28 Apr Update on Government Coronavirus support
The Coronavirus Job Retention Scheme (CJRS)
The HMRC application portal opened on the 20th April for businesses to submit details of Furloughed employees. On the first day the website was very slow, but this seems to have settled down. There have been several issues uploading the data to the portal especially with overtime and bonuses, Furlough periods, part time and higher paid employees and employers being registered to use the portal.
Please contact us if you need help in these areas. What is clear is that this is a time-consuming process as you must upload data for each individual employee, so our advice is be patient and understand thousands of businesses are all trying to upload data at the same time. Talk to us before you make an application if you have any queries about eligibility or would like an estimate of the claim.
Self-employment Income Support Scheme
The online service to make a claim is not available yet. HMRC will aim to contact you by mid May 2020 and if you are eligible will make payments by early June 2020. We can help you to calculate if you qualify and estimate your claim. Contact us if you would like us to do this for you.
Business rates relief and Small business rate relief
Rates relief is handled differently in Scotland, Wales, and Northern Ireland. We are now seeing Councils paying the Grants to businesses. If you have not been contacted by your local council go on their website and Register for Grant support. Typically, you will be asked which Grant you are applying for and your business details.
VAT and Self-Assessment tax deferral
UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to defer the payment until a later date or pay the VAT due as normal. This does not cover payments for VAT MOSS or import VAT. HMRC will not charge interest or penalties on any amount deferred. Several clients have taken advantage of the deferral and canceled their DD with HMRC. The next deadline for self-assessment tax is 31 July 2020 for your second payment on account. You can delay making payment and you will have until 31 January 2021 to pay it. Remember these amounts will have to be repaid in the future so if you are in any doubt talk to us.
Corona Business Interruption Loans
UK based small and medium-sized businesses can apply for an interest-free loan of up to £5m. This scheme has faced severe criticism and has been revamped in the last week or so. It was described by the Governor of the Bank of England as being “Too complicated” and banks are now responding.
£2.8bn of loans have been agreed compared with the £1.1bn approved up to last week and banks are wading through a large backlog. Only 16,624 applications have been approved out of 36,000.
The process requires past, current, and future financial information including projections. We have a process to help you apply including a pre-qualification check. Talk to us if you want help in securing finance under this scheme.
Microbusiness Bounce Back Loans
Announced 27th April and available from 4th May 2020, loan available on successful application within 24 hours. Small and medium-sized businesses can borrow between £2,000 and £50,000.
Full details have not been released on this but for the latest information check our website for further updates as they arise.
The Government will guarantee 100% of the loan and no fees or interest in the first 12 months.
Other Government supports
There are other Government supports for large businesses, exporters and the regions of Scotland, Wales, and Northern Ireland. Contact us for further information.