Today we continue our regular communications to provide news updates on the Coronavirus support available for businesses as follows:

  • Self Employed Income Support Scheme – Claims for the scheme opened today. We have already heard from clients who have successfully lodged claims and they are all saying that the application process is straightforward. Currently there has been no announcements of the scheme being extended. A reminder of some key points:
    • We are unable to make the claim on your behalf
    • Those eligible will need to make your own claims
      • You can check eligibility at https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference
        • You will need you Unique Tax Reference (UTR) Number and Your National Insurance (NI) number to check your eligibility
      • You will then be told if you are eligible or ineligible
        • If you are eligible it will give the date and time you can make a claim from and it will also take you to the next important stage, to set up your own Government Gateway ID. You must have this ID to make a claim. You will need various personal information to apply for this ID including
          • Email address
          • Passport details / other personal details to validate application
        • If you are ineligible it will not give you a specific reason. It will give you the option to ask HM Revenue & Customs to review your eligibility
      • A recap of the eligibility criteria for the Self Employed Income Support Scheme
        • The Self Employed will receive support, at the same level as employed staff – 80% of average taxable profit, up to £2,500
        • This will be paid via a taxable income support grant
        • HM Revenue & Customs will calculate the monthly sum based upon the tax returns submitted for 2016/17, 2017/18 and 2018/19
        • Those with taxable profits exceeding £50,000 will not receive the grant
        • In addition, the majority of income should come from self employment
        • Company owners who pay via dividends are not covered by this scheme
      • Contrary to some rumours that have been circulating, there is no deadline for claims to be made
    • Furlough Scheme – The Chancellor announced yesterday that the scheme is being extended to October, which is good to hear.
      • He mentioned that he would look to employers to share the costs of the scheme from August. We await further details
      • He also mentioned that he was looking into the possibility of employees returning to work being able to be part furloughed. Again, we await further details
      • For clients where we complete payroll, please update us to changes in your status i.e. when employees are being put on furlough or coming off furlough. We will shortly be starting to complete May payroll and furlough claims and will need to re-check status
    • Coronavirus Business Bounce Back Loans (BBL) – This scheme is still available and still looks extremely good. Sole Traders and Partnerships are able to make applications, as well as Limited Companies. Contact your bank for more details, but the headline details are:
      • Online, easy, applications
      • Loans paid out in days
      • Loans available between £2,000 and £50,000, up to a maximum of 25% of turnover
      • The Government is guaranteeing 100% of the loan
      • No interest in the first 12 months. Low interest rate of 2.5%!
      • No repayments within the first 12 months
      • Loan terms of up to 6 years
      • No early repayment penalty
      • There are some eligibility criteria
        • Business has been negatively affected by coronavirus
        • Business was not an ‘undertaking in difficulty’ on 31 December 2019. There is a form to complete to answer this question
        • Those already claiming funding under CBILS will not be eligible
      • CBILS of up to £50,000 will be transferable to this scheme

At Smarter Accounting, although the Offices are closed, we remain open for business and are fully operational. If you want to discuss any issues, or have queries, please don’t hesitate to call, or email us.

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Best wishes and stay safe.