On 26 March a package of support for the self-employed was announced. Further details can be found here.
Download COVID-19 self-employed funding support flowchart
This flowchart is designed to point you in the right direction of what measures might be available for you and your business based on what we know at present.
The government has announced an immediate deferral for UK businesses of VAT payments that would otherwise have been due between 20 March to 30 June 2020.
The vast majority of organisations file calendar quarter VAT returns which would have meant the VAT owing for the quarter to 31 March 2020 would have been payable to HMRC over the course of the next few weeks. The deferral of this payment will be welcome news to many and applies automatically. Businesses deferring this payment need not seek any additional specific agreement. Taxpayers will need to pay the deferred VAT on or before 31 March 2021. VAT returns should continue to be submitted in line with the organisation’s normal VAT return filing deadlines.
The deferral measure is for UK businesses. Overseas businesses having difficulties paying their UK VAT may need to consider applying for additional time to pay.
On 25 March, HMRC updated its guidance to highlight that organisations that normally pay by direct debit should cancel their direct debits to ensure that payment is not automatically taken.
Details of the HMRC helpline for organisations that are struggling to pay their UK taxes on time is available on the GOV.UK website.
It is recommended that businesses contact HMRC at the earliest opportunity to agree tax deferrals if they are not automatic.
We understand that it can take time to get through on the line so you should have as much detail to support your grant or tax deferral discussion.
HMRC will discuss your specific circumstances to explore:
We understand that HMRC has not been issuing either written confirmation of payment deferral agreements or even a tax reference. We therefore suggest that you keep detailed records of the conversation including the name of the person you spoke to, the date and time so that you have a record of the agreement to a payment deferral and that no interest will be charged by HMRC.
As more measures are introduced and more detail becomes available, this tool will be updated on a real time basis.
Download COVID-19 funding support flowchart
Designed to point you in the right direction of what measures might be available for you and your business based on what we know at present.
For small and medium-sized businesses, there may be the option of financial support from the British Business Bank. Additional government funding was announced in the recent Budget and was aimed at supporting the continued provision of finance to UK businesses during the coronavirus outbreak. The British Business Bank’s CBILS facilitates business finance to smaller businesses that are viable but unable to obtain finance due to having insufficient security to meet the lender’s normal requirements. CBILS can provide funding from £1,000 to £5 million. The CBILS loans will be interest free for 12 months and up to £330 billion of funding that will be government guaranteed. This new temporary CBILS will be available from 23 March 2020 to support businesses to access bank lending and overdrafts.
The CBILS website details the following eligibility criteria. The business should:
Business Rates Relief include:
The reliefs will be given automatically and will be administered by Local Authorities. Details of the reliefs can be found on GOV.UK website.
It was announced that funding grants of the following would be provided:
There may be other funding solutions for businesses available through your current or an alternative provider. Crowe’s debt advisory team have strong relationships with a wide range of potential funders, for more details on how we can support you please contact Dave Riley or your usual Crowe contact.
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