Announcement of tax measures by the UK authorities for the support of businesses and individualsPosted: 16 Apr 2020
The UK government has announced financial support measures, including tax measures, to mitigate the effects of COVID-19 to the UK economy.
Among the most important tax measures stand deferral of VAT and income tax self-assessment payments as follows: VAT-registered businesses may defer VAT payments due between 20 March and 30 June 2020 until 31 March 2021. Furthermore, self-employed may defer self- assessment income tax payments due on 31 July 2020 until 31 January 2021. Additional resources have been allocated by the tax authorities to deal with applications for deferral of other tax payments.
There also other funding COVID-19 support measures as follows:
- Job retention scheme: payroll support to cover up to 80% of salary costs, up to a cap of GBP 2,500 per month per employee, for individuals not working due to COVID-19 but whose job has been retained.
- Commercial Financing Facility (CCFF): up to 12 months’ support under a financing facility to bridge COVID-19 disruption to businesses’ liquidity.
- Business Interruption Loan Scheme (CBILS): a lending scheme for smaller businesses (with turnover of up to GBP 45 million). The maximum value of a facility provided under the scheme is GBP 5 million, available on repayment terms of up to six years.
- Grants for hospitality, leisure and retail businesses: a £25,000 grant for businesses in these sectors operating from smaller premises with a rateable value of between £15,000 and £51,000. A grant of £10,000 will be given to businesses in these sectors with property that has a rateable value of £15,000 and under.
- Rates relief: A 100% discount on business rates for all retail, hospitality, and leisure venues in England, with no limit on rateable value.
- Statutory sick pay (SSP): Businesses with up to 250 employees may recover SSP paid as a result of COVID-19 for a maximum of two weeks’ sickness per employee.
Article written by:
Katerina Nomicos is a Partner Solicitor at Spencer West. She specialises in international taxation and compliance for HNWI's (trusts) and companies (corporate law/cross-border mergers), international law (including international disputes with a UK element) and e-commerce (GDPR compliance, trade marks, patents).
Partner – Tax and e-commerce
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