According to recent research, many employers may be committing acts of fraud in relation to the Coronavirus Job Retention Scheme. If you are an employer who has furloughed staff, ensure that you understand and adhere to the rules or you could risk charges and penalties.
If, before lockdown, you had ordered or were looking to purchase new equipment or commercial properties, all which are subject to VAT liabilities, you may now find that you have a funding gap for the VAT.
What you need to know about the Bounce Back Loan Scheme (BBLS)
From today, small businesses that have been adversely impacted by the Covid-19 outbreak can apply to the Bounce Back Loan Scheme. Businesses can apply for loans between £2,000 and £50,000 for a fixed term of 6 years. The maximum you can borrow is up to 25% of your business’ turnover in 2019.
We are living in extraordinary times. Who could ever have envisaged certain sectors such as Dentistry (especially those with a significant high margin private client base), would be experiencing a period of extremely restricted income. And whilst you can restrict your overheads with the use of furloughing your PAYE staff, negotiate reduced payments with your landlord and utility companies, non-payment of your self-employed colleagues such as Hygienists, therapists and Associates, in the short term levels of income will be significantly impacted.
We are living in extraordinary times. Who could ever have envisaged certain sectors such as Dentistry (especially those with a significant high margin private client base), would be experiencing a period of extremely restricted income. Practices with challenging UDA contracts may also be facing possible future claw backs depending on how long the current environment continues.
It’s never been more important to prepare your business for the turmoil that has hit our economy like a Tsunami. Some may think it’s a faff to gather all the information the financial institutions are asking for, but rather than seeing it as a faff, businesses should see this as an opportunity to take stock and understand how your business can prepare itself for unknown circumstances. Which, in this case, have hit us from left field. Assessing your business performance will also ensure that you are better placed when it comes to accessing financial support.
With numerous calls from our clients, asking how and what support is out there for their business, I thought I would offer a round up blog, to ensure you are all aware of the support that is currently available.
Support for businesses through deferring of VAT and Income Tax Payments
Whilst waiting for the Coronavirus Business Interruption Loan Scheme criteria and loan application to be issued this week, you need to plan in your cash flow forecasting.
We will provide any further updates as soon as we have them.
The Government will support UK businesses by deferring VAT payments for 3 x months. The period being 20th March 2020 until 30th June 2020.
If you are self-employed, Income Tax payments due in July 2020 under the Self- Assessment system will be deferred to January 2021.
Here’s our first piece of advice on what to do
whilst waiting for more information about the Government’s Relief Scheme
- Communicate with your Creditors and Debtors about payment terms.
- Ensure you have access to accurate and organised financial information
about your business to make informed decisions.
- Lenders will want to see forecasts for your business and know that you
are in control of the areas you can control.