Today has been a day of radio silence in terms of further information from the Government on the various schemes available to our clients, so unfortunately we do not have too much more information to pass on.
The Business Interruption Loans, however, have now been rolled out as of yesterday, and a number of our clients have reported back that they are in the application process. Just in case it has passed you by through previous communications, below is a link of the accredited providers, and our suggestion is that your first port of call be your banking provider.
We have negative feedback from some clients that some providers (Barclays) are trying to sell their products before the CBIL backed scheme.
This is not a blanket lending scheme if your business is not viable or the bank would of lent it before the crisis I
We have also put together some FAQs below which address some of the most common questions we are being asked at present.
Are self-employed people eligible for the 80% grant, or what support is available to self-employed workers?
At present there is no 80% grant in place for self-employed workers as there is under the Job Retention Scheme for employed workers. This is something that has been heavily discussed within parliament today and over recent days, so we would expect some form of announcement in the coming days.
How do I apply for the Job Retention Scheme grant?
At present – there is no application process as HMRC are in the process of developing a portal for this. Employees will qualify for this if they have been designated as ‘furloughed’ – which means they must have been put on leave as there is no work for them. This is capped at £2,500 per employee.
Are Directors eligible to be designated as furloughed?
As it stands – we do not have an answer on this. This is one of the most common questions we are being asked, but given the vague information currently provided, we simply cannot answer yes or no. We would anticipate that the salary element of Directors’ wages would be covered, but any dividend top-up would not, but cannot confirm either way.
How does my business apply for the small business grant?
Any business occupying a property and receiving SBRR or RRR will be notified by their local authority of their eligibility for a £10k grant. There is no application process and you do not need to do anything. Local authorities will be in touch in due course. The same applies for any rates-based grants available, including the Business Rates Holiday and the Cash Grant for Retail, Hospitality and Leisure.
How does the VAT deferral work?
The VAT deferral applies from 20th March – 30th June 2020 – any VAT payments during this time can be deferred until the end of the 2020-21 tax year, and again, there is no application process. Any business who would usually pay VAT by Direct Debit does need to cancel this with their bank if they are going to take advantage of this deferral as HMRC will still try to take it. Any refunds/reclaims will be repaid by HMRC as normal.
In addition to the above, we are currently awaiting more information on the following key points:
- Will Directors be included in the 80% job retention scheme and be able to be listed as furloughed?
- Will there be any roll out for the self-employed to subsidise their wages whilst out of work outside of the Universal Credit option already offered?
- The roll out date for the online portal to reclaim 80% of the costs of furloughed workers under the job retention scheme
- A date from when the local authorities will be rolling out the rates-based grants
This is a good read
If you haven’t already, please join our Facebook group on the following link https://www.facebook.com/groups/kentbizCoronavirus/ where Kurt will be posting updates as and when he has more information and answering any queries you may have.