The Covid-19 outbreak is understandably causing concern businesses throughout the country and we have provided below the updated information and links on what help is available to you and your business.
Our Specialist Advisory Services, which is made up of our Business Recovery & Insolvency, Corporate Finance and Tax departments, are available to help you, providing advice and support through these unprecedented times and the coming months.
Who to Contact
Christopher Brown
Business Recovery & Insolvency Partner
chris.brown@hartshaw.co.uk
Mob: 07788 186 181
Emma Legdon
Business Recovery & Insolvency Partner
emma.legdon@hartshaw.co.uk
Mob: 07717 727 061
Patrick Abel
Corporate Finance Partner
patrick.abel@hartshaw.co.uk
Mob: 07795 337 113
Steve Vickers
Tax Partner
steve.vickers@hartshaw.co.uk
Mob: 07765 236 690
Business Support Grant
Sheffield City Council have opened the portal for applications for the business support grant for businesses who pay business rates to Sheffield City Council. Click here to start your application.
Time to Pay
Any business that pays tax to the UK government and has outstanding tax liabilities will be able to apply for a Time To Pay Arrangement with HMRC.
HMRC changed the number of its dedicated helpline to 0800 024 1222 The helpline will be open Monday to Friday between 8am to 4pm
Deferment of VAT and Self-Assessment payments
All UK business are eligible, and the scheme will run until 30 June 2020. Businesses will be given until the end of the 2020/2021 financial year to pay all outstanding VAT liabilities that have accumulated as a result of the 3-month deferral.
HMRC have also agreed that the self-assessment payment due by 31 July 2020 can be deferred if you are unable to make the payment. This payment must be paid with the next instalment due by 31 January 2021.
If you or your business pays by direct debit for either of these you must cancel the direct debit, whilst remembering to reinstate it for the following payment due date.
Coronavirus Job Retention Scheme
Employers can access the Coronavirus Job Retention Scheme, where either all or some employees are classified as a furloughed worker.
The crucial points are that:
- the employee remains on the payroll;
- those laid off temporarily cannot work for the company during the lay-off;
- the employer must decide to make an employee a furloughed worker, but the employee must agree in a side letter;
- the underlying contract and contractual position between employer and employee is not changed, it’s sort of continuing in the background during the lay-off.
If the employee’s salary is reduced as a result of these changes, they may be eligible for support through the welfare system, including Universal Credit.
The government intends for the Coronavirus Job Retention Scheme to run for at least 3 months from 1 March 2020, but will extend if necessary.
The rebate application will be done on-line through a government portal, which should be operational within a month. Currently the employer pays the salary of the furloughed worker, and can pay 80% of the salary subject to the maximum of £2,500 per month, and claims this back from the government. An employer can choose to top up the furloughed workers salary.
Further details can be found here, or please contact us for more information.
Self-Employed Income Support Scheme
The Self-Employed Income Support Scheme was announced and will allow such individuals to claim a taxable grant worth 80% of an individual’s monthly earnings calculated using an average from the last three years up to £2500 a month.
To be eligible for the scheme individuals must:
- have trading profits of less than £50,000 a year
- make the majority of their income from self-employment and
- have filed a tax return for the year 2018/19 with HMRC.
If an individual missed the 31st January 2020 tax return filing deadline, the Government will allow a further four weeks from 26th March to submit the relevant return in order to benefit from this scheme and individuals should therefore contact their accountant as a matter of urgency to ensure that this return is submitted within the extension.
Access to these Grants will be available from June 2020 so the Government are encouraging those who need it to look at the Business Interruption Loan Scheme and/or applying for Universal Credit to give the additional support.
Applications cannot be made for the scheme as yet. HMRC will contact individuals if they are eligible and then send an invitation to apply online. Individuals are advised not to contact HMRC at this stage as doing so will delay the work being undertaken to introduce the scheme.
Once HMRC has received the claim and confirmed that the individual is eligible for the grant the HMRC will contact the self-employed individual to advise the amount to be paid and the payment details.
Coronavirus Business Interruption Loan Scheme (“CBILS”)
The British Business Bank are launching the scheme the week commencing Monday 23 March 2020 to support businesses with a turnover up to £45million, the government are guaranteeing the lender for 80% of the loan amount. The maximum loan amount has been increased to £5million with no interest charged for 12 months for a period up to 6 years.
Applications should be made to your bank but any questions you have regarding this can be directed to Patrick Abel, Corporate Finance Partner on 07795 337 113 at patrick.abel@hartshaw.co.uk
Hart Shaw Specialist Advisory Services
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