Financial Support – Update – Coronavirus (COVID-19) Crisis

Further to our update on Monday 23 March 2020, additional information has been released by the government, most importantly in relation to the self-employed, who have been made to wait on a support package announcement.

Please find below a brief explanation of the more recent announcements (see our website for earlier announcements).

 

SELF-EMPLOYMENT GRANTS

The Chancellor today announced a support package for those in the self-employed sector, similar to the package made available for employees, which was announced last week.

To summarise:

  • Self-employed to be paid a taxable grant of 80% of average monthly profits (based on last three years), up to a maximum of £2,500 per month – this will be received in one lump sum;
  • Scheme to last for three months initially;
  • You must have been in the self-assessment system in tax year 2018/19 (if you have not yet filed your return, you will be given 4 weeks from today to do so);
  • The “majority” of your income must be from self-employment;
  • This grant will only be available for those with up to £50,000 taxable profits;
  • HMRC will send a form to those who this grant will apply to;
  • The scheme should be accessible by the beginning of June;
  • The grant income should be included in your tax return for 2020/21;
  • Those who pay themselves a salary and dividend are not covered by the scheme, but the salary element is covered by the Job Retention Scheme;
  • If individuals cannot wait until June for the payment, other options such as the Business Interruption Loan Scheme, Universal Credit, etc should be utilised in the meantime.

As more information becomes available, we will keep you updated.

 

ONE-OFF CASH GRANTS

As stated in our previous articles (which can be viewed here), these grants (£10,000 and £25,000) should be made automatically.

However, in relation to the £10,000 ‘small business grant’, an online form has been released which you can complete to ensure you receive the grant and enter your bank details, if you’re entitled to same.  The payments will come from Land and Property Services (‘LPS’), so if you pay your rates by direct debit at present, LPS should already have your bank details.

Click on this link for more information and to complete the form.

The immediate focus has been on putting in place a system for issuing the £10,000 grant. Additional processes are underway for the £25,000 grant for the hospitality, tourism and retail sectors.

We note that some smaller businesses are not receiving the grant as they do not qualify for the Small Business Rates Relief (due to premises being partially unoccupied, occupying contiguous properties etc.). We hope to receive further information on this in due course.

 

LOAN SCHEME (Coronavirus Business Interruption Loan Scheme)

See our previous article here.

 

RATES

See our previous article here.

 

JOB RETENTION GRANTS

This is the area of support we have received the most enquiries about.  Unfortunately there has been no further concrete information made available since our previous update here.  We await the release of the HMRC ‘portal’.

 

HMRC

See our previous article here.

One additional comment that we would make, is that if you pay your VAT by direct debit and will be unable to make your next payment, please cancel your direct debit with your bank.  Please do this in sufficient time so that HMRC do not automatically collect on receipt of your VAT return.

 

STATUTORY SICK PAY (‘SSP’)

See our previous article here.

 

COMPANIES HOUSE

See our previous article here.

 

MORTGAGE PAYMENT HOLIDAY

See our previous article here.

 

RENT PAYMENT HOLIDAY

See our previous article here.

 

CONTACT US

We will keep you informed and stay in contact with all our clients directly to assist with their specific needs.

If you have any questions about the above or are concerned about your personal and /or business finances, please do get in touch with any one of our staff at Arthur Boyd and Company.  It is critical that early advice is sought and we will be pleased to help you in any way we can.

 

Remember to follow us on Linked In and Twitter (@arthurboyd_co)

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