Avanti: A guide to assistance for businesses & employees due to Covid-19

We hope this guide provides you with information on the latest changes due to Covid-19.  We are going to keep this up to date, keeping informing you and adjusting our services to meet the ever-changing climate.

Remember, deadlines still have to be met. We don’t want you getting any fines – so continue sending in your bookwork & vat so submissions are done on time. However, you can of course take advantage of the payment holiday now made available by the Government for the tax payments themselves.

Avanti are here for you and it is business as normal – albeit remotely

UPDATE – 27^th MARCH

HELP FOR SELF-EMPLOYED BUSINESS

Brief details as known today:

• Taxable grant 80% of average 3 years profits up to £2500 per month
• Grant does not need to be paid back, although it will obviously be taxable on your earnings for this year when you come to do your next tax return
• Available for 3 months
• They’ll pay the grant directly into your bank account, in one lump sum
• Can claim and continue with business
• If don’t have 3 years tax returns – will take 1 or 2 years.
• But if no records, no help.
• Trading profits up to £50K
• Majority of income must be from self-employment
• If not yet submitted April 19 return due 31st Jan 2020 – have 4 more weeks to submit and be included
• Will be up and running June and back dated to March – one lump payment in June
• Can take advantage of Universal Tax Credits
• If you are a vat registered business, you will not have to make VAT payments due in the period from 20 March until 30 June 2020, you will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during this period, this applies to all businesses, regardless of size and it applies automatically so you do not have to apply for this, VAT refunds and reclaims will still be paid by the government as normal.
• Don’t contact the HMRC yet, each person will be contacted soon by the HMRC who will then ask you to apply online
• Once HMRC has received your claim and you are eligible for the grant, they will contact you to tell you how much you will get and sort the payment details
• In the meantime, everyone who is self-employed can still apply for universal credit, which can be up to £1800 a month, they mentioned you can get a cash advance on this within days as stated in the same announcement today
• Don’t forget Payments on Account also deferred

If you are worried about getting in business debt, then businesses that cannot afford to pay tax bills as a result of coronavirus can approach HM Revenue & Customs (HMRC) to see if they will agree to a ‘time to pay’ agreement which would suspend debt collection. HMRC will want to discuss the business’s specific circumstances. If HMRC agree, they will enter into an instalment arrangement tailored to the business’s specific circumstances and will suspend debt collection proceedings. HMRC will also cancel penalties and interest charges to

Also contact everyone you pay money to, whether it be private landlord, car finance company etc, all of which seem to be making allowances for the exceptional circumstance we find ourselves in. For example, after a call to their car finance company a client was asked to just to make a token payment of £50 or less for this month and will take each month going forward pretty much as it comes until things get back to normal. We obviously cannot state all clients will be treated this way.

STING IN THE TAIL: – ‘Observation’ by Chancellor or Exchequer that taxes are not consistent between sole-traders and employees. We expect tax increases in future!

Look out for more posts on this and other updates coming soon….

GOVERNMENT INFOMRATION ON SELF-EMPLOYMENT SUPPORT SCHEME

The government site supporting our information above

https://www.businesssupport.gov.uk/self-employment-income-support-scheme/?sfns=mo

BUSINESS RATE RELIEF GRANT

One of our team has done some research and found out that if your rateable property value is £15,000 or under, then you are eligible for this grant. You do not need to do anything as your local authority will be writing to those eligible.

It does say that this grant won’t potentially be available until early April, so in the meantime you may wish to consider alternatively funding available from HMRC, such as the Coronavirus Business Interruption Loan Scheme, which you will need to contact your bank to apply for. This is a loan whereby no interest will be chargeable for the first 12 months.

The bank will need some specific financial information which we have, so if this is something you would like to receive, please let us know and email:

Emmalouise.jones@avantigroup.uk.com or your allocated accountant.

LATEST GOVERNMENT WEBSITE INFORMATION

Guidance on claims for wage costs through the Coronavirus Job Retention Scheme

This guidance is such along the lines of that we produced yesterday from the ICAEW Tax Faculty, more of a confirmation