Last night we were pleased to see the package announced from the UK Government to support self-employed people affected by the Coronavirus crisis. We asked some of our accounting firm Associates what this means for our members and their thoughts on the situation.
Big Star Business Management – bigstarbiz.co.uk
Published 27th March 2020.
THAT BLOODY VIRUS………
We are living in very testing times and our absolute priority should be to look after those we love but we also have to live. The Government’s support approach has been pretty swift, offering a wealth of packages aimed at getting us to the other side, but beware there is plenty of misinformation out there. We should also exercise a degree of patience, think about the volume of claims that are going to be processed, and via an infrastructure that in most cases is yet to be made available. HMRC have recruited significant resource to help here but you will not receive anything next week, or probably next month. So cashflow is key, make it last!
Wading through what’s available to determine eligibility is key. Make sure you claim for everything that you are due but don’t abuse the system. HMRC are not daft and will be policing claims so anything untoward will be penalised. Everyone needs to get what they deserve right? So lets share it out properly and legitimately.
Here’s a list of what’s available. Probably not comprehensive as I’m sure (hope) there’s more to come:
Outside of Government, review your overheads, talk to your landlord and other suppliers with a view to achieving a discount or a delay of non-essential expenditure. For a business it’s all about cashflow.
We have to get through this, its difficult both financially and mentally. Use your time to catch up on the boring stuff such as admin that been hanging around for ages and start planning for the future. Stay positive and don’t watch the news too often.
SRLV – srlv.co.uk
Published 27th March 2020.
Self-Employed Income Support Scheme
Last night the Chancellor announced the Government’s new Coronavirus business grant for the self-employed.
We only have the outline so far, and it may be some days or weeks before further information becomes available:
This scheme will be administered only through the official gov.uk website. If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam.
The Chancellor gave a strong hint that the quid pro quo for this assistance was that National Insurance rates for self-employed would be raised to be equal to the rates paid by employees, but he refused to be drawn into giving further details and the change would therefore not appear to be imminent.
Other measures have previously been announced that can be accessed by the self-employed, including:
As noted before, any payment of VAT due in the period now until the 30 June can also be deferred until 5 April 2021, and we would remind businesses to cancel their Direct Debit if they normally pay their VAT this way.