Following a challenging week the Chancellor has made several significant extra concessions in his Public address on Friday, which we believe are positive. In addition, the Government have announced that they are looking at further ways to offer support to the self-employed and we will monitor this closely and provide you with further updates as soon as we can.
Our summary of the key points are as follows:
- Coronavirus Job Retention Scheme – a measure to cover 80% of an employee’s salary (up to £2,500 per worker per month) if they are told to stay at home through lack of work. At the moment it is not clear if this will apply to owners / directors of companies.
- VAT liabilities which are due to be paid between now and the end of June can be deferred until the end of the financial year – this is only a deferral and should be budgeted for.
- Self – Assessment payments that are due to be paid in July 2020 can be deferred until January 2021.
- Coronavirus Business Interruption Loan Scheme – Interest free period has been extended from 6 months to 12 months.
- Statutory Sick Pay (SSP) to be made available from day 1 of illness and funded for 14 days for businesses with less than 250 employees.
- £10,000 grant for businesses who claim Small Business Rates Relief
- £25,000 grant for businesses in the Retail, Leisure and Hospitality Sector who have a property with a rateable value between £15,000 and £51,000
The details of these measures are detailed further if you follow the link below:
If you feel that you need to apply for a loan, we are here to help you. We can assist you with the calculation of your requirements and your application.
The link below will open a simple cash flow forecast tool, which is extremely useful when considering if a loan is necessary or the amount required. We will assist you in preparing this, so please don’t hesitate to contact us.
Our general advice at present is to hold back on all payments to HMRC, as HMRC are offering time to pay, and will allow deferment of payments.
HMRC have provided a specialist time to pay phone line – 0800 0159 559. There are extensive waiting times on this line, so please call when you have free time.
The Job Retention Scheme is of particular interest and provides the opportunity to scale back on your staff levels if demand is not there and your business should be entitled to claim back 80% of your employee’s wages. This measure has been brought in to deter businesses from making employees redundant, but to instead retain them through this period.
More information can be found if you follow this link:
HMRC are providing a Portal to enable employers to make these grant claims, but this is some time from being initiated. The guidance is still vague, but further detail will be provided as it becomes available.
Operationally, we are open, with employees working from home where possible, but please call or email us if you have any queries or concerns as we are aware that many clients are feeling anxious at this time. Additionally, we are also providing support through our website and social media platforms:
Folkes Worton LLP website- https://www.fwca.co.uk/coronavirus-covid-19/
Linkedin – https://www.linkedin.com/company/folkes-worton-llp/
Facebook – https://www.facebook.com/FolkesWortonLLP
Instagram – https://www.instagram.com/folkeswortonllp/
Twitter – https://twitter.com/FolkesWorton