Coronavirus Business Interruption Loan Scheme (CBILS)

Coronavirus Business Interruption Loan Scheme (CBILS)

The Coronavirus Business Interruption Loan Scheme (CBILS) is designed to specifically support small to medium-sized businesses, with an annual turnover of up to £45 million by giving them access loans, overdrafts, invoice finance and asset finance of up to £5 million spanning over 6 years.

The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. This will allow smaller businesses to benefit from no upfront costs and lower initial loan repayments.

The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to small and medium-sized businesses. This means that as a small to medium sized business you are more likely to be able to secure the financial package you really need!

The scheme is delivered through commercial lenders and is backed and regulated by the government-owned British Business Bank.

If you want to have a look at all the lenders who are currently offering this scheme, which include all the major banks here is the link

This sounds like it could really help my business. Am I eligible?

You’re eligible if your business:

  • is based in the UK
  • has an annual turnover of up to £45 million
  • has a borrowing proposal which the lender would consider viable, if not for the coronavirus pandemic

However it’s worth noting that the following businesses are not eligible to apply:

  • banks, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • further-education establishments, if they are grant-funded
  • state-funded primary and secondary schools

I believe my business is definitely eligible. How do I apply?

The full rules of the scheme and guidance on how to apply is available on the British Business Bank website.

The link can be found here

Or of course you can call us on 01384 271858 and consider it done.

Local Authority Grants

Local Authority Grants

In response to COVID-19 (coronavirus), the government has recently announced two grants that are now available to assist businesses during this difficult and challenging time.

These grants are being assessed and distributed by local authorities, not central government. The link in this blog covers the information given by Dudley Council as that is where our offices are based, however local councils all over the UK have similar schemes so if you’re not in the Dudley area don’t panic! Find your local authority here

These grants are available to small businesses and those businesses in the retail, hospitality and leisure sectors:

  • A grant of £10,000 for most businesses with a Rateable Value (RV) of up to £15,000
  • Grants of £25,000 for businesses in retail, leisure and hospitality with a rateable value between £15,000 and £51,000. 

Dudley Council officers are working hard to identify businesses that qualify for this money and will be in touch if they believe you qualify.

Of course if you’re sitting there worrying about finances it’s hard to just relax and wait for information, so if you believe you may be entitled to either of the above grants, please complete the Business Rates Grant Proforma document and upload it using the Business Rates Grant online form. The form can be found here

This will help speed up the identification process and may mean you get your grant sooner!

Once you have completed the document you’ll need to create an online account to submit it, if you don’t have one already. If you do have one, just login and you’re good to go!

If, with the Proforma, you are able to supply,

  1. recent bank statement, and
  2. if a sole trader, a recent utility bill

this will help Dudley Council process your application more quickly.

Advanced Accountancy are currently working through a number of applications for our clients, so you may find it quicker and easier to have us go through your business information and make the application on your behalf. We have successfully secured many grants for businesses who are now facing uncertainty.

If you’d like our advice or help filling out the proforma form please call us on 01384 271858 or email us at enquries@advancedaccountancy.co.uk

Furloughing your Employment

Furloughing your Employment

Advanced Accountancy are commited to communicating with you at this worrying time. We understand that the information on the Gov website is overwhelming and complicated and it’s hard to sit down and decipher pages of new information with so much chaos going on around us.

Well, now you don’t have to.

Welcome to your daily ‘under the spotlight’ blog which will simplyfy and breakdown each Government scheme that has been put into place over the last few days.

Coronavirus Job Retention Scheme

At this uncertain time where your business income is looking patchy (to put it kindly) and no one knows when things are likely to start turning around, the last thing you need to worry about is paying your employees. If you employee just one person, or have a workforce of  thousands, covering wages can often be a financial concern at the best of times. Its safe to say COVID-19 has far from helped (unless you work in a toilet paper factory I suppose….)

Needless to say no employer wants to let down loyal employees when they could well be facing financial difficulties of their own. You know your employees all have mortgages, rent and bills to pay and the idea of laying everyone off at such a time is really difficult to contemplate.

Thankfully help is at hand.

Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying up to 80% of their employees’ salary for those employees that would otherwise have been laid off during this crisis. This protects your staff force, ensures that they will be there when we emerge from the crisis, and takes a huge financial burden off your struggling business. No difficult decisions need to be made! So, we know there is an answer, but I guess you still have questions….Fire away!

Am I eligiable?

Yes, thankfully all UK businesses are eligable for this scheme.

How do I access this scheme?

You will need to:

designate affected employees as ‘furloughed workers,’ and notify your employees of this change. By changing the status of employees they remain subject to existing employment law and, depending on the employment contract, this may be subject to negotiation

You then submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required very soon)

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers, so bear with them on this one. We are all working hard to accomdate an unexpected crisis!

As an employer you are able to top up the remaining 20% if you are financially able to do so, and if you’re simply not in the position to do that you can rest easy knowing that the vast majority of the money is covered providing a safety net to your business and workforce.

This sounds time consuming. Are there any other options?

At Advanced Accountancy our qualified and experienced payroll team are in an excellent position to facilitate these complex changes ensuring the minimum disruption possible to your employees and giving you the time and space to focus on keeping yourself and your community as safe as possible.

If you believe that the above scheme would be of benefit to yourself and your company contact us today on 01384 271858 and rest easy knowing the wages are taking care of themselves.

Self Employed COVID-19 Help and Support

Self Employed COVID-19 Help and Support

So last week the government released the information so many of you had been waiting for. There would be help for self employed individuals!

We know that has majorly concerned so many of our clients at Advanced Accountancy and we’re pleased we can finally bring you some positive news.

This scheme announced will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. Of course no one knows how long this situation will last, but this can be extended if necessary.

So, am I eligable?

  • You can apply if you’re a self-employed individual or a member of a partnership and you:
  • Have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
  • Traded in the tax year 2019-20
  • Are still trading when you apply, or would be except for COVID-19
  • Intend to continue to trade in the tax year 2020-21
  • Have lost trading/partnership trading profits due to COVID-19

Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:

  • Having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
  • Having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you MUST do this by 23 April 2020. Or alternatively contact us and we can do it on your behalf.

How much will I get?

You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):

2016 to 2017

2017 to 2018

2018 to 2019

To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.

It will be up to a maximum of £2,500 per month for 3 months.

They will then pay the grant directly into your bank account, in one instalment.

Sounds good! How do I apply?

HMRC are busy setting up the scheme at the moment. These new systems are pretty complex and will take some time to set up to ensure they work for everyone.

HMRC will contact you if you are eligible for the scheme and invite you to apply online.

Please do not contact HMRC yet. If everyone floods the phonelines it will only further delay the available help as they will have to use precious resources answering the phones instead of working on these new systems.

Don’t forget, there are many individuals taking advantage of this confusing situation at the moment and are using it to scam people. So please, if someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam. Please contact us IMMEDIATELY if this happens.

So what happens after HMRC have been in touch and I’ve applied?

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 the payment details with amounts, dates etc.

If you claim tax credits  or Universal Credit you’ll need to include the grant in your claim as income.

Please give us a call on 01384 271858 or email us at enquiries@advancedaccountancy.co.uk to give you an idea on what you are eligable to claim or if you have any further questions about the process.

Delays to Payment Deadlines

Delays to Payment Deadlines

You Get a Payment Extension Due to COVID-19. But How Does it Work?

Advanced Accountancy are commited to communicating with you at this worrying time. We understand that the information on the Gov website is overwhelming and complicated and it’s hard to sit down and decipher pages of new information with so much chaos going on around us.

Well, now you don’t have to.

Welcome to your daily ‘under the spotlight’ blog which will simplify and breakdown each Government scheme that has been put into place over the last few days.

Next up under the spotlight is……

 

Support for businesses through deferring VAT and Income Tax payments

VAT and income tax payments can often put financial stress on businesses at the best of times. Under the current circumstances with many business incomes looking uncertain in the coming months that stress has increased drastically.

With this in mind the UK government have pledged to support businesses by deferring Valued Added Tax (VAT) payments for 3 months after the usual payment deadline.

Income Tax payments that are currently due in July 2020 under the Self-Assessment system and may now be deferred until January 2021. This means that we now have 10 months to make that payment which will undoubtedly be an enormous help.

VAT

For VAT, the deferral will apply from 20 March 2020 until 30 June 2020. This has added an extra 3 months grace onto the original payment date.

Eligibility

So, am I eligible or is there some undetected small print somewhere?

The good news is there is no small print. All UK businesses are eligible.

How do I apply to increase my payment deadlines?

This is about as easy as it gets and is an automatic offer with no applications required.

Quite simply all businesses will not need to make a VAT payment until the dates stated above and all UK taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period.

VAT refunds and reclaims will be paid by the government as normal.

Hang on, I’m already set up to pay via direct debit. What do I do?

Customers who pay by direct debit should cancel their direct debit with their bank if they are unable to pay. Please do this ASAP to give your bank sufficient time to cancel off any arrangements before the funds get taken by HMRC! We know the phone lines to banks are especially busy right now, but you can access your direct debits online on through your banking app and cancel the direct debits yourself if you don’t want to wait on hold.

So lets talk Income Tax

For Income Tax Self-Assessment, payments due on the 31 July 2020 may be deferred until 31 January 2021.

Am I eligible for this?

You are eligible if you are due to pay your second self-assessment payment on account on 31 July. You do not need to be self-employed to be eligible for the deferment.

The deferment is optional. If you are still able to pay your second payment on account on 31 July you should do so as there is no point in delaying the payment unless necessary.

I’d definitely like to defer. How do I apply?

Again, this is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment until January 2021. If you can’t afford to pay until January 2021, the option is there.

HMRC have also now scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of COVID-1.

If you have any questions or queries about the above information please don’t hesitate to get in touch with Advanced Accountancy on 01384 271858 or email us at enquries@advancedaccountancy.co.uk. We are here to guide you through this complicated and worrying time.

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