SFB have summarised the latest news for UK businesses and income tax. To the best of our knowledge, at the time of us posting this, all the information below is correct, however, we are aware that the COVID-19 coronavirus situation and the government reaction are evolving daily. Please feel free to call SFB to discuss any matter relating to coronavirus, we are doing all we can to help.
Please note, the HMRC phonelines are extremely busy, with some hold times being longer than 1hr30 to get through. We are constantly reviewing information and may be your best initial point of contact.
We know cash flow will be a problem during this crisis, but SFB are here to help.
Coronavirus Job Retention Scheme (Furlough)
All UK businesses are eligible for the Coronavirus Job Retention Scheme, which will be available to all UK employers to access support to continue paying part of their employees’ salary for employees that would otherwise have been laid off during this crisis. The scheme will be in place for three months initially.
We understand the salary subsidy will be claimed through a new HMRC portal system. This will enable a reimbursement of 80% of furloughed workers wage costs, up to a cap of £2,500 per month. In the meantime, we believe the system will be ready from April 2020 and payments must be made by the business themselves up to this date.
If you need assistance please contact us.
Any VAT up to 30th June 2020 does not have to be paid until 5th April 2021. If you normally pay by direct debit you should cancel your direct debit with their bank if you are unable to pay. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT return.
If you are due a VAT refund, this will still be repaid to you as normal.
Personal Income Tax
The government have stated there is no interest or penalties for late payment of Income Tax but please note that they haven’t stipulated anything for VAT submissions regarding penalties.
The self-assessment 31st July 2020 payments will be due with your 31st January 2021 payment.
If you are already in a HMRC Time To Pay (TTP) arrangement, SFB can re-negotiate the terms. Please let us know if you require our assistance with this.
Statutory Sick Pay
The government are setting up a rebate scheme and it is still being developed. SFB will keep you updated with all schemes and relevant information announced.
If you are not able to go to work and have to self-isolate, you are entitled to 14 days statutory sick pay.
Local Authorities Business Rates
The local authorities will be contacting you regarding your business rates. In the meantime, do not cancel your standing order and direct debits.
Additionally, your local authority will write to you if you are eligible for the Coronavirus support grants.
Coronavirus Business Interruption Loan Scheme (CBILS)
All major banks will offer the scheme once it is launched. You should talk to your bank manger as quickly as possible. We understand you will need to discuss your business plan with them. Preparation appears to be key to ensure the CBILS are obtained as quickly as possible. Speak to us now to speed the process up for when the schemes are ready.
So far, we have not seen any official communication from the government regarding corporation tax. Therefore, we can only assume payments will become due as normal. However, if you believe you are going to struggle to pay this, please call SFB and we will assist with negotiating TTP arrangements for you.
As of the time of issuing this post, we are not aware of any official communication from the government regarding self-employed workers. We will communicate any official announcements as and when they are made.
If anyone has any queries about universal credit, please call SFB as we can provide general advice.
The government announced that Buy-To-Let borrowers will be eligible for a payment holiday of up to three months if their tenants have lost income due to the impact of COVID-19.
This post consists of generic advice based on our current knowledge of the COVID-19 situation. As this is changing daily, the above should be read as guidance only. Please contact us directly regarding any of the matters in this document you wish to discuss in further detail.
In addition to our usual contact methods of email and telephone, SFB are also using Microsoft Teams and Zoom for video conferencing. We hope that you, your family and team are keeping safe. If you have any questions or queries, please do not hesitate to get in touch with us on 03333 444 171 or email firstname.lastname@example.org.