The Government are continuing to introduce new packages and measures to support people and businesses through the period of disruption caused by the COVID-19 outbreak.

New measures are being introduced daily, but we have summarised the latest measures below and these will be updated regularly to ensure as further details are provided to ensure that you have the latest information to assist you and your business:

The Self-employment Income Support Scheme - Announced 26 March 2020

We have summarised the new measures of this Scheme here.

Job Retention Scheme - Announced 20 March 2020

We have summarised the new measures of this Scheme here.

Deferred VAT Payments

VAT payments have been deferred for 3 months for the period between 20 March 2020 until 30 June 2020.
VAT returns must still be submitted during this period - only the payment is deferred.
Any deferred payments must be repaid by the end of the 2021/21 tax year and these will automatically be applied, with no registration required.
It is believed that this is based upon the payment date, so if you were due to make a payment for the quarter ended 29 February 2020 on 7 April 2020, this can be deferred if required.
VAT refunds and repayments will continue to be paid to businesses as normal during this period.
If you normally pay by direct debit, you must cancel your direct debit with your bank if you wish to benefit from this scheme. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT return.

Deferred Income Tax Payments

Income Tax payments due by 31 July 2020 as part of the Self-Assessment system have been deferred to January 2021.
It was originally announced that this would be just for self-employed individuals, but it has now been clarified that all taxpayers, including payments on account for Limited Company Directors and Landlords can benefit.
This will be automatically be applied, with no registration required, with no interest of penalties will be applied during this period.
The deferment is optional, so if you are still able to and wish to pay your second payment on account on 31 July 2020, you can do so.
There are currently no measures to delay any Corporation Tax payments for businesses.

Statutory Sick Pay

For businesses with less than 250 employees, the cost of 14 days of statutory sick pay per employee will be refunded by the government in full.

Statutory Sick Pay will be made available from day one, removing the current three day walking rule where SSP previously started on the fourth day of their illness. This will be made available to those who have contracted the virus, as well as though who are required to stay at home due to Government advice.

Business Rates

All businesses in receipt of small business rates relief, in every sector, will be eligible for a cash payment of £10,000 (please note that this is an increase on the £3,000 announced in the March Budget).

Business rates for all businesses within the retail, hospitality, and leisure sectors have been cancelled for 2020/21. In the Budget last week, it was originally announced that only businesses in these sectors with rateable values of less than £51,000 would be eligible for this relief.
There is no application required and the relief will be applied to your next council tax bill in April 2020. However, local authorities may have to reissue your bill automatically to exclude the business rate charge. They will do this as soon as possible.

Businesses in the retail, hospitality and leisure sectors with rateable values of between £15,001 and £51,000 will also receive a cash grant of up to £25,000 per property, in addition to not paying any business rates for 2020/21.
Your local authority will write to you if you are eligible for this grant.
Nursery business that pay business rates will also now be entitled to the business rates holiday for the 2020/21 tax year.
Estate agents and, lettings agencies that have closed as a result of Covid-19 measures to restrict the spread of the virus will be now be exempted from business rates in 2020/21.

Local Business Grant Funds Scheme

On 2 May 2020, it was announced that the local business grant funds scheme would receive a 5% top-up aimed at closing the support gap for businesses that don’t qualify for the existing business rates relief.
This funding is aimed primarily at small (less than 50 employees) businesses with ongoing fixed property-related costs.
Further details on how to apply and the amount to be received by each local authority will be confirmed later in May.

Small Business ‘Bounce Back’ Loan Scheme

On 27 April 2020, a new loan scheme was announced allowing small businesses to borrow between £2,000 and £50,000 with Government providing lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months.
This funding is aimed primarily at small (less than 50 employees) businesses with ongoing fixed property-related costs.
Loan terms will be up to 6 years with no repayments due during the first 12 months.
The Government will work with lenders to agree a low rate of interest for the remaining period of the loan. The scheme will be delivered through a network of accredited lenders.
You can apply for a loan if your business is based in the UK, has been negatively affected by the COVID-19 outbreak, and was not an ‘undertaking in difficulty’ on 31 December 2019. Further details and information on how to apply can be found here.

Other Support

The new Government-backed Coronavirus Business Interruption Loan Scheme available for businesses with a turnover of no more than £41 million to apply for loans up to £5 million (increased from the originally announced £1.2m), with the government covering up to 80% of any losses with no fees. No interest will be due for the first twelve months. The Chancellor announced that these loans would be made available by high-street banks by early imminently.

A new HMRC helpline (0800 0159 559) allows any business or self-employed individual who is concerned about paying their tax due to Coronavirus to get practical help and advice and discuss new Time to Pay Arrangements (TTP). These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
A three-month mortgage holiday scheme would be extended for homeowners struggling to make repayments due to the effects of Coronvirus and the best course of action would be to contact lenders directly.

HMRC’s detailed guidance can be found here.

At Roberts & Co, we are here to assist you and your business in what is a difficult and challenging time. If you have any queries or concerns regarding what options are available to you, please feel free to get in touch.