Many businesses out there are in a similar position where they are currently unable to trade and this can lead to a cash flow issue.
The Government has put several things in place to try to help business-people out. Below is a non-exclusive list of the help provided and how it can be accessed. I have tried to keep the information simple, with just the key messages so if you need any further information don’t hesitate to comment or get in contact with me directly.
1. In relation to all VAT returns due from 20th March through to 30th June 2020.
All VAT returns due from 20th March through to 30th June need to be filed on time however any payments have been deferred to the end of the year. If you are due a refund this will still happen as normal.
As of yet it is unclear if direct debit payments will be cancelled automatically or that you need to cancel it yourself so please do look out for this and if I am made aware of the answer I will update these pages as necessary.
2. Self-Assessment payments
Any self-assessment payments to be made on the 31st July are now deferred to 31st January 2021.
3. Loans and overdrafts
Loans and overdrafts are going to be made available for small businesses however not all the details for this have been sorted. The Government is currently looking into guaranteeing 80% of the loan/overdraft and the first year will not have any finance fees.
I have been advised that these facilities for SME’s will be run through your bank or your finance provider, please speak to them for more detailed information and support. If you are part of a larger company, they have said the same may also be available through the Bank of England.
4. Already have Tax Liabilities to pay and can’t make the payments?
The advice is to call HMRC’s Time To Pay Service on 0800 0159 559 (Mon-Fri 8am – 8pm, Sat 8am-4pm). I have had conflicting feedback with this service, it’s on a case by case basis and the time you call along with the person you speak to might affect any positive outcome you were hoping for.
My advice has always been to ring HMRC early, late or over the weekend as one always seems to get a more understanding representative. If you find yourself getting a negative response from a representative, call at another time.
5. Still think you need help?
Universal Credit might be another route. I have been told that from the 6th April 2020 the Minimum Income Floor will be temporarily relaxed.
6. Already on Universal Credit?
I have read that they are giving extra monies additional to the increase for tax year 20/21, not a lot but it’s better than nothing.
7. Other options available?
There are other loans based on your business rates and your local authority will be sending out information directly to those this may concern. Some businesses might qualify for a 12month business rate holiday if retail, hospitality or leisure in England. If you think your business has been wrongly classed I urge you to discuss this with your local authority.