Self-Employment Income Support Scheme (SEISS) Claims.
HMRC has recently highlighted problems SEISS claims – even though it worked out the payments, it’s up to you to spot any problems.
SEISS payments can be wrong for several reasons as HMRC made its calculations using limited financial information. Also, it might only now be clear that you did not meet all the conditions, e.g. continuation of your business in 2020/21. It’s your responsibility to check these factors and notify HMRC if there’s a problem. Penalties can apply.
You’re required to tell HMRC by the later of 20 October 2020 or 90 days after receiving the SEISS payment.
VAT Deferral And Enhanced Time To Pay For Self Assessment
You can leave payment until HMRC’s deadlines – 31 January for income tax and 31 March for VAT. There will be no interest or penalties if you pay by then.
Alternatively, if you want to avoid a big tax hit all at once consider an HMRC budget plan.
Pay in instalments. You can choose to pay in instalments any time between now and 31 January 2021. It’s simply done by using the online payment system and making ad hoc payments.
If you think you won’t be able to pay on time contact HMRC early and ask for time to pay.
Changes To The Bounce Back Loan And Coronavirus Business Interruption Loan Schemes
The Bounce Back Loan Scheme (BBLS) has provided support to many UK-based small businesses. Loans are between £2,000 and £50,000, capped at 25% of turnover, with a 100% government guarantee to the lender. The borrower does not have to make any repayments for the first 12 months, with the government covering the first 12 months’ interest payments. Under a Pay as you Grow scheme businesses will have options to:
- repay their loan over a period of up to ten years
- move temporarily to interest-only payments for periods of up to six months (an option which they can use up to three times)
- pause their repayments entirely for up to six months (an option they can use once and only after having made six payments).
Coronavirus Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme provides loan facilities to UK-based businesses with turnover under £45 million. The scheme provides loans of up to £5 million with an 80% government guarantee to the lender. The government does not charge businesses for this guarantee and also covers the first 12 months of interest payments and fees.
The government has announced that as part of the Winter Economy Plan it intends to allow CBILS lenders to extend the term of a loan up to ten years.
The government is also extending the CBILS and BBLS to 30 November 2020 for new applications.
Applications for the Coronavirus Large Business Interruption Loan Scheme and the Future Fund will also be extended.