Coronavirus support: Bounce Back Loans

Today the chancellor, Rishi Sunak has announced a new loan for smaller businesses needing a simpler, quicker solution. “Today, we’re announcing a new loan scheme. A simple, quick, easy solution for those in need of smaller loans.   Businesses can apply for new Bounce Back Loans up to a maximum of £50,000, or 25% of turnover, with the government paying the interest for the first 12 months. We’ve been in close talks with the banks in recent days and these loans will be available from 9am next Monday.   There will be no forward-looking tests of business viability; no complex eligibility criteria; just a simple, quick, standard form for businesses to fill in. For most firms, loans should arrive within 24 hours of approval.   And I have decided, for this specific scheme, that the government will support lending by guaranteeing 100% of the loan.   We shouldn’t ask taxpayers to bear all the risk of lending almost unlimited sums to businesses who may have very little prospect of paying those loans back – and not necessarily because of coronavirus.   So, I don’t think it’s right to provide 100% guarantees on all our schemes.   Instead, the new Bounce Back Loans carefully target that extraordinary level of state support at those who need it most.   And the £50,000 cap balances the risk to the taxpayer with the need to support our smallest businesses.”   We’ll publish more information as the detail is...

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Covid-19 – Wakefield Council Cash Grant Info

I have had a very constructive conversation with the Wakefield Council business engagement team: They have released the below regarding claiming the business grant. They have also said that if you are unsure whether or not you qualify, please email info@wakefieldfirst.com So if you rent commercial premises but think the landlord gets the rates bill this would a good example, it’s better that they have your details than not. They may be able to support you when they get clarity from the government. “Applying for a Covid-19 cash grant Wakefield Council are working hard to introduce an online application process for the Covid-19 business grants. If you believe you meet the below eligibility criteria to apply for one of the business grants, then please email us on info@wakefieldfirst.com with the name of your business, your name and your email address and we will send out the relevant e-form as soon as it’s available. Eligibility Criteria: Businesses that pay little or no business rates are eligible for a one-off grant of £10,000 if: your business is based in England you are a small business and already receive SBBR and/or RRR you are a business that occupies property Businesses in retail, hospitality and leisure sectors are eligible for a grant of up £25,000 per property.  For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000. Businesses in these sectors with a rateable value of between £15,000 and £51,000, will receive a grant of £25,000. You are eligible for this grant if: your business is based in England your business is in the retail, hospitality and/or leisure sector Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used: as shops, restaurants, cafes, drinking establishments, cinemas and live music venues for assembly and leisure as hotels, guest and boarding premises and self-catering accommodation”...

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COVID-19 Courtley West Bulletin

COVID-19 We’re in this together and we’re here to support you through this crisis. We’d like to reassure you that we have taken steps to ensure we can operate through this difficult time. Our IT infrastructure is setup so we can work from anywhere with an internet connection, you can still call us and email us. We are geared up for video conferencing which we can host, to ensure our relationship with you is barely affected. The only change at our end that you will see is that we’re not offering ‘in person’ meetings at this time and that if you would like to drop records off at the office please ensure this is agreed in advance. There is no clear timescale for when this disruption will end, so we all need to adapt and work through this together. The government has released a series of unprecedented measures to support business. You can read more about these here: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses This includes a package of measures to support businesses including: a Coronavirus Job Retention Scheme deferring VAT and Income Tax payments a Statutory Sick Pay relief package for SMEs a 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000 the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans the HMRC Time To Pay Scheme If you are an employee, you can read more here: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-guidance-for-employees This is a difficult time for everyone, we are here with you and you can trust us to do our very best to support you through these unprecedented circumstances.  ...

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Spring Statement 2019

What you need to know:   Making Tax Digital   Philip Hammond reinforced that the mandatory digital record keeping for businesses with annual revenues above the VAT threshold (£85,000) will come into force from 1st April 2019. He called this an “important first step in this modernisation of the tax system to which the Government remains committed”. The Chancellor has also confirmed that the Government will adopt a “light touch approach” to all penalties relating to MTD for VAT in the first year of implementation. This approach is reserved for individuals and small businesses that are “doing their best to comply”, with no filing or record-keeping penalties due to be issued within the first 12 months. Mr Hammond said that the focus for MTD for VAT will be on “supporting businesses to transition”. Apprenticeships   updates to apprenticeship reforms announced at Budget that mean from April 1st employers will see the co-investment rate they pay cut by a half from 10% to 5%, at the same time as levy-paying employers are able to share more levy funds across their supply chains, with the maximum amount rising from 10% to 25%   Finance   The statement alongside the Spring Statement said: “The government stands ready to deliver its commitment in all circumstances to provide additional funding to the British Business Bank for venture and growth capital, as we leave the European Union and our relationship with the European Investment Fund...

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New HMRC Penalties

Making Tax Digital (MTD) New points based penalty model HMRC have been exploring changes to the penalty system for late submission failures under Making Tax Digital (MTD). They have now decided to adopt a points based model with the draft legislation expected in summer 2018. This will see the introduction of a system where late submission of a return or of the filing obligations under MTD attract points. A penalty will be charged for every failure to provide a submission on time once points have been accumulated up to a certain threshold. Penalty thresholds The penalty thresholds will be: Submission frequency penalty threshold Annual 2 points Quarterly 4 points Monthly 5 points Good compliance points reset After a period of good compliance, the government is ‘minded’ to use the following periods of good compliance before resetting penalty points back to zero. Submission frequency good compliance period Annual 2 submissions Quarterly 4 submissions Monthly 5 submissions Both the accumulation of points and any subsequent penalties will be fully appealable. When will this start? April 2019 sees the start of mandatory reporting of VAT obligations for all VAT registered businesses with a turnover in excess of £85,000. A 12 month soft landing period will follow, before the new points system commences in 2020. This will then be rolled out across the other taxes. What will the penalties be? The actual penalty amount has yet to be announced. Watch this space, once we know more details we’ll be sure to share...

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Tax Guide 2017/2018

Great news, our tax guide for 2017/2018 is online and can be downloaded here: Courtley West tax guide 2017 2018 If you have any questions or we can help you in anyway way, please don’t hesitate to get in touch.

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