Daily Update – 6 April 2020

Daily Update – 6 April 2020

I hope you are well and safe.

I wanted to clarify some points today about what some the Government support really means and how it can be claimed, if it needs to be repaid and if its taxable.

 

Job Retention Scheme

Furloughed employees cannot work but can do training.

Directors can be furloughed; the only work they CAN do while furloughed is ‘statutory duties’ – paying bills, bookkeeping, vat returns and so on.

80% of gross salary up to a maximum of £2,500 per month can be claimed.

Tax, national insurance and pension contributions are still payable.

If an employee is furloughed there has to be a two way agreement between the employer and employee.

If you are unsure of the process to follow to furlough employees, we have information available here.

If we prepare your payroll, let us know which employees have been furloughed and from what date and whether you will be paying the extra 20% (this is not compulsory).

You still need to pay furloughed workers and then reclaim the money from HMRC.

The way you reclaim the money is not yet clear. HMRC are setting up a new system to deal with this, as soon as it’s ready we’ll let you know and let you know what the process for reclaiming it is.

The first payments are expected at the end of April/early May – so you need to budget for this delay.

These payment do not need to be repaid but are taxable i.e. its included in your business accounts but is offset against the salary costs you are paying.

 

Self-employed support

Support will be the 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.

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

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.

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.

You can still work and claim this.

These payments do not need to be repaid but are taxable.

 

Business grant fund

Local councils have started to pay out business rates grants.

Your local council should be in touch with you if you qualify.

If you are not sure whether you qualify for this, contact your local council.

These payments do not need to be repaid but are taxable.

 

VAT

If your business has a vat payment due between 20 March and 30 June 2020 it does not need to be paid until 31 March 2021 (actual date confirmed last week).

This vat payment is only postponed you do still need to pay it.

Cancel you direct debit mandate if you have one in place.

Vat payments due after 30 June 2020 are expected to be due for payment on the normal dates; however this may be subject to change.

 

Income tax payment on account due by 31 July 2020

These payments have been deferred (postponed) until 31 January 2021.

The self-employed and company directors due to make payments on account all qualify.

This tax does still need to be paid.

 

Coronavirus Business Interruption Loan Scheme

It was announced on Friday that personal guarantees are NOT required for loans of up to £250,000.

These loans are taking much longer to obtain than expected, so if you think you may need one do not delay applying.

 

New Facebook support group

To enable us to provide further support to business owners in what is a very challenging time for us all, I have decided to set up a Facebook Group.

If you would like to join the group there’s a link below.

https://www.facebook.com/groups/586819805258247/

Please do ask the questions that are concerning you at the moment as I’m sure others will have similar concerns.

I also want members to share their successes – where they have received grants, managed to get a payment holiday from a bank or have found a new revenue stream by adapting their business model. Whatever it is we want to hear about it.

Please also tell others about this group. The businesses we can support and encourage to get through the next few months – the better it will be for everyone. Thank you.

 

Need help?

As with any aspect of the Covis-19 situation if you are unsure of something or need help, please get in touch.

Take care,

Mark

The post Daily Update – 6 April 2020 appeared first on Universal Content Master.

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