We are here to help support you through this difficult time
The COVID-19 pandemic has affected everyone in the UK, many of those hit the hardest are small business owners. This guide has been written by Whitesides Chartered Accountants to help business owners understand what help and support might be available for their businesses. We have also provided some useful links to externals resources.
This hub will continue to be updated as further support measures and information is made available.
If you need help understanding what support may be available to your business, please call 0113 258 2437 and speak to one of our team who will be able to advise you.
There has been no specific announcement on the deferral of corporation tax, however you may be able to apply for a “Time to Pay Plan” with HMRC. If you are struggling to pay your corporation tax, we would recommend getting in touch with HMRC as soon as you become aware that you may not be able to make the payment.
Further details on how to apply for a Time to Pay arrangement can be found on HMRC’s website
How does the Self Employed Income Support Scheme (SEISS) Work and am I Eligible?
HMRC will contact all eligible individuals during the week commencing 4 May 2020, if they have an email or mobile number they will email or text you, they will only write to you if they have no other contact details.
If you are eligible for the grant, you will need to apply through your personal tax account. HMRC will let you know the date you are eligible to claim.
Bounce Back Loans are available to small and medium-sized businesses. Businesses can borrow between £2,000 and up to 25% of their turnover, the maximum loan available is £50,000.
The government provides a guarantee to the lender of 100% of the loan, as a business you will not be charge any fees or interest for the first 12 months. After 12 months the interest rate will be 2.5% a year.
You should apply for the loan with your current bank, if your bank does not offer the Bounce Back Loan Scheme (some don’t currently offer it) then currently the only banks offering the loans to non-customers are RBS and HSBC.
If you wish to furlough your employee there is a strict process you need to follow. This article from the Chartered Institute of Personnel and Development sets it out very clearly.
If your business is eligible for the Small Business Rates Grant you need to apply to your local council, below are the links to local Councils in Leeds and the surrounding areas:
As a director you can furlough yourself, you will need to follow the process that you would go through with other employees.
You should be aware that as a furloughed employee you CANNOT work for the company during the furlough period. You can comply with your director’s statutory duties but you should not undertake any work for the company.
This article from the Chartered Institute of Personnel and Development sets it out very clearly the process you should follow to furlough employees.
You don’t need to complete any forms or apply for deferral for your July 2020 payment on account. The deferral is automatic, you don’t need to pay your July 2020 payment on account, in July you pay it in January 2021 with the balancing payment instead.
No interest or penalties will be applied to this late payment.
I only Became Self-Employed Recently, What can I claim?
Unfortunately if you didn’t complete a 2018/19 tax return, you will not be eligible for the SEISS, instead you will need to claim Universal Credit. The rules for Universal Credit have been relaxed to help support recent self-employed individuals.
As an employee you can claim £6 per week flat rate from your employer for working at home, this is tax deductible for the employer and will not result in a benefit in kind for the employee.
If you have fewer than 250 employees you can reclaim any SSP paid to staff due to COVID-19. This is done via your government gateway account, if you have an agent your agent will be able to claim on your behalf.
Is there any Support for Paying Redundancy to Staff?
If an employer cannot afford to pay their employees redundancy pay, then you can apply to the Redundancy Payments Service (RPS) for financial assistance. The RPS can provide you with an interest free loan to help you pay redundancy costs.
If your application is approved, the RPS will make statutory redundancy payments directly to the redundant employees on the employer’s behalf.
A time to pay arrangement is where you agree with HMRC to pay a tax liability over a period of time. If you are unable to pay a tax liability, then you should contact HMRC straight away. How to arrange a TTPP with HMRC and which department to contact is available here HMRC website – If you can not pay your tax bill on time
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