Daily Update – 26 March 2020

Daily Update – 26 March 2020

Chancellors speech from 26 March – key points:

1. If you’re a director of a limited company is receiving salary and dividends you won’t be covered but appears you will be covered by the announcement last week re the Job Retention Scheme if you are operating a PAYE scheme.

It’s not yet clear whether the furlough scheme will apply to limited companies where there is a sole director and no employees.

2. Self-employed will receive grant of lower of 80% or £2,500 per month based on trading profit of less than £50k in tax year 2018/19 or average trading profits of less than £50k for tax year 2016/17, 2017/18 or 2018/19

3. To qualify half of your income in point 2 above in the tax year must have come from self-employment.

4. If you started self-employment after 06 April 2019 then appears you won’t qualify.

5. The grant will cover the months March, April and May however the systems won’t be ready until June, so payments won’t be made until at least then.

6. You don’t need to do anything. HMRC will contact you and ask you to complete a form online if eligible according to their information.

If your taxable income from self-employment in the last 3 years was

2016/17 £20k

2017/18 £22k

2018/19 £18k

Total £60k or average of £20k per year

You should receive a grant of £4k ( 3/12 x 80% x £20k) in early June covering March, April and May.

You can find more information on the HMRC website – here

 

Links for other information, support and advice:

HMRC website for guidance for employers – here

HMRC website for guidance for employees – here

 

To listen to/watch a recording of our Business Continuity Plan webinar – here (start it at 7:10)

Business Continuity Plan template – here

Business Continuity Plan guide – here

 

Coronavirus Business Interruption Loan Scheme (CBIL)

This is now open but some clients are finding it very difficult to find out information from their banks. We work with a lending platform which has several lenders offering CBIL loans – this may be a quicker option for you, please let me know if you would like to discuss this.

 

WhatsApp Group

There are more frequent updates in our Covid-19 WhatsApp group, if you would like to join please send an e-mail with your mobile phone number.

 

If there is anything you are unsure of, or need help with, please get in touch.

 

The post Daily Update – 26 March 2020 appeared first on Universal Content Master.

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