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COVID-19 Business Update (cropped)
10-04-2020

Business Update 9 - Coronavirus (Covid-19)

Our latest update below covers the following:  

  • Coronavirus Job Retention Scheme: HMRC portal  
  • Coronavirus Job Retention Scheme: Owner Directors 
  • Coronavirus Business Interruption Loan Scheme : Personal Guarantees 
  • Time to Pay: PAYE 
  • Auto-Enrolment: Pensions Regulator Employer Guidance 
  • VAT direct debits - REMINDER 

 Coronavirus Job Retention Scheme (CJRS): HMRC Portal 

 

We understand that the HMRC portal will be launched on 20 April. Demand will be very high. 
Note: HMRC have explicitly said that claims should not be made by phone. 
Businesses and agents (such as ourselves) that are authorised to act on behalf of clients for PAYE matters, will be able to claim. 
We are already working with a number of our clients to assist with formulating and filing a claim under the CJRS. If you are still contemplating making a claim please call us if you need any help. 

 

Coronavirus Job Retention Scheme: Owner Directors

 

Still no new news regarding the extension of the CJRS to include dividends paid as part of the typical overall remuneration mix received by an Owner/Director. 
That said, it is possible for an Owner/Director to be furloughed but he/she can only make a claim based on their basic salary, i.e. excluding dividends. 
There is also a further catch because based on current HMRC guidelines, a furloughed director cannot undertake any work other than his/her statutory duties - see extract from ICAEW guidance below: 

 

“The HMRC guidance confirms our understanding that directors, including those who are directors of their own personal service company, can be furloughed. The HMRC guidance reminds companies that: 
‘company directors owe duties to their company which are set out in the Companies Act 2006. Where a company (acting through its board of directors) considers that it is in compliance with the statutory duties of one or more of its individual salaried directors, the board can decide that such directors should be furloughed. Where one or more individual directors’ furlough is so decided by the board, this should be formally adopted as a decision of the company, noted in the company records and communicated in writing to the director(s) concerned.’ 
‘Where furloughed directors need to carry out particular duties to fulfil the statutory obligations they owe to their company, they may do so provided they do no more than would reasonably be judged necessary for that purpose, for instance, they should not do work of a kind they would carry out in normal circumstances to generate commercial revenue or provides services to or on behalf of their company.’” 

 

Please contact us for help if you think your circumstances are such that you may be eligible to make a claim. It may be the case that where there is more than one director, it would make sense to furlough others provided they are able to meet the “not working” criteria outlined above. 

We continue to keep a close eye on this. 

 

Coronavirus Business Interruption Loan Scheme: Personal Guarantees

 

There is no requirement to provide any form of personal guarantee in respect of loans up to £250,000.

 

Time to Pay: PAYE

 

A number of us will have our 2019/20 Month 12 PAYE payments falling due shortly.  
Don’t forget, if you need to that there is a possibility to reschedule payments under the Coronavirus Time to Pay arrangements. The number to call at HMRC is 0800 024 1222.  
Please let us know if you would like any help with this. 

 

Auto-Enrolment: Pensions Regulator Employer Guidance

 

This link will take you to the Pensions Regulator website where you will find some additional guidance for Employers in the context of Covid 19. 

 

VAT direct debits - REMINDER

 

With everything that’s going on, it’s easy to overlook things, so just a reminder to cancel any existing direct debit arrangement you may have in place if you want to defer your upcoming VAT payment and haven’t already done so.

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