Due to the Coronavirus COVID-19 pandemic and following advice from the government to close offices and work from home, our offices are now all closed, but we very much remain open for business. For revised details on how to contact us please click here.
We are compiling a list of frequently asked questions from our clients. This will be updated as we are fielding these questions. You can find our responses on our Coronavirus FAQ page.
Getting to the help you need fast
There is a handy questionnaire which has been set-up on the GOV.UK site designed to help businesses and the self-employed to find out all the help and support which available for their own particular circumstances. To access the questionnaire click here.
The government has also produced a series of videos to help businesses cope with the COVID-19 pandemic. This includes the following guide:
Running your business through Coronavirus (COVID-19)
For further details on the Coronavirus Job Retention Scheme (CJRS) click on our CJRS page.
New HMRC helpline to help speed up enquiries
The new number is: 0800 024 1222
Opening hours – Monday to Friday 08:00 to 16:00
The original 0300 number has been redirected.
Help for businesses and self-employed individuals
Business Loans & COVID-19 Corporate Financing Facility
For information about business loans to help you better manage for cash flow during the COVID-19 pandemic click here.
1 June Update
Finance Bill News – Taxation of Coronavirus Income Support payments
HMRC has launched a consultation on draft clauses to the Finance Bill 2020.
The legislation will apply to individuals, businesses, individual members of a partnership and employers who receive or apply for a payment from the Self-Employment Income Support Scheme (SEISS), the Coronavirus Job Retention Scheme (CJRS), the Small Business Grant Fund (SBGF), the Retail, Hospitality and Leisure Grant Fund (RHLGF), the Discretionary Grant Fund (DGF), or their parallel schemes in the devolved administrations, and other payments made to businesses in response to COVID-19.
Key measures set out in the consultation will:
- confirm that grants within the legislation are subject to tax and will be treated as income where the business is within the scope of either Income Tax or Corporation Tax.
- provide HMRC with the power to raise Income Tax assessments to recover amounts from the recipient of a SEISS or CJRS payment to which they are not entitled or where a CJRS payment has not been used to pay furloughed employee costs.
- enable HMRC to charge penalties in cases of deliberate non-compliance/fraudulent claims.
Explanation from our professional body the ICAEW’s Tax Faculty
The ICAEW (The Institute of Accountants in England and Wales)’s Tax Faculty has explained that it is HMRC’s intention is to levy a 100% tax charge (with the regular tax charge being dis-applied) in a manner which is independent of the self assessment tax return (although there will be an opportunity on the tax return to declare liability to the recovery charge) in the case of deliberate non-compliance.
The Tax Faculty also understands that HMRC is looking for SEISS grants, which were correctly paid to be taxable on receipt in 2020/21, irrespective of the business accounting date and with no allocation of any part of the grant to March 2020.
How will HMRC police compliance?
Whilst this has not yet been outlined it would appear that the focus for the CJRS may be on whether a specific employee was included in an RTI report filed prior to 19 March 2020, rather than, for example, the amount claimed or whether the employee is not working.
For the SEISS it is also likely that HMRC will run reports to pick up cases where the individual did not continue to trade on a self-employed or partnership basis at least throughout 2019/20.
The Finance Bill 2020 is currently making its way through parliament and we will be back in touch once we have further news.
New: 27 April
Bounce back Loans – from 4 May
The government has introduced a new 100% government backed loan scheme to help small businesses needing cash injections to keep operating small business during the Covid-19 pandemic.
Under this scheme, businesses will be able to borrow between £2,000 and £50,000 through a network of accredited lenders up to a maximum of 25% of their turnover. For the first year, the loans will be interest free and no repayments will be due during this initial period. The scheme will go live on 4th May.
How to apply for a Bounce Back Loan
The loans will be easy to apply for through a short, standardised online application. The loan should reach businesses within days- providing immediate support to those that need it as easily as possible.
Comment from the Chancellor
The Chancellor of the Exchequer, Rishi Sunak, said: “Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis. This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.”
Interest rates after first year
The government has also promised that it will work with lenders to ensure loans will be delivered as quickly as possible and that lenders will agree a low standardised level of interest for the remaining period of the loan.
Business grants/rates update
Business grants and rate support is now available. For more information click here.
HMRC Time to Pay support
HMRC are helping businesses with their Time to Pay initiative. For more details click here.
Deferring VAT and Income Tax Payments
You can defer VAT and Income Tax [payments if you need to as a result of the COVID-19 outbreak. For further details click here.
Help if you are unable to file accounts with Companies House on time
Here you can find out more details if you are unable to file your accounts on time at Companies House due to the coronavirus.
Guidance for charities
It is important to check your policy, those businesses that opted for cover for both pandemics and government-ordered closure should be covered. However, as insurance policies differ significantly, businesses are encouraged to check the terms and conditions of their specific policy and contact their provider.
Paying suppliers promptly during coronavirus
Our regulatory professional body, the Institute of Accountants in England and Wales (the ICAEW) has posted details of their advice online to help businesses better manage their cash flows at this difficult time. You can read their article on paying suppliers promptly during Coronavirus here.
Help for commercial tenants
The government have issued a press release promising support for commercial tenants who are unable to make their rent payments due to the coronavirus.
These measures form part of the emergency Coronavirus Bill. The Coronavirus Bill means that no business will be evicted from their premises during this period but businesses will have to pay back this rent after this time.
The government are also looking at how they can also help commercial landlords in this period.
There are a number of ways that employers can get support during the COVID-19 pandemic.
Coronavirus Job Retention Scheme (CJRS)
For more details on the Coronavirus Job Retention Scheme (CJRS) click here.
Self Employment Income Support Scheme (SEISS
For more details on the Self Employment Income Support Scheme (SEISS) click here.
Off-Payroll working (IR35) reforms delayed
The COVID-19 outbreak has resulted in a delay to the IR35 reforms. For more details click here.
Claiming back Statutory Sick Pay (SSP) during COVID-19
Information you need to read to claim back Statutory Sick Pay (SSP) as a result of COVID-19.
Direct Earnings Allowance (DEAs) update
Advice on Direct Earnings Allowance.
Employment Support Allowance
- Self-employed workers who are not eligible for Statutory Sick Pay (SSP) will be able to claim contributory Employment Support Allowance with benefits expedited from day one and not, as currently, day eight.
- Statutory Sick Pay (SSP) for employees will be provided from day one instead of day four. SSP will also be available for those people advised to self-isolate, even if the illness has not yet presented. Sick notes would also shortly be available via NHS 111 rather than through GPs.
Homeowners and landlords can apply for a three month mortgage holiday from their lenders. The consumer champion Which has issued some helpful advice on how you can apply for a mortgage holiday. You can read some useful information from consumer champion Which here.
COVID-19 Spamming & Phishing
Please be very mindful that in this stressing times there remain unscrupulous people who think nothing of trying to steal money from others due to phishing, spamming and other bogus activities.
For an update on COVID-19 spamming and phishing click here.
COVID-19 help for employees
The government have also issued help for employees. This information can be accessed here:
SLC Coronavirus (Covid-19) update
SLC issues updated guidance for applicants, current students and those repaying their student loans in response to the ongoing Coronavirus pandemic.
Our additional services to help you cope
As time moves forward, many businesses will see an impact on staff absences caused through self-isolation. We can help with any immediate needs to cover key functions.
Our services include:
- Virtual financial staffing cover
- Virtual FD services
- Cash flow forecasting
- Financial forecasts to help you in obtaining business loan funding from banks
- Advice with loan repayment holidays, overdraft extensions etc.
- Payroll & BACS services
- Credit control and business continuity services
- Cloud accounting software solutions Alternatively, please contact your local MFW office (link) for further information as to how
If you need any assistance please do not hesitate to contact your local MFW office.
Government launches new Coronavirus Information Service on WhatsApp
This free to use service aims to provide official, trustworthy and timely information and advice about coronavirus (COVID-19) and reduce the burden on NHS services.
Designed to help
- Correct misinformation about Coronavirus COVID-19
- Drive home the importance of the self-isolation message to stay home, protect the NHS and save lines
The GOV.UK Coronavirus Information Service WhatsApp is an automated ‘chatbot’ service to allow the British public to get access to answers to the most common question they are fielding about COVID-19. This includes information on:
- Coronavirus prevention and symptoms
- Updates on the latest number of cases in the UK
- Advice on staying at home
- Travel advice for essential keyworkers
- Myth busting
How to set this up
To opt-in for this service add the number 07860 064422 to your phone contacts. Then message the word ‘hi’ in a WhatsApp message to get started. You will then be able to select from a user menu so that you receive relevant guidance from GOV.UK as well as links for further information
For further details of support for businesses and employers click here.