Blog Posts

Employee eligibility if the organisation receives public sector funding

The HMRC guidance is particularly sketchy and unclear on furlough in organisations which receive public sector funding. It states that where an organisation receives such funding for staff costs, and the funding is continuing, employers are expected to continue paying staff, and not to furlough them. (This is presumably because furloughing them would be claiming additional public sector funding.) This restriction on furloughing could have profound implications for organisations whose grant applications or contract bids explicitly (or even implicitly?) include

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COVID-19 Resource Hub and Link to CAF funding

As a result of the Coronavirus, many organisations are now in an extremely precarious position, often having to deliver additional services with fewer volunteers and staff members, while having to cancel fundraising activities. This link from Charity Bank will take you to a comprehensive list of solutions, help and resources for charities. Resource Hub: https://charitybank.org/news/covid-19-resource-hub Clicking the next link will take you to the Charities Aid Foundation page for emergency funding help for smaller and medium size charities. https://www.cafonline.org/charities/grantmaking/caf-coronavirus-emergency-fund?utm_source=Twitter&utm_medium=socialorganic&utm_campaign=GENCAMCVD1920

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Cash Flow

This is going to be an imperative for many thousands of charities over the coming weeks and months. We’ll do our best to help and advise any charities asking for our support. In my first COVID-19 blog there was a question asked, ‘Can we take money from a restricted fund to keep us afloat in this present crisis?’  I just read through the advice. It’s helpful, but of course in reality restricted fund accounts can be a bit of a

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COVID-19 Emergency Funding for Charities and Social Sector Organisations

As a result of the Coronavirus, many organisations are now in an extremely precarious position, often having to deliver additional services with fewer volunteers and staff members, while having to cancel fundraising activities. Clicking the link shows a list of emergency funds for charities and social enterprises that are experiencing difficulties. It will be updated as new opportunities are identified, so please do contact them if you are aware of any funds that should be included. The link page was

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Corona virus Job Retention Scheme

HMRC will reimburse 80% of “furloughed workers” (workforce who remain on payroll but are temporarily not working during the coronavirus outbreak) wage costs, up to a cap of £2,500 per month.  The small print is yet to be disclosed; employment law specialist Rustom Tata has taken a look at the headlines and the questions recurring so far.   The application of the Scheme raises a number of issues.  Below we have identified some initial questions that we anticipate most employers

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HMRC Time to Pay Scheme

Tailored to individual circumstances and liabilities, businesses can apply if they have missed a tax payment, or might miss their next payment due to COVID-19. The headlines of the Scheme https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses are that: It will be for the employer to claim payment under the Scheme. Every employer is eligible – it is not clear, but it is assumed this will apply to public sector employees (such as those in local and central government). It appears that it will apply to

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SIR – Serious Incident Report

Helping charities through the COVID – 19 emergency: Serious Incident reports (SIR) These are challenging times, and many charities will be compelled to make some difficult decisions; for instance, having to close the office, or change the way the charity operates. However, many charities are concerned that this would constitute a serious incident, which requires reporting to the Charity Commission. And if so, what the timescale will be for filing such a report. Generally, a serious incident includes: harm to

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Postponing an AGM

Can I cancel or postpone my charity’s AGM or other key meetings? Coronavirus is having a major impact on charity events and the government’s health advice may lead to some charities having no choice but to decide to cancel or postpone their AGMs and other critical meetings. If as trustees, you decide it is necessary to do so, you should record this decision to demonstrate good governance of your charity. This is particularly important if it is not possible to

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Can I use reserves and restricted funds to help my charity through the crisis?

Can I use reserves and restricted funds to help my charity through the crisis? We understand that many charities are currently very concerned about their financial position. In the first instance, trustees should consider what are their short, medium and longer term priorities, and see if they need to amend their financial planning given their current situation. Trustees are encouraged in particular to think about whether or not certain projects, spends or activities can be stopped or delayed in order

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Government Charity Advice link

This immensely long link takes you to the latest government advice for charities https://www.gov.uk/government/news/coronavirus-covid-19-guidance-for-the-charity-sector?utm_source=44433ef6-9f35-41bd-ab7a-fb775ea7767e&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate It covers the following area and others in the next few blogs: How do I get support to pay my charity staff? The government has announced that organisations, including charities, will get support to help them pay wages. Employers will be able to contact HMRC for a grant to cover most of the wages of their workforce who remain on payroll but are temporarily not working

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Key Workers

The Department of Education has published a full list of roles that the Government considers to be “key”. This is the extract where religious staff and charities are mentioned. Key public services This includes those essential to the running of the justice system, religious staff, charities and workers delivering key frontline services, those responsible for the management of the deceased, and journalists and broadcasters who are providing public service broadcasting.’ I saw a note that all Anglican churches are now

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Further Advice on VAT

Further guidance on VAT The deferral will apply from 20 March 2020 until 30 June 2020. Eligibility:  All UK businesses are eligible, including charities How to access the scheme This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will

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