- VAT payment deferral
Do we still need to file a VAT return?
Yes, the normal filing of the return is required. Failure to file the return will result in penalties. VAT liabilities are not being cancelled, they are simply collected at a later date.
Do I need to cancel my direct debit?
Yes, if you wish to defer the VAT payments you will need to cancel your direct debit to avoid VAT payments being taken from HMRC over the next 3 months.
Do I need to apply for the VAT deferral?
No, there is no expectation of any VAT registered business making a VAT payment until the 30th June 2020.
If I usually have a VAT refund will I still receive this as normal?
Yes, VAT refunds will be paid by HMRC as normal.
When will the deferred VAT payment become due?
For businesses that defer paying their VAT liabilities during this period, the liability must be paid to HMRC on or before 31 March 2021.
Can I still pay my VAT?
Yes. If you have the available cash flow and wish to make a payment, this is acceptable.
- Self‐assessment payment on account deferral
Do I need to apply for the Self‐Assessment deferral?
No, this is an automatic deferral. No penalties or interest will be charged during the deferral period. If you have a direct debit in place to pay your income tax please make sure you cancel it for the July 2020 payment.
Is the Self‐Assessment deferral compulsory?
No, the deferral is optional – some taxpayers may prefer to make the July payment to avoid a larger payment in January 2021.
Can company directors use the Self‐Assessment deferral?
All taxpayers with a second self‐assessment payment on account due on 31 July 2020 can defer the payment until 31 January 2021. It is not required to be self‐employed to be eligible for the deferral.
When should I file my Self‐Assessment tax return for 2019‐20?
Self‐Assessment returns should still be filed by their due date 31 January 2021. However, it may be beneficial to file the 2019‐20 return as soon as possible. This might enable planning for the tax payment due in January 2021 or crystallise any refund due.
- Coronavirus Business Interruption Loan (CBIL):
What is the Coronavirus Business Interruption Loan?
The government is offering to underwrite loans to businesses adversely affected by the COVID‐19 outbreak. Under this scheme the British Business Bank will provide lenders with a guarantee of 80% on each loan.
How do I access the Coronavirus Business Interruption Loan?
Although the scheme is managed by the British Business Bank, to access the loan you should contact your bank or one of the other accredited lenders. A company can borrow up to £5m interest‐free for the first twelve months but will remain 100% liable for the debt.
Who is eligible for the loan?
- UK based and turnover of no more than £41 million and,
- Operate within an eligible sector* and
- Have a sound borrowing proposal but insufficient security to meet lenders requirements and
- Be able to confirm that they have not received de minimis state aid beyond £200,000 over the last two fiscal years.
* Operating within an eligible sector: almost all business sectors are eligible, including businesses that provide professional services, restaurants, pubs and hotels.
What types of finance facilities are available under the scheme?
Term loans, overdrafts, asset finance and invoice finance.
What information do I need to support an application?
- Last 3 years full accounts
- Last 12 months business bank statements
- Up to date management accounts
- Last 12 months VAT returns
- Cash flow forecasts to support the applications
- How COVID‐19 has affected your business and how the funds will be used
Do I need evidence that I have a viable business?
Yes. You must be able to demonstrate in your borrowing proposal that were it not for COVID‐19, your business would be considered viable by the lender.
How long will the Coronavirus Interruption Loans be available for?
The loans will be available for six months but this may be extended.
Are sole traders and freelancers eligible?
Yes. As long as they have operated through a business bank account.
Can I get the CBIL if I also receive other governmental support due to COVID‐19?
- Grants for businesses
Who is eligible for the grant?
Businesses operating in the retail, leisure and hospitality sectors.
Businesses operating from premises with a rateable value between £15,000 ‐ £51,000 will receive a grant of £25,000.
Small businesses with a rateable value below £15,000 will receive a grant of £10,000.
How to apply for the grant?
Funding will be provided by the local authorities. Any enquiries on eligibility should be directed to your relevant local authority.
The scheme is not eligible where there is an occupation for personal use or the business has been in the process of liquidation on the 11th March 2020.
When will I receive my grant?
They haven’t released a specific date, however, some eligible businesses have received their grants already. Please be patient, if you are eligible you shall receive the funds soon.
I’m not eligible for the job retention scheme or self‐employment support scheme, what am I entitled to?
If you do not qualify for any of the schemes, you may be eligible to claim for universal credits. The helpline is 0800 328 5644.