Covid 19 Update

We just wanted to give everyone an update as there hasn't been much information from HMRC, local councils or the government regarding how to put a claim in. However this is unprecedented times and they need some time to get these processes up and running. Hopefully things become clearer in the next 24/48 hours.

It would appear that there is support on the way for the self employed. However we think it is best to wait until all the detail has been confirmed before any information is communicated.

So we wanted to give you an update on what we know so far.........
 

Business Rates and Cash Grants

1. 12 months 100% relief rates holiday for businesses in hospitality, leisure and retail. For more information or to check which businesses fall into these categories, follow this link: https://www.mygov.scot/non-domestic-rates-coronavirus/

2. Providing a £25,000 grant for businesses in hospitality, leisure and retail with a rateable value between £18,000 and £51,000.

3. A one off grant of £10,000 will also be available to small businesses who get ‘Small Business Bonus Scheme Relief’ or ‘Rural Relief’. You can also get this grant if you applied for ‘Nursery Relief’ or ‘Disabled Relief’ but are eligible for the Small Business Bonus Scheme.

4. Small firms receiving the small business bonus or rural relief will be eligible for a £10,000 grant.
Furloughed Workers

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.

More information on furloughed workers can be found here
 

Deferring VAT and Income Tax payments

* For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.
* All UK businesses are eligible.
* This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period.
* Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period.
* VAT refunds and reclaims will be paid by the government as normal.

Income Tax Self-Assessment

* Payments due on the 31 July 2020 will be deferred until the 31 January 2021.
* If you are self-employed you are eligible.
* This is an automatic offer with no applications required.
* No penalties or interest for late payment will be charged in the deferral period.
* HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities.

Statutory Sick Pay relief package for SMEs

Legislation in place to allow small-and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. The eligibility criteria for the scheme will be as follows:

* this refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19
* employers with fewer than 250 employees will be eligible - the size of an employer will be determined by the number of people they employed as of 28 February 2020
* employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19
* employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note. If evidence is required by an employer, those with symptoms of coronavirus can get an isolation note from NHS 111 online and those who live with someone that has symptoms can get a note from the NHS website
* eligible period for the scheme will commence the day after the regulations on the extension of SSP to those staying at home comes into force
* the government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible

You are eligible for the scheme if:

* your business is UK based
* your business is a small or medium-sized and employs fewer than 250 employees as of 28 February 2020

* If you are not eligible for SSP – for example if you are self-employed or earning below the Lower Earnings Limit of £118 per week – and you have COVID-19 or are advised to self-isolate, you can now more easily make a claim for Universal Credit (UC) or new style Employment and Support Allowance.

* If you are self-employed and receiving Universal Credit and you have COVID-19 or are advised to self-isolate, the requirements of the Minimum Income Floor will be temporarily relaxed. This change took effect on 13 March and will last for the duration of the outbreak, to ensure that self-employed Universal Credit claimants will receive support.

* If you need to claim Universal Credit but have COVID-19 or are self-isolating, you will now be able to claim and to access advance payments upfront without needing to attend a Jobcentre Plus.

* If you are eligible for new style Employment and Support Allowance, it will now be payable from day 1 of sickness, rather than day 8, if you have COVID-19 or are advised to self-isolate.

If you are experiencing financial difficulties meeting your mortgage repayments because of COVID-19, you may be entitled to a mortgage or rental holiday for 3 months. This includes if you are a landlord whose tenants are experiencing financial difficulties because of COVID-19. If you are a tenant experiencing financial difficulties, the government will ensure you do not face the threat of eviction for at least 3 months:

* the government has agreed with mortgage lenders that they will offer repayment holidays of 3 months to households in financial difficulty due to COVID-19
* this will also apply to landlords whose tenants are experiencing financial difficulties because of COVID-19
the offer of a payment holiday can be made available to customers who are up to date with payments and not already in arrears
* customers who are concerned about their current financial situation should contact their lender at the earliest possible opportunity to discuss if this is a suitable option for them
* emergency legislation will be taken forward so that landlords will not be able to start proceedings to evict tenants for at least a 3 month period. This applies to private and social renters
* at the end of this period, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account tenants’ individual circumstances

If you are experiencing difficulties paying back personal loans or credit card bills, you should read the following information:

* the Financial Conduct Authority (FCA) called on lenders to use flexibility built into their rules to support consumers, taking into account customers’ individual circumstances. Many major lenders have already made statements to this effect
* if you are experiencing difficulties paying back loans or credit card bills, you should talk to your lender
* if you agree a payment holiday with your lender, they should record these in such a way that will not impact on your credit score.

Hopefully things will become a bit clearer in the next few days.

Stay safe.