Money, money, money!
This is just a quick round-up of the various financial support strategies the government have provided to help us through this extremely difficult period for businesses.
Tax deferrals
VAT that was due from 1st April onwards can be deferred. This means that you can delay payment of your VAT bills until 31st March 2021 - but it must be paid.
Self-assessment payments on account that are due in July 2020 can also be deferred until 31st January 2021 and, depending on your financial situation, may be recalculated.
Companies House accounts filing deadlines can be extended by 3 months, should this be required.
Grants
Grants do not have to be repaid.
The first grant to be launched was the Coronavirus Job Retention Scheme (CJRS). This is more commonly referred to as 'Furlough payments'. The government will pay 80% of the salaries of the staff who have been furloughed up to a monthly maximum of £2,500.
These payments are now coming through and have been paid quite quickly. Our experience is that they are being paid within 6 days of the application, within the timeframe given by HMRC.
If your business has premises, a rates 'holiday' has been declared for Retail, Hospitality and Leisure businesses.
For the retail, leisure and hospitality industries with a rateable value of up to £51,000, there is also a grant of up to £25,000.
If you don't pay business rates because you have small business rate relief or rural rates relief you can expect to receive a grant of £10,000 regardless of what sector you are in.
All the rates grants are being handled by your local council, if you are eligible they will contact you directly and may have done so already, the timeframe seems to differ for individual councils.
Business loans
The first loan scheme to be launched was the Corona Virus Business Interruption Loan Scheme (CBILS). This requires you to apply directly to your bank, but you will need to provide trading figures and other business material.
The latest update to that is the Coronavirus Bounce Back Loan. This is 100% guaranteed by the government and is available to businesses that have not benefitted from any of the other grants or loans. The loan can be up to £50,000 depending on individual circumstances.
Support for the self-employed
The letters to self-employed sole traders or partnerships eligible to apply for this are going out as we write and should be received by or during the second week of May.
Eligible taxpayers will receive a notice from HMRC inviting them to claim the money. HMRC will calculate the amount. After successfully going through the claims process, HMRC expects to start paying the money first week of June. The maximum will be £7,500.
By making a claim you will be confirming that your business has been adversely affected by coronavirus.
The grant will be subject to Income Tax and self-employed National Insurance.
While business owners are facing serious challenges, it's good that the government has been quick to address the issues and provided support to help everyone through this period.