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 Job Retention Scheme (CJRS) will now run until the end of March 2021 with employees receiving 80% of their current salary for hours not worked. Similarly, support for millions more workers through the Self-Employment Income Support Scheme (SEISS) will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500. More information on the latest announcements can be found on this economic support factsheet, please click here
- Government extends Furlough to March and increases self-employed support: Workers across the United Kingdom will benefit from increased support with a five-month extension of the furlough scheme into Spring 2021, the Chancellor announced today, 5 November. Further information regarding this announcement can be found here
- The Government have agreed to reimburse 70% 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. Payments will be capped at £2,190 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.
- Any VAT payments due to HMRC on or after 20 March 2020 until 30 June 2020 can be deferred. 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 or by smaller repayments until 31 March 2022. Refunds and reclaims will be processed as normal. A repayment plan of 11 months starting Again, current guidance is available on the Government website.
- All self-assessment tax payments falling due on 31 July 2020 will be deferred, 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.