There is a lot of information going out to businesses and employees at the moment about financial support. The information isn't static and is evolving daily. Many businesses will be frustrated and concerned.
One of our clients, RBSS Consulting is available to help you find the best way to keep your business afloat during these challenging times. At the time of writing this, 23 March 2020, the operational mechanisms for delivery and implementation are still being worked on. Here is what we know so far:
Money will not come directly from Government to businesses. It's a wholesale process and it's the Government British Business Bank that will be liaising with selected banks.
It is expected that by Tuesday 24 March, it will be clearer on how to get money out to businesses suffering now.
Key highlights however are:
1. The CBILS is being disbursed through the banks and even this is evolving with time
2. The schemes are taking time to set up and they think it will start to become available from Tuesday the 24th March
3. Some of the information is still changing rapidly
4. No matter how big or small you are, the government is saying that schemes will become available ranging from Universal Credit for Self Employed to Grants and Loans for SME's
5. Look at your insurance policy under the business interruption section to ensure that this is not covered as the Government will not double fund
6. Government will pay up to 80% of salaries of staff who are kept (where it can be proved that these staff are about to be let go due to the crisis) covering wages of up to £2,500 a month. Does that mean the employer still has to pay the balance? Probably, yes
7. Please note that GRANTS only relate to business rates and you will be contacted directly by the local authority and not vice versa if you are entitled to this
8. Relief for Statutory Sick Pay available
9. Mortgage Holidays even for Buy-to-Let properties
10. IR35 tax reforms postponed for a year
Are you facing Cash Flow problems right now?
If yes, then patience and forbearance is what is requested, local authority, trade bodies, banks and brokers are all getting operational mechanisms in place. The key thing to note is Grants are all rate related and Loans will be through banks most likely through the Enterprise Finance Guarantee (EFG)
More detailed information is available from the Government website. Here are the participating banks and partners.
TO BE ELIGIBLE FOR SUPPORT VIA CBILS, THE SMALL BUSINESS MUST:
To apply for an CBILS-backed facility, businesses may wish to consider approaching one or more participating lenders to discuss their borrowing needs.
There is a lot that is changing and information becoming obsolete in a matter of days. So please keep listening and reading, or contact RBSS Consulting directly on 0333 355 1696.
This week we are delighted to have a guest post written by Chartered Accountants Clemence Hoar Cummings. Read on to find out why businesses should be thinking about getting rid of their paper accounting systems and putting everything online...
Clemence Hoar Cummings will not accept liability for any actions or failure to act based on the information provided below. We consider that the advice contained below is generic and that there is no substitute for advice tailored to the needs and circumstances of the individuals or organisations to which the Making Tax Digital rules apply.
Making Tax Digital – The Essentials
- Includes Companies, LLPs, Partnerships, Sole Traders, Trusts, Non UK businesses
who are registered for UK VAT and charities
However, for Trusts, Not for Profit organisations that are not companies, VAT Divisions and Groups, Local Authorities, Traders based overseas, Annual Accounting Scheme users, the proposed start date is 1 October 2019
What is my Taxable Turnover?
Points to Consider on Requirement to Register
What do we need to do to comply?
Estate becomes vested in any other person as that person’s trustee under a trust deed
Can Spreadsheets be Used?
What is a Digital Link?
What is Functional Compatability?
Can I Adopt early?
- a partnership
- part of a VAT group
- based overseas
- Trust of NfP that is a company
- Submit monthly or annual returns
- Use flat rate scheme
- A new business
Digital Record Keeping Requirements
Data to be kept – Supplies Made
Data to be kept – Supplies Received
The VAT Accounts – Outputs
- amount owed on acquisitions from other EU member states
- Tax required to pay on behalf of suppliers under reverse charge procedure
- tax to be paid following a correction
The VAT Accounts – Inputs
Scale charge adjustments, partial exemption calculations, are not included in the list of
Reverse Charge transactions need care
Is that it for MTD?
The principles will be the same – requirement to maintain digital accounting records.
Who will that affect?
David Belbin is Managing Director of Clemence Hoar Cummings Chartered Accountants who have been providing accountancy advice and services to organisations and individuals in Havering since 1925. He can be contacted on 01708 333 300 or by email firstname.lastname@example.org