We appreciate that many of our clients are affected by the coronavirus pandemic.
The Government has made a number of announcements on how it intends to support small businesses and is being pressed to do more for the self-employed. We are keeping a watching brief and will bring you updates as they are announced along with practical advice and support.
If you have a question we can help with, please email us at [email protected] and we will do our best to help. It should be noted that much of the guidance is being updated daily – indeed the law is being written as we write. As such, you’ll need to check government sources regularly to confirm you have the most recent information. Some links are provided later.
Here’s what we know to date:
If you operate a limited company or are a limited company contractor then SSP can be refunded for the two weeks that self-isolation may require. SSP currently stands at £94.25 per week.
- 80% salary grants
Businesses will receive government grants worth up to 80% of wages to keep workers in jobs. The Coronavirus Job Retention Scheme will pay up to £2,500 per worker each month, helping those who are self-isolating or caring for loved ones. More details on how to claim will be released soon.
There’s no VAT to pay until at least June. So don’t pay VAT now though but do be aware it’s likely you’ll need to pay by March 2021. Do prepare and submit your returns in the usual way.
- Personal tax
Instalments due in July 2020 will now not be payable until January 2021.
For other taxes e.g. Corporation Tax if your business is impacted, you can arrange to pay over a longer time period. Given current pressures, it’s likely the qualification criteria will be simple. Call 0800 0159 559 – but lines will be busy so perhaps try calling at a later date if your next payment isn’t due for several months.
When you get through, you’ll have to explain why you are affected and then agree a deferred payment plan based on what you now expect to be able to afford. It will be sensible to check with your K&B accountant what your liabilities are, allowing for the changes to VAT above, before calling. Please note that HMRC will want to make these agreements with you, not your accountant.
- It’s also worth being aware that small businesses could also be covered by loan support – but consult the guidance – this is constantly changing.
We will keep you updated via our blog, but please do contact us if you have any questions.