This overview outlines each scheme, who it’s relevant for and simple qualifications. All circumstances are different so we expect questions and these should be directed to the team at Together Accounting. Please note both the Self Employed Support Scheme and Job Retention Scheme referenced below are to a maximum of £2500 per month.
Coronavirus Job Retention Scheme – Government support for employees that may otherwise be made redundant (this scheme includes employed directors). HMRC will pay 80% of February’s pay from the point of being ‘Furloughed’ (backdated to 1 March and in place for three months). To qualify employees should not be working in any capacity. The employer pays the 80% and will be reimbursed by HMRC at a currently unknown date in the future, hoped to be at the latest May. Please get in touch if you need further help with this.
Deferring VAT – All VAT due between 20 March and 20 June is now deferred to 31 March 2021 without having to make an arrangement with HMRC to agree to this. You will still need to file the VAT return.
Income Tax payments – Income tax payments due 31 July 2020 are deferred to 31 January 2021. Again this is an automatic arrangement and nothing needs to be done with HMRC
Self-employment Income Support Scheme – Not to be confused with support for directors, shareholders and taxpayers that complete self-assessments. This is for registered self-employed. On the basis, the self-employed individual can prove a loss or cessation of income HMRC will grant money once an application is made to HMRC. Applications should be ready to be filed in May/June. We can support our self-employed clients with this and please get in touch to discuss further.
Statutory Sick Pay relief package – for small and medium-sized businesses (SMEs), small business will be able to reclaim Statutory Sick Pay (SSP) for sickness due to COVID 19 for up to 2 weeks.
12-month business rates holiday – for all retail, hospitality, leisure and nursery businesses in England including hospitality, hotels and self-catering accommodation
Small business grant funding of £10,000 – for all business in receipt of small business rate relief or rural rate relief.
Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000. This covers the very same businesses that are included in the 12 -month rates holiday
Coronavirus Business Interruption Loan Scheme – offering loans of up to £5 million for SMEs through the British Business Bank. These loans are guaranteed by the Government and obtained through the banks. The government will cover the first 12 months of bank interest. It appears that the criteria for borrowing remains as before the COVID-19 crisis and in some ways, given the circumstances, appears to be more challenging than before.
HMRC Time To Pay Scheme – an enhance service to help business with outstanding tax liabilities.
Claiming Benefits– whether you are currently in or out of work, if you are on a low income and affected by the economic impacts of COVID-19, you will be able to access the full range of the welfare system, including Universal Credit.
More detail – For Government publications with respect to each of these schemes please follow this link to GOV.UK website https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
As always if you have any questions please get in touch.
