Considering the unprecedented worldwide epidemic, UK government promised wide variety of benefits for their citizens and Businesses. We at Affinity Associates, are committed to serve our clients within this struggled time. Considering that we have done research at our end to provide you the maximum information that is available to claim benefits.
A package of measures were announced and taken to support businesses, below are some;
- Coronavirus Job Retention Scheme
Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis. These are described as ‘furloughed workers’. The scheme will cover the cost of wages backdated to 1 March and is initially open for 3 months, but will be extended if necessary.
- Deferring VAT and Income Tax payments
For VAT, payments are deferred for the next 3 months (from 20 March 2020 until 30 June 2020) and 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. However, VAT returns are required to be submitted on time through MTD. Thus, taxpayers with Direct Debit Setup are advised to instruct their banks to cancel it if struggling to make payments.
For Income Tax Self-Assessment, payments due on the 31 July 2020 may be deferred until 31 January 2021.
- The Coronavirus Business Interruption Loan Scheme
Under this scheme, small and medium sized businesses will have access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years. Further, Government will pay the interest for first 12 months and any other fees levied by lender at initial stage. To be eligible for the scheme, your business turnover should be below £45 million and your business meets the other British Business Bank eligibility criteria
- Time to pay
If you are self employed or in Business and facing financial distress with outstanding tax liabilities, then HMRC may arrange a payment plan to support you in these times. The arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. You need to contact HMRC helpline for advice on 0800 0159 559
- 3-month extension period to file accounts at Companies House
Businesses will be given an additional 3 months to file accounts with Companies House to help companies avoid penalties as they deal with the impact of COVID-19.
- Self-employment Income Support Scheme
If you are self-employed or a member of LLP, and suffered due to loss of trade you will be able to get benefit from this scheme. An application cannot be made for the scheme as HMRC will contact you if you are eligible for the scheme and invite you to apply online. The Amount of grant will be calculated based on an average total trading profits of last three years (2018/19, 2017/18 and 2016/17) declared as per your Self Assessment Tax returns. However, the maximum grant available is £2,500 per month for three months. Basic criteria to qualify is that you should have traded in last year, should be trading in current year and should verify your intent to trade in forthcoming year. Further this grant is restricted to a person having total trading income less than £50,000 per year.
At Affinity Associates, we have a team of certified and experienced tax accountants in London, who are hardworking and well-versed with the tax compliances in the UK and are happy to support you in these difficult times. For further information on any matters about benefits, please contact us at info@affinityassociates.com