I hope you are keeping safe and well, physically and emotionally. We’re looking forward to the governments announcements on Thursday so that we can start to set out our own plans for taking baby steps forward to getting back to “normal” working.
There have been numerous updates to schemes of which I have highlighted a few below:
Self-Employment Income Support Scheme (SEISS)
- This week, HMRC will start to contact individuals who may be eligible for the new SEISS
- If you are eligible, you will be allowed to claim a taxable grant worth 80% of your average monthly trading profits up to a maximum of £2,500 per month, paid out in a single instalment covering 3 months and capped at £7,500 for the total 3 months
- If you receive the grant you can continue to work
- Once you have been contacted, HMRC will let you know how to claim for the grant but you will need to make sure that you have an online government gateway so please apply for one if you don’t already have access
Unlike the employer business furlough scheme, we believe that we will not be able to apply for these grants through our agent government gateway therefore it is really important to make sure that you have access to your own government gateway.
For more details please see the following link: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
Bounce Back Loan Scheme
- This scheme went live yesterday and allows small and medium businesses to borrow between £2,000 and £50,000
- This scheme is 100% guaranteed by the government (the tax payer )
- There will be no fees or interest to pay for the first 12 months
- Loan terms will be up to 6 years with no repayments due during the first 12 months
- You cannot claim if you are already claiming under the CBIL scheme but you can arrange to transfer this (once received) to a bounce back loan prior to 4 November 2020
The government has said the process for bounce back loans will be less onerous than CBILS and from our customer feed back and trade groups that we are associated with do seem to be putting the thumbs up on this, although certain banks did experience difficulties with their websites yesterday but hopefully these will be ironed out fairly swiftly. Furthermore, the interest rate on these loans should be low in line with governments discussions with the lenders. For details of accredited lenders please see the following link: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/current-accredited-lenders-and-partners/
Coronavirus Job Retention Scheme (some reminders)
- This scheme is now open and available for employers who have furloughed workers
- The scheme was extended to 30 June 2020
- If we have been appointed as your agent to act on your behalf, we are able to administer the furlough application process
- Employees are NOT able to work if they have been furloughed – it is an offence to do so and HMRC will have the power to audit furlough applications up to five years after the application
The chancellor is reported to have said there will be not be a “cliff-edge” end to the CJRS however we will continue to update as things change.
For further details on the CJRS please see the following link: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme
Pease stay safe, stay positive and keep smiling,