Chancellor has announced support for Self employed.

More details to follow shortly in our COVID-19 Hub

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.

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

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

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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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KEY FACTS
Eligible if your business:

• ​​pays tax to the UK government; and
• Has outstanding tax liabilities

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. ​​

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
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​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.
​

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. ​​

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.
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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 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