HMRC releases guidance on coronavirus Self-employment Income Support Scheme.

HMRC has released guidance on the coronavirus (COVID-19) Self-employment Income Support Scheme. Under the scheme, self-employed individuals will be able to claim a taxable grant based on an average of their earnings over the past three years. To be eligible, self-employed workers must have filed a tax return for the 2018/19 tax year and have average trading profits under £50,000 for the past three years. In the guidance, HMRC said: ‘This scheme will allow you to claim a taxable grant…

The government’s Coronavirus Job Retention Scheme will launch on 20 April, according to HMRC. The authority has informed tax agents of the launch date and requested their help during the application process. Under the Coronavirus Job Retention Scheme, businesses are able to apply for government grants for employees’ salaries up to the lower of 80% of an employee’s regular wage, or £2,500 per month for three months from 1 March. The scheme could run for longer if the social restrictions…

On 8 April, Chancellor Rishi Sunak announced a £750 million package to help charities struggling during the coronavirus (COVID-19) pandemic. Experts have warned that charities are struggling as a result of donations drying up and shrinking income due to enforced shop closures during the coronavirus lockdown. The measures announced by the Chancellor include cash grants, which will be supplied to charities that provide key services during the crisis. As part of the scheme, £360 million will be directly allocated by…

UK businesses are struggling to access emergency loans provided by the government’s coronavirus (COVID-19) business interruption loan schemes, according to a survey conducted by the British Chambers of Commerce (BCC). The BCC’s weekly tracker poll, which shows the pandemic’s impact on businesses, surveyed over 1,000 firms. Just 1% of companies surveyed by the BCC had managed to access Chancellor Rishi Sunak’s Coronavirus Business Interruption Loan Scheme, while 8% had applied unsuccessfully. Businesses that failed to access funds through the scheme…

Research published by the Centre for Economics and Business Research (CEBR) has revealed that UK economic output has reduced to 31% as a result of the coronavirus (COVID-19) lockdown. The CEBR warned that the lockdown has ‘extremely severe economic consequences’ for the UK. According to the research, the manufacturing sector is set to see the highest fall in output in absolute terms as a result of workers who produce goods being unable to do so remotely from home. The CEBR…

On 3 April, Chancellor Rishi Sunak announced changes to the COVID-19 Business Interruption Loan Scheme following criticism that businesses have struggled to access loans. The Business Interruption Loan Scheme was first announced in the 2020 Budget, and provides small and medium-sized enterprises (SMEs) with annual turnover below £45 million affected by the COVID-19 pandemic access to loans, overdrafts, invoice finance and asset finance of up to £5 million for up to six years. According to the government, £90 million in…

A significant number of UK firms face the prospect of running out of cash within three months, according to a survey carried out by the British Chambers of Commerce (BCC). The BCC’s first Coronavirus Business Impact Tracker polled over 600 firms between 25 and 27 March. It revealed that the majority of firms reported a significant decrease in their revenue from both the UK and overseas. The survey also found that cashflow was a major concern, with 62% of firms…

The government has published details on the COVID-19 support schemes for small businesses and retailers. The Small Business Grant Fund (SBGF) was announced in the 2020 Budget, alongside the Retail, Hospitality and Leisure Grant Fund. The funds were created in response to the COVID-19 pandemic, and provide financial support for small firms and businesses in the retail, leisure and hospitality sectors. Under the SBGF, businesses in receipt of either Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR) in…

Company directors who receive salaries through Pay as You Earn (PAYE) are eligible for furlough under the government’s Coronavirus Job Retention Scheme. Under the Coronavirus Job Retention Scheme, businesses are able to apply for government grants for employees’ salaries up to the lower of 80% of an employee’s regular wage, or £2,500 per month for three months from 1 March. The scheme could run for longer if the social restrictions to help halt the COVID-19 pandemic remain in place. As…

The government has relaxed the insolvency regulations during the COVID-19 pandemic in order to give restructuring businesses time to continue trading. The changes will temporarily suspend wrongful trading provisions retrospectively from 1 March 2020 for three months for company directors, enabling them to continue running their businesses without the threat of personal liability. The Institute of Directors (IoD) welcomed the changes to the insolvency rules. Jonathan Geldart, Director General of the IoD, said: ‘During the current crisis, directors are facing…