Coronavirus Job Retention Scheme
All UK businesses are eligible and HMRC will reimburse 80% of the designated affected furloughed workers wages subject to;
1. You have notified your employees of this change , please see below a draft letter template you can use to write to your employees (must keep these for 5 years)
2. Existing employment Law and the employment contracts you have in place for each employee.
If this applies for your business then you can potentially claim back 80% of the wages up to a cap of £2,500 per month.
HMRC are in the process of setting up this new system currently, we expect it to be available from end of April 2020. For our existing clients who are making a claim we will submitting these via HMRC online Portal.
Contact us today If you are interested in a free 30 min webinar to go over these Government COVID-19 Schemes.
Email us on firstname.lastname@example.org with your name , business name and contact details.
Deferred Vat and Income Tax Payments
For VAT payments these can be delayed by 3 months and no need to apply as long as the payments were due from 20th March until 30th June 2020 the expected payments can be deferred during this time.
For Income tax If you are self-employed payments due in July 2020 will be deferred to January 2021. No penalties or interest will be charged for late payments during this deferral period.
Coronavirus (COVID-19) helpline
To get some additional support to delay your Income tax payments, Corporation Tax payments please contact HMRC Helpline on 0800 024 1222
Statutory Sick Pay Relief Package for SMEs
Small to Medium size businesses (up to 250 employees) can reclaim statutory sick pay (SSP) paid for sick leave due to COVID-19;
Covers 2 weeks SSP per eligible employee during COVID-19
Employees don’t need to provide a GP FIT note but can call 111 to get an isolation note.
HMRC and Government are working on a repayment mechanism for employers as soon as possible.
SSP calculator – https://www.gov.uk/calculate-statutory-sick-pay
Business Rates holiday For 12-month applies All Retail, Hospitality, Leisure and Nursery Businesses in England.
2019 to 2020 tax years business rates will be re-billed by your local authority as soon as possible applying the eligible discount.
2020 to 2021 the discount will be applied in the invoices from the local authority
No action is required – your next council tax bill in April 2020 should include the discount.
Business Rates calculator for this tax years savings https://www.gov.uk/calculate-your-business-rates
Cash Grants for Retail, Hospitality and Leisure Businesses
For businesses in this sector with a rateable value of under £15k you could receive a potential grant of £10k
For businesses with a rateable value of £15k to £51k can potentially receive a Grant of £25k per property
You are eligible if you work in these sectors (Retail, Hospitality and Leisure) and you are based in England
Your local authorities will write to you if you are eligible for this grant
If you have any other questions relating to these grants, please contact your local authority
Support for Nursery Businesses that pay Business Rates
You will get a Business rate holiday covering tax year 2020 to 2021
Properties eligible if you are occupied by Ofsted’s Early Years Register or Wholly and mainly used for provision of the Early Years Foundation Stage.
You will get automatic relief form your local authority on your next council tax bill
Calculator for the discount you will receive if you are eligible https://www.gov.uk/government/publications/business-rates-nursery-childcare-discount-2020-to-2021-coronavirus-response-local-authority-guidance
Support for businesses that pay little or no business rates
Government will provide a £10k Grant for eligible businesses to meet ongoing business costs, you are eligible if you are a small business that already receive Small Business Rate Relief (SBBR) or Rural Rate Relief (RRR)
No need to apply your local authority will write to you if you are eligible for the grant
The Coronavirus Business Interruption Loan Scheme offering loans of up to £5m for SMEs through the British Business Bank
o The Government are looking to provide a guarantee of 80% of each loan (subject T&Cs)
o You can apply on this Link from 23rd March 2020 and onwards https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/
Larger firms can apply for support through loans
Bank of England will buy short term debt from larger companies for larger firms under the corporate financing facility.
It’s to help your business with its short-term liabilities
Further information will be available on the bank of England website, link is below
HMRC time to pay Scheme
All Businesses and self employed people in financial distress and with outstanding tax liabilities may be eligible to receive support through the HMRC Time to pay Service
o These are on a case by case basis and tailor for your individual circumstances.
o Please call 0800 0159 559 which is HMRC dedicated helpline if you have any missed tax payments/due to miss any tax payments.
There is more information on the government website please see the link below;
IR35 Changes Delayed
The Government has delayed off payroll working rules applied to the private sector in response to the coronavirus pandemic. It’s a 12 month delay announced by the house of commons. The IR35 legislation will apply from 6th April 2021 now.