Our update following announcements on Friday
Rishi Sunak used the word unprecedented several times when announcing the latest economic measures being put in place by the government to combat the effects of the Covid-19 on British businesses.
The economic measures include:
- Grants for ALL businesses, to cover 80% of each person’s salary (up to a maximum of £2,500 per month) for at least 3 months (Coronavirus Employee Retention Scheme). The government has currently set no limit of the level of funding that will be available under this scheme. The scheme is expected to be in place in the next few weeks or at the very least by the end of April 2020. These grants are targeted at those employees that have been furloughed as a result of the crisis. Application to the scheme is through HMRC.
- The Coronavirus Business Interruption Loan Scheme (CBILS) application process is due to be in place by Monday 23 March 2020. CBILS has also been extended to be interest free for 12 months (up from 6 months in previous announcements).
- VAT payments for the next quarter will be deferred. Accordingly, the next possible VAT payment will be for quarters ending from the end of June 2020. For the deferred VAT quarter, businesses will have until the end of the year to catch up with payments owed. It is not clear if this deferment is automatic or requires application.
- For the self-employed, the next instalment payment for self-assessment tax returns has been deferred to January 2021. The inference is that this may be automatic, but this requires clarification. In addition, there are additional measures the self employed including the removal of the minimum income floor for universal credit, resulting in these people being able to access payments at the statutory sick pay rate.
For reference the HMRC Covid-19 hotline is 0800 0159 559
We receive clarifications on government guidance many times a day at the moment, so we anticipate the specifics on how to obtain the above reliefs to be forthcoming in the coming days. We will keep you updated as we find out more.
If you would like to talk about any of the reliefs that that have been announced since the budget, please contact us.