On 24 September 2020, HMRC announced several support measures for businesses impacted by coronavirus (COVID-19) across the UK.
Further information on these new schemes is available - via external link - on GOV.UK here and as summarised below:
Job Support Scheme
More details about the Job Support Scheme can be found on our website here.
Self-Employment Income Support Schemes (SEISS) Grant extensions
Self-employed individuals and members of partnerships who are eligible for the SEISS and are actively continuing trading but are experiencing reduced demand due to coronavirus (COVID-19), will be eligible for a further SEISS grant to provide support over the winter months.
The first grant will cover a three-month period from 1 November 2020 until 31 January 2021. It will be a taxable grant to cover 20% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £1,875 in total.
An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from 1 February to 30 April 2021.
More information will be published in due course but in the meantime, a factsheet is available here on GOV.UK.
Bounce Back loan extensions ("Pay As You Grow")
Measures have been introduced that provide flexibility for firms repaying a Bounce Back Loan.
This includes extending the length of the loan from six years to ten, which will cut monthly repayments by nearly half. Interest-only periods of up to six months and payment holidays will also be available to businesses.
Coronavirus Business Interruption Loan Scheme lenders will also be given the ability to extend the length of loans from a maximum of six years to ten years if it will help businesses to repay the loan.
In addition, the Chancellor also announced he would be extending applications for the government’s coronavirus loan schemes that are helping over a million businesses until the end of November.
Self-Assessment (SA) tax Time to Pay
If you deferred paying your July 2020 SA Payment on Account, you will need to pay the deferred amount, in addition to any balancing payment and first 2020/21 Payment on Account, by 31 January 2021. This may be a larger payment than you usually pay in January.
If you are unable to pay your 2019/20 Self-Assessment (SA) bill in full by 31 January 2021, you can set up a Time to Pay payment plan of up to 12 months online without speaking to HMRC ('self-serve'). To set up a self-serve 'Time to Pay', the following requirements must be met:
- No outstanding tax returns;
- No other tax debts;
- No other HMRC payments set up;
- Self Assessment tax bill is between £32 and £30,000;
- It is no more than 60 days since the tax was due for payment.
From 1 October 2020, for SA tax debts of up to £30,000, the Time to Pay facility can be accessed through GOV.UK where automatic and immediate approval can be obtained. If SA debts are over £30,000, or longer than 12 months is required to repay the SA debt in full, you will need to call HMRC to make a Time to Pay.
Those using self-serve Time to Pay arrangements will be required to pay any interest on the tax owed and interest will be applied to any outstanding balance from 1 February 2021.
VAT Deferral New Payment Scheme
Where VAT due between 20 March and 30 June 2020 was deferred, then - for those that can - these payments can still be made to HMRC by 31 March 2021.
Alternatively, employers can now "opt in" to the New Payment Scheme to spread these payments over equal interest-free instalments up to 31 March 2022.
Alternatively, they can make payments as normal by 31 March 2021 or make Time To Pay arrangements with HMRC if they need more tailored support.
More information on the scheme will be released in the coming months.
Extension to the reduced rate of VAT for Hospitality and Tourism
The government has extended the temporary reduced rate of VAT (5%) to tourist attractions and goods and services supplied by the hospitality sector.
This relief came into effect on 15 July 2020 and will now end on 31 March 2021 across the UK.
Further information on these new schemes is available - via external link - on GOV.UK here and as summarised below:
- Job Support Scheme
- Self-Employment Income Support Schemes (SEISS) Grant extensions
- Bounce Back loan extensions ("Pay As You Grow")
- Self-Assessment tax Time to Pay
- VAT Deferral New Payment Scheme
- Extension to the reduced rate of VAT for Hospitality and Tourism
Job Support Scheme
More details about the Job Support Scheme can be found on our website here.
Self-Employment Income Support Schemes (SEISS) Grant extensions
Self-employed individuals and members of partnerships who are eligible for the SEISS and are actively continuing trading but are experiencing reduced demand due to coronavirus (COVID-19), will be eligible for a further SEISS grant to provide support over the winter months.
The first grant will cover a three-month period from 1 November 2020 until 31 January 2021. It will be a taxable grant to cover 20% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £1,875 in total.
An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from 1 February to 30 April 2021.
More information will be published in due course but in the meantime, a factsheet is available here on GOV.UK.
Bounce Back loan extensions ("Pay As You Grow")
Measures have been introduced that provide flexibility for firms repaying a Bounce Back Loan.
This includes extending the length of the loan from six years to ten, which will cut monthly repayments by nearly half. Interest-only periods of up to six months and payment holidays will also be available to businesses.
Coronavirus Business Interruption Loan Scheme lenders will also be given the ability to extend the length of loans from a maximum of six years to ten years if it will help businesses to repay the loan.
In addition, the Chancellor also announced he would be extending applications for the government’s coronavirus loan schemes that are helping over a million businesses until the end of November.
Self-Assessment (SA) tax Time to Pay
If you deferred paying your July 2020 SA Payment on Account, you will need to pay the deferred amount, in addition to any balancing payment and first 2020/21 Payment on Account, by 31 January 2021. This may be a larger payment than you usually pay in January.
If you are unable to pay your 2019/20 Self-Assessment (SA) bill in full by 31 January 2021, you can set up a Time to Pay payment plan of up to 12 months online without speaking to HMRC ('self-serve'). To set up a self-serve 'Time to Pay', the following requirements must be met:
- No outstanding tax returns;
- No other tax debts;
- No other HMRC payments set up;
- Self Assessment tax bill is between £32 and £30,000;
- It is no more than 60 days since the tax was due for payment.
From 1 October 2020, for SA tax debts of up to £30,000, the Time to Pay facility can be accessed through GOV.UK where automatic and immediate approval can be obtained. If SA debts are over £30,000, or longer than 12 months is required to repay the SA debt in full, you will need to call HMRC to make a Time to Pay.
Those using self-serve Time to Pay arrangements will be required to pay any interest on the tax owed and interest will be applied to any outstanding balance from 1 February 2021.
VAT Deferral New Payment Scheme
Where VAT due between 20 March and 30 June 2020 was deferred, then - for those that can - these payments can still be made to HMRC by 31 March 2021.
Alternatively, employers can now "opt in" to the New Payment Scheme to spread these payments over equal interest-free instalments up to 31 March 2022.
Alternatively, they can make payments as normal by 31 March 2021 or make Time To Pay arrangements with HMRC if they need more tailored support.
More information on the scheme will be released in the coming months.
Extension to the reduced rate of VAT for Hospitality and Tourism
The government has extended the temporary reduced rate of VAT (5%) to tourist attractions and goods and services supplied by the hospitality sector.
This relief came into effect on 15 July 2020 and will now end on 31 March 2021 across the UK.
