COVID-19 Practical Advice from HJS Recovery - As of 6 November 2020

COVID-19
Practical Advice
from HJS Recovery
As of 6 November 2020

We’re here to help

We continue to receive updated guidance issued from government on a regular
basis. On top of personal concerns regarding health and wellbeing of family and
friends, we understand that business owners must feel rather overwhelmed.
This document continues to summarise the key updates and support packages
currently available so you can view them in one place.

Our team is here to help, whenever you need us:
Shane Biddlecombe    shane.biddlecombe@hjsrecovery.co.uk   07867 503695
Matt Hoy             matt.hoy@hjsrecovery.co.uk            07776 719311
Gordon Johnston      gordon.johnston@hjsrecovery.co.uk     07775 627888

Coronavirus Job Retention Scheme
(CJRS)
As of 5 November 2020 the Coronavirus Job Retention Scheme has been extended
until 31 March 2021.

Provision is at the same level as that given for August, with employees receiving
80% of their salary for hours not worked, capped at £2,500 per month. Employers
have to cover National Insurance contributions (NICs) and workplace pension costs.

https://www.hjsrecovery.co.uk/take-two-furlough-scheme-extended/

Self-Employed Income Support
Scheme (SEISS)
Two further grants under the self-employed income support scheme (SEISS) were
announced in September and have now been updated following the second
lockdown.
The new extension covers a six-month period divided into two additional grants.
The level of the upcoming third grant has now been increased from the original
40% to 80% of average monthly profits – even higher than the 55% set out at the
end of October. Applications for the third grant covering the three months from
November 2020 to January 2021 will open on 30 November and will be capped at a
maximum of £7,500, paid in a single instalment.
The fourth grant will cover the three months from February to April 2021, however
no further details have been released as yet.
https://www.hjsrecovery.co.uk/chancellor-extends-self-employed-grant/

Deferral of VAT and Income Tax
Payments
For the period between 20 March 2020 and 30 June 2020, businesses were able to
defer making a VAT payment.
Originally deferred until 5 April 2021, the Chancellor announced on 24 September
that instead of paying the full amount by the end of March 2021, businesses can
make smaller payments up to the end of March 2022, interest free.
You will need to opt-in to the scheme, and for those who do, this means that your
VAT liabilities due between 20 March and 30 June 2020 do not need to be paid in
full until the end of March 2022.
Those that can pay their deferred VAT can still do so by 31 March 2021.
https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-
19

Self-Assessment Tax Deferral

The self-employed and other taxpayers will be given more time to pay taxes due in
January 2021, building on the self-assessment deferral provided for payments on
account in July 2020.
Taxpayers with up to £30,000 of self-assessment liabilities due will be able to use
HMRC’s self-service Time to Pay facility to secure a plan to pay over an additional 12
months. This means that self-assessment liabilities originally due in July 2020 will
not need to be paid in full until January 2022. Any self-assessment taxpayer not
able to pay their tax bill on time, including those who cannot use the online service,
can continue to use HMRC’s Time to Pay Self-Assessment helpline to agree a
payment plan.

HMRC Time To Pay Service

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. You are eligible if your business pays tax to
the UK government and has outstanding tax liabilities.
If you have missed a tax payment or you might miss your next payment due to
COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559. If you’re worried
about a future payment, please call them nearer the time.

Bounce Back Loan Scheme

The BBLS provides loans of between £2,000 and £50,000, capped at 25% of turnover, with
a 100% government guarantee. Under the original BBLS, the borrower did not have to
make any repayments for the first 12 months, with the government covering the first 12
months’ interest payments. The maximum loan repayment term was six years.
Under new ‘Pay as You Grow’ options for BBLS:
• New and existing borrowers will have the option to repay their loan over a period of up
  to ten years.
• UK businesses will also have the option to move temporarily to interest-only payments
  for periods of up to six months. This option can be used up to three times.
• Alternatively, businesses can pause their repayments entirely for up to six months,
  although this option is only available after six payments have been made and can be used
  just once.
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

Coronavirus Business Interruption
Loan Scheme (CBILS)
CBILS has been significantly expanded along with changes to the scheme’s features
and eligibility criteria. The changes mean even more smaller businesses across the
UK impacted by the coronavirus crisis can access the funding they need.
Importantly, access to the scheme has been opened up to those smaller businesses
that would have previously met the requirements for a commercial facility but
would not have been eligible for CBILS. Insufficient security is no longer a condition
to access the scheme.
This significantly increases the number of businesses eligible for the scheme.
As of 2 November, the Government announced CBILS will be extended until 31
January 2021.
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) will continue in
its current form until the end of November.

Business rates discount & VAT cut

The Government introduced a business rates holiday for retail, hospitality and leisure
businesses in England for the 2020 to 2021 tax year.

As of 15 July, the government introduced a temporary 5% reduced rate of VAT for
certain supplies of hospitality, hotel and holiday accommodation, and admissions to
certain attractions. This cut in the VAT rate from the standard rate of 20% has been
extended to until 31 March 2021 (previous set to end on 12 January 2021). .

Covid-19 Corporate Financing Facility

The Covid-19 Corporate Financing Facility, targeted at large businesses and
operated by the Bank of England, will remain open until 22 March 2021. Where a
company has exhausted all other options, and is of strategic importance to the UK,
the government may also consider providing bespoke financial support.