Chris Downing, Director of Inspire, the business and tax advisers, answers your questions.

My business can’t open because of the lockdown, what cashflow help is available?

At the beginning of January, the Chancellor announced a new programme of one-off grants for businesses in retail, leisure or hospitality which had been forced to close because of the lockdown restrictions.

The amount available for each closed business (or individual property if you have more than one) depends on its rateable value:

• £4,000 for businesses with a rateable value of £15,000 or under
• £6,000 for businesses with a rateable value between £15,000 and £51,000
• £9,000 for businesses with a rateable value of over £51,000

There’s also the other support measures announced before Christmas, which are still available:

• The Job Retention Scheme (furlough) has been extended until the end of April.
  • The government will fund 80% of wages, up to a maximum of £2,500, but the employer will still need to pay the National Insurance and pension contributions.
  • In order to qualify, employees will need to have been on a payroll RTI submission before 23.59 on 30 October.
  • Claims for furlough days in December 2020, must be submitted by 14 January 2021.
• Coronavirus Business Interruption Loans (CBILS) and Bounce Back Loans are still available and the deadline to apply for both of these has been extended to 31 March 2021.
• Business rates relief is available for retail, leisure and hospitality businesses.

Can I apply to defer my VAT payment due in March?

If you deferred your VAT payments between 20 March and 30 June 2020, due to the pandemic, you will soon be able to opt-in to a new VAT deferral payment scheme.

The new scheme, which is due to be launched by HMRC shortly, will allow you to pay up to 11 monthly instalments, interest free.  It is important to remember that you do need to apply for the new scheme, it’s not an automatic application, as other Covid deferments have been.

You will need to pay the first instalment before 31 March 2021, but you can then spread the rest of the payments over the 11-month period.   All instalments must be paid by the end of March 2022. Alternatively, if you are able to do so, then you should pay your deferred payment in full by 31 March 2021.

I deferred my Self Assessment payments last year, when do I now need to pay by?

Last year, HMRC gave people who were registered for Self Assessment, the option to defer their second payment on account, due to the pandemic.

If you chose to defer your 31 July 2020 payment, then it is due in full by 31 January 2021. If you pay by 31 January you won’t incur any interest or penalty charges.

If you can’t make your Self Assessment payments, then I recommend you contact HMRC as soon as possible, as you may be able to set up a Time to Pay arrangement.

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