skip to navigationskip to main content

Call: 01799 530223

button-our-promises

Our Promises

button-meet-the-team

Meet The Team

COVID-19: Support for Businesses

This is a summary of the support which is currently available as of 27th March 2020:

Self-employed grant – 80% of average monthly profits for last three years up to a maximum of £2,500

Who for: Self-employed individuals or members of a partnership

Conditions:

  • you have submitted a tax return for 2018/19
  • your business traded during 2019/20
  • your business is continuing to trade, or would be except for coronavirus
  • you intend to continue trading in 2020/21
  • you have lost trading/partnership trading profits due to coronavirus
  • your trading profits are less than £50,000 and represent more than half of your taxable income.

How is the £50,000 threshold applied? First, you should check the trading profits declared on your 2018/19 tax return. If the amount is less than £50,000 and it makes up more than half of your taxable income, then this condition is met. If not, you should check whether your average profits for tax years 2016/17 to 2018/19 is less than £50,000 and accounts for more than half of your average taxable income during this time. If it does, then you meet this requirement.

How much will you be paid? You will get a taxable grant which will be 80% of the average profits from the tax years 2016/17 to 2018/19. If you became self-employed during those years, HMRC will use the average for the years you submitted tax returns for. The maximum amount is £2,500 per month for three months, so to get the full amount you would need to have average profits of £37,500 per annum.

How do you apply? HMRC will contact you if you are eligible for the scheme and invite you to apply online using GOV.UK. In the meantime, you may need help checking your eligibility for the scheme and calculating the amount you should receive. Please let us know if you would like us to do this for you.

Support for businesses through deferring VAT payments

Who for: UK VAT registered businesses

How does it work: VAT payments falling due between 20 March and 30 June 2020 can be deferred. Taxpayers will be given until the end of 2020/21 to pay any liabilities that have accumulated during this period. VAT refunds and reclaims will still be paid during this time.

Action. If you pay VAT by direct debit, contact their bank to cancel it in good time. The deferral applies automatically so there is no need to contact HMRC. However, you must still submit VAT returns on time as the deferral only applies to the payment of VAT.

Support for businesses through deferring income tax payments

Who for: Anyone filing a self-assessment tax return.

How does it work: Payments due 31 July 2020 may be deferred for six months until 31 January 2021.

Action. The deferment is automatic so there is no need to contact HMRC. No penalties or interest for late payment will be charged if you defer payment, however the government says that those that can afford to pay their second payment on account by 31 July should do so. Lanham and Company recommend that you file your 2019/20 tax returns as soon as possible to determine the amount due by 31 January 2021 or so you can get a repayment if you overpaid in January 2020. Use this time to get your tax return papers and accounts ready and send them to us as soon as you can.

£25,000 financial grant –  (this is a grant, not a loan meaning you will not pay back this money)

Who for: Shops, Restaurant, Takeaways, Grocers

Conditions: You are paying full business rates (because your rateable value is more than £15,000)

What you need to do: Please check and confirm that you have a business rates bill in the name of your current limited company or in your name if you are trading as a sole trader.

Application Process: Council will automatically write to you in April 2020 if you are eligible.

£10,000 financial grant – (this is a grant, not a loan meaning you will not pay back this money)

Who for: Any business

Conditions: You are getting partial or full business rates relief (because your rateable value is less than £15,000)

What you need to do: Please check and confirm that you have a business rates bill in the name of your current limited company or in your name if you are trading as a sole trader

Application Process: Council will automatically write to you in April 2020 if you are eligible.

Business loan, no interest for 12 months

Who for: Any business

Conditions: Set by the bank but do not even attempt if you are not in profit for the last two years accounts

What you need to do: Please take your last two years account to the bank and request a loan application with no interest for 12 months

Application Process: Will be done by the bank

80% of wages for the staff off work – Grant is available for wages paid from 1 March 2020

Who for: Any business

Conditions: No condition set

What you need to do: Check which employees will be off work for the period from 1st March 2020 onwards

Application Process: Claim 80% of their wages as soon as HMRC release details on how to claim through the new Portal

Sick pay for 2 weeks @ £95 per week

Who for: All Self-employed persons

Conditions: Self-employed persons who need to self-isolate

What you need to do: Contact HMRC for Sick pay for 2 weeks. You will need a self-isolation note from https://111.nhs.uk/isolation-note

Application Process: HMRC will release details on how to claim

Mortgage Payment hold for 3 months

Who for: Anybody who has a mortgage

Conditions: If you can’t afford to pay your mortgage

What you need to do: You need to contact your bank or lender and explain the situation. Note that this is a hold on payments for 3 months therefore the amount will be added to your mortgage meaning a slight increase in your mortgage payments

Application Process: The bank or lender will give application advise

Follow these links for further information:

HMRC COVID-19 Support for businesses

HMRC Tax Helpline to support businesses concerned about paying their tax due to Coronavirus.

HM Government: Coronavirus Financial Support

FSB: Advice and guidance for small businesses and the self-employed

Sign up for our newsletter