Bounce back loans

Being available from Monday 4th May, these look like they will worth having for any small business. Quick and easy to apply for, loan up to 25% of turnover (£2K to £50K), no interest or repayments for a year, 100% government backed. Just not for businesses that were previously in financial distress.

The bounce back loan scheme lets businesses apply for a loan of up to 25% of their annual turnover, up to a maximum of £50,000, with the Government paying the interest for the first twelve months. These loans will be available from 9am next Monday.  There will be no complex eligibility requirements, no forward-looking tests of business viability. Just a simple, quick, standard form for most businesses to fill in. And loans should arrive within 24 hours of approval. For this specific scheme, the Government will support lending as well by guaranteeing 100% of the loan for the lender. These new bounce back loans target that small extra support for those who need it most. And that will support our…

Support for business during Covid-19

Matt Parrett of Tax Shop Accountants discusses the measures put in place by the Government to support business during the pandemic.
To watch a short video, click here

Help for self Employed update 26/3/20

A new scheme known as the SELF EMPLOYMENT INCOME SUPPORT SCHEME was introduced on 26th March.

Help is at hand for most self employed people, full details of what has been published below. Limited company "1 man bands" unfortunately do not count as self employed and will only be able to claim 80% of salary (pre March 2020, so no backdating) under the CV Job retention scheme as a furloughed employee.

I understand that the self employed will still be able to work to qualify for the money, but they will need to have suffered loss as a result of the CV. There is no guidance as to how much of a loss they will have had to suffer. More will follow I am sure. But you ARE allowed to carry on working
Broadly the money, payable in June at the earliest will come as a lump sum and will be based on average profits (after expenses) of the 3 years ending 5 April 2019. It seems likely that this will be the taxable profit (i.e if you bought a van say in one of the years, that would could reduc…

Can I go to work? Update 23/3/2020

Below is the government small-print on whether you can go to work, easier to read here. It seems to me that you can therefore travel to work if your work is not one that can be carried out at home. So for example it would appear therefore that if you are a self employed gardener you can travel to work to do your gardening? But for example, my accountants who can all work from home, are not allowed to travel to work. Perhaps some government examples would be useful.

NEW RULES ON STAYING AT HOME AND AWAY FROM OTHERS The single most important action we can all take, in fighting coronavirus, is to stay at home in order to protect the NHS and save lives. When we reduce our day-to-day contact with other people, we will reduce the spread of the infection. That is why the government is now (23 March 2020) introducing three new measures. 1. Requiring people to stay at home, except for very limited purposes 2. Closing non-essential shops and community spaces 3. Stopping all gatherings of more th…


The proposed role out of IR35 within the private sector has been deferred for a year until April 2021. This may be too late for many, as several contractors may already have taken permanent jobs. Please email me or call me directly for specific advice relating to your personal situation.

Government backed loans

Businesses should be able to access loans more easily now, as the emergency scheme gives lenders 80% cover on the loan, should you fail to meet repayment terms. Updated info below on 12 months interest free and no upfront costs.

Have had this from a lender:
This is a business interruption loan scheme supplied by the banks to assist businesses to access working capital to assist with the day to day expenses both during the pandemic and also to assist with the post pandemic restartLoans are available from £25,000 to £5,000,000Term of 1 to 6 yearsFirst 12 months will be a fixed rate of 0%Capital repayment holidays of 6 or 12 months are also available for the first 12 months of the loanFee free loan (no arrangement fee, no security fee etc.)Loans of £25,000 to £100,000 will be secured by Personal Guarantees from all active directorsLoans of £100,000 to £250,000 will be secured by Personal Guarantees from all active directors and a debenture from the companyLoans of £250,000+ will be secure…

£10,000 for small businesses.

Full details published here on the conditions for the grants for business rates paying businesses - all businesses £10,000, Retail, Hospitality and Leisure up to £25,000.

Nursery business rates holiday

Self explanatory - see government notes in red below

Support for nursery businesses that pay business ratesWe will introduce a business rates holiday for nurseries in England for the 2020 to 2021 tax year. EligibilityYou are eligible for the business rates holiday if: your business is based in EnglandProperties that will benefit from the relief will be hereditaments: occupied by providers on Ofsted’s Early Years Registerwholly or mainly used for the provision of the Early Years Foundation StageHow to access the schemeThere is no action for you. This will apply to your next council tax bill in April 2020. However, local authorities may have to reissue your bill to exclude the business rate charge. They will do this as soon as possible. You can estimate the business rate charge you will no longer have to pay this year using the business rates calculator. Further guidance for local authorities is available in the nursery discount guidance.

Retail, hospitality and leisure businesses

Grants are being promised for businesses in these sectors, check HMRC small print. The money will be paid via the Council and you will need to have a business rates bill in the name of the business to receive the funding. There is nothing to do at this stage to claim.

Support for retail, hospitality and leisure businesses that pay business ratesBusiness rates holiday for retail, hospitality and leisure businessesWe will introduce a business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year. Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority as soon as possible. EligibilityYou are eligible for the business rates holiday if: your business is based in Englandyour business is in the retail, hospitality and/or leisure sectorProperties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used: as shops, restaurants, cafes, drinking estab…

Statutory sick pay (SSP)

This is to be be paid for 2 weeks, so please ensure if we do your payroll that you advice us if you are off work because of Covid 19 - the government will reimburse the amount to your company

Support for businesses who are paying sick pay to employeesWe will bring forward legislation to allow small-and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. 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-19employers 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 2020employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19employers should maintain records of staff absences and payments of SSP, but employees will not need to…

July 2020 tax payment for self employed taxpayers

You will not need to pay your July tax bill. This will be deferred to Jan 2021. You need to be self employed for this to apply.

Income TaxFor Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021. EligibilityIf you are self-employed you are eligible. How to access the schemeThis is an automatic offer with no applications required. No penalties or interest for late payment will be charged in the deferral period. HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities.