On The Spot Blogs

Coronavirus - A New World! - Grants For Sole Traders


The Chancellor today announced probably his final major finance coronavirus package.

The self employed find themselves in a new world requiring state support when they need very little in normal times. However, many remain excluded and will need to turn to other measures previously announced. 

What Is The Grant Based On?

Your grant will be based on 80% of the average of your profits showing in your income tax returns for the 2019, 2018 and 2017 income tax years. 

 

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Coronavirus - Without The Gym, Learn To Exercise Your Cashflow


The Chancellor yesterday evening announced further measures to help businesses with their cashflow to bridge the gap during this extended period of reduced income. Now the gym is closed make sure you 'work out' which the best ones for you.

Income Tax and VAT Deferrals

The self employed July 2020 income tax payment on account for the 2019/20 tax year, will be automatically deferred until January 2021 with no interest or penalties accruing. This appears to be for sole traders and partnerships only, and not include directors or employees also due to make payments on account. [EDIT: This has been amended and now seems to include anyone making payments on account under self assessment including directors or employee].

Similarly, VAT due between 20 March and 30 June 2020 won't be collected by HMRC. [EDIT: HMRC have amended their guidance and now state that if you pay by Direct Debit you need to cancel it in good time and reinstate it later]. You will have until 5 April 2021 to catch up with this deferral. VAT refunds will be made as usual. If you're on an annual VAT scheme to end of March, any VAT due will be deferred and if you're due a refund, that will be paid. You're still required to prepare your VAT return so you'll receive a refund as normal if one is due. 

 

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Coronavirus - Loans, Grants & Tax - Small Businesses


Here’s a quick summary of the sort of practical help notified this afternoon by the Chancellor. Together with a reminder of some useful tax rules which may also help with your cashflow.

Business Rates:

No rates payable for 12 months for any business in the retail, hospitality or leisure sectors.In those sectors, if your rateable value is less than £51k, you'll also receive a cash grant of up to £25,000.Any business which gets small business rates relief, will receive a cash grant of £10,000 (increased from £3,000 announced in the Budget).

Government Backed Loans:

 

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Budget 2020 - A pot-hole free drive in your electric car through magic money trees?


There is much to be happy about in today's Budget, where the magic money trees are well and truly thriving!

Businesses will benefit from many announcements, particularly those who trade from a property, have one or two employees, and need a new car!

Business rates are abolished for a year for rateable values of less than £51k and these same businesses will receive a £3k grant, as a response to the Coronavirus but it's also part of the overall picture of dealing with competition from Amazon and other online retailers.

 

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