by Nabeel Chohan, AcceleratingCFO Consultant (UK)
Nabeel has extensive experience in management of financial reporting for global organizations, primarily within technology, media and entertainment sector. Nabeel played an instrumental role in M&A due diligence which lead to successful sale of Saffron Digital (c/o HTC Corporation) to a PE firm. He also played a key role with other high growth companies, managing finance, supporting management, securing funding, and raising capital. Nabeel is a Chartered Certified Accountant licensed in London, United Kingdom.
During this unprecedented situation, we would like to first pass on our best wishes to you and your families. We’re all in this together. We know that you are aware of the potential impact of Coronavirus (COVID-19) on your businesses.
Chancellor of the Exchequer, Rishi Sunak, has set out a package of temporary, timely and targeted measures to support public services, people, and businesses through this period of disruption caused by COVID-19.
This includes a package of measures to support businesses including:
Coronavirus Job Retention Scheme
– This applies to employees who have been asked to stop working, but who are being kept on the payroll, otherwise known as ‘furloughed workers’ (Click here to read more about furlough workers). HMRC will reimburse 80% of their wages, up to £2,500 per month. This is to safeguard workers from being made redundant.
– The Coronavirus Job Retention Scheme will cover the cost of wages backdated to 1 March and is initially open for 3 months, but will be extended if necessary.
Deferring VAT and Income Tax payments
If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to:
– defer the payment until 31 Mar 2021; or
– pay the VAT due as normal.
Self-employment Income Support Scheme
– The Self-employment Income Support Scheme (SEISS) will support self-employed individuals (including members of partnerships) who have lost income due to coronavirus (COVID-19).
– This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.
Statutory Sick Pay relief package for small and medium sized businesses (SMEs)
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.
HMRC Time To Pay Scheme
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.
These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
– Business rates holiday for 12 months — for all retail, hospitality, leisure and nursery businesses in England.
– Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief.
– Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000.
– Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank.
– New lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans.
If you feel you may need to access any of these schemes, we can assist with the preparation of supporting evidence to support your claim.
To find out how we can assist you with your application or for any advice on the facilities being offered by a lender, please contact our London branch.