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UK Government Business Reliefs

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rosco:
I'm about to start looking through the info regarding the eligibility of my business, given theres some financial support on the table from the UK government. Just wondering if any of you guys have done likewise?

A bit like the visa application process, there's a fine line between being self employed and a fully paid up Director of my Ltd company when it comes to this process.

I recall having a visa application knocked back any moons ago because the government considered me employed. I do hope that's the same now @ £2.5k/month.

Manny:

--- Quote from: rosco on March 23, 2020, 03:35:00 AM ---I'm about to start looking through the info regarding the eligibility of my business, given theres some financial support on the table from the UK government. Just wondering if any of you guys have done likewise?

--- End quote ---

I thought it was just loans for businesses and a poxy £95 a week for others? I didn't look at it as I assumed it had strings. How do they calculate the self employed income, on last accounts?

I'm not terribly concerned if we have to close to the public, we can work behind closed doors selling online and ramp up the Amazon FBA. People with nowt to do and free money will shop online.  :nod:

I'm just looking at air freighting in a pallet of N95 masks. They should be a goer.....

Chris:

--- Quote from: rosco on March 23, 2020, 03:35:00 AM ---I'm about to start looking through the info regarding the eligibility of my business, given theres some financial support on the table from the UK government. Just wondering if any of you guys have done likewise?

A bit like the visa application process, there's a fine line between being self employed and a fully paid up Director of my Ltd company when it comes to this process.

I recall having a visa application knocked back any moons ago because the government considered me employed. I do hope that's the same now @ £2.5k/month.

--- End quote ---


Rosco

I have had to go back into work to sort stuff out after taking early retirement last year, but I still own 50% of the main business so need to look after my interests. I am actually classed as Self Emp being a Director of  and Shareholder of a few businesses, but also have employees in the main business, so as of 09.45am this morning, this is the situation as advised by my accountants.


Support for businesses through the Coronavirus Job Retention Scheme

Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees' salary for those employees that would otherwise have been laid off during the crisis.

Eligibility

All UK businesses are eligible.

How to access the 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 employers.

If our business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan. 


----------------------------------------------------------------------------------------

On the VAT situation, Self Assessment and Income Tax situation,  this applies

Support for businesses through deferring VAT & Income Tax payments

HMRC have announced they will support businesses by deferring Value Added Tax (VAT) payments for 3 months. If you're self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.

VAT

For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.

Eligibility

All UK businesses are eligible.

How to access the scheme

This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of 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.

Income Tax

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

Eligibility

If you are self employed you are eligible.

How to access the scheme

This is an automatic offer with no applications required.

No penalties or interest for late payment will be charged in the deferral period.

HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities. To access time to pay and thus avoid interest and penalties please call 0800 0159 559.


I am being updated on this quite regularly and things are changing daily,  so will add more information here as and when I receive it.

Chris

rosco:
Thanks for taking the time to share Chris. I'm in a reasonably fortunate position at present, with the bank topped up and ready for my April dividend. However, with lots of work literally just completed, I won't get paid unless everything pre-sold gets delivered and paid for from August-October. This is my main concern and it would adversely affect the income H2-Q4, causing issues this time next year.

With what's currently going on, I think its in my interest to see if there are any benefits going my way because nobody knows how bad or how long this will be. Particularly when employed blokes on £30k can sit at home and take £24k without a care in the world.

Most of the above I found at https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

And unfortunately, my accountant is presently attempting to return from a holiday in New Zealand as we speak.

I've bought premises from where I run the business from and this section interested me;

Support for businesses that pay little or no business rates
The government will provide additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR), rural rate relief (RRR) and tapered relief. This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.

Eligibility
You are eligible if:

your business is based in England
you are a small business and already receive SBBR and/or RRR
you are a business that occupies property

There VAT situation doesn't bother me because it'll need paid anyway. The cash is in the bank so I'll just get rid.

As I say, right now we're in a pretty decent position but depending on the duration of the crisis and what shape the economy is in once we get back up and running, its all about working out how both the wife and I would be classed, as directors and if there's a cash handout on the small business scheme.

I just made the wife a director rather than an employee last month too!  :'(

I'll add to it here once I get more info from the accountant.  :thumbsup:

rosco:

--- Quote from: Manny on March 23, 2020, 04:02:27 AM ---
--- Quote from: rosco on March 23, 2020, 03:35:00 AM ---I'm about to start looking through the info regarding the eligibility of my business, given theres some financial support on the table from the UK government. Just wondering if any of you guys have done likewise?

--- End quote ---

I thought it was just loans for businesses and a poxy £95 a week for others? I didn't look at it as I assumed it had strings. How do they calculate the self employed income, on last accounts?

I'm not terribly concerned if we have to close to the public, we can work behind closed doors selling online and ramp up the Amazon FBA. People with nowt to do and free money will shop online.  :nod:

I'm just looking at air freighting in a pallet of N95 masks. They should be a goer.....

--- End quote ---

I'm fairly certain its a cash handout rather than a loan. I first heard about it and assumed it would be a generous government loan at 2% or some bollocks but it appears to be free money.

As it stands, employed folks sent home to drink wine and watch Netflix get around 80% of their salary. Those with some get up and go, who run their own business get 90 quid a week - at least that's how it seems!!

I think you're in a fortunate position and you'll manage to ride out whatever comes your way. I'm more of a middle man/agent so I'm completely dependent on the brands & the retailers producing, delivering and paying their end of the deal. Most of its clothing so I think its going to be a slow few months. Money time is always winter anyway so I'm hoping this virus jogs on by summer!!

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