DSM Chartered Accountants – Business Coronavirus News update, 24th March 2020
1. Government updates and information for business :-
The below links have the latest Government advice for businesses, following the PMs address at 8.30pm on 23rd March.
2. Government support with tax and VAT liabilities :-
VAT Return liabilities coming due in the next 3 months, to 7th June 2020, are now automatically deferred for payment but must be paid before 31st March 2021. Customers who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT return.
For PAYE and Corporation Tax deferred you still have to phone HMRC on the new coronavirus support helpline 0800 0159 559 and ask for a 3 month ‘Time To Pay’ arrangement.
Self-Assessment income tax payments due on 31st July 2020 are now automatically deferred for payment until 31st January 2021. No need to contact HMRC.
3. Bank ‘coronavirus business interruption loan’ scheme :-
All UK Banks have today launched the Government announced ‘coronavirus business interruption loan scheme’, with favorable loan terms on a fully repayable loan. Please contact your current Bank first but the below link provides a list of all lenders approved for the scheme :-
The new loan scheme terms are as follows but we understand terms can vary from bank to bank :-
• Loans are available from £25,001 to £5m
• Available from 1-6 years
• No interest is Payable for 12 Months, paid by Government
• Interest should be circa 1.5% per annum
• Capital Repayment Holidays are available for 12 months as well
• Loans are limited to 25% of the business’ turnover in 2019, or double the annual wage bill.
Please note Banks will not lend under the new scheme if an existing loan or overdraft product is more appropriate for your Business. We recommend you discuss your requirements first with your Bank’s local business manager who should informally advise confirm the Bank’s options for your Business.
If you have any questions please do not hesitate to contact your client manager at DSM or email us on [email protected]