A quick update on the latest news on help available for those of us who are worried about staff, cashflow etc.
Tax Payments:
VAT:
The Chancellor has announced a VAT holiday from now until the end of June. That means that any VAT payments due do not need to be made. We are not sure if they are going to be able to cancel any Direct Debit payments between now and the first ones due on or around the 11th April, so we would advise that you cancel the DD to make sure that the much needed funds waiting to go out remain in your bank. Obviously, this will need to be paid at some point so if it is possible, try to keep as much in reserve to pay it when that day comes.
Refund VAT returns will still be paid. All VAT returns will still need to be submitted, so please speak to us if your VAT quarter end is coming up so that we can work out the best way of you getting any paperwork to us. If you don’t submit, unless you have arranged with HMRC, you could still be fined for late submission.
Self-Assessment Payments on Account:
There are a lot of self-employed people out there who are feeling very unsupported. The Government are working through the measures that they can take, and they are hopefully going to make an announcement on this today. In the meantime, they have announced that payments on account may be delayed. Any payments due at the end of July will now not need to be made until January 2021. Again, it gives you some breathing space, but is not wiping off the amount so please try to put some aside to pay it when it does become due, if at all possible.
Payroll Help.
The Chancellor revealed plans on Friday to help employers with staff that they may not be able to utilise. To Furlough a member of staff is a way of avoiding making them redundant if it is felt that the role will still be there once this situation returns to normal. If you have staff in this situation then you will be able to claim 80% of their salary (up to a maximum of £2,500 per month) to cover their wages. They are aiming to have this in place by the April payroll run, but details are not yet confirmed.
Please be aware that any furloughed staff can not work for you during this time. If they do, then you need to pay them as usual and are unable to claim the funding.
As soon as more details come out regarding this then we shall send out more information.
Business Interruption Loan Scheme:
This will be changed from a 6-month interest free period to a 12-month interest free period. These loans are to be arranged through your own bank.