As COVID-19 continues to develop in the UK, we are looking to provide as much support as possible to those business affected by the effects of the pandemic.
Although there is significant uncertainty over what will happen in the coming weeks and months, there are things that businesses can consider to help them through these difficult times.
Full details of all the Government support that is available can be seen at the bottom of the page in the latest updates section.
If you require any advice regarding this please do not hesitate to contact us.
Implementing a holding company structure
A holding company is a separate parent company created to own a controlling interest in one or more subsidiary companies. A holding company doesn’t necessarily trade itself; its main purpose is to form a corporate group. One of the benefits of a holding company is that they can be used to ring-fence key assets in the holding company which may protect them from risks in other group companies.
We would be happy to offer a free consultation to those business owners who are worried about the effects of Covid-19 and would like to review the options available to them.
Check whether you can claim Research and Development (R&D) tax relief
R&D tax relief provides companies with the opportunity to claim generous tax savings for their innovative activities. The opportunities for making a claim are often overlooked however, with business owners overestimating the level of innovation required to claim. Projects qualifying for R&D relief include those seeking an appreciable improvement in science or technology. If the company is loss making and generates a tax refund from R&D activities, the company could also consider shortening its year-end to receive a refund from HMRC sooner than otherwise would be available.
Business Interruption Loan Scheme (CBILS)
The “Coronavirus Business Interruption Loan Scheme” whereby the Government will guarantee up to 80% of the value (up to £5m) of loans introduced is now available and will be interest free for the first 12 months. Please see our latest updates below to find out more about this.
Check whether you have maximised your Capital Allowance (CAs) claims
CAs are the mechanism by which tax relief is obtained on the depreciation of assets and equipment. Expenditure on acquiring, upgrading or fitting out property is one of many areas in which CAs could be available, and should be carefully reviewed to maximise potential claims. Claims are often done at a high level by less specialist accountants, with insufficient attention being paid to fully identifying and properly allocating qualifying costs. A more detailed review by a capital allowances specialist can result in significant additional tax savings.
Review ways of incentivising staff through non-cash methods
Commonly, staff are paid bonuses depending on their performance which is a relatively tax inefficient method of rewarding them. During the current pandemic cash will be king more than ever, therefore the business could consider giving staff share options in the business which would continue to motivate staff without adversely affecting cash flow. The most common type of share scheme is an EMI option scheme.
Businesses could take out insurance which covers against illness/injury to key employees which would cover the financial loss to a business sustained by the loss of that person. Our team can offer advice on a huge variety of policies and ideas which can be tailored specifically to your situation.
Get help from HMRC if you’re struggling to meet tax payment deadlines
A Time To Pay arrangement allows businesses to make a formal arrangement with HMRC for tax payments to be spread over a longer period of time than they would otherwise be due in a more affordable fashion. TTP arrangements have been around for a while, however, the existing offering has been extended and therefore more support is available to businesses.
“I would like to congratulate you and thank your team for the proactive way you have prepared and delivered information and support to help guide Hayes through these difficult times”
- “Covid Secure” practical workplace guidance for employers
- Eligibility for grant funding
- Government reduces the penalty for Lifetime ISA withdrawals
- Get ready to claim the Self-Employment Income Support Scheme (SEISS)
- Bounce Back Loan scheme is now live – apply today
- Deferring your VAT payment
- Businesses who defer VAT payments should continue to file returns as usual, says HMRC
- Employers should continue to meet automatic enrolment obligations despite coronavirus disruption, says TPR
- Improvements to CBILS: what you need to know
- COVID-19 – HMRC relax inheritance tax process
- Revised Coronavirus Business Interruption Loan Scheme (CBILS)
- Government extends Coronavirus Business Interruption Loan Scheme to all SMEs
- Have you claimed the Business Rates Grants?
- Directors can be furloughed
- COVID-19: Government to cover employer NICs and pension contributions of furloughed workers
- COVID-19: Details announced on support available to the Self-Employed
- COVID-19: Government releases details on Coronavirus Job Retention Scheme
- HMRC: Self Assessment payment on account deferral scheme open to ALL taxpayers
- Businesses urged to apply for Companies House filing extension before deadline
- Applying for a Coronavirus Business Interruption Loan Scheme (CBILS)
- Deferring VAT – HMRC confirms businesses should cancel VAT direct debits
- Accessing the Coronavirus Job Retention Scheme
- Government support help with the economic impact of Coronavirus – Here’s what businesses need to know
- Enterprise Finance Guarantee scheme – eligibility restrictions for small businesses
- Useful Helplines and Websites
- Coronavirus: Government announces IR35 delay
- Coronavirus Update – Business as usual