As there are a number of questions that come up during this pandemic, we thought we would try to list here some quick-fire bullet points. More details can be found on the dedicated COVID-19 page and as ever we are all available to assist with your specific questions and concerns. For payroll, PAYE, pensions and furlough, please speak to Liz. For Self-Assessment and Corporation Tax, please speak to Aldrich. For VAT and the Governments Covid-19 financial support measures, please speak to Andrew.
- You must continue to submit your RTI submissions, pension and PAYE whether you are furloughing staff or not.
- You can apply for “Time to Pay” for delaying payment of your PAYE liability – this is not automatically postponed.
- It has been announced that the job retention scheme service will be ready to launch on the 20th April.
- The government has extended the cut-off date for the Coronavirus Job Retention Scheme. You can now furlough anyone who was employed by you on or before the 19 March 2020.
- Update – The Furlough will continue through to end of October 2020 with variations in the amounts and responsibilities from 01 August 2020.
- You must continue to submit your VAT returns as normal
- VAT liability payments have automatically been postponed for the periods ended February, March, April and May 2020, however lease note that:
- If you wish you can continue to pay the liabilities as normal
- If you pay via Direct Debit you can cancel this. If you do not, H.M. Revenue & Customs will continue to take payments.
- There has been no announcement as yet, as to how the payments for the postponed payments will be made
- VAT payments due following the end of the deferral period will have to be paid as normal.
Corporation Tax & Accounts
- If your accounts will be late because your company is affected by COVID-19 and your filing deadline has not yet passed, you can apply for an automatic and immediate 3-month extension to file your accounts.
- If you need extra time to pay your liability, you can apply via the telephone numbers below.
H.M. Revenue & Customs have a dedicated Business Support Service to help if you are unable to pay your taxes due to the Covid-19 outbreak.
0800 015 9559 / 0800 024 1222 – Monday to Friday, 8am to 4pm.
Self-Assessment & Grants
- H.M. Revenue & Customs will contact you directly if you are eligible to claim – do not contact them.
- A taxable grant worth 80% of your average monthly income, capped at £2,500, will be paid covering March to May. This will be paid to you during June.
- We do not yet know how you will be contacted but assume a portal will be launched for you to complete your details for the transfer.
- Over 50% of your income must come from Self-employment to be eligible.
- You will not be eligible if your profits are above £50,000.
- You do not need to make payment of your 2nd payment on account by 31 July 2020. This can be hold through to 31 January 2021.
- Grant income received by individuals is taxable therefore the will be subject to tax.
- Update – A second and final grant up to £6,750 will be offered in August covering the June, July and August period.
H.M. Revenue & Customs have a dedicated Self-Assessment phone line – This is ONLY for payment and tax queries and not to do with the Grant
0300 200 3822 – Monday to Friday, 8am to 4pm.
Business Interruption Loan Scheme
- You are eligible if you are based in the UK, have a turnover of under £45 million and the borrowing proposal is considered viable.
- You can apply directly to your bank or via the British Business Bank website
- Update – Grant income received by a business is taxable therefore the Small Business Grants, and Retail, Hospitality and Leisure Grants will be subject to tax.
- Update – Only businesses which make an overall profit once grant income is included will be subject to tax.
Bounce Back Loan Scheme
- The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
- Eligibility for the loan is based on having a company in the UK, established before 01 March 2020 and has been adversely impacted by the Coronavirus
- The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
- The length of the loan is 6 years, but you can repay early without paying a fee. No repayments will be due during the first 12 months.
- There are 11 lenders participating in the scheme including many of the main retail banks.
- You cannot apply if you’re already claiming under the CBILS, CLBILS or COVID-19 Corporate Financing Facility.
- Update – If you’ve already received a loan of up to £50,000 under one of other schemes you can transfer it into the Bounce Back Loan scheme. You have until 4 November 2020 to arrange this with your lender.