Supporting you and your business from the impact of Coronavirus
The emotional and economic situation we all find ourselves in due to Coronavirus is totally unprecedented. We are all feeling the impact and our thoughts go out to all our clients, contacts, colleagues and their families at this uncertain time. Life, as we knew it, is changing all the time. We want to reach out to you all to reassure you that we’re here to help.
At present, the government are offering the following support to businesses and individuals:
- To retain furloughed employees who were on your payroll on or before 19 March 2020 all employers, whatever their size, are able to apply for a grant equal to 80% of each employee’s monthly salary (up to £2,500 per month, plus the associated employer’s NIC and minimum employer auto-enrolment pension contribution).
If you are a small or medium sized business with less than 250 employees on 28 February 2020 and have paid Statutory Sick Pay (SSP) to employees suffering with Coronavirus, the government have promised to refund up to two weeks SSP, per employee. This also includes individuals who have been self-isolating under government guidance.
The government are currently working out how they will implement these payments; their systems just are not set up to facilitate this at present. However, we do know that a claim online will need to be made and this facility should be up and running in April 2020. In the meantime, employers will need to finance this grant through their cash flow. Let us know if you need help with managing your cash flow projections.
- A reprieve for those with imminent tax liabilities:
- All VAT payments due from 20 March 2020 to 30 June 2020 can be deferred until 31 March 2021. Don’t forget to cancel your Direct Debits for this period but you should reinstate them from 1 July 2020 onwards.
VAT re-claims should be submitted and refunded as normal.
- Defer your second payment of tax on account for 2019/20, due for payment on 31 July 2020, to 31 January 2021 without incurring any interest or penalties. It would be advisable to send us your 2019/2020 Tax Return information as soon as you can. If you are due a tax refund for the year ending 5 April 2020, claim it earlier to help your cashflow.
- If you already have outstanding tax liabilities, HMRCs Time To Pay service may offer some reprieve to all businesses and individuals in financial distress. These arrangements are agreed in a case-by-case basis, contact CKLG on 01223 810100 for support and guidance.
The self-employed (including those who are members of partnerships) whose profits are less than £50,000 and more than half their annual income is from their self-employment are to be awarded a taxable grant, worth 80% of trading profits (up to a maximum of £2,500 per month). As ever, there are many conditions to satisfy, please call us on 01223 810100 to discuss your situation.
If you are eligible, HMRC will be in touch in June. An online application will be required and it is expected that the grant will be paid in one lump sum. In the meantime, to all those self-employed individuals that have not already submitted their 2018/2019 Tax Return, it is imperative you do this before 23 April 2020 in order to claim this grant. Please call us on 01223 810100 if we can help.
Whilst these measures apply for the next three months, the government have indicated that this time period will be extended, if necessary. Other support for businesses include:
- a 12 month business rates holiday from April 2020 to April 2021 and cash grants of up to £25,000 for those in retail (including estate agents and letting agencies), leisure and hospitality businesses. The former should automatically be applied to your next council tax bill and your local authority will write to you if you are eligible for the grant.
- a Small Business Grant of £10,000 from the government if you operate a small business and already pay little/no business rates because of other reliefs being available. Again, your local authority will be in touch.
- The Coronavirus Business Interruption Loan Scheme for small and medium sized businesses to access interest free bank lending and overdrafts for 12 months, 80% being guaranteed by the government. It would be advisable to discuss your business plan with your lender as soon as you can, will they offer you a repayment holiday to help with cash flow?
We are living in extremely uncertain and unsettling times, if we can do anything to support and steer you through these difficult times, please do not hesitate to call a member of the business services team or private client team on 01223 810100.
Our world is changing on a daily basis. For the latest help and guidance, check our blog for regular updates on Coronavirus or call 01223 810100 to chat to one of our friendly advisers.