BUDGET 2020
have until the end of March 2021 to pay the deferred amounts. HMRC will continue to process and issue repayments of VAT. � Deferral of Income Tax secondpayment on account, due on 31 July 2020, for six months. Again this is automatic. � Additional support to cover sick pay for employees who are either ill or off work due to self-isolation. � A business rates holiday for the retail, leisure and hospitality sector for the 2020-21 tax year. � Cash grants for small businesses in the retail, leisure and hospitality sectors of either £10,000 or £25,000, depending on the rateable value of the property fromwhich they operate. � Cash grants of £10,000 for all businesses that normally qualify for Small Business Rates Relief. � Government backed loans of up to £5 million under the Business Interruption Loan Scheme. The government will guarantee 80% of the loan value and cover the first 12 months of interest. This is available to UK businesses with a turnover of up to £45 million. � More easily accessible Time To Pay arrangements for tax debts with HMRC and relaxations to late filing penalties. A dedicated phone line for Time To Pay has been set up, which is 0300 200 3835. Please note you must have filed the relevant tax
return before you can call to ask for a payment plan. � Mortgage payment holidays of up to three months initially. There is clearly a lot more detail to all of these measures so please contact us for further information. We will continue to update our clients and contacts through regular articles on our website and social media. Even before the COVID-19 crisis took hold, it appeared likely that further financial measures will be needed before the end of 2020. We therefore consider it highly likely that there will be a second Budget in the Autumn, before the government then reverts to a pattern of Autumn Budget and Spring Statement. Contact James Geary for more information by emailing james.geary@randall-payne.co.uk or call 01242 776000. Nobody likes change, so if you’re unsure about how the Budget may affect you, either from a business or personal perspective, why not book a one-to-one session with one of our specialists for an hour free-of-charge? Although our offices are closed, we can still run our advice clinics by telephone or video conference. For further information, contact 01242 776000 or email clinics@randall- payne.co.uk
and requirements of this relief are: � Profits for the 2018-19 year of less than £50,000, or an average of less than this over the three most recent tax years. � Individuals who have not yet filed their 2018-19 tax returns must do this by 23 April 2020 to qualify for the support. � The individual must remain self- employed throughout 2019-20 and intend to be for 2020-21 (i.e. not ceased). � More than half of taxable income must come from self-employment. HMRC will contact those eligible and invite them to apply. It is likely that the support will not be issued until June 2020 although they are hoping to have this ready earlier. While this support will help the vast majority of self-employed individuals, there are some obvious gaps, in particular those who only became self-employed since 5 April 2019. The professional bodies are making sure this gap is highlighted and therefore it is hoped that the scheme may be broadened in due course to also help those individuals. Other support available - highlights � Deferral of VAT payments due between 20 March and 30 June 2020. This is an automatic offer and does not require an application, businesses simply don’t pay the VAT bill that falls due in this date range. Initially they
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– Spring/Summer 2020
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