21st March 2020
We want to keep our clients as updated as possible during the current pandemic.
Following last night’s announcement by Chancellor Rishi Sunak the Government has confirmed an unprecedented and unlimited support system that for businesses where work has stopped. They will compensate employers up to 80% or £2,500 per month of their employees normal wages. This will cover employees sent home due to no work (furloughed workers). This will require the government to build a brand new portal, from scratch, test it and then roll it out to everyone. Despite that they hope to have it in place in early April.
Additionally they have cancelled collection of all VAT payments due between 10th April and 14th June. You will now have until 31st March 2021 to pay this VAT. We assume that HMRC will just not request collection of these Direct Debits. We await more detail on this. However, it is important to note that all returns and submissions must still be made on time.
This is in addition to the grant for those with premises and eligible for SBRR already announced (£10k) and the larger grant for those with rateable values up to £51k in the, retail, leisure and hospitality sectors (£25k). This is administered by your local county council and they will contact you, you do not need to make a claim.
All July self-assessment payment on accounts have been suspended until 31st January 2021 for the self-employed.
The link to all measures announced can be found here : https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
If you want to keep updated with our latest information then please keep an eye on our website and Facebook page which will be updated as often as possible.
For those with finance and cashflow issues:
One of our clients Jon Dufton has very kindly offered his unlimited support to all of our clients, Jon’s background is in finance and lending and is willing to help you have discussions with your current lenders on your behalf, either getting payment holidays or better terms, Jon is willing to help in any way he can, for free, just to help people keep going.
Additionally, I’m told that two of the lending sources Jon uses have been picked to supply the Coronavirus Business Interruption Loan which is guaranteed up to 80% by the government and as of last night’s announcement is interest free for 12 months!! So if you feel you may need this cashflow support over the coming months then please feel free to contact Jon and discuss it with him. I understand that the criteria is still being finalised but will be available soon.
CFT Finance Ltd
If you have any questions please get in touch.