Chancellor has announced support for Self employed. More details to follow shortly in our COVID-19 Hub
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Many are impacted by the coronavirus outbreak, but for those in an Individual Voluntary Arrangement (“IVA”), this could lead to greater uncertainty and concern.
We have contacted all our debtors in Individual Voluntary Arrangements (IVAs) and agreed terms for the short term in this uncertain time. The changes however could have significant impacts for those in IVAs, especially where the proposals are written in such a way that they do not allow for flexibility, reduction in income, payment holidays or the discretion of the Supervisor etc. Any change from the proposals of an IVA require a variation approved by creditors, and this is still the requirement under the Insolvency Act 1986 (as amended, and enacted). It would hard to known how creditors would vote at this time, when many may be impacted themselves by the outbreak. Anyone in an IVA concerned, should
We have consulted with all our debtors in IVAs to advise of them of the support they can obtain, those still working have at least 80% of their wages, and fortunately our IVAs allow for a degree of flexibility to reduce payments by 15% without further creditor approval. Our proposals also offer repayment holidays, and as such we see no reason for any our of our Individual Voluntary Arrangements to be breached at this stage. EXTRA PROTECTION FOR BUSINESSES WITH BAN ON EVICTIONS FOR COMMERCIAL TENANTS WHO MISS RENT PAYMENTS The Government have announced that Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction.
Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction. As commercial tenants will still be liable for the rent after this period, the government is also actively monitoring the impact on commercial landlords’ cash flow and continues to be in dialogue with them. Tenants should be mindful, whilst protection is offered in the short term, the rental payments will still be due after the period of protection, and should make what payments they can afford in the meantime. The change will come into force when the Coronavirus Bill receives Royal Assent. It will last until 30 June, with an option for the government to extend if needed. If you have commercial premises and looking to manage your cashflow, please do not hesitate to contact us on Tel: 07972928153 or email: lucinda@lminsolvency.co.uk should you need assistance with forecasting, and knowing more about the options available to you.
KEY FUNDING FOR BUSINESSES
GOVERNMENTS PLAN
The Prime Minister and Chancellor announced a staggering £330 billion support package for businesses. Made up of several key schemes
KEY FUNDING AND SUPPORT FOR BUSINESSES
There is a lot of information already with regards to support from Government and it can be confusing of what is available and where to go for that support. In our video below we talk through the key financial support and funding available for businesses to help you get to grips with it all. ELIGIBILTYKEY FACTS Eligible if your business:
WHENAvailable now HOW TO APPLYIf you have missed a tax payment or you might miss your next payment due to the coronavirus outbreak, call HMRC on 0800 024 1222 . Opening hours Monday to Friday 8am to 8pm, and Saturday 8am to 4pm. or contact HMRC through www.gov.uk/government/news/tax-helpline-to-support-businesses-affected-by-coronavirus-covid-19 UPDATE 27/03/2020: the helpline number has been changed from 0800 0159 559 to 0800 024 1222 WHAT WE ARE FINDINGThe support available will depend on your individual circumstances, the level of liabilities and whether they are current liabilities, or ones that date back prior to the outbreak. Generally we are finding that HMRC are being supportive and understanding, offering the following;
REPAYMENT AND FEESThis is a deferral, or in effect a payment plan. You will still be responsible for paying 100% of your taxes. HMRC will however, waive late payment penalties and interest where businesses experience administrative difficulties contacting HMRC or paying taxes due to Covid-19. There is also currently a commitment to suspend debt collection proceedings. Also see separate guidance on Deferral of VAT DISCLAIMERS - DUE TO THE RAPIDLY CHANGING CIRCUMSTANCES WITH COVID-19, WE ARE UTILISING INFORMATION FROM GOVERNMENT SOURCES, THESE ARE TRUSTED SITES, BUT WE CANNOT BE HELD RESPONSIBLE FOR ANY INCORRECT INFORMATION OBTAINED FROM THEM OR INFORMATION ON LINKS TO THOSE SITES. THE INFORMATION PROVIDED HERE IS GENERIC IN NATURE, AND NOT SPECIFIC TO YOUR CIRCUMSTANCES, YOU SHOULD SEEK PROFESSIONAL ADVICE BEFORE ACTING ON ANY OF THE INFORMATION CONTAINED ON THIS WEBSITE AND IN PARTICULAR IN OUR COVID-19 HUB. PLEASE CONTACT US... WE ARE HERE TO HELP
THE HEADLINESto edit.
WHENDeferral available now, from 20 March 2020 to 30 June 2020. DEFERRAL OPTIONSIf you a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the options of:
HOW TO APPLYYOU DO NOT NEED TO APPLY or inform HMRC that you are deferring your payment, You will however still need to submit your VAT returns to HMRC on time, as usual. If you normally pay by direct Debit, you should cancel this payment ASAP if you are deferring payment, just in case HMRC's systems attempt to automatically collect on receipt of the VAT return. REPAYMENT AND FEESFURTHER SUPPORT WITH TAXESHelp is also available with other taxes - see our separate guidance DISCLAIMERS - DUE TO THE RAPIDLY CHANGING CIRCUMSTANCES WITH COVID-19, WE ARE UTILISING INFORMATION FROM GOVERNMENT SOURCES, THESE ARE TRUSTED SITES, BUT WE CANNOT BE HELD RESPONSIBLE FOR ANY INCORRECT INFORMATION OBTAINED FROM THEM OR INFORMATION ON LINKS TO THOSE SITES. THE INFORMATION PROVIDED HERE IS GENERIC IN NATURE, AND NOT SPECIFIC TO YOUR CIRCUMSTANCES, YOU SHOULD SEEK PROFESSIONAL ADVICE BEFORE ACTING ON ANY OF THE INFORMATION CONTAINED ON THIS WEBSITE AND IN PARTICULAR IN OUR COVID-19 HUB. PLEASE CONTACT US... WE ARE HERE TO HELP
THREE MEASURES TO HELP PROTECT RENTERS AND HOME OWNERS Government have announced mortgage lenders are to help those struggling to pay as a result of the coronavirus outbreak by providing 3 month payment holidays. However, if you were already in arrears prior to the outbreak this may affect you ability to obtain such support. Protection is also offered to renters, as landlords will be able to seek support from mortgage lenders. Again if you were already in arrears prior to the outbreak this may affect you ability to obtain such support. If you are struggling, in the first instance you should contact your mortgage provider or landlord
British energy suppliers have joined with the Government to help the most in need. Vulnerable customers can seek support with their utilities on the whole for a period of 3 months. This include those on pay-as-you-go meters. who are unable to leave their house. Which could include sending someone else to top up their card, having a pre-loaded gas or electricity card sent to them in the post, or having funds added to their credit. ![]() The Department for Business, Energy and Industrial Strategy has said that customers whom cannot afford to pay their bills will get support from their suppler. Those in financial difficulty could get their payments reassessed, or reduced where needed, furthermore no credit meters will be disconnected during the outbreak Many furlough workers will however be supported with wages throughout the outbreak, so support will be prioritised for those that need it most. If you are struggling speak to your utility provider for the options they are offering. We will provide further information on the implications of IR35 in due course, but for now rest assured that there are no changes as IR35 is delayed
The 2020 Budget saw the Chancellor unveil an ‘historic’ spending rise with some eye-watering sums, covering both the immediate challenge of the corona virus and the threat of recession, identified by the Office for Budget Responsibility.
Funded through £130 billion of extra borrowing rather than tax rises, though revenue raised from Corporation tax and Entrepreneurs’ Relief, and deficits becoming permanent rather than being phased out. BUDGET FOR THE CORONAVIRUS The measures complemented the emergency rate cut from the Bank of England and provide financial bridge during the outbreak, these measure include;
OTHER KEY MEASURES For other key budget measures and their implications of these, See Our News section RELATED ARTICLES: - Budget 2020 |
AuthorLucinda Matkin - Licensed Insolvency Practitioner & Chartered Accountant Archives
December 2020
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