As the government continues to put measures in place to help protect individuals and businesses of all sizes, we will update you accordingly.
To protect jobs, the chancellor has announced that the government will step in and help pay wages, for the first time in UK history. It’s called the coronavirus job retention scheme.
Companies and organisations will be able to apply for a grant from HMRC to cover the wages of people who are not working due to coronavirus shutdowns, but who haven’t been laid off.
It will cover 80% of the salaries of the retained workers, up to £2,500 per month.
It is hoped that workers across the company can retain their jobs, even if their bosses can’t afford to pay them. It has not yet been announced how this will work but we will be in touch as soon as we are able to provide you with more information.
No business will pay VAT from now to June, and they’ll have until the end of the financial year to repay those bills. That should help companies struggling with a cash flow crisis.
The chancellor said this will injection £30bn into the economy. HMRC are automating this process so you shouldn’t have to do anything apart from continue to process your returns as normal.
Businesses that pay little or no business rates because of small business rate relief (SBBR), rural rate relief (RRR) and tapered relief, may be eligible for a one-off grant of £10,000 to help meet their ongoing business costs.
If you are eligible, your local authority will write to you. You do not need to do anything to apply.
Support for retail, hospitality and leisure businesses that pay business rates
A business rates holiday has been introduced for the 2020 – 2021 tax year.
Eligible businesses are those who have properties mainly used:
- As shops, restaurant, cafes, drinking establishments, cinemas and live music venues
- For assembly and leisure
- As hotels, guest and boarding premises and self-catering accommodation
If you are eligible, you do not need to do anything. This will be applied to your next council tax bill in April 2020
Cash grants for retail, hospitality and leisure businesses
The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.
Businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000
Businesses in these sectors with a rateable value of between £15,001 and £51,000, they will receive a grant of £25,000
You do not need to do anything; your local authority will write to you if you are eligible for this grant.
Business loan scheme
The government is also extending its coronavirus business interruption loan scheme, to be interest free for 12 months (up from 6 months). Details of how the scheme will work are hopefully being released this week.
Deferring self-assessment deadline for taxes
The deadline for self-assessment of taxes will be extended to January 2021, meaning that self-employed people will have longer to pay their taxes. You will not be required to make your July 2020 payment now until January 2021.
I hope you find this helpful, please feel free to contact me if you have any questions and I will do my best to answer, however this is very new news so the logistics of how these holidays, etc will be given/claimed is not yet clear.
Here are a few links that you may also find helpful. We will continue to send through updated information as and when we have it.
Kind regards and stay safe!