CORONAVIRUS - Business Income

 

Coronavirus Business Interruption Loan Scheme 

This new scheme, delivered by the British Business Bank, will enable businesses to apply for a loan of up to £5 million, with the government covering up to 80% of any losses with no fees. Businesses can access the first 6-months of that finance interest-free, as the government will cover the first 6-months of interest payments.

 

VAT Payments

The next quarter of VAT payments will be deferred, meaning businesses will not need to make VAT payments until the end of June 2020. Businesses will then hav euntil the 2020-21 tax year to settle any liabilities that have accumulated dureing the deferral period.

 

Income Tax Payments

Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.

Income Tax Self-assessment payments due on the 31st July 2020 will be deferred until the 31st January 2021. This is an automatic offer with no application required. No penalies or interest for late payment will be charged in the deferral period.

 

Universal Credit

Self-employed people can now access full universal credit at a rate equivalent to Statutory sick pay.

 

Mortgage and rent holiday

Mortgage borrowers can apply for a three-month payment holiday from their lender. Both residential and buy-to-let mortgages are eligible for the holiday. It is important to remember that borrowers still owe the amounts that they don't pay as a result of the payment holiday. Interest will continue to be charged on the amount they owe.

Tenants can apply for a three-month payment holiday from their landlord. No-one can be evicted from their home or have their home repossessed over the next three months.

 

Statutory Sick Pay (SSP)

If you're a director of a limited company with less than 250 employees, you can pay yourself two weeks of SSP if you need to self-isolate subject to meeting t minimum payroll requirement for SSP.

The Government will refund £94 per week, maximum £188, to your company

It will also refund SSP for staff of businesses with less than 250 employees for up to two weeks.

 

Time to Pay arrangements 
A dedicated helpline has been set up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities receive support with their tax affairs. Through this, businesses may be able to agree a bespoke Time to Pay arrangement. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.

 

£10,000 cash grants for the UK’s smallest businesses 
There will be a £10,000 cash grant to our smallest businesses, delivered by local authorities. Small businesses that pay little or no business rates and are eligible for small business rate relief (SBBR) or rural rate relief will be contacted by their local authority - they do not need to apply. The funding will be provided to local authorities in early April. Guidance for local authorities on the scheme will be provided shortly.

 

Covid-19 Corporate financing facility

The Bank of England has set up a scheme to finance wokring capital by purchasing commercial paper from larger businesses making a material contribution to the UK economy. Businesses do not need to have previously issued commercial paper in order to participate. The scheme will operate for at least 12 months.

 

Hospitality sector 100% business rates relief and cash grants 
The government is introducing a business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year. A £25,000 grant will also be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.
 

 

Please stay safe and follow Government guidelines on social distancing and self-isolation

Information taken from the Insititute of Chartered Accountants in England and Wales and was updated on 20th March. You can read the latest advice and guidance from Government to businesses on it coronavirus pages (https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses)

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Coronavirus Business Interruption Loan Scheme