Boris Johnson has urged us all to stay at home to protect the NHS and save lives.
- Only go out for essentials such as food and medicine
- Shops will close, apart from those with essential supplies such as food and medicine
- Only leave the house once a day to exercise, in groups if 2 or less and only with people you live with
- More financial support to come
This is as much as we know at the moment, we know it clearly creates questions and we are trying to answer them as we understand the details. We are expecting more details to come today and we will relay them as soon as we have digested and understood them.
I spoke to many of you yesterday about VAT, furlough and CBILS (Coronavirus Business Interruption Loan Scheme) As soon as we have concrete details of how these work and will affect you we will let you know.
I have been advised that the information you will need in order to apply is as follows:
- Purpose of the loan / Business Plan
- Amount the business is looking for
- Security on offer – Personal Guarantees, Company Debenture, Legal Charges over Property (appreciating that the scheme likely provides a form of Government security)
- 2 years Financial Accounts
- Management Information to include up to date P&L / BS / Aged Debtor and Creditor Listings
- Statement of Means – The personal statement of means form is to be completed individually for any director or shareholder of 25% or more.
- If you have a cash flow forecast for the next 6 months it would be great to have a copy of that too.
- If your business is closing and you have no work for your staff you can furlough them
- The government will refund up to 80% of their salary up to £2,500 per month
- It is unclear if Directors can claim this but we believe not
- We do not know the system for these refunds yet
- Freelancers cannot claim furlough
- You still need to pay Employers NI and Pensions for each employee
- The purpose of the scheme is so you do not let your staff go and keep them on hold for when your business resumes
- You cannot ask them to work if you furlough them
- This one is clear – the next VAT payment is not due until the end of 20/21 Financial Year
- We are going to process a journal in all your accounts to clearly show the deferred VAT payment and will remind you all nearer the time when payment becomes due
- VAT refunds are still processed as usual
- We are going to work the get the March 2020 VAT returns completed as soon as possible so please work with the team to provide what is needed quickly
As before, we are here to support you so please reach out with any questions and concerns.
We are all in this together!