- Patrick Maflin
Business owners and the self-employed on all scales are facing worrying times as a result of the ongoing Corona virus pandemic. The Government has now acted and put in place support measures for you and your company to help in this tough economic climate.
With the situation evolving frequently, be sure to check back as this article will be being updated with developments as they happen.
Support available to your business
Annual Accounts Submissions to Companies House: A 3-month extension for submission of annual accounts is being granted. This is an application-based system and isn't automatic, unlike some other assistance programmes, and applications must be made before the filing deadline.
VAT Payments: All liabilities that would be due for payment during the period 20 March 2020 to 20 June 2020 can be deferred to the end of the 2020/21 tax year. To receive this payment deferral, an application is not required, instead it has been granted to all VAT-registered businesses. You must remember to cancel your direct debit otherwise the payment will still be taken.
Time to Pay Scheme: Any business paying tax to the UK Government can apply for time to pay. Applications are on a case-by-case basis and will apply to current outstanding liabilities, as well as new liabilities. A dedicated helpline has been set up for this: 08000 159 559.
Job Retention Scheme: Businesses that need support in paying wages for staff that would otherwise have been laid off can apply for assistance for up to 80% of salary, capped at £2,500 per employee. Affected employees need to be designated as 'furloughed' and HMRC notified via a portal, details of which have not yet been released
Business Interruption Loan Scheme: Applicable to SMEs, the scheme will provide access to loans of up to £5m, for a maximum period of 6 years. The first 12 months of interest payments will be covered by the Government, meaning lower initial repayments, and they are guaranteeing lenders 80% on each loan to encourage lending. All major banks are offering the scheme along with many accredited lenders.
Small Business Grant Scheme (England only): The Government is providing additional funding for Local Authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief. This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.
Self-Employment Income Support Scheme: You will be able to claim a taxable grant worth 80% of your trading profits to a maximum of £2,500 per month, for 3 months. HMRC will contact eligible individuals and to be eligible, you must have:
1.Submitted your self assessment tax return for the 2018/19 tax year;
2.Traded in the 2019/20 tax year;
3.Are trading when you apply, or would be if it wasn’t for COVID-19;
4.Intend to continue to trade in 2020/21
5.Have lost trading/partnership profits due to COVID-19
For more in-depth guidance on what is available please visit the Gov.uk Business Support website
Get in touch
We are here to help you and your business through the troubling times that lay ahead. It is important to remember to remain vigilant of fraudulent activity and remember that HMRC will never text, call or email regarding a tax refund. If you are contacted by a fraudulent party do not share your bank details.
Sadly, these measures do not apply to Seafarers due to your unique circumstances. If you need support or are unsure of your options, get in touch.