COVID 19 - Support for business
The Budget on 11th March announced measures to support businesses through the consequences of the Corona virus. The measures most likely to assist clients are: 1 - The employers allowance has increased to £4,000 meaning that clients with staff they will not pay the first £4,000 of employers national insurance in the tax year 2020-2021. This is an automatic allowance and if we perform your payroll we will claim this for you automatically. 2 - For businesses in the retail, hospitality or leisure industries with a premises rateable value less than £51k the Government announced a 100% deduction of business rates for the year 2020 - 2021. Local Councils will try to automatically identify your business as an eligible business for the enhanced relief and reissue your business rates bill as soon as we are able to.
If you believe that your business should qualify but you do not receive a letter by 15 April you will be able to download an application form from council websites. During this application stage you do not have to pay your original business rates bill.
If you pay business rates on a pub with a rateable value of under £51,000 and already receive pub relief this will no longer be applicable as you are entitled to 100% rate relief for 2020/21. 3 - Small businesses with premises that receive small business rates relief will receive a cash grant of £10,000 There is not currently any information on the mechanism by which this money will be released. We can confirm that the local council will contact businesses directly and will issue funds out. We are told there will be no application process, however we expect unless paying by cheque, there will be some kind of verification process to provide bank details. 4 - Businesses in the retail and hospitality industries with a rateable property value up to £51k will receive a £25k grant the same as above. This is PER property and not per business we have been instructed! 4 - Small businesses with less than 250 employees will be able to claim back 2 weeks statutory sick pay from the government as a deduction from their PAYE bills. This is a welcomed change for small employers! 5 - The Government announced that there will be loans available to assist with cash flow problems. Details on these loans will be available from Monday 23rd March 2020.
6 - Any VAT return usually payable from now to end of June 2020 will not be due. The amount will instead be able to be caught up with from 1st July 2020 to 5th April 2021.
This being said, if you wish to pay your VAT return you are still able to do so. You can make instalments as you feel fit.
Clients must cancel any direct debit they hold for VAT in order to ensure nothing is taken from their bank accounts.
Please remember that although the payments are not due, submission of the returns are still due and surcharges will be added of up to 15% for late returns.