Tax Return Deadlines

23/12/2020Accounting Issues , Covid -19 , Tax Issues , Tax Saving Tips , VAT

Here’s some good news to look up to for business owners: there will be no late filing penalties if you missed out on your tax return deadlines this year. But that doesn’t necessarily mean that HMRC encourages you to pay late. HMRC, in fact, made sure to not extend tax return deadlines so that maximum people pay taxes on time. The decision has been taken in line with what businesses are going through post coronavirus. A major percentage of businesses is so indulged in figuring out coronavirus grants and loans, that a lot of them requested HMRC to delay the deadlines. ICAEW and other accounting bodies were the front players because they were receiving a lot of requests from their members.  HMRC stay adamant about the deadline to be on 31st January 2021. HMRC encourages most businesses to pay on time in their best interest. Decoupling the payment and filing dates might confuse customers, and even lead to non-payment, interest accruing, and late payment penalties being triggered. Plus getting done with your tax returns on time is a great way to show a green light to HMRC for its support in the long term. Talk about making an impression on HMRC. In its official statement, HMRC discusses all the points mentioned above regarding missed tax return deadlines. It also says that HMRC has also extended the dates of penalty appeal period to around six months. Despite no late penalties on missed out tax return deadlines, it is always a good idea to get done with submitting your documents on time to HMRC. Even if you can get done with filing half of the penalties, it will work out as it will help you get into a lot of fuss.   Let’s summarize HMRC’s statement again. As per HMRC, there’s no extension in the deadline for filing tax returns. However, you won’t be penalized if you missed out on the deadlines of your tax returns.

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How to claim self-employment support

How to claim self-employment support

06/05/2020Covid -19

The Chancellor, Rishi Sunak, announced a new scheme at the end of March to support self-employed people impacted by a coronavirus. It’s about to launch ahead of schedule and we’re writing to you because you might be eligible to make a claim under the scheme. How to claim self-employment support The Self-Employment Income Support Scheme provides a taxable grant of 80% of average monthly trading profits, paid in a single installment of up to a total of £7,500. This email sets out how to check your eligibility and how to make a claim.   How to check if you are eligible Search GOV‌.UK for ‘Self-Employment Income Support Scheme’ from Monday 4‌‌ May. To complete this eligibility check, you’ll need to have your: National Insurance number – if you don’t know this, go to the HMRC app, your online tax account, or ask your tax agent (if you have one). Self Assessment Unique Taxpayer Reference (UTR) number – you can find this on your self-assessment papers or from your agent.   If we confirm you are eligible, you’ll then need your Government Gateway user ID and password – if you don’t have an account, or have forgotten your details, follow the instructions on GOV‌.UK by searching for the ‘Self-Employment Income Support Scheme’. Please check your contact details are correct in your Government Gateway account.   You cannot access financial support yet We’ll send you another email soon to tell you when the claim system is available for you to use. We expect this to be between 13 and 18‌‌ May.   How to make a claim You’ll need to make the claim yourself, although you can seek advice from an agent if you use one. Once we have contacted you with your claim date, please follow these simple steps to make your claim: All you will need are your Government Gateway user ID and password, bank account number and sort code. We will calculate the income support you’re entitled to, based on the information you have submitted in your previous tax returns. After we’ve received your claim and verified it, we’ll pay the money directly into your bank account within six working days. Please only call us if you cannot find the support you need on GOV‌.UK or our webchat service – this will leave our lines open for those who need our help most.   A word about scams We are aware of an increase in scam emails, calls, and texts. If someone gets in touch claiming to be from HMRC, saying that financial help can be claimed or that a tax refund is owed, and asks you to click on a link or to give information such as your name, credit card, or bank details, please do not respond. You can forward suspicious emails claiming to be from HMRC to [email protected] and texts to 60599.

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