TAX AND VAT COVID - 19 UPDATES

TAX FREE CHILDCARE

Check if you can get tax free childcare and 30 hours free childcare during coronavirus (COVID-19)

 

Temporary changes have been made to the eligibility criteria for Tax-Free Childcare and 30 hours free childcare, during coronavirus.

The changes may affect you if you, or someone you live with, are:


  • on furlough
  • not able to work or you’re working less
  • self-employed
  • a critical worker


SELF EMPLOYED INCOME SUPPORT SCHEME

You can now check online if you are eligible to apply for the scheme, to do this please click here. You will be asked to enter your UTR and National Insurance number, if you do not have these on file please do let us know and we can assist you. 


 If you are eligible you will be able to apply for the support from midday on 14th May, in order to apply you will need your own personal government gateway login, unfortunately this isn't something we can do for you as your agent/or not.


However it takes 5 minutes to setup a government gateway login - to create your account today please click here


When creating your login you will be asked for information to verify who you are, if you need any help with this please do let us know. 

 

Who is entitled?


  • Those with profits of less than £50,000 per year.
  • You filed a tax return for 2018-19 
  • You traded in the 2019-20 tax year
  • You are currently trading or you would be if it wasn't for COVID-19
  • You intend to continue trading in to 2020-21
  • Have lost trade/ profits due to COVID-19

So what will I get?

If eligible you will receive a taxable grant which will be 80% of the average profits from the tax years (where applicable): 
2016-17
2017-18
2018-19

Where applicable your trading profits will be added together and divided over the periods to calculate your monthly amount capped to £2,500 per month for 3 months.

This will be paid to you in one instalment directly to your bank.


If we are not yet your accountant but would like us to be, please email info@perceptionaccounting.com

CORONAVIRUS BOUNCE BACK LOAN

This scheme will help small and medium-sized businesses affected by coronavirus (COVID-19) to apply for loans of up to £50,000. 


This scheme will launch on 4th May.

 

The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000.

The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.

Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

The scheme will be delivered through a network of accredited lenders.

SELF EMPLOYED

If you are self employed and have not yet submitted your 2019 tax return, you only have a few weeks left to submit it and get help from the government if you have been affected by COVID-19.


If you need help please get in touch:


info@perceptionaccounting.com

VAT DEFERRALS

If you have deferred your VAT payment that was due between 20th March 2020 and 30th June 2020 you have until 31st March 2021 to pay it. 

BUSINESS RATES GRANT

All businesses in England in receipt of small business rates relief will be eligible for a £10,000 grant to help with running costs. 


Businesses in retail, hospitality and leisure will get £25,000 if they have a rateable value of between £15,001 and £51,000.


Look on your local authority website to apply. 


Previous advice said there was no need to apply as it would be automatic, but this does not appear to be the case now.


Please make sure you apply or you will not receive the grant.

FURLOUGHED WORKERS

If you have no work for your employees due to COVID-19 you can furlough them and you can claim 80% of their salary from HMRC upto a maximum of £2500 per month per employee.  There will be a portal on HMRC to make the claims.  This is for employees that you would otherwise have had to lay off due to COVID-19.  The employee cannot do any work during the time they are furloughed.  PAL will  be dealing with claims on behalf of their payroll clients that are affected

VAT

VAT payments are deferred for 3 months.

If you have a direct debit set up you MUST cancel it or payments will be taken automatically.  If you currently have a payment plan for overdue VAT payments you will need to contact HMRC to ask for approval of deferral.  HMRC are, as you can expect very busy at this moment in time, but they are also very accommodating.

PERSONAL TAX PAYMENTS

All payments due on 31st July 2020 are now deferred until January 31st 2021