Support Measures to Help Your Business Now

AT the start of 2020 – maybe even at the start of March – very few people could have predicted the world that we are now living in. The global pandemic Covid-19 has had a seismic impact on us: businesses – large and small – have all been affected to varying degrees. Therefore, we thought it may be beneficial if we outlined a few support measures and how they can potentially help you through in these most testing of times.

1 – VAT Payment Deferment.

If you are a UK VAT-registered business and have a VAT payment due between 20 March and 30 June, 2020, you have the option to defer this until a later date. The HMRC will not charge interest or penalties on any amount deferred.

2 – Self-Employment Tax Payment Deferment

If you are a self-employed worker and due to make a second on-account payment for 2019/20 on 31 July, you have the option to defer this to 31 January 2021. However, it is worth noting that those that wish to pay in July will avoid having to make a larger payment in January.

3 – Self-Employed Income Support Scheme

Under this initiative, self-employed workers are able to claim a grant worth 80 per cent of trading profits, up to a maximum of £2,500 a month. At the moment this scheme will be available for three months, but it may be extended. The grant will be subject to Income Tax and National Insurance but does not need to be repaid. Your trading profits must be no more than £50,000. The amount payable will be calculated on your trading profits’ average for the tax years 2016-17, 2017-18 and 2018-2019. You can claim if you have traded in 2019-20 and are trading/intending to trade in 2020-21. HMRC will aim to contact self-employed workers by mid May 2020 if you’re eligible for the scheme and invite claims using the GOV.UK online service.  Lastly, just a quick reminder that payroll year-end took place on the 5 April 2020. Accordingly, you will need to update your payroll software with all the new tax and NI legislation changes – feel free to get in touch if you have any queries on this. Also, don’t forget you need to pass P60s on to your employees by the 31 May 2020.  Copies of your P60s must be retained for at least seven years, after the end of the tax year to which they refer. We hope that some of the points raised above will prove informative for you. And, of course, we would be very happy to help with any queries you may have relating to this article. Please don’t hesitate to get in touch via phone, email or twitter.

We’re aiming to use this newsletter to offer timely advice throughout the year. So if you do have any questions you’d like to raise in this forum, it would be great to hear from you.

Tel: 01638 666281
Email: info@blacktypeaccountancy.co.uk
Twitter: @black_type_acct