J9 ADVISORY LIMITED IS REGISTERED IN ENGLAND AND WALES AT:  THE PINNACLE, ALBION STREET,  LEEDS, LS1 5AA.

J9 ADVISORY LIMITED IS A MEMBER FIRM OF THE INSTITUTE OF CHARTERED ACCOUNTANTS IN ENGLAND AND WALES.

COMPANY NUMBER: 09158072 | VAT NUMBER: 192 1886 80 | DATA PROTECTION REGISTRATION: ZA075573

 

©2020 BY J9 ADVISORY LIMITED

Covid-19

Corona

Virus

The country is currently facing unprecedented times which will have a severe impact on every single person and business.

Information on Government Support, and how to access it is moving everyday as this pandemic unfolds, and we will bring you the latest updates in terms of Government Business Support available.

The Key to getting through this will be planning and implementation of a strategy in terms of Employees, Operations, Funding, the Communication and management of this strategy to all Stakeholder.

We will be offering a FREE 30 MINUTE TELEPHONE CONSULTATION to Directors wishing to discuss their concerns, and how we may be able to assist in stabilising and securing the future of their business at this difficult time.

Please email info@j9advisory.com to book an appointment or call 0113 457 0583 / 0203 7277259

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 this crisis.

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.

 

- Coronavirus Business Interruption Loan Scheme

A new temporary Coronavirus Business Interruption Loan Scheme will be launched (estimated to launch during week commencing 23 March) and delivered by the British Business Bank, will launch next week to support businesses to access bank lending and overdrafts.

The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs.

 

The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value. Businesses can access the first 12 months of that finance interest free, as government will cover the first 12 months of interest payments.

We envisage that any Loans will still be subject credit approval, and therefore will be for viable business who can continue to meet affordability criteria, and not for unviable or insolvent businesses.

Please do contact us ASAP should you require funding and we can advise on the best route forward - info@j9advisory.com. 

 

Under the new Covid-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies.

This will support your company if it has been affected by a short-term funding squeeze, and allow you to finance your short-term liabilities.

It will also support corporate finance markets overall and ease the supply of credit to all firms.

The scheme will be available early in week beginning 23 March 2020.

We will provide information on how to access the scheme here shortly.

More information is available from the Bank of England.

- Small Business Grant, for business who pay little or no business rates

The government will provide additional funding for local authorities to support small businesses that pay little or no business rates because of small business rate relief (SBBR).

 

This will provide a one-off grant of £10,000 to businesses to help meet their ongoing business costs.

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

Funding for the scheme will be provided to local authorities by government in early April, and you should be contacted directly by the local authority - You will not need to apply.

 

- Grant - Hospitality, Retail and Leisure Sector

The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.

For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000.

For businesses in these sectors with a rateable value of between £15,001 and £51,000, they will receive a grant of £25,000.

Eligibility

You are eligible for the grant if:

  • your business is based in England

  • your business is in the retail, hospitality and/or leisure sector
     

Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:

  • as shops, restaurants, cafes, drinking establishments, cinemas and live music venues

  • for assembly and leisure

  • as hotels, guest and boarding premises and self-catering accommodation

Funding for the scheme will be provided to local authorities by government in early April, and you should be contacted directly by the local authority.

- Rates Relief - Hospitality, Retail and Leisure Sector

Any Business that operate in the Hospitality, Retail and Leisure Sector will pay no Business Rates for the 2020 to 2021 year, regardless of their rateable value.

You are eligible for the business rates holiday if:

  • your business is based in England

  • your business is in the retail, hospitality and/or leisure sector
     

Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:
 

  • as shops, restaurants, cafes, drinking establishments, cinemas and live music venues

  • for assembly and leisure

  • as hotels, guest & boarding premises and self-catering accommodation.

    This will apply to your next council tax bill in April 2020. However, local authorities may have to reissue your bill automatically to exclude the business rate charge. They will do this as soon as possible and you will be contacted directly by the local authority.

 
 

- HMRC

If a business is concerned about being able to pay any tax, due to COVID-19, they are advised to call HMRC’s dedicated helpline on 0800 0159 559.

VAT

Valued 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.

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 the 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.

Should you have significant concerns surrounding the level of HMRC debt within your business, please do not hesitate to contact us on info@j9advisory,com and we will be in touch ASAP to discuss.  

Income Tax

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

 

- Sick Pay & Employees

​Legislation will be brought forward to allow small- and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19.

 

The eligibility criteria for the scheme will be as follows

This refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19:

 

 

  • Employers with fewer than 250 employees will be eligible - the size of an employer will be determined by the number of people they employed as of 28 February 2020.
     

  • Employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19.
     

  • Employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note.
     

  • Eligible period for the scheme will commence the day after the regulations on the extension of Statutory Sick Pay to those staying at home comes into force.
     

  • The government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible

In terms of wider Employee Implications and Advice we welcome you to discuss such matters with Thrive Law, a specialist, Independent Employment Law, Mental Health and Wellbeing Firm.

https://www.thrivelaw.co.uk/2020/02/26/in-the-news-coronavirus-and-quarantine-employer-obligations/

 

 

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