Bookkeeping Bites – Myth Busting!

Myth Busting! Well, with the added disclaimer of ‘true according to Government’s (Big G) guidance, today 😍😍😍
Myth busting #1:
“Claims for furlough staff pay will be offset against any deferred VAT liability”
Nope. No statement released to say this at all. Everything from Big G is pointing towards it being cash paid into your business account….. In fact, they go as far as asking you for your business’s bank account and sort code in the 7 bits of info when the business is registered on the claim portal…. 👍
Myth busting #2:
“Big G is paying my staff, because they are paying 80% of the salary”
Nope. Strictly speaking, they are, but they will not be paying any employee’s directly.
The process will be a simple (Ha!) two stage process:
Stage 1: Run your payroll as normal at the end of each affected month
Stage 2. Make the 80% claim for the furloughed staff wages via the soon (🤞) be launched online claim portal
You and we both know, that there may be a time delay between the claim and any business seeing the money. So, really, the emphasis is on the business to pay any wages at the end of each pay period, in lieu of a refund from Big G.
Myth busting #3:
“The information from Big G never changes, it takes ages to update us”
Nope. Simply. Not. True.
Big G is constantly updating its Corona financial support web pages… Great news! Unfortunately, it is not telling us what has been updated or when… So it is a case of reading all of the page again, to see what the changes are…
A good example of this is the #CoronaVirus job retention scheme (what most of us are calling the ‘Furloughing Support)…. Click on the link below to see the update guidance…… When you do, you will see it ‘LOOKS’ the same as it always did…. BUT! The content is different, we promise…..
And if it doesn’t make sense, well, drop us a line, we are always happy to help.
Stay safe, stay home, save lives.