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Please find below an update on the key Coronavirus Support Schemes, including the introduction of the Future Fund, together with more information on the Coronavirus Helpline, concessions on Auto Enrolment during this difficult time and a Scam warning.
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 across social media (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, especially at this time.
Future Fund: For Small Research & Development Firms
On Monday the Government announced the niche Future Fund as their latest Coronavirus Support Scheme. Here the Government will issue convertible loans of £125,000 to £5m, delivering an initial commitment of £250m. The Government will also add £550m to existing loan and grant schemes for smaller firms who focus on R&D.
Launching in May 2020, eligible businesses will need to be:
- UK based;
- Attract equivalent match funding by private investors; and
- Previously raised at least £250,000 in equity investments from third-party investors in the last 5 years.
Further information will follow, with the scheme delivered in partnership with the British Business Bank, like the Business Interruption Loan. For more info about R&D tax credits contact us today.
Coronavirus Job Retention Scheme (CJRS)
At the end of last week, the scheme was extended by a month to the end of June to reflect the continuing social distancing measures and could be extended further, if required.
In the biggest news of the week, the Furlough Portal opened on Monday, exactly a month after it was announced, with the ability to process 450,000 applications an hour and reclaims paid within six working days of application directly into the business’ bank account. Those who applied by close of business on Wednesday 22 April 2020 should receive these in time for the end of the month. In general, it is working well with only a few teething issues to report, with 140,000 employers applying in the first day alone. The biggest issue so far we are aware of is currently there is no option to apply amendments to an application. However, we understand HMRC are working on this. The live chat and support are available through the process, although it is not necessarily the quickest due to the demands on the service.
If you are doing it yourself, do look at the step-by-step guide. And whilst HMRC’s calculator had some issues, HMRC are working around the clock to correct any errors. Our top tip here would be to ensure you have all the information you need to hand, as the system times out after 15 minutes so you would have to complete the application again.
The key thing which has been confirmed this week is written agreements for furloughed individuals (whether they be Employees or Directors) need to be in place before the application is made. Do let us know if you need copies of our templates here.
If you have applied, but need the money sooner than next week, lenders like MarketFinance (formerly MarketInvoice) and other Neobanks and lenders are developing bespoke products for such circumstances. For example, MarketInvoice have enhanced their Selective Invoice Discounting product to advance funds to businesses sooner. Of course, it comes at an additional cost and should only be taken out if you really need to, but it is a way to quickly unlock cashflow, where needed.
Self-Employed Income Support Scheme (SEISS)
If you or anyone you knew still had to submit their 2018/19 tax return, the deadline for filing this to be eligible under this scheme was yesterday, so we hope you got this filed on-time if this applied to you. We reached out to everyone we knew that were still to file this and helped wherever we could.
Whilst we are getting conflicting reports, we understand that HMRC should get in touch with potentially eligible individuals once the system is up and running, although we don’t know how. As the Job Retention Scheme is now live, we expect HMRC to change their focus to this and it should be up and running by mid-May, with payments starting in June and likely to be backdated to cover March, April and May. As the Job Retention Scheme has been extended to four months, we would hope this would follow suit, but nothing has been announced yet.
The great thing about this scheme is, unlike the Job Retention scheme, you can continue working and you do not need to prove you have been hit by the Coronavirus. Additionally, you can apply to Universal Credit here too, so it might be worth applying if you are eligible for this, especially as the potential payments in June is a long time away.
It is unclear how HMRC will contact you, we, therefore, suggest you ensure your Government Gateway is set up and connected to your Self-Assessment online account. We are doing the same thing our side to ensure we are all set up in advance of the launch. If you receive a letter from HMRC with a code for us, please share it with us as soon as possible.
As the deadline for the 2018/19 tax returns has passed, it’s crucial to stay informed and prepared for potential government schemes. If you encounter challenges or need guidance, consulting with a self-assessment accountant can provide valuable assistance in navigating the evolving landscape and ensuring you’re well-positioned for available support.
As soon as we hear anything further here, we will, of course, be in touch with you.
Business Interruption Loan
The numbers continue to show signs of improvement with £2.8bn of loans agreed from 16,624 businesses (last week £1.1bn from 6,020 businesses), as the lenders work through their backlog with over half the total number of loans provided approved in the last eight days alone. RBS/NatWest and HSBC have provided over 60% of lending, despite there being over 40 lenders now approved, with hopefully more to follow soon.
However, this is still far from the £350bn support package it was headlined as. Calls are mounting for us to follow countries like Switzerland in the Government guaranteeing 100% of the loans to accelerate and expand this support, which our Chancellor Rishi Sunak is ‘not persuaded’ by. However, there are rumours of a new separate scheme for microbusinesses, which could emerge where there would be a 100% guarantee, so watch this space.
Business Grants and Relief
Data was released this week to show 50% of total funds have been released, but the picture is very different depending on your local authority. Some notable ones include Basingstoke and Deane (82%), Reading (70%), Runnymede (46%), Spelthorne (44%), Bracknell (33%) and Hart (29%).
Make sure that if you are eligible you get in touch with your local council today if they haven’t reached out to you already. The support is there, and it could be transferred to you in a matter of days. Sometimes we have found that the local office does not have up to date information on businesses so it might be necessary to update them and even appeal a decision if you believe that the decision they reach is incorrect.
Tax Helpline
If you are struggling or going to struggle to pay your Self-Assessment tax return (Income Tax), VAT, PAYE or Corporation Tax, beyond the above measures remember HMRC have set up a specific helpline designed to help on 0800 024 1222. It is open Monday to Friday 8am to 4pm, except for Bank Holidays. Agreements can be reached to pay over instalments, with the first payment delayed by up to three months.
Auto Enrolment Pensions
The Pensions Regulator (TPR) have issued guidance covering Auto Enrolment obligations during the Coronavirus crisis. They have asked pension providers to be flexible on the payment dates which employers pay over the contributions and have extended the period that schemes must report payment failures, from 90 to 150 days. Whilst we welcome the extension, as it will help cashflow on some businesses, the obligations still exist and need to be paid to avoid strict penalties from TPR.
Scams
Fraudsters are going into overdrive with the opportunities presented by the Coronavirus Support Schemes. Some surveys suggest phishing emails have increased by up to 667% targeting specifically the Job Retention Scheme, but attention will likely shift to the Self-Employed Income Support Scheme as this goes live.
Please be even more vigilant than normal and be wary of anything which requests personal information, including bank details. If you receive texts, calls or emails claiming to be from HMRC, offering support, it is highly likely to be a scam, so be careful. If in doubt don’t enter any details. More information about spotting and reporting scams and phishing can be found here.
Talk to Jon?
At this time, we are inundated with queries as we seek to help as many people as possible. Therefore, if you wanted to speak with Jon directly, we are trialling Calendly to make appointments. If this goes well, we will look to roll this out further across the team.
Therefore, if you want to schedule a PHONE or ZOOM call, simply click on the relevant link. This can also be found on Jon’s email signature.
Other Measures
The other key measures where there have not been any substantial updates, but we include as a re-cap are:
- Charity Support;
- Deferring VAT Payments;
- Deferring Income Tax Payments;
- Statutory Sick Pay Relief; and
- Universal Credit.
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.
