Further Support for Businesses During COVID-19 Disruption

Coronavirus Job Retention Scheme

All UK businesses are eligible.

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month.

HMRC are currently working urgently to set up a system for reimbursement which we understand will be via a new online portal.

As an employer you will need to designate affected employees as “Furloughed Workers” and notify employees of this change. Changing employee status remains subject to existing employment contract law, therefore advice should continue to be sought regarding this. 

Deferring of VAT Payments

Valued Added Tax (VAT) payments have been deferred for 3 months. The deferral will apply from 20 March 2020 until 30 June 2020 and all UK businesses are eligible.

No applications are required, businesses will not need to make a VAT payment during this period.

This is a measure to support your business cashflow, please note this is deferral scheme only and outstanding liabilities will be due for payment by 31 March 2021.

VAT Refunds will continue to be paid from HMRC as normal.

Deferral of Payment on account due 31 July 2020

If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.

If you are self employed, you are eligible and this is an automatic offer with no applications required.

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

Coronavirus Business Interruption Loan Scheme

These are government backed loans (up to 80%) to support lenders in supporting their business customers. The scheme is due to be released the week commencing 23 March 2020 and will be available via your business bank provider. This link shows the banks operating within this scheme.

HMRC Time to Pay Scheme

We understand that the “Time to Pay Offer” team have been scaled up at HMRC in a bid to support those in temporary distress as a result of COVID-19 and have outstanding tax liabilities.

If you have missed a tax payment or you might miss your next payment due to COVID-19, HMRC’s dedicated helpline is 0800 0159 559.

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