Covid19 Business Support

Covid19 Business Support

The government have announced a series of measures to assist small businesses in these uncertain times. From a range of cash grants to funded SSP as well as loans.

We will endeavour to publish information as we have it, however it seems news does constantly change.

Attached is guidance from our regulatory body which you may find useful.

Stay safe.

>> Details on the Restart Grants – Plymouth & South Hams – 14th April 202

>> Budget update and restart grants in 2021 – 5th March 2021

>> More time and options are added to the Bounce Back Loan Scheme – 24th February 2021

>> No penalty for filing 2019-20 tax return late if filed online by 28 February 2021 – 25th January 2021

>> Applying For Local Restrictions Support Grant (LRSG) – 7th December 2020

>> Local Restrictions Support Grants & update on deferral of VAT payments – 23rd November 2020
>> Extension of Self-Employment Income Support Scheme grants – 6th November 2020

>> Kickstart Scheme to help your business grow – 28th October 2020
>> Job Retention Bonus opens for application from 15 February 2021 – 28th October 2020
>> Job Support Scheme & SEISS Changes from October – 28th October 2020

>> Summary look at Rishi Sunak’s announcements from 24th September 2020 – 25th September 2020

>> About The Small Business Technology Grants – 6th August 2020
>> Coronavirus Job Retention Scheme updates, Kickstart scheme & apprentices funding – 6th August 2020

>> Has your business signed up to the Government Eat Out to Help Out Scheme? – 30th July 2020
>> Chancellor sets out a ‘Plan for Jobs’ that will help spur the UK’s recovery from Covid-19 – 16th July 2020
>> HMRC update on Self-employment income support scheme – 16th July 2020

>> Self-Employment Income Support Scheme – Second Claims – 18th June 2020
>> Business reopening to customers – Safety, Part-Furlough, Loans – 18th June 2020
>> Latest update from HMRC furlough & Self-employed Income Support Schemes – 2nd June 2020
>> New business grant announced for small businesses impacted by COVID-19 – 1st June 2020

>> Claim back for Statutory Sick Pay paid to employees due to Coronavirus – 30th May 2020
>> Bounce Back Loan and Coronavirus Business Interruption Loan Scheme, which could be best for you? – 30th May 2020
>> Working safely through Covid-19 – 25th May 2020
>> Self Employed – No penalties for deferring payment on accounts for 31 July 2020 – 24th May 2020
>> Coronavirus: Furlough Scheme Extended to October 2020 – 13th May 2020
>> Coronavirus: Self Employed Grand Scheme Now Open – 13th May 2020

Covid19 – Grants and Loans

Cash grants of £10,000 are due to any business who operates from a business premises (not from home) who are currently paying no, or little business rates. There seemed to be some confusion over this point previously.

If you are in the retail, hospitality or leisure sectors then you may qualify for more (up to £25,000 cash grant and a rates holiday).

Interest free loans will be available from week commencing 23rd March, but certain criteria need to still be met (speak to your bank).

Payments of VAT can be deferred as well as Income Tax payments on account due by 31st July 2020. However, these will need to be repaid afterwards, so sadly not free money.

Copy and paste the links below into your internet browser, please read through for more detail. Of course, we will do our best to answer any questions you do have about your specific circumstances.

COVID-19 Advice for the self-employed

Last night the Chancellor announced new measures to help the self-employed which are summarised below from the HMRC website.

This does not apply to directors operating through their own companies, it appears the furloughing provisions are to be used by directors however, the rule is that you must be doing no work on the business during the furloughed period. We are waiting for further guidance on this particular point.

This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.

Who can apply

You can apply if you’re a self-employed individual or a member of a partnership and you:

  • have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
  • traded in the tax year 2019-20
  • are trading when you apply, or would be except for COVID-19
  • intend to continue to trade in the tax year 2020-21
  • have lost trading/partnership trading profits due to COVID-19

Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:

  • having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
  • having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020.

HMRC will use data on 2018-19 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.

How much you’ll get

You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):

  • 2016 to 2017
  • 2017 to 2018
  • 2018 to 2019

To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.

It will be up to a maximum of £2,500 per month for 3 months.

We’ll pay the grant directly into your bank account, in one instalment.

How to apply

You cannot apply for this scheme yet.

HMRC will contact you if you are eligible for the scheme and invite you to apply online.

Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.

You will access this scheme only through GOV.UK. If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam.

After you’ve applied

Once HMRC has received your claim and you are eligible for the grant, we will contact you to tell you how much you will get and the payment details.

If you claim tax credits you’ll need to include the grant in your claim as income.

Other help you can get

The government is also providing the following additional help for the self-employed:

Contacting Ivybridge Accountants

In accordance with government guidelines we are team is working from home.

We will do our utmost to ensure services continue as usual, however, if you need to speak to us then please use the office mobile number 07943 400962 which will be maned between 9am and 5pm. We will then pass your message to the relevant staff member who will call you back.

It may be more effective to email in the first instance. If staff members do call you then it will be from their personal mobiles, so I would kindly request that you do not call them directly please unless they agree.

As mentioned we will endeavour to continue as possible, for those of you who need to drop records into the office please contact Simon on simonjilks@ivybridgeaccountants.co.uk who will arrange to meet you (at a safe distance of course!) at a pre-agreed time and date.

I personally wish you all well in these very strange times. Please follow government guidelines as we will all be ready to get back to normal as soon as we can.

Kind Regards

Simon Jilks FCCA