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Happy Bank Holiday weekend; we hope this finds you all safe, well and reasonably sane at this time.
It has been nearly two weeks since our last update and whilst there haven’t been any big headlines to share, we also wanted to ensure we kept you abreast of the latest information, in case it is useful for you, your friends or family.
Please find below an update on the key Coronavirus Support Schemes, including Top-Up Grants, Self-Employed Income Support Scheme, Bounce Back Loans, Job Retention Scheme and Future Fund.
In case of interest, here are a few blogs we have published since the last update:
- What Legal Documents Do I Need For My Business?;
- What is next? U, V, or L shaped UK recession?;
- Dying Without a Will – The Rules of Intestacy; and
- 4 Tips To Successful SME Cash Flow Management.
Also, don’t forget, the “Big Shave” is happening on Monday. More information is below.
We will continue to keep you updated as more information about the existing support packages, or any new packages become available here and across our blogs and social media channels (Facebook, Instagram, LinkedIn and Twitter).
Please be reassured, especially at this time, that we are here to help you and we want to help you in any way we can. Whilst we are all remote working, it is very much business as usual. Our thoughts are with you and yours.
Top-Up Grant
Whilst many have benefited from a taxable grant of £10,000 for businesses who received small business rate relief or rural rate relief, or £25,000 for those in the retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000, many have been left behind here. And the Government’s answer to this is the Top-Up or Discretionary Fund. This might be for you if you:
- Have a rateable value of £15,000 or more and are not in the Retail, Hospitality or Leisure sector;
- Use shared spaces;
- Are a regular market trader;
- Small charity; or
- Bed and Breakfast (who pays council tax).
The Government released more detail of their plans to Local Authorities last week, so many are now live or going live this week. However, this is provided as guidance and it is down to local authorities’ discretion how they distribute it, based on local economic need. Grants of:
- £25,000;
- £10,000; or
- Less than £10,000
can be granted based on impact from coronavirus. If this could be you, we recommend that you get in touch with your local authority as early as possible to improve your chances of getting funding, especially as it is a discretionary fund and will run out.
Self-Employed Income Support Scheme (SEISS)
Has everyone who is eligible applied for their taxable grant? If not, we encourage you to do so ASAP to secure the funds. The key place to start is the Checker. You will need your Unique Tax Reference (UTR) and National Insurance Number (NINO) which we can provide if you are unable to find these.
Whilst there have been a few hiccups along the way, for example people struggling to find their government gateway details, or them being linked to the wrong UTR, HMRC have to be commended for how fast they have got this live and funds have been released. Whilst it would have been great if we could have applied on your behalf through an Agents portal, our only real grievance here is why it has not been extended to October like the Job Retention Scheme. It seems odd that this scheme only covers until May, whereas the Job Retention Scheme has been extended until at least October due to the timing of lockdown being relaxed. We’re hoping you might get a second payment here, but nothing is certain at this stage and the Government currently appear split over this.
Remember if HMRC said you are eligible, but you are not, for example your circumstances have changed due to you no longer being a sole trader through becoming employed or incorporating your business, don’t apply for it, as you are likely to have to repay this back to HMRC.
Bounce Back Loans (CBBLS)
There are now 18 lenders providing Coronavirus Bounce Back Loans to individuals and businesses and whilst it is infinitely more successful than the Coronavirus Business Interruption Loan (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS), with the applications very quick and easy to complete, there are still issues with the scheme.
The lenders on board continue to prioritise existing customers, although we hope this will widen over the coming weeks and there are more options for limited companies than sole traders.
We have heard of several examples where the applications have wrongfully been rejected after checks and if this has happened to you, we would recommend you challenge your bank with their decision and look to overturn this as many have had luck in doing so. If you don’t have any luck with this, we would recommend you consider another lender on the panel, if you need the funds. But whilst the terms are very generous, it is still a loan and it is still repayable. According to the Government’s own data, 43% of those who have successfully applied to one of the three schemes mentioned above don’t expect to repay it. Sorry to tell you how to suck eggs, but only borrow it if you need it, the repayments are affordable, and you intend to repay it.
Job Retention Scheme (CJRS)
The Furlough Scheme has been extended until at least October, although it will be phased out from August onwards, with employer’s paying more during this time. The details of this are expected to be released by the end of May.
HMRC are being very rigid with their interpretation and application of the scheme, with appeals only being successful initially where HMRC are at fault, for example, a PAYE scheme that was requested before the 19 March deadline, but HMRC did not set up the scheme until after this date.
As a word of caution, remember that HMRC have a hotline for employees to call if their employers are not sticking to the rules here (e.g., asking them to work when on Furlough).
Future Fund
The Future Fund was officially launched on 21 May 2020. However, whilst it at first appears to be a great idea to encourage entrepreneurship and R&D in the UK, especially in a post-Brexit world, many of the reservations at first aired about it, have not been addressed. As a client nicely put it “it appears as if a lawyer for a VC wrote it” and “it isn’t compatible for EIS/SEIS businesses, who should be the natural partners of these schemes, which is a great scheme.
IR35 Update – no further deferral
In other news, the Government have ignored the calls for IR35 contractor legislation into the private sector to be delayed until 2023, despite efforts from backbenchers such as David Davies MP. They failed to get the backing of the Labour Party, so as things stand, the changes will come into force in April 2021, which is bad news for everyone impacted.
The Big Shave *Monday 25 May 2020*
As a bit of fun at this most difficult of times, Monday is the big day when this all has to go! We are currently at 88% of our target, so please give generously if you are able to. More details can be found on our Virgin Giving Page.
If you have any special requests, for example you would like to see my humiliation heightened by seeing me with a mohican, mutton chop sideburns, fu manchu moustache, or whatever you have in mind, please add a comment accordingly when you donate and I will cater as many requests as I can. A video will be taken as proof, so you can all enjoy at my expense.
I am doing this fundraiser for the amazing charity east to west.
Black and White Accounting
This is a difficult time for everyone and we must come together to get through this. Our thoughts are with you, your family and your friends especially at this time.
If there is anything we can do to help you at this difficult time, please do get in touch by contacting Black and White Chartered Certified Accountants, populate the “Got a Question” form on the right, or call us on 0800 140 4644.
