Hawksford can help you navigate through times of uncertainty
The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.
The following information is taken from the HMRC gov.uk website and includes a package of measures to support businesses including. Hawksford is experienced in working with businesses of all sizes and can help you navigate the challenges arising as a result of COVID-19. For temporary support or longer term planning our professional team can help you understand the next steps most relevant to your business.
This scheme will cover the cost of wages backdated to March 1st and will be open initially for at least three months.
The Government will be supporting businesses by deferring Valued Added Tax (VAT) payments for 3 months. For those who are self-employed, Income Tax payments due in July 2020 under the Self-Assessment system may be deferred until January 2021. For VAT, the deferral will apply from 20 March 2020 until 30 June 2020. All UK businesses are eligible with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
Legislation to allow small and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19 will be brought in. The eligibility criteria can be found on the gov.uk website HERE
Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority as soon as possible. This will apply to the next council tax bill in April 2020.
This scheme will provide businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property. Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief. Businesses in these sectors with a property that has a rateable value of £15,000 and under will receive a grant of £10,000. Businesses in these sectors with a property that has a rateable value of between £15,000 and £51,000 will receive a grant of £25,000.
The temporary Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years. The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.
The government will provide lenders with a guarantee of 80% on each loan (subject to a pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank. There are 40 accredited lenders able to offer the scheme, including all the major banks.
Under the new Covid-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies. This will support your company if it has been affected by a short-term funding squeeze, and allow you to finance your short-term liabilities. It will also support corporate finance markets overall and ease the supply of credit to all firms.
All businesses in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
If the coronavirus outbreak has affected your company and you need more time to file your accounts, you can apply for a 3 month extension. Speak to your adviser today about your eligibility.
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