Coronavirus Update
20th of March, 2020Announced by the Government Small Businesses who do not pay rates will be able to access a Grant of £10,000. This will be paid by local authorities. Businesses will be able to access Business Interruption loans to help with Cashflow from Banks (from Monday 23rd March). These loans will be INTEREST FREE for 1 year and then at a low rate of interest and will also be 80% guaranteed by the Government, so should be available more easily than usual. The Government will PAY up to £2,500 per month towards the wages bill for three months (backdated to 1 March 2020). This will be administered by HMRC. This is so that if staff are not required, they can be “Furlowed” – or left idle but still on the payroll. There is to be a VAT payment holiday until 30 June. (The VAT will still need to be paid, but with an extension to 5 April 2021). No Self Assessment payments are required until 31 January 2021. (This would seem to mean for anyone due to pay a Payment on Account in July 2020 or possibly with a Time to Pay Arrangement in place). Employees who have symptoms and have to self isolate are entitled to SSP from Day 1 and this can be claimed back for 14 days. Employees who have to take time off to look after dependents are entitled to unpaid leave. The Employer’s Allowance for Employer’s NICs is to be increased to £4,000 for 20/21. Universal Credit is to go up by £19.23 per week (£1,000 per annum) as is the basic element of Working Tax Credit. The new Tax Helpline is implying that there will be more flexibility with Time to Pay and possible negotiation re penalties for administrative difficulties as well as a suspension of chasing tax debts. This is a significant package of measures and we will work with clients to ensure that you all benefit from whatever is available. We will also email and publish on our website and/or Facebook page information as it becomes known. There are also negotiable mortgage holidays, utility bill holidays and car payment holidays which will be available from particular providers. It is also worth checking any business insurance. We can also help clients think “outside the box” and possibly re-purpose business assets to generate different income streams during this period. Please let us know if you are thinking about making changes. Above all, I hope that everyone is taking the best precautions available and is trying to stay safe! Good luck everyone
