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COVID-19: Dishy Rishi to the rescue of business owners

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COVID-19: Dishy Rishi to the rescue of business owners

In the middle of March, the Chancellor (or ‘Dishy Rishi’ according to GQ, due to his rugged good looks) dug deep into his pockets to help (pretty much) everyone in the UK during this difficult time.

According to BEIS in 2019, there are nearly 6 million private sector businesses in the UK. That includes us, a lot of you guys and a large amount of the population.

There’s been tonnes of information released over the past few weeks and it can become overwhelming. We’ve summarised all that we feel may be relevant to you below…

1.    Cash grants for small businesses

The easiest and most popular one is the unconditional cash grant for retail, hospitality and leisure businesses.

Dead simple, if your business has a rateable value (which you can check here) of less than £15,000, you may be eligible for a grant of £10,000. If your business has a property with a rateable value of between £15,001 and £51,000, you may be eligible for a grant of £25,000.

If you’re eligible for this, you should be contacted by your Local Authority shortly.

 

2.    Business rate holiday

Probably the only holiday you’ll be going on this year…

Businesses in the retail, hospitality and leisure sectors who pay business rates (again, which you can check here) won’t have to pay business rates for the 2020/21 tax year.

You don’t need to do anything for this, your Local Authority will simply re-issue your bill to provide the support.

 

3.    Statutory Sick Pay (SSP) refund

If any of your employees have been forced to stop work due to coronavirus or self-isolating (after the 13th March 2020), the Government will refund you the cost of paying Statutory Sick Pay (SSP) for 2 weeks.

You must make sure that you keep accurate records of why the employee couldn’t work, the period that they’re off and the National Insurance Numbers of all employees who have received SSP.

 

4.    Deferred VAT payments

This can be done HERE.

If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to do the following:

  • defer the payment until a later date
  • pay the VAT due as normal

 

5.    Time to Pay scheme

If you’re a business owner or self-employed person and you have some tax outstanding, you may be eligible to receive support from HMRC if you’re struggling to make the payments.

Dead simple, you’re eligible if you usually pay tax to the UK government and you have any outstanding tax liabilities.

You can find do this by getting in touch with HMRC’s dedicated helpline on 0800 024 1222.

 

6.    Job Retention Scheme

You may have heard the word ‘furloughing’ flying round at the moment. Most people are using this to refer to the Job Retention Scheme.

In simple terms, to help businesses and employees out during the crisis, the government will cover up to 80% of an employee’s salary (up to £2,500 a month) if they remain on the payroll but would otherwise have been laid off. You can top this up if you like, so that your employee receives 100% of their salary.

A few points on eligibility:

  • The ‘furloughed’ worker is counted as taking a ‘leave of absence’, so they mustn’t complete any work for the company during the period they are furloughed.
  • The employee must have been on PAYE payroll since before the 28th February
  • It will be in place for 3 months and then reviewed. You can apply for it anytime during this period.

You can apply for this HERE.

 

7.    Self Employed Income Support Scheme

Just like the help for businesses above, this scheme will allow self-employed people to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 per month for the next 3 months.

Note that this is for ‘trading profits’ and there are a few points on eligibility:

  • You must be a self-employed individual or a member of a partnership
  • You must have submitted your Income Tax Self-Assessment tax return for the 2018/19 tax year.
  • You must have traded in the tax year (2019/20)
  • You must be currently trading (or would have been trading if it weren’t for COVID-19).
  • You intend to continue trading in this tax year (2020/21)
  • You have lost profits due to COVID-19
  • You must have trading profits of less than £50,000.

You can apply for it HERE.

 

8.    Self Employed Tax Deferral

Just like businesses can defer VAT payments, if you’re self-employed you can defer your second self-assessment payment on account that is due on 31st July 2020 if you’re having trouble making these payments.

You can defer this until 31st January 2021.

You don’t need to do anything for this. It’s automatic and there is no need to apply.

 

9.    IR35 Deferral

Finally, some good news if you’re a contractor and were expecting problems due to ‘IR35’ – the anti-tax-avoidance scheme that was due to come into place on 6th April 2020.

This scheme has been deferred until April 2021 due to Coronavirus. The Government have done so to help businesses and individuals with the impact of COVID-19.

You don’t need to do anything for this, but be prepared for things to kick-start again next year.

 

Need more help?

We’re very much open for business (although we’re working remotely) and would love to hear from you on how we can help you and your business out during these difficult times.

Please, stay safe, stay indoors and we will all get through this together.

All the best,

Team Postcard x