COVID-19 Advice on your taxation affairs
I am sure you are all aware of the rapid changes of the COVID-19 outbreak.
Over the coming weeks, Alan Patient & Co have been posting all the relevant government information and advice with regards to you are your business.
We would also like to help you on the following key issues:
The introduction of a new job retention scheme will cover up to 80 per cent of wage costs (details to be confirmed) backdated to 1 March for a period of three months or longer, if needed, for small businesses, charities and not for profit organisations. Grants due to be available to business within weeks.
A lending facility of up to £5m (80% Government guaranteed) for business up to £45m T/O will be operated by British Banks, full details are expected to be released by the banking industry on Monday.
VAT Any payment due in the period from 20 March 2020 to 30 June 2020, deferred until the end of 2020/21 tax year, on a case by case basis. Refunds will be processed as normal.
Funding for all small business in receipt of SBRR or RRR and all retail, hospitality and leisure businesses entitled to business rates holidays. This will be administered directly by local councils and we expect Councils to be contacting all relevant businesses in the coming weeks.
Job Retention Scheme
The Government will pay 80% of the wages of furloughed employees up to a cap of £2500 per employee. It will be many weeks before this is operational. Businesses are directed to the loan scheme (which will include overdrafts) in the meantime.
IR35 “Off-Payroll” Rules Delayed
The new rules for workers providing their services through personal service companies that were due to start from 6 April 2020 have been delayed by a year. This would have represented a significant additional administrative burden on large and medium-sized businesses and would have resulted in more income tax and national insurance being deducted from workers affected.
Deferal of 31 July Payment on Account
Self-employed taxpayers will not be required to make the payments on account of their 2019/20 tax that are normally due on 31st July 2020. The tax deferred will still be due on 31 January 2021 together with the balancing payment for 2019/20. No application is required and those affected will not incur penalties or interest on those payments. You need your accountant more than anything now, to help provide your business with all sufficient updated documentation. We will help you get through this difficult time please contact us now.