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APH Accountants COVID-19 Business Support Update 30/03/20

Wirral Accountants Merseyside Chartered Accountants

Morning everyone, I hope you have all had a great weekend despite the circumstances. Personally, I don’t think my garden has ever looked so tidy!
Well today seems to be the first day of being able to do something to get our hands on some money so let’s get that ball rolling for those who it applies to.
I have covered another couple of important areas as well and will continue to send these Newsletters out if there is any information of value, I can provide you with.

In today’s newsletter:

  1. Business Grant
  2. Loan v Overdraft
  3. Furlough (Sole Directors)
  4. Vat Deferring
  5. CIS Sub Contractors
  6. Scams & Hackers

We are doing our level best to answer every single query – but if we have missed anything please do get in touch. Contact details are below:

Office Number: 0151 630 4542    
Email: accounts@aphaccountants.co.uk

Paul White: 0151 556 7247           
Email: paulwhite@aphaccountants.co.uk

Helen White: 0151 556 7241        
Email: helenwhite@aphaccountants.co.uk

Matt Newman: 0151 556 7246     
Email: mattnewman@aphaccountants.co.uk

Carla Ashley: 0151 556 7244       
Email: carlaashley@aphaccountants.co.uk

Kerry Roe: 0151 556 7240            
Email: 

Dave Parry: 0151 556 7245          
Email: 

Danielle Levy: 0151 556 7243     
Email: 

Katy Holmes: 0151 556 7249       
Email: 

Lauri Murphy: 0151 556 7248       
Email: laurimurphy@aphaccountants.co.uk

1. Business Grant

Wirral Borough Councils Website states

“On Monday 30 March a new form will go live on this site (2pm I believe), for businesses to claim cash grants from Wirral Council. Details are on the page below.”

This is the link to the website
https://www.wirral.gov.uk/health-and-social-care/coronavirus-updates/financial-aid-businesses#wgSM-0

What they are saying is a little bit ambiguous in that:

If your business is eligible for SBRR or rural rate relief, you will be contacted by Wirral Council to advise on next steps. Government funding for the scheme is expected to be provided to local authorities in early April.

So, this would suggest that the council will contact you unless your business is in the Retail, Hospitality or Leisure Sector, in which case you should:

“You will need to verify your business is genuine so it will help, speed-up this process if, before you begin, you have some form of documentation to hand to support your claim”:

  • For businesses registered with Companies House, please ensure you have your Business Rates Number, your Companies House business registration number and a bank statement, with your business name, account number and sort code, showing activity on 11th March 2020.
  • For sole traders, please ensure you have your Business Rates Number and a bank statement, with your business name, account number and sort code, showing activity on 11th March 2020.
  • Verification of your business will be needed before payment can be made. We have a full audit and security process in place to ensure these grants are dispersed to those businesses which are eligible and the Council will undertake a proactive approach to retrieve any grants that have been claimed fraudulently or paid in error.

So, it is clear that if your business is in the Retail, Hospitality or Leisure sector that you need to do the above. What isn’t so clear is if all other businesses need to do it.

Therefore until something to the contrary is known, I would suggest that if you are eligible for this cash grant, ie have premises and are in receipt of Small Business Rate Relief or Rural Relief then you should attempt fill in the form regardless of your business sector to see what happens.

For Liverpool council it appears there is a slightly delay in what they are doing, the following statement appears on their website:

“In Liverpool, annual business rates bills were issued before these changes were announced and unfortunately they do not include these reductions. Where appropriate, new bills will be issued as soon as possible and they will include any discounts that may reduce your bill”.

The link for you to check is here:
https://liverpool.gov.uk/communities-and-safety/emergency-planning/coronavirus/coronavirus-support-for-businesses-and-employers/

Please check with your local council if you are outside Wirral or Liverpool for any notifications on when the cash grants will be available.

2. Loans v Overdrafts
Some banks are currently offering extended overdraft facilities to customers who apply for business loans through the Coronavirus Business Interruption Loan Scheme.

Consider your options carefully and bear in mind that for business loans

  • The government will cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.

If you are offered an overdraft, please consider that it may attract interest charges straight away and that there maybe an arrangement fee also.

Therefore, in these cases I would say that the business loan is a better option subject to the circumstances the loan is being offered under.

3. Furlough – Sole Directors

If you are a Sole Director of a Limited Company, it appears you can Furlough yourself providing the only duties you carry out are ones of an officer holder

An office holder will normally carry statutory duties for the company such as annual filings etc organising for the annual accounts to be done and so on.

If you want to furlough yourself please advise Kerry on the above email address stating:

  • Name
  • Date you are Furloughing from 
  • If you want the payroll to be 100% of your normal monthly payroll (as at 28.02.20) or 80% – which will be the limit you can reclaim but can pay yourself the additional 20%

4. VAT Deferral

Please remember that any VAT payments due between 20th March and the 30th June 2020 can be deferred until 31.03.21. This deferral is given automatically.

However you must remember to cancel your Direct Debit, if you pay this way

5. CIS Sub-Contractors
If you are a CIS-Sub Contractor, In order to make sure we process any potential refunds as soon as possible can you please start to collate your information
 

  • CIS Statements
  • Expenses in relation to your Self-Employment

 The sooner we get this information the sooner we can prepare and submit your self-assessment and reclaim any potential refunds

6. Scams & Hackers
If this is any suspicious messages through facebook from me then it’s not me! Such as this

That’s all for now folks, please feel free to get in touch if you need anything further.

Kia Kaha

Paul
paulwhite@aphaccountants.co.uk

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