Covid-19 government update

Apr 6, 2020 | Uncategorized

Updates from 3 April

The coronavirus business interruption loan scheme for struggling businesses has been revamped.

In addition to the previous offering, it will offer state-backed loans of up to £25 million for larger firms with turnover of between £45m and £500m.

UK Finance said more than 130,000 loan enquiries had been made since the scheme opened, but less than 1,000 had been approved by banks.

In response, the Government will underwrite 80% of these loans to nudge banks into speeding up the provision of these emergency funds.

Banks will also be banned from asking company owners to underwrite loans of up to £250,000 with their own assets, such as property or savings.

Updates from 2 April

The coronavirus job retention scheme now applies to off-payroll contractors working for public-sector organisations.

Furlough can be offered to all public-sector workers, including those paid under PAYE, through an umbrella or their own personal service company.

Updates from 1 April

The second phase of Making Tax Digital for VAT, which introduces more complex technology and stringent rules, has been deferred for 12 months.

New rules around the way digital firms link their MTD software and how they upload their VAT returns will now kick in on 1 April 2021.

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