14 May Coronavirus FACTSHEET
Some deferments that could help your cash flow…
|What can I defer||The usual deadline||Period||The new deadline||What do I need to do?|
|The July Payment on account||31st July 2020||5th Apr 2021||31st January 2021||Nothing, this is automatic when you don’t pay|
|VAT Returns||7th April 2020
7th May 2020
7th June 2020
|31st March 2021||Submit your VAT returns as normal and Cancel your Direct Debit|
Do you need more TIME TO PAY, call 0800 024 1222. HMRC will assess this on a case by case basis.
Are you entitled to….
Loan schemes available
1 Bounce Back Loan
2 Business Interruption Loan Scheme (maybe able to transfer to the Bounce Back Loan if you have already claimed)
Business rates holiday (1 year from April 2020).
Small business grant funds (based on business rateable value).
Some businesses have been unable to claim as they have been caught in traps with their landlords who pay the rates for them. It may be worth seeking legal advice on this. The FSB can help with this.
Self-Employment Income Support Scheme
This will be rolled out from the 13th May 2020 with the first payment being made on 25th May (which is earlier than the original anticipated date)
It is important to note that businesses must have been adversely affected in some way by the coronavirus (make sure you have evidence of this).
You must intend to trade in 2020/2021 and if you haven’t traded afterwards then it must be due to the Coronavirus outbreak.
So HMRC could roll the scheme out early, accountants cannot make claims on behalf of their clients. It would have taken HMRC too long to add an agent link.
As a taxpayer you must set up a government gateway as a matter of urgency. We can talk you through this should you need some help.
HMRC will make the calculations for you and if you disagree with them, make the claim anyway and ask your accountant to check the calculations.
Coronavirus Job Retention Scheme (CJRS)
Has been rolled out and has been extended to 30th June 2020. It is important to note that any employees that are furloughed must not be working, in any way for the company. This includes chasing debts and responding to emails.
An employee must be furloughed for at least, a minimum of 3 weeks.
If your staff are training whilst they are off work, they must be paid the minimum wage for this training.
Directors of small companies can furlough themselves but are restricted to officer duties only. Is it worth taking the risk to claim the grant?
Remember to always to seek legal advice where you can and consider the employment law regulations. The FSB can help with this.
Accountants can make furlough claims on behalf of their clients.
When your claim is made, HMRC will aim to pay your grant within 6 working days.
Employers can claim sick pay for employees from day 1 due to the coronavirus for up to 2 weeks.
Unfortunately, HMRC cannot help everyone and it maybe that you are one of those businesses who fall through the gaps. It is important that open your mind to the bigger picture and stay positive!
Try Universal Credit.
Alternatively, Call Me! We can bounce ideas around for you to diversify your business!
Tax Investigation Fee Insurance
Have you ever wondered what would happen if you were investigated by HMRC. Firstly, it will be stressful and secondly it will cost you. Tax Investigation Fee Insurance covers you for this eventuality. We offer this (as an additional expense) to our clients, please contact me for a quote and further details.
What happens after the Pandemic?
It’s important to note that HMRC will challenge your claims within the next 2 years! Make sure you keep records and evidence to back up your claim.
It is clear that the grants that have been given out will need to be repaid in some way or another. In the future budgets, I would expect to see a rise in National Insurance contributions. If you are Self-employed, you will need to prepare yourself for this as it could rise by up to 5%. We need to be more vigilant with our money moving forward so we can prepare for the hard times that will follow during our recovery from this crisis.