Advice for businesses affected by the COVID-19 coronavirus
The spread of the COVID-19 virus has put sudden financial pressure on thousands of businesses across the UK. Some businesses have seen an immediate and devastating impact on their cashflow, whilst others are coping but still concerned for the future. The situation is fast-moving and at Graywoods we are working hard to support struggling businesses. If you run a business, you probably have many questions:
- What financial help will there be for my business?
- How long will the crisis last?
- What will happen if I cannot afford to pay HMRC?
- How can I pay my staff if the business has run out of money?
- Will the bank offer to lend me more money – and should I take it?
- Should I carry on trading or close down my business?
At this stage, we are urging business owners to stay calm and take practical steps to protect themselves, their employees and their business. Some businesses have been able to move quickly to find ways to carry on supplying their goods or services. Others have found that business has suddenly dried up. Whilst the initial priority is to keep you and your staff safe, it is important to take expert advice if your business is struggling to cope with the financial impact of the coronavirus.
Over the coming days, more details will become available about the help which is being made available by Goverment, the banks and HM Revenue and Customs. In the meantime, here are some links to information for businesses on how to cope with the crisis:
HMRC has confirmed that VAT payments due from 20 March 2020 until 30 June 2020 will be automatically deferred. This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal. Those who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT return. To discuss the payment of other tax matters, call HMRC’s dedicated helpline: 0800 015 9559
If your business was already struggling prior to the emergence of the COVID-19 coronavirus and you would like advice on your options for dealing with a pre-existing insolvency issue, please call us for expert, impartial advice. Call us today on 0114 285 9500. We can help.