Economic Relief Plans

Economic Relief Plans - Important Information

During the current COVID-19 coronavirus outbreak our team will be making every effort to keep you up to date with the current financial relief options to protect you and your business. 

This is an unprecedented situation and is therefore evolving extremely quickly. We would like to re-assure all our clients that we will remain operational during this outbreak. Further to this, please continue to monitor our website where we shall be releasing regular updates as new Government guidance is issued.

There have been several key announcements to date which are supported by online resources which we would recommend that all our clients review and continue to monitor over the coming weeks:

  • The welsh Government has announced a £400m Economic Resilience Fund allowing businesses to benefit from grants of £10,000 to £100,000. These grants are being targeted at those organisations currently unable to access the reliefs previously announced. Further information on how these grants can be accessed can be found here.
  • The Government have agreed to reimburse 80% of lost trading profits for the self-employed for a period of up to three months. This taxable grant will be paid in one lump sum in early June and those eligible will be contacted directly by HMRC to invite applications. Payments will be capped at £2,500 per month and are only available to individuals with trading profits of £50,000 or less. Further details on the application of this scheme can be found here.
  • HMRC have agreed to reimburse 80% of the salaries for furloughed workers (those who would otherwise be unable to work or made redundant) up to a cap of £2,500 per month. To qualify for this employers will be required to designate specific furloughed employees and notify them of a change in their status. A new online portal will be set up for this information to be submitted and claims made, however, HMRC are still working on setting up this system as the current systems are not designed to facilitate payments to employers. We will be monitoring for an update in the guidance which can be found here.
  • Any VAT payments due to HMRC on or after 20 March 2020 will be deferred for 3 months until 30 June 2020. All UK Businesses are eligible for this relief and the offer is automatic with no applications being required. VAT Returns will still be required as normal, however any liabilities incurred will not be due until the end of the 2020-21 tax year and refunds and reclaims will be processed as normal. Again, current guidance is available on the Government website.
  • All self-assessment tax payments falling due on 31 July 2020 will be deferred until 31 January 2021, this applies to all self-employed businesses. This again is an automatic offer and no application is required, no penalties or interest will be charged on the deferred payments. 
  • Welsh Government have issued a range of business rate and grant measures to support businesses’ in Wales during this period. Further details and updates on how these can be accessed can be found here;
  • The UK Government backed Business Interruption Loan Scheme in Wales is accessible via high street banks and the Development Bank of Wales. For further information on how these can be accessed please visit the British Business Bank’s website or Development Bank of Wales website;
  • The Small Business Commissioner has noted that during this time there is an increased risk in such organisations facing late payment issues. The Commissioner’s office has stated that they are available to offer support and guidance for small businesses struggling with payments. Further details can be found on the new SBC website;
  • The signs are that HMRC are currently showing good support for those businesses’ seeking time to pay arrangements for upcoming tax liabilities. To assist businesses during this time a special helpline has been set up, details of which can be found on the HMRC website;
  • The Government have sought to bring comfort to freelancers and private service companies by announcing a 12-month delay to the IR35 off-payroll rules for private sector engagers;
  • The Government has also issued a package of measures to protect renters and landlords affected by the virus, further details are available on the Government website.
  • The Government have confirmed protection from eviction will be implemented for commercial tenants for an initial period ending 30 June 2020 although rental liabilities will still be due on the conclusion of this period. Further details can be found here.

We recognise that the outbreak of Covid-19 will present many of our clients with unprecedented challenges. We will endeavour to provide guidance and support to our clients and business community wherever possible.

Our team are here to help you - should you wish to discuss any specific issues or concerns, please do not hesitate to contact us.