Last night the Chancellor stood in 10 Downing Street and announced some new support for small businesses. They can be summarised as…
Coronavirus Job Retention Scheme
HMRC will reimburse 80% of furloughed (basically another word for redundant) workers wage costs, up to a cap of £2,500 per person per month.
HMRC are working urgently to set up a system for reimbursement as currently their systems are not able to facilitate payments to employers.
VAT and Income Tax Deferral
You will not have to pay any VAT until at least 30 June 2020 and then any unpaid VAT must be paid by 5 April 2021.
The self-assessment tax payment you should be making on 31 July 2020 has been deferred until 31 January 2021. To reiterate these are deferrals not write offs, so both the tax and the VAT will still be payable.
The Time to Pay helpline has fallen over a number of times this week and has been unable to cope, so this relief is something that was already happening in practice anyway.
Support for businesses through the Coronavirus Business Interruption Loan Scheme
The interest free period on loans under this scheme was extended from 6 to 12 months.
As far as we can see all the rest of the reliefs have stayed the same.
You can get full details of everything that is currently available to small businesses (basically loads of loans!) here…
In light of the current situation and in order to ensure as many small businesses are left standing after this is over we are offering free personal and business cash flow forecasting to any small business owners and self employed persons worried about how they are going to survive the current crisis. You do not have to be an existing client or become one in order to take advantage of this offer. Please get in touch for further details.