This information is drawn from a number of sources and is correct as of 29 April 2020. It is intended as a source of information for clients of the firm only.
Below there are details of the new Bounce Back Loans, Companies House deadlines, Help for employers, Help for the self-employed and Help for businesses with premises. You could fall into one or more of these categories.
The objective is to make cheap funding easily available to businesses effected by Coronavirus to enable them to re-start trading post-lockdown.
It only applies to businesses who:
- Were not an "undertaking in difficulty" at 31/12/19. We presume this means in administration or liquidation. Details to follow.
- Were trading on 1 March 2020.
- Have been negatively impacted by COVID-19.
- Are available on a quick turnaround from Monday 4 May 2020.
- Between £2,000 and £50,000.
- Up to 25% of business turnover.
- Year 1 carries no interest and no repayments.
- Beyond year 1 a "favourable" rate of interest will be charged.
- Repayment term is up to 6 years.
- No business forecasting or other information is required.
Apply via https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
Companies House Deadlines
If your accounts filing deadline falls after the beginning of Lockdown, i.e. 31 March onwards for most companies that qualify, you can apply to have your filing deadline extended by 3 months.
Note, you must apply to Companies House for the extension or the standard fines will still apply for late submission of accounts.
Help for Employers
The objective is to keep people at home while enabling employers to retain staff.
It only applies to employees who:
- Are now doing no work at all for the employer due to the virus’s effect on business.
- Were employed on 28 February 2020.
The scheme pays a grant to the employer through a new online system which came into operation on 20 April.
- The grant is 80% of ‘an employee's regular wage’ but not more than £2,500 per month gross, plus employers’ national insurance and the minimum employer pension contributions.
- This gives a maximum cap of £2,500 +£245 (employers’ NIC) + £59 (auto-enrolled pension contribution) = £2,804 of total possible grant that can be applied for per employee per month.
It applies from 1 March 2020 for 3 months minimum.
- It may be possible to negotiate with employees a temporary pay cut, but not to an amount below the grant being claimed. Otherwise they must be paid in full or made redundant.
- Employees are paid through payroll as normal, tax is deducted and paid over to HMRC.
Answers to common questions:
- It applies to directors’ salaries but not dividends.
- It is based on your average pay for the 2019/20 tax year up to 28 February 2020 (or you can claim based on corresponding month in previous year if it happens to be higher).
- It is possible to re-hire workers made redundant after 28 February and claim.
We can help you claim but will need:
- your PAYE reference number
- the employees being furloughed
- the claim period (start and end date)
- amount claimed
- your bank account number and sort code
- your contact name
- your phone number
We already have most of this if we run your payroll, but if you think about this before asking us to make the claim it will minimise the cost. The first claims are in the main for part of March and all of April. Our payroll software providers are yet to produce a module which will automate the claim, so we are having to do manual calculations. That said the cost is working out between £30 and £150 + VAT to make the claim depending upon number of employees. Future claims will be for whole months and hopefully software aided so should be less expensive.
For updates and further information visit:
Help for the Self employed
The government have announced the Self-employment Income Support Scheme
It applies to:
- The self-employed (including partnerships)
It does not apply to:
- People operating through limited companies.
- Self-employed people earning over £50,000 p.a.
- People who’s self employed income is less than half of their total income.
- Self-employed people who have not lost income due to COVID-19.
- Self-employed people who have not filed a 2018/19 tax return.
- Self-employed people who were not trading on 28 February 2020.
The scheme provides a grant worth 80% of profits up to £2,500 per month.
- Based on average taxable profits from 2016-17, 2017-18 and 2018-19.
- It is open for an initial three months.
Answers to common questions:
- If you’ve not been trading for three years, it’s based on available trading information..
- There’s nothing you can do now. HMRC will issue notices of eligibility to claim once they are in a position to process claims. They are not expecting to make backdated payments until June.
- We can help you claim, if we are your agent we'd expect to be notified of your eligibility, but let us know as soon as you receive communication from HMRC.
- We expect to make a small charge for assisting with claims, however, we don't know what a claim will look like as yet.
The Self- Assessment payment on account due on 31 July 2020 can be deferred until January 2021. No application is required to do this.
VAT payments for February, March and April quarter ends can be deferred until 5 April 2021. Direct debits will be collected, so if you pay VAT by direct debit, speak to your bank.
If you effectively become unemployed, you are still eligible for other government support, including universal credit and business continuity loans.
For updates and further information visit:
Help for businesses with premises
There are 3 categories of help:
1) Support for businesses that pay little or no business rates
- If you pay little or no business rates because of small business rate relief or tapered relief. You are entitled to a one-off grant of £10,000.
- You are eligible if your business is based in England and occupied commercial property as of 11 March 2020.
2) Help for retail, hospitality and leisure businesses that pay business rates
This applies to businesses such as:
- Shops, restaurants, cafes, drinking establishments, cinemas and live music venues.
- Venues for assembly and leisure.
- Hotels, guest & boarding premises or self-catering accommodation.
These businesses are entitled to a business rates holiday for 2020/21, and
A grant of up to £25,000 per property if the rateable value of your premises is between £15,000 and £51,000.
3) Help for nursery businesses that pay business rates
This applies to businesses that:
- Are on Ofsted’s Early Years Register.
- Are providers of the Early Years Foundation Stage.
These businesses are entitled to a business rates holiday for 2020/21.
For all these reliefs:
The original advice was to wait to hear from the council - they have not been getting in touch.
It is now possible to claim on-line.
You will need:
- a bank statement or something to prove you were trading on 11 March 2020.
- your bank details
- your Company Number if you are a limited company.
- your business rates reference number
We can help with the scanning etc if you need us, but this claim is something you should have all the information you need to do it yourself.
For updates and further information: