If your business premises are in receipt of Small Business Rates Relief then your local council will write to you in the coming days. Your business could be eligible to a business grant of £10,000.
If you are in the retail, hospitality or leisure industry with a rateable value of £15,000 to £51,000 the grant could be £25,000.
Funding should be received in early April. Your local council will contact you about this.
JOB RETENTION SCHEME
Last week the government laid out plans to try and ensure as few as possible lose their jobs during this crisis.
If you have staff who are not working for the business you are able to claim a grant of 80% of their wages up to a maximum of £2,500 per month. Employer NIC and pension contributions can also be reclaimed.
You must notify your employees that they are being made a furloughed worker. Please check their contracts of employment ahead of doing this.
Receipt of funding from the government should commence by late April. You will be able to apply for this via a HMRC portal when it goes live. Your payroll department or company will be able to do this.
It is my current understanding that directors of the company can be furloughed. However, they must not be carrying out any work for the company to claim this.
BUSINESS INTERRUPTION LOAN SCHEME
Businesses with a turnover of below £45m will be able to apply for a loan via the British Business Bank. Loans start at £10,000.
The loans are interest free for 12 months. Banks are being encouraged to loosen their criteria for approval by the government underwriting 80% of the loan.
These loans are now also available to sole traders with a view to aiding cash flow.
HMRC have set-up a dedicated helpline - 0800 0159 559. If you are struggling to pay existing amounts owing then please call HMRC to set-up an arrangement to pay.
VAT payments due between late March and the end of June can be deferred until March 2021. You can cancel your Direct Debit payment so that your next VAT payment isn't collected. Please remember to set it back up again though! And also note this is only deferred not cancelled.
For those who have to make a Payment on Account in July, these can also be deferred until 31st January 2021. You don't need to do anything. But Again, this is only deferred 6 months so the amount will need to be paid next year.
For sole traders who have filed a tax return for the year 2018/19 then HMRC will be entitled to make a claim under the Self-Employment Income Support Scheme.
Trading profits over the last 3 years, or the number of years filed, will be averaged out to give a monthly payment of 80% of that average.
Payments won't be received until June. HMRC will write to you shortly about what you can claim.
Mortgage companies are relaxing the rules regarding payment holidays. It is worth contacting your mortgage company about this. Whilst it may aid your finances short-term this will need to be paid back and you will still accrue interest.
Some banks are offering interest free overdrafts.
The rules regarding Universal Credit have been relaxed which will aid people seeking to make up a financial shortfall via this system.
The likes of Sky Sports are allowing you to pause your contract to reduce your household bills.
If you'd like help or advice with regard to any of the above, whether a client or not, please get in touch on 01543 426271 or email firstname.lastname@example.org
Member since: 8th October 2015
Working at Bradleys Accountancy Practice in Hednesford. A family run accountancy firm since 1991.