COVID 19: Support for business 

We are here to support business, if after reading this document you have any questions please telephone or use the contact form on the site:-

Listed below are the key areas in which the Scottish and UK governments are supporting business. 

 

Please click on the hyperlink for detailed information

  1. Support for businesses who are paying sick pay to employees.

  2. Support for businesses through the Coronavirus Business Interruption Loan Scheme via the British Business Bank. The scheme will be interest free for 12 months.

  3. Support for businesses paying tax. from HMRC.

  4. Businesses will receive government grants worth up to 80% of wages to keep workers in jobs. The Coronavirus Job Retention Scheme will pay up to £2,500 per worker each month, helping those who are self-isolating or caring for loved ones.

  5. VAT payments for the next quarter will be deferred, so no business will pay any VAT for the next three months

 

A couple of points we would like to make:

VAT

We recommend your Vat return is submitted as normal, if you are due a repayment that will be issued by HMRC.

If you are on the direct debit scheme and you want to take advantage of the deferral period, cancel your direct debit with your bank or it may be automatically collected from your account.

Grants in Scotland

Retail, hospitality and leisure businesses with a rateable value between £18,001 and up to and including £50,999 will be able to apply for a one-off grant of £25,000.

A one-off grant of £10,000 will also be available to small businesses who get:

 

If you are not sure what your rateable value is, please use the following link and enter your details  

https://www.saa.gov.uk

To download the business support application form please follow the link below:-

http://www.moray.gov.uk/moray_standard/page_132568.html

https://www.highland.gov.uk/downloads/file/22478/small_business_grant_-_application_form

https://www.aberdeenshire.gov.uk/media/25154/coronavirus-fund_application-form-business-support.pdf

Job Retention scheme

This is available as from 1 March and can be backdated to then.

As an employer you should discuss with your employee their change to ‘furloughed workers’, and to have discussions with those affected. Changing the status of an employee remains subject to existing employment law and contract dependant, you may need specialised advice in Employment Law.

Employers will then be required to submit information relating to furloughed employees and their earnings to HMRC via a new online portal.

 

This has not been set up yet but will be available in due course.  If we handle your payroll, we will deal with that for you.

Employees should NOT work for you when they are classed as furloughed. This will enable employers to claim a grant of up to 80% of their wages for employee employment costs, up to a cap of £2,500 per month.

Workers are still classed as being employed for the period in which they are furloughed, and you can pay the differences between the payment from the government and their salary, but there is no mandatory requirement to do so. Therefore, if employee pay is reduced as a result of these changes, they may be eligible for Universal credit.

As yet we do not know if the scheme will apply to shareholders and directors and how the scheme will operate, details will hopefully be released soon and we will update this document.

The Scheme is expected to run for a period of at least three months, from 1 March 2020, but may be extended if necessary.

Proposed Protection for Self-Employed and Freelancers

We are waiting on developments regarding payments to the self-employed, hopefully in line with the Job Retention scheme.  Pressure is being applied on the UK government, including representations made by the Scottish government and others.

The House of Commons Public Bill Committee has proposed an amendment to the Coronavirus Bill, entitled Statutory Self-Employment Pay.

If accepted, it compels the government to introduce Regulations providing that "freelancers" (undefined) and "self-employed people" should receive guaranteed earnings of:

(a)  80% of their monthly net earnings, averaged over the last three years; or,

(b)  £2,917 per month

whichever is the lower.

The purpose of this amendment is to make the Government ‘top up’ self-employed workers’ earnings to the lower of 80% of their net monthly earnings or £2,917 a month.

Here are 2 useful links which discuss this proposal:
Amendment 1
Amendment 2

58 Moss Street, Elgin, Moray IV30 1LT

Contact Us  |  01343 552830  | 07833 451224

© 2019 Moray Tax Specialists

Hours

Monday - Friday: 9am - 5pm

Saturday: By appointment

Sunday: Closed

site design/developemenet petitetaway

© 2020. The content on this website is owned by us and our licensors. Do not copy any content (including images) without our consent. The privacy and security of your personal information is very important to us so we want to assure you that your information will be properly managed and protected by us at all times. Please read this privacy notice carefully as it explains how we may collect and use your personal data.  ​You can read the Privacy Notice Here. Read Our Terms , Here.