The ValueAdd team have been working night and day to keep up with the new legislation and announcements regarding the COVID-19 pandemic.
You, our clients, are very important to us and we want you to know that we’re keeping business as usual and we’re available for any queries you may have through the usual channels.
To support you, we’re creating a hub of the information we have here. These new government measures change on an almost daily basis, so we will update with new information as and when we have it. If there’s anything you’d like to know that isn’t outlined here, please, please just reach out. We’re all in this together and we’re here to support you, whether that’s with specific queries, cash-flow forecasting, business planning or just providing a sympathetic ear.
You can contact;
Emma for bookkeeping at firstname.lastname@example.org
Christine for administration at email@example.com
Sushil for accountancy at firstname.lastname@example.org
And our phone line is open, so please don’t hesitate to give us a bell on 0141 442 0042
- Stay inside as much as you possibly can
- Work from home unless it’s impossible not to go into your workplace, or if you are an essential worker
- Only go out for necessities or to visit and assist a vulnerable person
- You can leave the house once daily for excercise, however maintain a 2m distance from others and practise good hygiene
- If you have symptoms, self isolate
For Employers and Employees – The COVID-19 Job Retention Scheme
Under the Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees salary for those that would otherwise have been laid off during this crisis.
This applies to employees who have been asked to stop working, but who are being kept on the payroll, otherwise described as furloughed workers. HMRC will reimburse 80% of their wages, up to 2,500 per month. This is to safeguard workers from being made redundant.
The Job Retention Scheme will cover the cost of wages backdated to 1 March and is initially open for 3 months, but will be extended if necessary. HMRC will set out more details shortly.
COVID-19 Business Support Fund
Although we were initially advised that business would be contacted directly by their local councils, we see that the applications forms are now available online. As payment will be made within 10days of receiving a fully completed form we would advise you to apply sooner rather than later (if you are eligible).
The main criteria for the initial 10,000 is that you should have business premises and be a ratepayer in receipt of SBBS (Small Business Bonus Scheme).
A separate, one-off grant of 25,000 is available to the ratepayers of businesses in Retail, Hospitality, Leisure sectors operating in a premises with a rateable values of 18,001 or up to 50,999.
Any Glasgow business eligible for the Coronavirus Business Support Fund can apply through this link.
Any Edinburgh businesses eligible for the Coronavirus Business Support Fund can apply through this link.
More information on the above can also be found at Federation of Small Businesses. They will assist in looking what funding etc. is available in your area, no matter which area of the UK you reside in.
Time to Pay – VAT/Corporation Tax/PAYE/CIS
These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. Whilst initially targeted towards specific industries such as travel, entertainment, bars restaurants and hotels, other sectors who have been negatively impacted could also make successful applications for deferrals. As advised, this will be agreed on a case-by-case basis with the exception of VAT, where it has been announced that there is an automatic deferment covering VAT due over the next three months.
For VAT, the deferral will apply for liabilities arising between 20 March 2020 until 30 June 2020.
If you normally pay by Direct Debit then you should cancel this with your bank if you are unable to pay. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT Return.
Please note: VAT returns still need to be submitted as per your usual deadlines to avoid penalties.
Businesses are being given until the end of the 2020/21 tax year to pay any liabilities that have accumulated during the deferral period.
Time to Pay – Income Tax
For Self-Assessment payments due on the 31 July 2020, these payments will be deferred until 31 January 2021. Again, this is an automatic offer with no applications required. There will also be no penalties or interest for late payments.
Self-Employment Income Support Scheme
- Provides grants to those partnerships and self employed persons who are negatively impacted by COVID-19
- Grants will be 80% of their profits up to a cap of 2500 per month
- You are required to have been trading in 18/19 and 19/20
- You are required to have plans to continue trading in 20/21
- You must have submitted an 18/19 tax return, however if this is overdue you now have until the 23rd of April to do so
- Your trading profits from self-employment must be under 50,000
- More than half your income must come from self employment
- If you have been trading for the last three years, then HMRC will look at the average profits to calculate the 80%
- You cannot apply yet, and as it stands do not need to contact HMRC. HMRC will contact those eligible for the scheme and invite you to apply online
- The first payments should be issued at the beginning of June
- This does not include Directors of Ltd. Companies paid through PAYE however if this applies to you, you may be able to claim support through the Job Retention Scheme
We understand these measures might leave some of you feeling out in the cold. In the meantime you can access the following support;
- Increased Universal Credit
- Self Assessment payments due in July and VAT payments due from March 20th through June 30th can be deferred
- Grants for businesses that pay little or no business rates
- Business Interruption Loan Scheme
The absolute best source of information in these uncertain times is the government’s dedicated COVID-19 site. You can visit it here. Remember that any information you read that is not taken directly from this website is an interpretation of the information and may not be correct. Please don’t base any important decisions on things you read on forums or word of mouth.
The following guidance is updated on a daily basis;
If you cannot pay your tax bill
Call the HMRC Coronavirus Helpline sooner rather than later:
Telephone: 0800 015 9559
Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm
If you are worried about loss of income
Whether you are currently in or out of work, whether employed or self employed, if you are on a low income and affected by the economic impacts of COVID-19, you will be able to access the full range of the welfare system, including Universal Credit. Your income may be affected due to working less, no longer working, self-isolating, or caring for someone who is sick. You may be able to receive:
- Sick Pay
- Contributory Employment and Support Allowance
- Contributory Jobseekers Allowance
- Universal Credit
- Council Tax Support
- Rent Rebate (Northern Ireland)
- Help with your rent
- Help with your mortgage
- Free School Meals
More to follow…
We’re monitoring this situation closely. We care about you, our clients, on a business level but also on a personal level. We want to see you succeed and if there’s anything we can do to help you please do just let us know.
Again, our phone number is 0141 442 0042 and we’d love to hear from you if you think we can help.