Coronavirus Information

CORONAVIRUS HELPSHEET (Version 3: Monday 6/4/2020)

Please note that changes to the previous edition have been shown in red.

SUMMARY OF HELP AVAILABLE BY TYPE OF BUSINESS (see below for more details):

Self-employed, Partnership:

For employees, eligible for Coronavirus Job Retention Scheme, Statutory Sick Pay – details updated below;

For owner (sole trader or partner), you may be eligible for Self Employed Income Support Scheme, or you may need to apply for benefits;

If trading from a property liable to business rates (even if not actually paying any business rates due to reliefs):

–          In retail, hospitality and leisure & nursery schools – rates holiday plus grants of either £10,000 or £25,000;

–          Other businesses – grant up to £10,000;

Deferral of VAT payments during period 20/3/20 to 30/6/20 to 5/4/21 latest;

Deferral of Income Tax due 31/7/20 until 31/1/21;

Limited Company:

For employees, Coronavirus Job Retention Scheme, Statutory Sick Pay – details updated below;

Now confirmed that Directors are eligible for Coronavirus Job Retention Scheme – however they can only undertake statutory obligations, not generate any paid work; only payable on salary not dividends;

If in property liable to business rates (even if not actually paying any business rates due to reliefs):

–          In retail, hospitality and leisure & nursery schools – rates holiday plus grants of either £10,000 or £25,000;;

–          Other businesses – grant up to £10,000

Deferral of VAT payments during period 20/3/20 to 30/6/20 to 5/4/21 latest;

Deferral of Income Tax due 31/7/20 until 31/1/21 has now been extended to all self assessment taxpayers;

Payment of other business taxes – Contact HMRC Time to pay service on 0800 0159 559.

 

MORE DETAIL OF SCHEMES AVAILABLE:

a)      EMPLOYEES:

Coronavirus Job Retention Scheme:

–          Any entity with a PAYE scheme as at 28 February 2020 is eligible;

–          Must also be enrolled for PAYE online and have a UK bank account;

–          Need to designate employees you would be laying off as “furloughed workers”, notify the employee and keep records of dates furlough started and ended, as this will be the basis of your claim;

–          Furlough must be for a minimum 3 week period.  An employee may be furloughed multiple times as long as each period is for a minimum of 3 weeks;

–          If an employee has more than one job, each job is separate, and the employee can be on furlough with one employer, but continue to get paid by another employer;

–          Employees may carry out voluntary work during furlough, although they must not do anything which makes money or provides services to their employer organisation;

–          For salaried employees, the amount recoverable will be 80% of their gross salary as at 28 February 2020;

–          For employees whose pay varies, the amount recoverable will be the HIGHER OF 80% of the same month’s earnings in the previous year OR the average monthly earnings in the 2019/20 tax year;

–          Submit info to HMRC via a portal (to be set up);

–          HMRC will reimburse 80% of an employee’s normal gross wage up to a cap of £2,500 per month PLUS Employer’s NIC PLUS automatically enrolled Employer’s Pension Contributions;

–          Employers do not have to pay the remaining 20%, although this may be subject to employment law;

–          Employers will have to pay employees and then claim reimbursement from HMRC;

–          You do not need to place all your employees on furlough. To be eligible for the grant, when on furlough, an employee can not undertake work for or on behalf of the organisation;

–          The grant will be taxable income for the employer, but the wage costs paid can be offset against this income;

–          Eligible staff must have been on the Payroll as at 28 February 2020.

Statutory Sick Pay:

If any of your staff go off sick due to Covid-19 or have to self isolate, you can pay them SSP (no need for a sick note) from day 1 up to a maximum of 14 days and this will be refunded at some point by HMRC either via reduced PAYE payments or possibly a refund.

 

b)      BUSINESS RATES:

For businesses in retail, hospitality and leisure & nursery schools :

–          business rates holiday from April 2020 to March 2021;

–          properties used as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, for assembly and leisure, hotels, guest & boarding premises & self catering accommodation will all be eligible;

–          Council will contact you.

 

c)       GRANTS (i.e. non – repayable):

For businesses in retail, hospitality and leisure:

–          Rateable value of property < £15,000 – grant of £10,000;

–          Rateable value of property between £15,001 and £51,000 – grant of £25,000;

–          properties used as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, for assembly and leisure, as hotels, guest & boarding premises & self catering accommodation will all be eligible;

–          Council will contact you.

Other businesses that pay little or no business rates due to small business rate relief, rural relief or tapered relief (as of 11 March 2020):

–          Cash grant of £10,000 is available as long as you do business from a property that is liable to business rates;

–          Council will contact you.

 

d)      TAX PAYMENTS:

VAT / INCOME TAX Deferral:

VAT:

–          Can defer VAT payments due during period 20/3/20 to 30/6/20;

–          Will need to be paid by 5/4/21 latest;

–          VAT repayments will be refunded as normal.

–          If you pay by Direct Debit, you must ensure that you cancel it.

INCOME TAX:

–          Payments due on 31/7/20 can be deferred until 31/1/21 (optional);

–          Interest and penalties will be waived;

–          This is NOT restricted to the self employed.

Support for businesses paying tax:

–          If your business owes tax, whether a company or self employed, and is in financial distress, you may be eligible to receive support under HMRC Time to Pay service;

–          If you have missed a payment, or due to make one soon, call HMRC dedicated helpline on 0800 0159 559.

 

e)      LOANS:

Your business may be eligible for a Coronavirus Business Interruption Loan – please see the link below for more details.  These will be accessed through your bank.

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses#support-for-businesses-through-the-coronavirus-business-interruption-loan-scheme

There are 40 accredited lenders – you will need to have a borrowing proposal which the lender finds viable.  However, if you are turned down by one lender, you can still approach others.  See below for more details:

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/for-businesses-and-advisors/

f)       HELP FOR THE SELF_EMPLOYED via SELF-EMPLOYED INCOME SUPPORT SCHEME:

What you can receive: a taxable grant equal to 80% of your average monthly taxable profits, capped at £2,500 per month for 3 months, paid directly into your bank account in one lump sum.

You will be eligible if you’re a self-employed individual or a member of a partnership and you:

·         have submitted your Income Tax Self Assessment tax return for the tax year 2018-19;

·         traded in the tax year 2019-20;

·         are trading when you apply, or would be except for COVID-19;

·         intend to continue to trade in the tax year 2020-21;

·         have lost trading/partnership trading profits due to COVID-19.

You must have EITHER:

·         trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income;

 OR

·         average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020 to qualify.

DO NOT CONTACT HMRC – they will contact you if you are eligible for the scheme and invite you to apply online

Payment for a 3 month period is expected to be made in June.

 

For more information about all of the above, we refer you to the Government website:

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