Wayne, of ESP Business Solutions Grantham says…
|Over the last week, the Government has announced a whole raft of measures to support businesses and individuals through this crippling hiatus in activity. |
This is the latest we have on the situation. Detail on how to access the support continues to evolve and we will publish updates via email as available.We will be contacting all our business clients by telephone to discuss how this is impacting you.
We are also offering a free consultation service to non-clients who are in distress and have no source of support.
If you know anyone in this situation please ask them to email firstname.lastname@example.org
Support for Businesses
Coronavirus Job Retention Scheme
HMRC will set up a new online portal so that ALL UK employers, regardless of size, will be eligible for assistance where an employee has been designated as a ‘furloughed worker.’ HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. The current plan is that this will be in place for 3 months, at which point it will be reviewed. This will be backdated to 1 March 2020.
Employers must set out which of their employees are ‘furloughed workers’ and inform particular employees.
Furlough is the equivalent of lay off. So you can lay off staff, continue to pay them and recover 80% of that cost up to £30k per annum.
The current guidance states ‘You will remain employed while furloughed. Your employer could choose to fund the differences between this payment and your salary, but does not have to’
Changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation. If you need HR support, you can access a free helpline – contact us for details.
Deferment of VAT payments
VAT payments can be deferred for up to 3 months. Again, all UK businesses will be eligible and the scheme will run between 20 March 2020 and 30 June 2020. There is no need to apply for this scheme. Businesses will be given until the end of 2020/2021 to settle outstanding VAT liabilities that have accumulated as a result of the 3-month deferral. We recommend that, if you pay VAT by direct debit, you should cancel this as soon as possible.
Time to Pay
Any business that pays tax to the UK government and has outstanding tax liabilities will be able to apply for their case to be reviewed by HMRC with a view to arranging a bespoke time to pay agreement. This applies to all businesses including the self-employed. HMRC has set up a dedicated helpline: 0800 0159 559.
Statutory Sick Pay
Employers will be able to reclaim up to 2 weeks of SSP payments per employee where those SSP payments related to Coronavirus. This applies to all UK employers with 250 employees or less as at 28 February 2020. The reclaim will not be via the routine monthly returns (RTI), instead, HMRC will set up a new portal to facilitate this.
HMRC will introduce a business rates holiday for retail, hospitality and leisure businesses in England for the 2020/2021 tax year. No action is required and this will apply to your next council tax bill in April 2020 meaning that there would be no rates payable for those businesses for 2020/2021.
Small businesses within the Small Business Rate Relief or Rural Rate Relief will be eligible for a grant of £10,000.
The retail, hospitality and leisure sectors in England can also apply for a cash grant. For rateable values of under £15,000, they will receive £10,000 per property. Between £15,001 and £51,000, they will receive a grant of £25,000 per property. No action is required as local authorities will write to eligible businesses.
Business Interruption Loan Scheme
The British Business Bank has launched a scheme to support businesses with a turnover of no more than £45 million per year. The government will provide lenders with a guarantee of 80% on each loan. This applies for loans of up to £5m in value and for up to 6 years. No interest will be charged for the first 12 months.
The scheme is now open for applications as from Monday 23 March. To apply, you should talk to your bank or one of the 40 accredited finance providers (not the British Business Bank) as soon as possible, to discuss your business plan. Note that if the accredited lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.
More information can be found by clicking here
IR35 for the Private Sector
Changes to the IR35 off-payroll working rules in the private sector have been delayed by 12 months to April 2021.
Support for individuals, including the self-employed
The 2nd payment on account of tax that is due by 31 July 2020 will be deferred until 31 January 2021. Self-employed taxpayers are eligible for this deferment. There is no need to apply for this offer to apply. No penalties or interest for late payment will apply during this deferral period.
Statutory Sick Pay (SSP)
Individuals will be eligible for SSP for the first day of absence if the absence is Covid-19 related. The individual will need to visit https://111.nhs.uk/ in order to obtain an isolation note in line with advice issued from Friday 20 March. They will still be entitled to the normal maximum of 28 weeks in any 3-year period with the same employer, however, there is no need to wait for 3 working days before they would be eligible where Covid-19 applies.
The self-employed will be eligible to make a claim for Universal Credit or new style Employment and Support Allowance. Self-employed people will receive a rate equivalent to SSP.
Mortgage and rent holiday
Tenants, as well as mortgage borrowers, can apply for a 3 month payment holiday. Interest will continue to be charged on any amount that they owe. The government has announced that their intention is that no one can be evicted from their home over the next 3 months where this applies.
We are here to support you. Please contact us if you need any help with the challenges we all face in these unprecedented and uncertain times.Keep safe