We appreciate that many of our clients are affected by the coronavirus pandemic. The Government has made a number of announcements on how it intends to support small businesses and is being pressed to do more for the self-employed. We are keeping a watching brief and will bring you updates as they are announced, along with practical advice and support.
If you have a question you want answered, please send them to us at our usual email address: [email protected]
It should be noted that much of the guidance is being updated daily – indeed the law is being written as we write. As such, you’ll need to check government sources regularly to confirm you have the most recent information. Some links are provided later.
Here’s what we know to date:
If you operate a limited company or are a limited company contractor then SSP can be refunded for the two weeks that self-isolation may require. SSP currently stands at £94.25 per week.
80% salary grants
Businesses will receive government grants worth up to 80% of wages to keep workers in jobs. The Coronavirus Job Retention Scheme will pay up to £2,500 per worker each month, helping those who are self-isolating or caring for loved ones. More details on how to claim will be released soon.
There’s no VAT to pay until at least June. Don’t pay VAT now though but be aware it’s likely you’ll need to catch up by March 2021. Don’t forget, this VAT doesn’t disappear, but is delayed in collection, so prepare and submit your returns in the usual way.
Instalments due in July 2020 will now not be payable until January 2021. Again, the tax will still be due, but not for an extra six months.
For other taxes e.g. Corporation Tax if your business is impacted, you can arrange to pay over a longer time period. Given current pressures, it’s likely the qualification criteria will be simple. Call 0800 0159 559 – but lines will be busy so perhaps try calling at a later date if your next payment isn’t for months. When you get through, you’ll have to explain why you are affected and then agree a deferred payment plan based on what you now expect to be able to afford.
It will be sensible to check with your AccountsNet accountant what your liabilities are, allowing for the changes to VAT above, before calling. HMRC will want to make these agreements with you, not your accountant.
Small businesses could also be covered by loan support – but consult the guidance – this is constantly changing.
We will keep you updated via our blog, but please do contact us if you have any questions. Please note that our offices are now closed. Please avoid posting documents to our office and use email instead where possible.