Business Support Grant
First of all applications are now open for the business support grant from Perth & Kinross Council. Businesses eligible for this grant have to occupy business rated premises, and benefit from the Small Business Bonus Scheme. If your premises is in Perth & Kinross Council then the link to apply is here PKC Grant Application , you’ll need your Rates reference number and a copy bank statement, but otherwise the application is straightforward. If you’re not in the Perth & Kinross area you’ll need to look on the website of your local authority
VAT Deferral and Time to Pay
The second area of support is VAT deferral. Any vat payable between now and 30th June can be deferred until 5th April 2021. I would advise you to take advantage of this if you can, but do bear in mind that the vat will eventually require to be paid, this is effectively a cost free loan from the Government that is immediately available. If you pay your VAT by direct debit it is important that you cancel the mandate as soon as possible, and then reinstate it after the Return has been submitted. If your Direct Debit mandate is in place, then the VAT will be taken.
If you are self employed the second payment on account towards your 2019/20 tax liability will be cancelled. This is automatic, and will potentially lead to a higher payment being required in January 2021.
It is also possible to arrange time to pay any other tax, but this is not automatic and you would need to phone HMRC on 0800 0159 559.
Job Retention Scheme
You’ll be aware that support is being offered to pay 80% of the salary cost of employees who would otherwise be laid off during this crisis. Unfortunately there is still no clear guidance on how to apply for this, nor whether it will apply to director/shareholders of Owner Managed Businesses. What I do know so far is:
- As an employer , you will have to designate affected employees as furloughed workers i.e those that would otherwise have been laid off or made redundant;
- You must notify the affected employees of this change;
- This change is subject to existing employment law and depends on the contract of employment – so if there is nothing in the contract which allows you to lay off or put employees on short time working, you will need to negotiate and agree this with employees; [Inevitably employees are going to agree, because realistically, what is the alternative?]
- The next step is to submit the information to HMRC i.e the employees that have been furloughed and their earnings. An online portal will be set up. It’s not clear when this will happen, but it’s likely to be some time yet;
- Once you have submitted the information to HMRC, you stand to recover 80% of furloughed workers wage costs – up to a max of £2500 per month. We do not yet know if this is gross or net. No-one does at this point in time. But it includes pension and NI costs;
- To qualify for the scheme, workers MUST NOT undertake any work for their employer;
- There is nothing about the other 20% of wages. You can choose to top this up, but if you choose not to, the contract must have a clause giving you the right to withhold pay ( i.e the 20%), otherwise the employee has to agree. [Realistically, they are going to agree, because otherwise, there is very little alternative];
- It appears that the payments will be made at the end of April, although back dated to March. As soon as I get more information on this I will let you know.
Support for Self Employed
Finally you may also have heard that the Government is working on support for the self employed, based on a similar level of support as for employees, 80% of earnings. However this will be difficult to put into effect, and there is very little guidance available on how this will work, but again as soon as I get more information I will let you know.
Other help
There is more help out there, including the Business Interruption Loan Scheme, and more information on all the support available can be found on the Government’s site here
That’s all for now, but please be assured that as I get more information I shall share it with you.
covid-19.pdf
"Ross and his team run a very friendly local business - we have used their services since 1997 and have always been pleased with the way they prepare our accounts. I have recommended Ross McConnell to a number of friends and family in Kinross-shire."
"As well as being very personable and easy to communicate with Ross has been able to understand my business very quickly and has offered advice which has helped me understand more fully my future plans. 
"Having been through some good and some bad times as a housebuilder over the last 10 years Ross has always been there with as a trusted advisor for me and my family."
"The doctors are extremely happy with Ross as their accountant and we all feel he provides an excellent friendly service." 
"Helps take the stress out of running a business. My accountant does what he does best, leaving me more time to do what I do best." 
"Ross McConnell has been providing accountancy services for my business over a number of years. He has always given sound and accurate advice to ensure that I comply with all business accounting requirements. The service provided is informal and friendly." 
