During the initial phase of the pandemic, lenders were required to offer payment holidays providing mortgage borrowers with immediate and temporary support.

The FCA said the majority of those who have had a payment holiday are expected to resume full repayment, but that many will remain in financial difficulty.

It is publishing additional draft guidance for firms, to ensure further support, both for those who have benefitted from payment deferrals under the current guidance who continue to face financial difficulties, as well as those whose financial situation may be newly affected by coronavirus after the current guidance ends.

The current guidance will continue to provide support for those impacted by coronavirus until 31 October, with consumers able to take a first or second three-month payment deferral. The FCA expects the current guidance to expire on 31 October, but will keep this under review depending on how the wider situation develops.

The newly published draft guidance proposes that firms should consider the appropriateness, and use, of a range of different short and long-term support options to reflect the specific circumstances of their customers.

This could include extending the repayment term or restructuring of the mortgage.

Where consumers need further short-term support, firms should offer arrangements for no or reduced payments for a specified period to give customers time to get back on track.

Christopher Woolard, FCA interim chief executive, said: ‘It is important that consumers who can afford to resume mortgage payments should do so. However, we understand that borrowers facing payment difficulties because of the pandemic will continue to face uncertainty and may also experience temporary interruptions in income.

‘We are proposing that firms contact their borrowers in good time before the end of a payment holiday, and work with them to come up with a tailored plan to help get them back on track.

‘Firms should not take a “one size fits all” approach.’

Under the proposed guidance, firms should prioritise giving tailored support to borrowers who are at most risk of harm, or who face the greatest financial difficulties.

Firms should also provide borrowers with the support they need in managing their finances, including through self-help and money guidance, and refer borrowers to debt advice if this meets their needs and circumstances. They should also be clear about the credit file implications of any forms of support offered.

The draft guidance is open for comment until 1 September. for more information please rfer to the FCA : httpsss://www.fca.org.uk/publications/finalised-guidance/mortgages-and-coronavirus-updated-guidance-firms

With thanks to Croner-i

Barnowl Bookeeping is here to help you with VAT, CIS, Self Assessment, Payroll and Bookkeeping located within easy reach of King’s Lynn, Downham Market, Swaffham and Wisbech. httpsss://barnowl-bookkeeping.co.uk/?page_id=181

Since 2002, around 6.3m Child Trust Fund (CTF) accounts have been set up, roughly 4.5m by parents or guardians and a further 1.8m set up by HMRC where parents or guardians did not open an account.

This means some children do not know there are accounts in their name, so are unaware their money is waiting for them.

From 1 September 2020, the oldest children will turn 18 and be able to access their money. Around 55,000 accounts will mature each month and HMRC has created a simple online tool to help young people find out where their account is held. If a parent or guardian is unsure of where their child’s CTF account is held they can also use this tool. 

For those who do not have the identifying information required to access the tool, HMRC will provide alternative, non-digital routes to finding a CTF provider upon request.

HMRC and The Share Foundation are also working together to help children in need of further support.

HMRC will send details of the CTF provider by post within three weeks of receiving their request.

Economic secretary to the Treasury, John Glen, said: ‘We want to make sure all young people can access the money which has been set aside for them, to invest in their future and continue a savings habit, as they turn 18.

‘If you’re unsure if you have an account or where it may be, it’s easy to track down your provider online.’

The accounts were set up to encourage positive financial habits and a saving culture among the young account holders.

HMRC is working with the Money and Pension Service (MaPS) and the CTF providers to continue to provide financial education to the beneficiaries.

CTFs were originally set up for children born between 1st September 2002 and 2nd January 2011, with a live Child Benefit claim. Parents and guardians received a voucher to deposit in a Child Trust Fund (CTF) account on behalf of the child.

At 16 years, the child can choose to operate their account or have their parent continue to operate it, but they cannot withdraw the funds.

At 18 years of age, the CTF account matures and the child is able to withdraw money from the fund or move it to a different savings account. Over 700,000 accounts will mature each year.

The accounts are not held by HMRC, but by a number of CTF providers who are financial services firms. Anyone can pay into the account, with an annual limit of £9,000 and there is no tax to pay on the CTF savings interest or profit.

Useful links:

HMRC’s online tool to help young people find out where their account is held.

If you need any help with your accounts please do not hesitate to contact me. My services include bookkeeping, payroll, VAT, CIS and Self Assessment I cover King’s Lynn, Downham Market, Wisbech, Swaffham and North Norfolk as well as having clients further afield.

httpsss://barnowl-bookkeeping.co.uk/?page_id=181

Just a quick one about your VAT…As you are aware you can claim 50% of the clients food and non-alchoholic beverages bill up to £10 per customer on Mondays, Tuesday and Wednesdays.

Be aware that you must pay the VAT on the full bill and it is due in the quarter that the client’s bill is created (i.e. the refund does not affect the VAT due in any way).

The 5% VAT rate does still apply to food and non-alchoholic when using this scheme.

If you have any further queries please contact me. I am a registred bookkeeper here to help you with your bookkeeping, VAT, CIS, Payroll and Self Assessment. I am within easy reach Wisbech, King’s Lynn, Swaffham, Fakenham, Dowhnam Market and the North Norfolk Coast with clients further afield too.