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COVID-19 BLOG

Support for self employed announced

26/3/2020

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Chancellor has announced support for Self employed.
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More details to follow shortly in our COVID-19 Hub
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COVID-19: WHAT TO DO IF YOU ARE IN AN IVA

24/3/2020

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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
  • First review their proposals and the terms and conditions of those proposals.
  • Consider their current position, whether.
    • Employed and still working,
    • a furloughed worker and receiving 80% of wages (or full wages topped up by employer); or
    • self-employed or freelancer with reduced income
  • Depending on your employment status, consider the government support available (See our summary in our COVID-19 Hub)
  • Consider whether you can obtain repayment holidays for mortgages and secured loans excluded from the IVA
  • Given all the above then assess whether you are impacted financially, and whether there is scope within your proposals to balance your monthly commitments and IVA contributions. (Your Supervisor should assist you with this)
  • You also have a duty to notify your Supervisor of any changes in circumstances, whilst they will be aware of the coronavirus outbreak, you should notify them of any specific changes to your circumstances.
  • Remember missed payments will be a default of the terms and count towards a breach of the IVA. This could impact the successful completion of your IVA, it is therefore wise to speak to your Supervisor and plan cashflow as soon as possible, to know your options.

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.
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PROTECTION FOR COMMERCIAL TENANTS

24/3/2020

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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.
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SUMMARY OF FUNDING ANNOUNCED

23/3/2020

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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
  • A Job Retention Scheme
  • Coronavirus Business Interruption Loan Scheme
  • Deferment on VAT
  • Deferment on Income tax under Self Assessment system
  • Grants and Rate Relief
​
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. ​
​
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HELP WITH TAXES

22/3/2020

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SUPPORT FOR BUSINESSES PAYING TAX​

​THE SUPPORT
All businesses and self-employed, whom are struggling to pay their tax liabilities (PAYE/NIC or corporation tax), may be eligible to receive support through the HMRC Time to Pay Service
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​ELIGIBILTY

KEY FACTS
Eligible if your business:
  • ​​pays tax to the UK government; and
  • Has outstanding tax liabilities

WHEN

Available now

​HOW TO APPLY

If 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 FINDING

The 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;
  • Deferral for 3 months; or
  • Time to pay arrangement over 12 months; or
  • Combination of the two, with 3 months deferral, and if you still unable to pay your liabilities at the end of the 3 months an option of a time to pay over 9 months
We must stress however, the options available will depend on your individual circumstances and liabilities.
​


​REPAYMENT AND FEES

This 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.
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IMPORTANT - CAUTIONARY NOTE: You will still be responsible for paying your taxes
​If you defer payments, you should consider the impact on future cash flows, and your ability to cover the payments later

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
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GOVERNMENT UPDATE

22/3/2020

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DEFERRAL OF VAT

21/3/2020

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THE HEADLINESto edit.

​THE ANNOUNCEMENT
The Chancellor announced a VAT payments deferral on 20 March 2020 to support businesses through the COVID-19 outbreak, to ease cash flow

ELIGIBILITY

KEY FACTS
Each lender will have there own criteria, but to eligible to apply your business must meet the following;
  • ​Be UK based business 
  • VAT registered
  • Does NOT cover VAT MOSS (MINI ONE STOP SHOP) payments, Import VAT and/or Duty where formal Time to Pay Arrangements will need to be agreed with HMRC instead.
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WHEN

Deferral available now, from 20 March 2020 to 30 June 2020.
​


​DEFERRAL OPTIONS

If 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:
  • defer the payment until a later date, paying any vAT due on or before 31 March 2021; or
  • pay the VAT due as normal
VAT reclaims and refunds will be processed and paid as normal during this time
​


HOW TO APPLY

​YOU 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 FEES

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Deferred VAT must be paid by 31 March 2021
IMPORTANT - CAUTIONARY NOTE: This is a deferment, you will still be responsible for paying 100% of the VAT due, and should consider the impact on current and future cash flows and borrowing

​FURTHER SUPPORT WITH TAXES

Help 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
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GOVERNMENT UPDATE

21/3/2020

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GOVERNMENT UPDATE

20/3/2020

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GOVERNMENT ALERT: HELP WITH MORTGAGES AND RENT

18/3/2020

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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.
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If you are struggling, in the first instance you should contact your mortgage provider or landlord
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GOVERNMENT ALERT: SUPPORT WITH UTILITIES

18/3/2020

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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.
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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.

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GOVERNMENT UPDATE

18/3/2020

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GOVERNMENT Alert - IR35 Delayed

14/3/2020

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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
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BUDGET 2020 FOR CORONAVIRUS

12/3/2020

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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;
  • Statutory Sick Pay from the first day off work for all those advised to self-isolate. This paid by the employer, but businesses with less than 250 employees can reclaim the cost for 14 days of isolation, even if they have not presented with symptoms.
  • Self employed workers who are not eligible will be able to claim Employment and Support Allowance (ESA) from day one of “illness” worth £73.10 per week (£57.90 for under 25s)
  • Firms with less than 250 staff will be refunded for sick pay payments for two weeks
In addition, funding has been made available to support businesses.
  • Small firms will be able to access Business Interruption Loans of up to £1.2m
  • Business Rates in England will be abolished for firms in the retail, leisure and hospitality sectors with a rateable value below £51,000; and
  • Business Rates Discount  for pubs to rise from £1,000 to £5,000 per year
  • Councils will also have access to hardship fund to help vulnerable people in their area.
As well as support for the NHS.

OTHER KEY MEASURES
For other key budget measures and their implications of these, See Our News section

RELATED ARTICLES:
-  Budget 2020

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Forward>>

    Author

    Lucinda Matkin - Licensed Insolvency Practitioner & Chartered Accountant

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  • Home
  • About
    • About Us
    • Awards
    • Testimonials
    • COVID-19 Notice
  • SERVICES
    • Services for Individuals >
      • Advice for Individuals
      • Individual Voluntary Arrangement
      • Debt Relief Order DRO
      • Bankruptcy Advice and Services
      • Partnerships and Sole Traders
    • Services for Companies >
      • Advice for Companies
      • Debt Restructuring
      • Creditors Voluntary Liquidation CVL
      • Compulsory Liquidation
      • Members Voluntary Liquidations MVL
      • Company Voluntary Arragement
      • Administration Order
      • Agricultural Receivership
      • Receivership
  • NEWS
    • Latest News
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    • COVID-19 Blog
    • Resources
  • CONTACT
    • Contact Us
    • Book a Free Consultation
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