Morgan Hemp & Co - Tax Tips & News

GUIDANCE FOR OUR CLIENTS - CORONAVIRUS (COVID-19)
UPDATE 26th MARCH 2020

Since our initial COVID-19 business support e-mail issued on Monday there have been a number of clarifications and developments from the Government we would like to bring to our clients attention.

The majority of our staff are now working from home but our office remains open and our telephone lines are manned. We are available to offer support and advise in relation to the impact COVID-19 has had on your business. In addition we are still available for general business and tax advice and we will continue to complete your accounts, VAT, payroll and tax returns in a timely manner.

Supporting your business- Updates:

Taxation Payment Deferrals:

The VAT Payment Deferral – This scheme is automatic with no application required. During the period 20th March 2020 to 30th June 2020 businesses will not need to make a VAT payment. You will have until the 5th April 2021 to pay any liabilities that have accumulated during this deferral period.
Clients who normally pay by direct debit should cancel their direct debit with their bank if they wish to use the payment deferral. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT return.
The Income Tax Payment Deferral –Individuals will have the option to defer their 31st July 2020 tax payment. The 31st July 2020 tax payment will be payable by the 31st January 2021 (along with the standard 31st January 2021 tax payment).
HMRC have now clarified that this option is available to all Income Tax Self-Assessment individuals not just the self-employed.

Companies House – 3 month extension period during COVID-19:

From the 26 March 2020, businesses will be able to apply for a 3-month extension for filing their accounts. This joint initiative between the government and Companies House will mean businesses can prioritise managing the impact of Coronavirus. As part of the agreed measures, while companies will still have to apply for the 3-month extension to be granted, those citing issues around COVID-19 will be automatically and immediately granted an extension. Applications can be made through a fast-tracked online system.

Coronavirus Job Retention Scheme:

We have received a number of calls from clients who have 'furloughed' their employees without agreement from their employees and/or seeking legal advice. We strongly recommend that clients seek legal/HR advice before doing this.

Business Rates Grants - Wales:

Business Wales have compiled a list at https://businesswales.gov.wales/covid-19-grants of links to local authority websites for qualifying businesses to claim available grants. Please note at the time of writing this e-mail some authorities have not yet setup a webpage, those authorities are greyed out.
Grants available:
- A £25,000 grant will be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £12,001 and £51,000.
- A £10,000 grant to all businesses currently eligible for small business rate relief (SBRR) or rural rate relief.
If you would like us to review whether you are eligible for one of the grants and/or process the claim, please send us a copy of your most recent Rates Demand Notice.

Commercial Property:

Commercial property tenants who cannot pay their rent because of COVID-19 will be protected from eviction. These measures will mean no business will automatically forfeit their lease and be forced out of their premises if they miss a payment up until 30 June. Please note this is not a rental holiday. All commercial tenants will still be liable for the rent.

Development Bank of Wales:

The Development Bank of Wales has loan and equity funding available immediately to Welsh businesses. The Welsh Government is working closely with the Development Bank of Wales to consider additional support to help businesses through the COVID-19 impact. For further information please visit the Development Bank of Wales website at https://developmentbank.wales/.
Existing Development Bank of Wales customers will be offered a three-month capital repayment holiday to help them manage the financial fallout from the virus.

COVID-19 Scams:

We recommend our clients remain vigilant for COVID-19 scams. There has been a surge in opportunistic coronavirus-related scams totalling almost £970,000. The National Fraud Intelligence Bureau (NFIB) reported this new trend in fraud related to Coronavirus, or COVID-19.

Support for the Self-Employed:

There has been no official announcement with regard to support for the self-employed. However we are expecting an announcement soon as draft legislation 'Coronavirus Bill 2019-21' includes an amendment to support self-employed people with a 'Statutory Self-Employment Pay'.
Please note the passage of the Bill may result in other amendments or even removal of the above.

Further Resources:

A new-website has been launched to help businesses find out how to access the support: https://www.businesssupport.gov.uk/coronavirus-business-support/. This website contains details on the various schemes available to businesses.

We will continue to communicate updates as and when they become available to us.

Please do not hesitate to contact us if you wish to discuss any of the above points or how COVID-19 is affecting your business generally.

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Disclaimer
The information contained in this newsletter is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.