Government Support

We hope you are all keeping safe during these unprecedented times. The Chancellor has announced additional help for the self employed and there is now more details around the support previously released.

We have collated the updated info on the various help and schemes below with useful links.

Coronavirus Job Retention Scheme

More information as to the mechanics and some worked examples are on this link:

https://www.icaew.com/insights/viewpoints-on-the-news/2020/mar-2020/coronavirus-job-retention-scheme-furlough-guidance

Business Rates Grants

Further to the governments announcement last week on small business grants and retail, hospitality and leisure grant, you may be able to make a claim if you fall into one these categories: 

  • Support to be provided to those businesses that pay little or no business rates because of small business rate relief or rural rate relief by way of a one-off grant of £10,000 being provided to help meet ongoing business costs.  

  • A grant of up to £25,000 for retail, hospitality and leisure businesses with a rateable value between £15,000 and £51,000.

See below link in order for you to claim the grant from Durham County Council, if you fall under a different Local Authority I suggest you get in touch with them on how to claim your grant.

www.durham.gov.uk/ndrgrants

http://www.durham.gov.uk/article/22965


Covid-19 – Self-Employment Income Support Scheme
 
This is the major new news announced last night by the Chancellor.

The Self-Employment Income Support Scheme (SEISS) will support self-employed individuals (including members of partnerships) during the Covid-19 crisis.
 
The scheme will provide a taxable grant to self-employed individuals or partners, worth 80% of their profits up to a cap of £2,500 per month.
 
HMRC will use the average profits from tax returns in 2016-17, 2017-18 and 2018-19 to calculate the size of the grant. The scheme will be open to those where the majority of their income comes from self-employment and who have profits of less than £50,000. The scheme will be open for an initial three months.
 
Eligibility criteria:

  • Be self-employed or a member of partnership;

  • Have lost trading/partnership trading profits due to COVID-19;

  • File a tax return for 2018-19 as self-employed or a member of a trading partnership.

    • Those who have not yet filed for 2018-19 will have an additional 4 weeks from this announcement to do so;

  • Have traded in 2019-20; be currently trading at the point of application (or would be except for COVID 19) and intend to continue to trade in the tax year 2020-21

  • Have trading profits of less than £50,000 and more than half of your total income come from self-employment. This can be with reference to at least one of the following conditions:

    • Your trading profits and total income in 2018/19

    • Your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19.

Access to the scheme
Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational. HMRC will then pay the grant directly to eligible claimants’ bank account.
 
Timing of payments
Grants are expected to start to be paid by the beginning of June 2020. In the interim the self-employed will still be eligible for other government support, including more generous universal credit and business continuity loans.

Additional information can be found on the below link too.

https://www.businesssupport.gov.uk/self-employment-income-support-scheme/

VAT and Self Assessment Deferment

There is a nice summary here on all the support on offer. VAT payments up to 30 June 2020 are able to be deferred. This is automatic, however if you do have a direct debit in place and don't want the HMRC to collect the VAT owed you will need to cancel the direct debit otherwise it will be taken. Payment of self-assessment tax for the self employed for the payment on account in July 2020 is now not payable until January 2021. This is automatic and does not need to be applied for.

https://www.icaew.com/insights/coronavirus/uk-practical-business-advice-covid-19

https://www.businesssupport.gov.uk/vat-deferral/

Coronavirus helpline
 
There is now a government helpline which can be reached on 0300 456 3565. However it is likely to be quite busy with long wait times.

As and when more information becomes available we will keep you posted.

In the meantime take care and stay safe.

Paul Smith