It's week 12 of lockdown, and as we all get to grips with beating COVID-19, I thought it would be worth-while to summarise what the Chancellor of Exchequer has done for us so far ...
Self-Employment Income Support Scheme (SEISS)
The scheme means you can claim a taxable grant up to 80% of your average monthly trading profits, paid out in a single instalment covering 3 months' worth of profits, and capped at £7,500 in total.
If you're eligible and want to claim the first grant, you must make your claim on or before 13th July 2020. This scheme is being extended, and you'll be able to make another claim for a second and final grant in August 2020.
The Small Business Grant Fund (SBGF)
Grants available to small businesses who occupy a commercial property in England that has been granted small rates relief.
Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back loan (BBL)
Applications for the Bounce Back Loan have been high, and the loans range from £2,000 to £50,000 based on the business' turnover. The term is 6 years, the interest rate is 2.5%, and the Government picks up the interest bill for the first 12 months. Repayments commence after 12 months.
Coronavirus Job Retention Scheme (CJRS/Furlough)
According to HMRC, 8.7m workers across 1.1m firms are on the scheme, which is a staggering 25% of the country's workforce. The scheme is closing to new entrants as of 10th June.
Currently, employers are able to claim 80% of a furloughed worker's pay plus the associated employer's pension cost and employer's national insurance. From 1st July, furloughed workers can be brought back part-time, and from August, the employer will need to start picking up some of the cost of the scheme. The scheme closes at the end of October 2020.
Deferral of VAT payments
You can only defer:
- 1 quarterly and monthly VAT returns' payments for the periods ending in February, March and April
- 2 payments on account due between 20th March 2020 and 30th June 2020
- 3 annual accounting advance payments due between 20th March 2020 and 30th June 2020. this deferral doesn't cover payments for VAT MOSS or import VAT.
Deferral of Self-Assessment payments
You can defer payment of self-assessment tax due on 31st July 2020. You'll not be charged interest or penalties as long as you pay before 31st January 2021.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.