Help with Coronavirus COVID-19

Below is the latest government support during the Coronavirus COVID-19 crisis.

My main comment is that everyone has to treat every penny as a prisoner until this is over.

Links within this page….

1. Cash grants for the self employed

2. Cash grants for businesses

3. Job Retention/Furlough 80%

4. Tax Deferrals

5. Business Interruption Loan Scheme

6. Guidance for Loandlords and Letting Agents

Cash Grants for the self employed

Cash Grants for the self employed

This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months.

You can apply if…

–  you’re a self-employed individual or a member of a partnership and
–  you have submitted your Income Tax Self Assessment tax return for the tax year to 5 April 2019
–  traded in the tax year 5 April 2020
–  are trading when you apply, or would be except for COVID-19
–  intend to continue to trade in the tax year 5 April 2021
–  have lost trading/partnership trading profits due to COVID-19
–  your self-employed trading profits must also be less than £50,000 and
–  more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:
1.  having trading profits/partnership trading profits in 5 April 2019 of less than £50,000 and these profits constitute more than half of your total taxable income
2.  having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period.

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year to 5th April 2019, you must do this by 23 April 2020.

HMRC will use data on 5th April 2019 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.

How much you’ll get…

You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):
2016 to 2017
2017 to 2018
2018 to 2019

To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.

It will be up to a maximum of £2,500 per month for 3 months.We’ll pay the grant directly into your bank account, in one instalment.

How to apply…

–  You cannot apply for this scheme yet.
–  HMRC will contact you if you are eligible for the scheme and invite you to apply online.
–  Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.

See more information from the government by clicking here

See a summary from us by clicking here

See more information by clicking here

Cash grants for businesses

Cash Grants for businesses

Small businesses, with rateable values of under £18,001 (£15,001 in England) and within the Small Business Rate Relief or Rural Rate Relief, should get a grant of £10,000.

Larger businesses with rateable value between £18,001 (£15,001 in England) and £51,000, businesses should receive a grant of £25,000.

In Scotland you have to apply through your local council…

@ click here for Glasgow city

@ click here for Edinburgh city

@ click here to find other Scottish local council form

You will need your rates reference for your commercial property.

In England your local authority should write to eligible businesses.

The retail, hospitality and leisure sectors can also apply for a cash grant of up to £25,000 per property.

See a summary from us by clicking here

See more information by clicking here

Job Retention/ Furlough 80%

Job Retention /Furlough 80%

HMRC will launch in April an online portal for ALL UK employers.

Where an employee has been designated as a ‘furloughed worker’, HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. Currently, this will be in place for 3 months and will be backdated to 1 March 2020.

Note RE DIRECTORS SMALL WAGE: Ben Kerry from the Treasury says Directors may be furloughed (link to webinar lasts around 27 mins) providing they are not working and merely undertaking statutory duties. Care is needed until full guidance is issued by the Government. Furloughed should not be backdated and a proper process followed.

The employer suffers the cashflow downside until HMRC reimburse.

Employers must inform particular employees they are ‘furloughed workers’. See the following 2 examples of furlough agreements to be signed by the business and employee.

Example 1 click here

Example 2 by Gillespie MacAndrew Lawyers at the bottom of the following page click here

Example 3 click here

Furlough is the equivalent of lay off. So you can lay off staff, continue to pay them 80% to 100% of their wage and recover 80% of that cost up to £2,500 per month.

Current guidance states ‘You will remain employed while furloughed.’

Changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation. Contact our employer helpline through Croner TaxWise to get more HR support 0844 892 2473.

We will update you as soon as the HMRC online portal is available.

See a summary from us by clicking here

See more information by clicking here

Tax Deferrals

Tax Deferrals

VAT – any VAT payments due between the 20 March 2020 and 30th June 2020 should be automatically deferred by HMRC and businesses will have to the end of 2020/2021 to settle the outstanding VAT.

If you normally pay by Direct Debit you should contact your bank to cancel your Direct Debit as soon as you can, or you can cancel online if you’re registered for online banking.

INCOME TAX – the July 2020 income tax payments will be automatically deferred to 31st January 2021.

Corporation Tax, PAYE, CIS and other TAXES – Any business that pays tax and has outstanding tax liabilities will be able to apply for their case to be reviewed by HMRC with a view to arranging a bespoke time to pay agreement. This applies to all businesses including the self-employed. HMRC has set up a dedicated helpline 0800 0241 222.

Business Interruption Loan Scheme

Business Interruption Loan Scheme

British Business Banks have launched a scheme to support businesses with a turnover of no more than £45 million per year.

The government will provide lenders with a guarantee of 80% on each loan.

This applies for loans of up to £5m in value and for up to 6 years. No interest will be charged for the first 12 months.

To apply, you should talk to your bank or one of the …     @ 40 accredited finance providers   … as soon as possible, to discuss your business plan. Click here for other information.

Guidance for Landlords and Letting Agents

Guidance for Landlords and Letting Agents

HMG recommend that landlords and tenants engage constructively about access to a property, and that it is only proposed for serious and urgent issues. Follow the Scottish Government’s latest guidance on distancing measures necessary to help stop the spread of the virus.

This means that no one should visit the property to conduct viewings, or anything else which is not urgent and health and safety-related.

HMG also advise that, where possible, moves should be delayed. All parties involved in the move should seek to agree to delay a move.

Where moves cannot be delayed or are unavoidable, for example, if they are needed to prevent overcrowding or because of contractual commitments, then these may need to go ahead. Click here for other information.

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Leo Wagner is a member of The Institute of Chartered Accountants in Scotland, The Institute of Chartered Accountants in England and Wales and a preferred partner with Xero accounting system.

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