Chartered Accountant Birmingham | Barnett Ravenscroft

Update as of 23 March 2020:

The Latest Help Available (Covid 19)

After the update provided by Chancellor Rishi Sunak on Friday please find below a summary of the points raised with our comments. Should you need any further support then please contact us.

HMRC Coronavirus helpline: 0800 0159 559

Universal credit helpline: 0800 328 5644

HMRC Coronavirus guidance: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

We have tested all of the above and you can get through.

New points raised by Chancellor on Friday 20^th March 2020

Coronavirus Job retention scheme

All businesses eligible.
In order to use the company needs to change the status of employees to ‘Furloughed Employees’ (employees with temporary leave) and notify them of this change.
Submit information about furloughed employees and their earnings through a new online portal (still to be launched)
Employees who were given P45 as at 28^th February 2020 are now reinstated on payroll
HMRC will then reimburse 80% of furloughed workers wages costs up to a cap of £2,500 per month (HMRC still working to set this system up)
System to be live within 2 to 3 weeks

Barnett Ravenscroft comments: – You will appreciate that this scheme is in its infancy and we will update you when we know more

Deferring VAT and personal income tax payments

VAT payments deferred for 3 months from 20^th March 2020
Self-assessment payments due on 31 July 2020 now deferred until 31 January 2021
Automatic offer with no applications required
Taxpayers will be given until the 5 April 2021 to pay any liabilities that have accumulated during the deferral period
VAT refunds and reclaims will be paid as normal
No penalties or interest for late payment will be charged in deferral period for both Self-assessment and VAT

Barnett Ravenscroft comments: – Complete and file your VAT return and cancel your direct debit. Then you don’t need to do anything else for now

Coronavirus Business Interruption loan scheme

Launches this week
Government provides lenders with 80% guarantee on each loan
Guarantee on loan is free
Scheme supports loans up to £5 million
12 months interest free rather than the 6 months first reported
Turnover must be below £45 million per annum
First £250,000 (at discretion of lender) no personal guarantee required
Finance terms are up to 6 years
List of lenders and rules available on https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/

Barnett Ravenscroft comments: – we suggest that you call your bank and apply as it is designed to help all businesses with cash flow, the banks may need further financial information which we can help you with.

Universal credit for Self employed

Working tax credit for the next 12 months is been increased by the same amount
Minimum income floor for Self-employed been removed meaning every self-employed person can now access in full universal credit at a rate equivalent to SSP
£1bn support for renters by increasing the generosity of housing benefit and universal credit, so that the allowance will cover at least 30% of market rents in all areas
Worked out on a case by case basis
Universal credit helpline 0800 328 5644

Barnett Ravenscroft comments:- This needs to be you as the self-employed person contacting them as this is done on a case by case basis

Earlier points raised:

Businesses paying sick pay to employees

Sick pay includes employees from small and medium sized businesses
Sick pay starts from day 1 and not day 4
Refund of 2 weeks SSP per eligible employee who has been off because of Covid-19
Employers with fewer than 250 employees qualify
Employers can reclaim the expenditure for any employee who has claimed SSP
Sick note for employee can be obtained from 111

Support for retail, hospitality and leisure businesses that pay business rates

Business rates holiday for retail, hospitality and leisure businesses in England for the 2020/21 tax year
Businesses that received the discount in the 2019/20 tax year will be rebilled by the local authority as soon as possible
Eligible if business is based in England and is in this sector
No action for client as local authority will contact business

Cash grants for retail, hospitality and leisure businesses

Cash grants available up to £25,000 per property
Businesses in sector with rateable value of under £15,000 will receive a grant of £10,000
Businesses with rateable value between £15,001 and £51,000 will receive a grant of £25,000

Support for nursery businesses that pay business rates

Business rates holiday for nurseries in England for 2020/21 tax year
No action required local authority will contact you as soon as possible

Support for businesses that pay little or no business rates

Companies that receive small business rates relief (SBRR), rural rate relief (RRR) or tapered relief (TR)
Government will provide £10,000 one off grant
No action local authority will contact business as soon as possible

Support for larger firms through the Covid-19 corporate financing facility

For turnovers of above £45 million

Bank of England will buy short term debt from larger companies
Supports companies by a short term funding squeeze and allow you to finance your short term liabilities
Information to be provided this week

Time to pay service- HMRC

Case by case basis
Interest on deferred payments and time to pay usually 2% or 3% this is likely to be cancelled further down the line
Covid 19 helpline 0800 0159 559
Clients to call in any case if Self-assessment, PAYE, VAT or corporation tax as they will be then be able to mark the account so as not to expect the payment

Having called the line they are open to helping clients and are mostly telling clients not to pay their liabilities at this time