This evening the Government have released further business support whilst the COVID-19 disruption continues.
- A Job Retention Scheme has been setup to encourage employers to avoid laying off employees during this time. The Retention Scheme will mean that HMRC are going to reimburse 80% of the wages of employees that otherwise would be laid off (classing them as ‘furloughed workers’).
There is going to be a £2,500.00 per month cap on these reimbursements and HMRC are going to setup a new online portal to submit details of workers and their earnings to apply for the reimbursement. We will keep you up to date as and when we receive further information on the process.
- Self Assessment Payments on Account that were going to be payable in July 2020 have now been deferred and are not payable until January 2021.
- Businesses do not have to make any VAT payments to HMRC from today until 30th June 2020. Any payments missed however, will be accumulated and need to be settled by 5th April 2021. This support is automatic so no formal application needs to be made, however it is unclear as to whether direct debits will still be taken if they are still setup.
If you do think it will benefit you to defer the VAT payment, we would suggest cancelling your VAT direct debit and if you let us know, we can reinstate the direct debit from 1st July 2020.
- The interest free period of loans under the Business Interruption Loan Scheme has now been extended from 6 months to 12 months.
A full breakdown of all of the business support currently available to businesses can be found here: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses