The Scottish Government has issued an update on support for the self-employed and small businesses, the latest package will be broken into three separate funds totally £100 million.
The 3 groups are
• Vulnerable SME’s
• Newly self employed
• Creative, tourism and hospitality enterprises
We will be delving into this to see what this means for our clients and update you as soon as possible.
The Job Retention Scheme (JLS) has been extended up to the end of June 2020
The UK Government has launched a new support finder service to help support you and your business the link below will assist you
As an update on some of the measures that are available.
If you are registered for UK VAT and have a VAT payment due between 20 March 2020 and 30 June 2020 you have an option to defer the payment until 31 March 2021
July Payments on account
If you are due to pay a Self Assessment payment on account by 31 July 2020, you can defer payment up until January 2021. You will not be charged any interest or penalties during the deferral period.
Importantly, you do not need to be self-employed to be eligible for the deferment.
The deferment is optional. If you are still able to pay your second payment on 31 July, you should do so.
If you are self-employed (either as an individual or in a partnership), you can claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month, for 3 months. This may be extended.
You may be eligible for this scheme if:
• you’ve lost profits due to coronavirus
• you’ve submitted your Self-Assessment tax return for 2018 to 2019 tax year
• you traded in 2019 to 2020 tax year
• you are trading when you apply, or would be except for coronavirus
• you intend to continue trading in 2020 to 2021 tax year
• your trading profits have been no more than £50,000 for either 2018 to 2019 tax year, or as an average of last 3 financial years
• your trading profits have been more than half of your total income for either 2018 to 2019 tax year, or as an average of last 3 financial years
• Trading profits do not include dividends paid from your own company to yourself.
Coronavirus Business Interruption Loan Scheme
If you are a small to medium-sized business (SME) you may be able to apply for a temporary loan, overdraft, invoice finance and asset finance of up to £5 million, for up to 6 years.
You may also be eligible for Business Interruption Payment to cover the first 12 months of interest payments and any lender fees. The government will give lenders 80% guarantee on each loan (subject to pre-lender cap on claims).
Self-employed people are also eligible for Coronavirus Business Interruption Loan Scheme.
You may be eligible for this scheme if you meet all of the following criteria:
your business is UK-based, with a turnover of no more than £45 million per year
you have a borrowing proposal which would be considered viable by the lender, if not for the current pandemic
you can self-certify that coronavirus (COVID-19) has adversely impacted your business
If you cannot pay your tax bill on time because of coronavirus, you may be able to delay it without penalty using HMRC’s Time to Pay service.
You may be eligible if you are a UK business that:
• pays tax to the UK government
• has outstanding tax liabilities
The above is not necessarily available to all businesses or individuals, we will of course help guide you where we can