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Second Lockdowns, Abridged Accounts and P87 and Furlough scheme – What do We Know?

As of writing this we are starting to see people asking about how to respond to the second lockdown. Before we do anything else though, let’s all take a moment to get a little perspective and a clear positive to work with. This is not just Milton Keynes, it is countrywide, and everyone is focusing on adapting and continuing business as normally as possible. Unlike the first time this happened, we have experience to work with now, so we are all a little wiser and a little shrewder in our working practices. Hopefully that means we will all be impacted less. That said, it is here and there are a few things to think about.

If you are asking your employees to work at home, then now is a good time to remind them about the P87 form that will allow them to claim some tax back. Being out of the workplace is becoming more common but even so many employees are still not aware that the P87 form exists. See our previous blog for more information on how to use it and what it can be used for.

Tax and accounting process still go on of course. HMRC will still want their share so don’t forget your key dates. While they may well be being a little more forgiving and flexible than usual, the bottom line is that if your key dates are due, then they are still due. We file abridged accounts for all our clients, so we will still be here to warn you of your obligations to make sure you file on time. Just as a reminder that you are considered a small company, and therefore able to file abridged accounts, if you meet 2 of the following criteria.

  • You have a turnover less than £10.2 million
  • Your average number of employees is no more than 50
  • Your balance sheet total is no more than £5.1 Million

Call us for more information if you need clarification on what you need to do.

What is happening with the furlough scheme?

As of writing it is still a developing situation, but it seems that we can rely on the following information.

  • The furlough scheme has been extended to the end of March 2021. This is a big rather unexpected but very welcome shift in policy. The lifeblood of any business is the staff and the thought of having to make some redundant is never a pleasant one. The scheme will be reviewed in January though, so there is a word of caution to be considered there in forward planning. However, the unexpected announcement of this being extended and still paying 80% of the employee wage is very good news.
  • The amount available to furloughed staff will again be a maximum of £2500 per month. Again, this is an unexpected and welcome announcement.
  • If you have already sadly had to make the decisions to make someone redundant there is good news again because if you did so after the 23rd of September, you can re-hire them and put them on furlough.

We will be continuing to support you with the furlough scheme and of course we are here for any other support you need with your accounting needs in both our Milton Keynes and Northampton offices. There will undoubtedly be more information as we go along on the lockdown situation so, keep an eye out for our newsletters and we will keep you informed of developments and how we see them affecting you.

Looking for a new accountant?

If you looking for some assistance with your accounting services, we’d love to hear from you. Call our friendly team now on 01604 330129.

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