Coronavirus: Financial Aid for the Self-Employed 

The government has today announced grant's available for the self employed (Sole Traders/Partnerships).

- Grants are based on 80% of the average of your 3 years net profits to 05/04/2019.

- Grants are only available to those with profits under £50,000.

- Self employed income must be your main source of income and therefore more than 50%.

- Grants are capped to a maximum of £2,500 per month.

- HMRC will directly contact people applicable.

- The grants will be available in June

Note - At this point in time no information has been given on individuals trading through Ltd Companies in regards to dividends or individuals who have recently become self employed.


Our offices are now closed

But don't panic!

All staff are now remotely working from home. We have not taken this decision lightly but as all staff members have the ability to work from home we have decided in light of the current situation it is the socially responsible thing to do in order to protect staff and clients welfare. If you have any questions or worries please do not hesitate to get in contact with us. 

Stay Safe, We will get through this!


 

The business interruption loan is here!

If you need assistance with your cashflow and would like to seek advice on applying for a loan please firstly visit the below link to see if your current bank is one of the 40 accedited lenders.

https://www.british-business-bank.co.uk/…/accredited-lende…/

Helpful HMRC Numbers

Universal Credit helpline: 0800 328 5644

Dedicated Coronavirus time to pay helpline: 0800 0159 559

IMPORTANT CORONAVIRUS UPDATE (20/03/2020)

After today’s and the recent announcements we would like to update all clients, non-clients and anyone who is in a time of need and unsure on the best way moving forward. There are bound to still be businesses and people who are unsure on what the near future holds for them and hopefully any advice we can pass on or give will at least help calm uncertainty and give a silver lining no matter how small that may be at this moment in time.
Employees – 
To any employee’s who have recently been made redundant, laid off or are on the verge of being laid off please speak to your employer as soon as possible especially if things are not finalised because the government has announced today that they will provide funding for employers in order to retain staff. Layoffs/redundancy should now be an absolute last resort. Further to this your employer can backdate this funding claim to 1st March.
If in the unfortunate situation that remaining in employment is not an option, they have announced the standard allowance for universal credit will be increased by £1,000 per annum. Working tax credit will also be increased by £1,000 per annum.

Read more: CORONAVIRUS UPDATE (20/03/2020)

Interest Rate 0.1%

Bank of England cuts base rate to 0.1%, the lowest ever in history.

The Bank launches its second set of emergency measures this week as QE is re-started and the rate cut further.
NEWS.SKY.COM
 
The Bank launches its second set of emergency measures this week as QE is re-started and the rate cut further.

 

CASH GRANT

The chancellor has announced an increase in the small business coronavirus cash grant, taking it from £3,000 to £10,000.
Eligibility is still based around rate relief. Those who qualify for Small Business Rate Relief (SBBR) or Rural Rate Relief will be able to get the funding.
Businesses will be contacted by their local authority - they do not need to apply. The funding will be provided to local authorities in early April. Guidance for local authorities on the scheme will be provided shortly.
There is also Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000.

We at Dalton Pardoe are going to provide regular updates where possible. Like and follow our Facebook page and/or visit here to stay regularly updated.

Together we can get through this!


UK government puts IR35 tax reforms on hold for a year

A very sensible decision which will save a lot of contractors being put out of work due to employment contracts not being offered because of Coronavirus.


https://www.theregister.co.uk/…/uk_ir35_tax_reform_postpon…/https://www.theregister.co.uk/…/uk_ir35_tax_reform_postpon…/'This is a deferral, not a cancellation' official insists
THEREGISTER.CO.UK
 
'This is a deferral, not a cancellation' official insists

Coronovirus Contact Request

With the outbreak of Coronavirus and case numbers increasing by the day we ask clients to only visit our premises if absolutely necessary and to NOT attend at all if you have any known symptoms

We are a small office and need to maintain a healthy workforce in order to meet clients demands and other important deadlines. 

Thank You for your continued support


 

Coronavirus update

We would like to update our clients and any non-clients on our views and what we know so far in this uncertain time for the economy and in particular small businesses.

We as Chartered Accountants & Business Advisors are here to help and support you in any way that we can. We have already had lengthy conversations with understandably worried business owners and understand the strain Coronavirus is having particularly on small businesses.

It was announced that help would be available for any employers whose employees self isolate for 2 weeks with sick pay (£94.25 per week) able to be reclaimed from HMRC and therefore at no cost to the employer.

A £3,000 grant for the smallest businesses may be available through local authorities. It is not clear yet how and when this would be available.

People will be able to claim Universal credit and access advance payments without the current requirement to attend a jobcentre.

Cash flow for small businesses will be a major factor and with VAT, PAYE, Corporation & Self Assessment taxes due at various stages in the year HMRC have announced a dedicated helpline (0800 0159 559) which can be contacted in order to relieve financial pressure by setting up a bespoke Time to Pay arrangement.

The government is temporarily increasing business rates retail discount to 100% in 2020-21 for properties with a rateable value below £51,000.

HMRC has introduced a Business Interruption Loan scheme so that banks are now in a position to give further credit to small businesses with funds being made available to the value of £2 billion for Lloyds banking group and £5 billion from Natwest. 

There have so far been no other major announcements regarding small business other than reassurance they would be supported in this time of need. We are anticipating there will be more news to be announced at any moment and will be monitoring this closely.

We are becoming aware of insurance companies stating in the event of a lockdown where business’s are being forced to shut they are not going to pay out for loss of earnings (although this may vary from provider to provider).

Our advice so far is to regularly check for updates on changes and to mitigate and cut costs wherever possible along with not entering into any unnecessary financial commitments with the near future uncertain.

If you have fixed employee costs these may need to be reviewed by talking to your staff about temporary layoffs or putting them on short time. Although we do not want to see any employees struggle financially, a short term temporary layoff is going to be a better alternative than pushing the business to the point it has to close in turn your staff permanently losing their jobs.

If you are finding yourself with surplus time due to activity reducing it is important to utilise this time wisely by getting admin/bookkeeping up to date, planning for worst case scenarios, planning for best case scenarios and even thinking of promotions/marketing and ways to generate revenue when things start to return to normal.

We encourage everyone more than ever to support and use your small local businesses and high street stores where available in this time of need. 

Key next steps for your business

Plan ahead – Assess the best and worst case scenarios and what you can do in each event, this about cashflow first and forecast.

Financials - Keep on top of your bookkeeping, with businesses at risk worldwide it is important to keep on top of debtors to reduce the possibility of bad debts.

Communication - Communicate with all key stakeholders, speaking and being open with staff, increasing the level of trust and being as transparent as possible could be the key to survival.

Insurance - Check with your broker or insurance company if you can make a claim on your business continuity policy for any financial losses suffered.

Train staff - In case of prolonged staff absences from the virus, cross-train your key staff so that your business can continue to function at all times.

Slash Overheads - Look at all the costs of your business and reduce non-essential expenses, fixed costs such as wages, rent, utilities, financing costs and tax liabilities are not affected by a decline in sales and need to be properly managed and reduced where possible.

We are constantly monitoring this situation and when any news/updates become available we will we relay this on our face book page. If you do not already follow/like our page please feel free to do so to be kept up to date.

Together we can get through this!