6 April 2020

We’ve put together some helpful FAQs around the numerous government schemes available throughout the COVID-19 pandemic, breaking down some of the more unclear points around furlough, deferring tax payments, the job retention scheme and more. Last updated 6 April 2020.

How does furlough work? And when will I get paid?

As it currently stands, the mechanism in order for us to reclaim the 80% of wages as per the government guidelines is not in place. As far as we know, you will be able to reclaim in three-week blocks, which can be backdated to 1 March 2020. 

The claim will be put in AFTER the payroll has been run, so you will need to consider cashflow implications before paying staff. The government are planning on getting this gateway set up by the end of April, so cashflow for this month will need to be considered in the meantime.

How do I get the small business rates grant?

You do not need to do anything at all. If you qualify for the Small Business Rates Grant, you will be contacted by your local council and invited to apply. The grants are now starting to come through as of this week, so keep an eye out and check your local council’s website.

I have heard I can defer my tax payments – what can I defer and how?

You can only defer VAT payments that are due between 20 March and 30 June 2020, as well as your self-assessment payment on account for July 2020 (if applicable). 

It is important to note that VAT returns will still need to be submitted as usual, but you will not have to make payment until 31 March 2021. HMRC will not chase payment, nor will you be charged interest or penalised for non-payment. 

Similarly, you will not be charged interest for the July 2020 payments on account, if this applies to you. These payments will be due on 31 January 2021.

Can I be furloughed if I am a director?

In short, yes, but this is a bit of a grey area at the moment. It has been confirmed that you can furlough yourself, although you must not undertake any work for your business during this period. It has been confirmed that even though you cannot undertake work for your business, you may continue to meet your statutory and legal obligations, such as filing your accounts or completing your VAT return. 

Do I have to pay my employees the additional 20% of their salary, or can I just pay the 80%?

You can choose to pay your employees in either way. You have no obligation to pay the extra 20%, but you may do so if you wish. It is worth noting that if you do choose to do this, the extra 20% is not reclaimable, so consider cashflow for the coming months before making this decision. Please let your account manager know your decision as soon as possible, so they can reflect this in your payroll for April.

If you have any questions you’d like us to answer, please email them to info@nephosaccountants.co. We’ll keep updating this list over the coming weeks, so check back often for all the latest advice. 

Need more advice?

We’ve put together articles on a wide number of items announced as part of the Chancellor’s support package – visit our Coronavirus hub to get all the latest details.

Coronavirus hub

How can we help?

While there will be plenty of disruption over the next few weeks, we’re here to help! To arrange a call, email Julie on julie@nephosaccountants.co or complete our enquiry form.
 

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