Business Support During The Coronavirus Outbreak
We understand that many of our clients are concerned about their cash flow during the Coronavirus Covid-19 outbreak and so we have put together a brief summary of the support available. This is changing on a daily basis and so we will continue to update the information as we get it.
The Government has announced additional support for individuals, employees, self-employed and employers. The available support includes:
Statutory Sick Pay
For businesses with fewer than 250 employees, the cost of providing 14 days of Statutory Sick Pay per employee who is unable to work because of the coronavirus will be refunded by the government in full. It will also be payable from day one, rather than the usual fourth day of absence. If we do your payroll then we will handle this for you.
Coronavirus Business Interruption Loan Scheme
A new loan scheme delivered by the British Business Bank will provide loans and finance to business during the outbreak. It is expected that that the scheme will become available in the week commencing 23rd March 2020.
Grants to Small Businesses
The government will provide additional funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR).
This will provide a one-off grant of £10,000 to businesses currently eligible for SBRR or rural rate relief, to help meet their ongoing business costs.
If your business is eligible for SBRR or rural rate relief, you will be contacted by your local authority – you do not need to apply.
Funding for the scheme will be provided to local authorities by government in early April. Guidance for local authorities on the scheme will be provided on 20th March so we expect small business owners to start receiving further information in the coming weeks.
Delay Tax Payments to HMRC
A dedicated helpline has been set up to help business and self-employed individuals who are having difficulties paying their tax due. It may be possible to agree a Time to Pay arrangement. HMRC’s dedicated helpline 0800 0159 559.
Banks and Credit Cards
Many banks are offering emergency loans to small businesses, loan repayments breaks, increased credit limits and waiving penalty charges if people need to access fixed savings early. Many credit card companies are also offering relief on payments for businesses and individuals.
Many mortgage companies are offering payment holidays for mortgages during this time. Speak to your mortgage company and ask to defer payments.
Keeping Up To Date
It is advisable to keep up to date with filing your VAT and PAYE to HMRC, even if you do not think you will be able to make the payments. HMRC will expect all filing to be on time and this may be a condition of making a Time to Pay arrangement.
You should also ensure that you file your company accounts and tax returns on time as penalties will be issued if you don’t. It is advisable to complete your personal tax return as soon as possible if you have paid tax through CIS and may be due a rebate. Equally if you have made payments on account and your profit is likely to be lower than last year you may be due some tax back and we may also be able to reduce your payments on account due in July.
Talk to us
We are here to help you through this difficult time, simply phone or drop us an email.
We will continue to work, for now we have some staff in the office but we are all fully equipped to work from home should we need to. We will continue to support our clients ensuring that everything is filed on time and without incurring penalties and providing information to help you through the following months.
If you need to send in any paperwork you can drop it through the door or send it to us via Receipt bank (contact us if you would like us to send you registration details).
The North Devon Accounts Team