COVID 19 Support and what we know so far

Details are still being released of the business support but here’s what we know so far:

Local Restrictions Support Grants

Those businesses on the closed list will be eligible for a grant to support them every two weeks whilst they are closed, based on the business premises rateable value as follows:

Rateable Value2 Weekly Grant
Less than or equal to £15k£667
Between £15k & £51k£1000
Over £51k£1,500

It is not yet clear how these grants will be delivered to businesses so keep an eye on your local council website (we`ll be keeping an eye on Wiltshire Council).

There is the possibility of additional grants being offered to those businesses badly affected by Covid-19 but not closed down but these are at the discretion of your local council. So again keep an eye on your local council website for these too.

Furlough scheme extension

CJRS version 3 comes into play from 1-30 November 2020 to pay employees 80% of their wage costs, up to a maximum of £2500, with employers only needing to cover the employer pension & NI contributions. Full details should be released later this week so we will write directly to each affected business.

However, there is a glimmer of hope that those employees (mostly directors) who couldn’t claim CJRS version 1 due to needing to continue to work in the business and therefore were excluded from CJRS version 2; may be able to claim some support on flexible furlough through version 3.

We know who you are and will contact you directly once CJRS version 3 details are finalised.

Self-Employment Income Support Scheme

If you were previously eligible for the first and second grant (you`d have had communication directly from HMRC about this) and your trade continues to be negatively affected by coronavirus, you will be eligible for a further two potential grants:

  • For the period 1 November 2020 to 31 January 2021 at 55% of trading profits (80% for November 2020 & 40% for December 2020 & January 2021)
  • For the period 1 February 2021 to 30 April 2021, rate to be decided.

Look out for further communications from HMRC from 30 November 2020 onwards.

Statutory Sick Pay

All employees are entitled to 2 weeks of statutory Sick Pay if they need to self-isolate and can’t work from home, or they are ill with Covid-19. The business is also eligible for repayment of this sick pay (unlike normal SSP) and the sick pay commences on the first day of sickness.

If Pillow May prepares your payroll then we`ll reclaim the SSP for you. If you prepare your own payroll, you can find the SSP claim back process here:

Time to Pay

VAT

Don’t forget that your VAT return from Feb/Mar or Apr 2020 will be due for payment on 31 March 2021, unless you have already paid it. Please contact us if you are going to struggle to pay the VAT when it falls due so we can help you arrange a payment plan with HMRC.

Self Assessment / Income Tax

Your self-assessment payment on account due normally in July 2020 has been deferred until 31 January 2021 when you will also need to pay your balancing payment for the 2019/20 tax year and your first payment on account for 2020/21 (which will probably be lower than normal). If you are going to struggle to pay your tax bill due to decreased profits from coronavirus & you do not have any other debts with HMRC, you can agree to a payment plan online. Interest will be payable on the late tax but no penalties. We`d recommend that you talk to us first so we can help you with this.

Corporation tax

If your corporation tax for last year (pre-Covid 19) is about to fall due and your trade and cash is currently severely impacted, please contact us. We will try to estimate your taxable loss position for the current financial year and negotiate a subsequent reduction in your corporation tax liability with HMRC.

Bounce Back Loan application deadline extension

If you haven’t already applied for a Bounce Back Loan, you now have until 31 January 2021 to do so. Apply through your main business bank first.

Mortgage payment holiday extension

If you are struggling with your personal finances, you can apply for up to 6 month mortgage payment holiday without affecting your credit rating. But only if you haven’t already had one.

If you are struggling in any way, please do contact us so that we can support you through this difficult period.

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