Since we last provided an update just over 24 hours ago, there have been some significant developments on the support available to help both individuals and businesses.
Business Interruption Loans
We have had further clarity on Business Interruption Loans from both Banks and the Government.
Although these loans are being funded by The British Business Bank, in almost all circumstances you are being advised to contact your current banking provider in the first instance. They are asking you to apply for existing funding options with them (overdrafts and/or loans which are fee and interest free for twelve months) and it is only if you do not meet their lending criteria that they will then automatically put you forward for a designated Business Interruption Loan.
We have now had sight of the information that the banks will require to consider the Business Interruption Loan and it is broadly the following:
1. Your Last 3 Years Accounts
2. Up to date management accounts, i.e. Profit & Loss, Cash flow, Aged Debtor and Creditor Lists
3. The Statement Of Assets, Liabilities, Income & Expenditure attached for you personally
4. What impact has COVID-19 had on your business? / Are you still trading?
5. What impact could COVID-19 have on your business in the coming weeks and months?
6. What does your Debtor / Creditor books look like? / Do you need help getting the money in faster?
7. What reserves do you have and how long can you keep trading?
8. If we can offer financial support, what are you looking for?
9. When the Pandemic has resolved, how long to you expect it will take for you to recover, and any challenges you may face e.g. future loss of contracts/staff availability
10. What changes are you making in the short and longer term to help drive business performance back to pre virus levels
Clearly this is a lot of information to provide but remember we are here to help.
A lot of this information we will have readily available and can easily provide. We are also able to guide you through the application process, speak with your banking contacts, help with cashflow forecasts and generally support you through these difficult times.
Deferral of Self-Assessment payments on account for July 2020
If you are self-employed and due to make a Self-Assessment payment on account in July 2020, H.M. Revenue and Customs have confirmed that this will be deferred until 31st January 2021.
Whilst this may be a welcome cashflow advantage for many we do urge you to remember that this is only a deferral and you are likely to have a larger tax payment due in January 2021.
We are notifying all of our clients who are likely to affected by this deferral over the next few days.
Deferral of VAT payments until 30 June 2020
As previously advised, H.M. Revenue and Customs have confirmed that there will be an automatic deferment of VAT payments which fall due from now until 30 June 2020.
Although the payments are deferred, the VAT Returns still need to be filed by the usual filing deadline. This means that if you have a February quarter end VAT Return to file it is still due by 7 April 2020 although no payment will need to be made until at least 1 July 2020.