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Business support - what you need to do

23/03/2020 by Webmaster

Business support is promised.  Details will follow here as they become available.  Remember that part of the support comes from Westminster, and part from Holyrood so you need to find the correct details.  At the moment, we don't know much more than this:

  • a Coronavirus Job Retention Scheme.  You will need to:
    • designate affected employees as ‘furloughed workers,’ and notify your employees of this change - changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
    • 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)
    • 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 employersdeferring VAT and Income Tax payments

It does seem like the government pays 80% and it is up to the employer to decide if they pay the other 20% At least the employees (not employers) pages https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-guidance-for-employees say  "Your employer could choose to fund the differences between this [80%] payment and your salary, but does not have to."

And the 80% and £2,500 figures probably refer to gross pay.  Probably.

 

  • a Statutory Sick Pay relief package for small and medium sized businesses (SMEs)

 

  • small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief

 

  • grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
    • You can check your rateable value on the Scottish Assessors Association website www.saa.gov.uk

 

  • Coronavirus Business Interruption Loan Scheme

 

 

  • VAT

The Chancellor of the Exchequer announced that all businesses in the UK are eligible to defer any VAT return payments falling due from the period of 20/03/2020 to 30/06/2020.  This seems to apply to anyone that is VAT registered.  This is an automatic offer with no applications required. It means that no VAT payment needs to be made during this period. Taxpayers have until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. HMRC stated that VAT refunds and reclaims will be paid by the government as normal.

 

 

Keep calm

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