As schools and businesses re-open, you may finally be able to fully assess the true impact on your business finances. With the Coronavirus Business Interruption Loan (CBIL) coming to an end, now is the time to check.
Throughout the crisis we’ve encouraged you stay right up to date with your figures. Decisions you make as you reopen, restock and pay staff are crucial to surviving the coming months and must be based on more than guess work.
Nerves of Steel…
Held out and didn’t apply for a Coronavirus Business Interruption Loan (CBIL) straightaway? You may feel you’ve weathered the storm.
However if finances are stretched and business is slow to pick up, you could still need support to survive the coming months.
If this is the case you need to act fast as CBILs are ceasing on 30th September. If you may need to borrow soon, these are some the best deals you can get. Including 12 months interest free and no early repayment charges if you don’t need it and decide to pay it back.
Still need up to date figures and advice on what steps to take next? Need some-one to help you thrash out ideas and make key decisions? Please ring you Client Manager.
What ever else you do, please don’t wait until its too late to ask for help. The Coronavirus Business Interruption Loan is nearly gone!
Is Kickstart a No Go for Small Employers?
In a devastating blow the finer details of Kickstart were revealed leaving many small businesses in dismay.
Big or small, national or local…
Rishi Sunak initially urged employers “big or small, national or local” to hire as many Kickstarters as possible, however the scheme states that Employers must offer a minimum 30 placements to qualify!
As most small businesses couldn’t cope with 30 placements, is it a no-go for them?
There is an option for small businesses to partner with another organisation, such as a local authority, chamber of commerce or registered charity, who would then make a combined bid for those businesses. Or they can join forces with other adjoining businesses and nominate a group representative to make the application.
How this will work in practice is yet to be seen- We will keep you posted.
What is Kickstart…
- Employers can offer a six-month work placement to 16-24 year olds who are currently on universal credit.
- Jobs must be a newly created and develop basic skills and future employability
- The Department for Work and Pensions (DWP) will choose job applicants
- Youngsters will be referred to roles through their JobCentre Plus work coach.
- The government expects the first Kickstarter to begin at the start of November
- The placements will be subsidised 100% of the age-relevant National Minimum Wage, national insurance and pension contributions for 25 hours a week.
VAT-Getting your Money Back
Did you want to take advantage of the Government Coronavirus option to defer your VAT payment but forgot to cancel the Direct Debit in time? If you need the cash now to keep operating you can get a refund.
A refund can be claimed if a Direct Debit was not cancelled in time.
The quickest way for customers to claim a refund is to submit a Direct Debit Indemnity Claim to their bank. When doing so they must ensure they state they want to claim a refund under the Direct Debit Indemnity Scheme (DDI). There is no time limit in making this request.
If the customer wants a repayment from HMRC rather than contacting the bank, they must ensure that their bank details are updated using the online services. Due to COVID-19 restrictions, Payable Orders are not being issued.
To confirm, it may take 21 days for the refund to be received if the Direct Debit Indemnity Claim process is not used.
VAT on Compensation?
HMRC reversed their stance on whether VAT is due in all cases of early termination of a contract.
The new guidance at VATSC05920 states, “HMRC’s policy is to treat payments arising out of early contract termination as consideration for a taxable supply. Businesses must account for VAT on these fees. This applies in cases where the original contract allows for such a termination, as well as when a separate agreement is reached.
This is a very complicated area. If you are dealing with an early termination of a contract and need advice on how to treat the VAT we strongly urge you to contact us for further guidance.
Here’s how we’re protecting you and our team from cross infection:
- We will be continuing to hold virtual meetings for the foreseeable future. These have proved very successful during lock-down.
- To limit unnecessary journeys for you and potential cross infection, we also ask you to send your records electronically. Please give us ring if you need any help with this.
- To maintain safe numbers of people in reception, if you do need to come to our offices for any reason please ring in advance to arrange a safe time.
- To attend an appointment you must complete our online health assessment before you arrive and then use the hand sanitiser, record your temperature and follow our H&S procedures.
- If your temperature exceeds 37.5 we will unfortunately need to rearrange your appointment as a zoom call.
- If you do turn up unannounced please ring from your car to see if it is safe to come in.
We thank you for your patience and understanding
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