Over the past few weeks, there has been a lot of guidance issued by the government. This is to help individuals, businesses and landlords that have been affected by the Coronavirus Outbreak.
We have collated a summary of some of the guidance below. You must keep an eye on what is available and understand the guidance fully as the government is issuing updates regularly.
The Coronavirus Business Interruption Loan Scheme has been announced to help small and medium-sized businesses, with an annual turnover of up to £45 million. They can access loans, overdrafts, invoice finance and asset finance of up to £5 million.
The government has also pledged to make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. This is good news for smaller businesses as they will have lower upfront costs and repayments.
HMRC has put into place an option to Defer VAT payments due to coronavirus (COVID-19). This applies to all UK VAT registered business that has a VAT payment due between 20 March 2020 and 30 June 2020. You can defer the payment until a later date, and this may help you with your cash flow over the coming weeks.
Quite soon after the Coronavirus lockdown was implemented, the government announced that mortgage lenders would be able to offer mortgage payment holidays for individuals that are struggling to pay their mortgage.
Individuals can claim for up to 3 months mortgage holiday; to do this, you must contact your mortgage lender and discuss this with them. It is important to note that you still owe the amounts that you don't pay as a result of the payment holiday. Interest will continue to be charged on the amount you owe.
There is a Statutory Sick Pay Guide for Employers which explains how much Statutory Sick Pay (SSP) your employees can claim and also how this works if they are self-isolating. Employers can pay SSP to an employee who is self-isolating for more than four days because of coronavirus (COVID-19) from the first day they are off work. It is also worth understanding how SSP will work for your employees if they are on furlough.
The government announced several measures that would protect both landlords and tenants. If you are a landlord or property investor, you should read the guidance issued by the government in March 2020 - Complete ban on evictions and additional protection for renters.
As a result of this guidance, no tenant in either social or private accommodation can be forced out of their home during this difficult time.
If your tenants are struggling to pay the rent, it is worth talking to them to agree on a solution that will work for both parties.
We hope you found this information useful. As we mentioned before the guidance is changing almost daily so if you need any up to date advice and support, please do call us.
You can call 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..
Haidee is our Personal Tax Director and is a fully qualified tax adviser, having achieved the ATT qualification in 2006. Tax efficiency being her main concern. Specialising in taxation, Haidee provides clients with advice on personal tax, PAYE services, VAT and social security. She also provides guidance to new start-up businesses.
Call us today on01623 490120
or email info@watsonk.co.uk
When you first start a business, your focus is usually on attracting customers, generating sales and building a successful company. Few business owners spend much time thinking about how or when they will eventually leave the business.
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