Daily Update – 26 March 2020
Chancellors speech from 26 March – key points:
1. If you’re a director of a limited company is receiving salary and dividends you won’t be covered but appears you will be covered by the announcement last week re the Job Retention Scheme if you are operating a PAYE scheme.
It’s not yet clear whether the furlough scheme will apply to limited companies where there is a sole director and no employees.
2. Self-employed will receive grant of lower of 80% or £2,500 per month based on trading profit of less than £50k in tax year 2018/19 or average trading profits of less than £50k for tax year 2016/17, 2017/18 or 2018/19
3. To qualify half of your income in point 2 above in the tax year must have come from self-employment.
4. If you started self-employment after 06 April 2019 then appears you won’t qualify.
5. The grant will cover the months March, April and May however the systems won’t be ready until June, so payments won’t be made until at least then.
6. You don’t need to do anything. HMRC will contact you and ask you to complete a form online if eligible according to their information.
If your taxable income from self-employment in the last 3 years was
Total £60k or average of £20k per year
You should receive a grant of £4k ( 3/12 x 80% x £20k) in early June covering March, April and May.
You can find more information on the HMRC website – here
Links for other information, support and advice:
HMRC website for guidance for employers – here
HMRC website for guidance for employees – here
To listen to/watch a recording of our Business Continuity Plan webinar – here (start it at 7:10)
Business Continuity Plan template – here
Business Continuity Plan guide – here
Coronavirus Business Interruption Loan Scheme (CBIL)
This is now open but some clients are finding it very difficult to find out information from their banks. We work with a lending platform which has several lenders offering CBIL loans – this may be a quicker option for you, please let me know if you would like to discuss this.
There are more frequent updates in our Covid-19 WhatsApp group, if you would like to join please send an e-mail with your mobile phone number.
If there is anything you are unsure of, or need help with, please get in touch.