I am getting in touch today to summarise some of the support that is currently available. The reason we are putting out so many updates, is to furnish you with enough information to get access to the funds and support that you are entitled to, however you then need to act on this if you want to receive the support. The support WILL NOT be paid automatically and you are required to submit applications for every one of the schemes, unfortunately we have been told that we ARE NOT able to assist with the application directly, which is why we are trying our best to point you in the right direction and give you as much information to hopefully make it a little easier for you to get access to these funds.
Self Employed Income Support Scheme
Applications for this scheme went live today, and in order to make an application, you must have;
1. Setup a personal tax account online - HERE
2. Check your eligibility - HERE
3. If eligible, you will be given a date and time that you will be able to access the application.
4. Once the date and time arrives, login to the claim website - HERE
Bounce Back Loan Scheme
Whilst the Bounceback Loan Scheme criteria is very relaxed, and everyone seems to be eligible, please remember this may not come without any additional consequences. If you happen to borrow money via your limited company, and then withdraw this for personal expenditure, please remember that this will come with a tax burden.
This is not the same for sole traders, you can spend the loan on personal expenditure with no additional tax liability to pay, but as the rules for limited companies are very different, you may encounter a 32.5% tax charge on any sums of money taken from your business account that remain outstanding at the end of the financial year. You can use this money to pay wages, ie. if you are a Director there would be nothing to stop you increasing your salary and drawing down on the sums paid from the loan, however, there will be a tax and national insurance liability if taking funds in this manner. Please give it some thought, or ask us for our advice.
We are encouraging clients to apply for it, but to be sensible about how it is spent. Most applications are being processed and funds paid out within 10 working days. For any clients that have been using their personal account as opposed to a business account for their funds being paid in the past, most banks are offering you the ability to open a business bank account now, and then make the application.
**YOU MAKE YOUR APPLICATION VIA YOUR OWN BUSINESS BANK, SO CHECK THEIR WEBSITE FOR DETAILS**
Rishi Sunak announced yesterday that the Furlough Scheme will be extended to the end of October 2020.
There has to be no changes to the current criteria and guidelines up until the end of July, however Employers will be required to start making some contribution to the scheme if they choose to continue with this between August and October, more information on how this is likely to work in practice will be released in due course and we will, of course, keep you updated.