Scottish Textile News
The government has automatically deferred the payment of VAT to HMRC between 20 March 2020 and 30 June 2020 until April 2021. All UK businesses are eligible, and no applications are required.
Textile Scotland and UKFT associate member TC Group has advised it expects HMRC will continue to expect businesses to submit VAT returns, although payment is not required. There is no mention so far about direct debit payments. The information available at the time of writing suggests that the payment runs are automatic and, therefore, may be problematic.
TC Group advises companies to cancel direct debits for VAT with their bank to make sure no payment is taken.
Textile Scotland members with any questions, please contact firstname.lastname@example.org
Scottish Government has issued the following advice to Scottish businesses.
We would advise all business premises, sites and attractions to close now unless they are:
Critical National Infrastructure (CNI) sectors define those facilities, systems, sites and networks necessary for the functioning of the country. Essential services are the fundamental services that underpin daily life and ensure the country continues to function.
There are 13 designated sectors (Energy; Communications – Telecommunications, Public Broadcast, Postal Services, Internet; Government; Transport; Finance; Civil Nuclear; Defence; Chemicals; Space; Government; Health; Food; Water and Waste; Emergency Services) but not everything and everybody within a national infrastructure sector is 'critical'.
Even where businesses are in the CNI category and judge themselves to be exempt from closure of business premises, it is imperative that they keep open only those premises or parts of premises that are truly critical or essential to the national COVID effort.
All individuals and businesses that are not being specifically required to close should consider a key set of questions– and at all times work on the precautionary basis:
If the answer to none of the above questions is yes, our advice on a precautionary basis is to close.
From 25 March 2020 businesses can apply for a 3-month extension for filing their accounts to allow for the prioritisation of managing the impact of Coronavirus.
Companies will have to apply for the 3-month extension but those citing issues around COVID-19 will be automatically and immediately granted an extension. Applications can be made through a fast-tracked online system which will take just 15 minutes to complete.
If you do not apply for an extension and your accounts are filed late, an automatic penalty will be imposed. The registrar has very limited discretion not to collect a penalty.
Companies that have already extended their filing deadline, or shortened their accounting reference period, may not be eligible for an extension.
Help with non-domestic rates in Scotland during coronavirus (COVID-19)
To help owners of non-domestic properties, including businesses, deal with the impact of COVID-19, the Scottish Government has made changes to non-domestic rates (business rates) for 2020-21.
The Scottish Government has introduced extra rates reliefs (discounts). It has also introduced a one-off grant for some businesses.
These reliefs will be available to non-domestic properties from 1 April 2020 to 31 March 2021.
It will be possible to apply for the grants from 24 March 2020 and they will be available to 31 March 2021.
Extra reliefs to help with COVID-19
All non-domestic properties in Scotland will get a 1.6% rates relief. This relief effectively reverses the change in poundage for 2020-21.
You do not need to apply for this relief and it will be applied to your bill by your local council.
Retail, hospitality and leisure businesses
Retail, hospitality and leisure businesses will get 100% rates relief. To get this relief, a property has to be occupied. Properties that have closed temporarily due to the government's COVID-19 advice will be treated as occupied.
The Scottish Government are working with Scotland's 32 Councils to make sure this relief is administered in the most effective way. You can check this page for updates, including information on any application process.
You can get these rates reliefs even if you already get another relief for your property.
Retail, hospitality and leisure businesses with a rateable value between £18,001 and up to and including £50,999 will be able to apply for a one-off grant of £25,000.
A one-off grant of £10,000 will also be available to small businesses who get:
Small Business Bonus Scheme relief
You can also get this grant if you applied for Nursery Relief, Business Growth Accelerator Relief or Disabled Relief but are eligible for the Small Business Bonus Scheme.
You can only apply for one grant – even if you own multiple properties.
Self-catering premises are not eligible for the grant funding.
Applying for a grant and getting paid
To apply, you'll need to complete an application form. You can find this form on your local council website.
The Prime Minister issued a statement this evening (23rd March) introducing three new measures.
These measures are effective immediately. The government have issued more detailed guidance on what these new measures mean and a copy of the guidance can be found here.
All clothing and textile retail stores should now close. However, the guidance does state that people can travel to and from work, ‘but only where this absolutely cannot be done from home’.
Textiles Scotland, as part of UKFT, continues to be in close dialogue with the government and will provide detailed information on issues relating to Covid-19 as and when it becomes available.
The Chancellor has announced a very significant package of financial support available to businesses to help limit the impact of the Covid-19 virus on employees.
Full details will follow shortly, but the headlines are as follows:
Coronavirus Job Retention Scheme
HMRC will provide grants to cover 80% of the costs of employees who are not working due to coronavirus shutdowns but who have not been laid off. The scheme will cover up to £2,500 per month for each eligible employee. The scheme will run for an initial 3 months, backdated to 1st March 2020.
The application process is being established now and it is anticipated that the grants will start to be paid by the end of April at the latest.
Coronavirus Business Interruption Loan Scheme
The interest-free element of these loans has been extended from 6 months to 12 months. These loans will be available from Monday 23rd March
Chancellor has deferred the next quarter of VAT payments so no business will pay VAT until the end of June and businesses will have until the end of the financial year to make these payments.
The government has suspended the minimum income floor meaning that the self-employed will be able to access Universal Credit in full, at the same level as Statutory Sick Pay for employees.
The government has also deferred the payment of the next self-assessment payment until January 2021.
People unable to work for more than seven days because of coronavirus (COVID-19) can obtain an isolation note through a new online service.
Isolation notes will provide employees with evidence for their employers that they have been advised to self-isolate due to coronavirus, either because they have symptoms or they live with someone who has symptoms, and so cannot work.
To get an online isolation note visit https://111.nhs.uk/isolation-note/
After answering a few questions, an isolation note will be emailed to the user. If they don’t have an email address, they can have the note sent to a trusted family member or friend, or directly to their employer. The service can also be used to generate an isolation note on behalf of someone else.
For the first seven days off work, employees can self-certify so they don’t need any evidence for their employer. After that, employers may ask for evidence of sickness absence. Where this is related to having symptoms of coronavirus or living with someone who has symptoms, the isolation note can be used to provide evidence of the advice to self-isolate.
Isolation notes can be obtained without contacting a doctor.
Government Stay at Home Guidance for households with possible coronavirus (COVID-19) infection
It is very important that individuals with symptoms that may be due to coronavirus and their household members stay at home. Staying at home will help control the spread of the virus to friends, the wider community, and particularly the most vulnerable.
Full details can be found here https://www.gov.uk/government/publications/covid-19-stay-at-home-guidance/stay-at-home-guidance-for-households-with-possible-coronavirus-covid-19-infection
If you have coronavirus symptoms:
HM Treasury and the Bank of England have announced that they will be launching a Covid Corporate Financing Facility (“CCFF”) on 23 March 2020 to provide additional help to firms to bridge through Covid-19 related disruption to their cash flows. The CCFF will be separate to the initial £330bn package of government guarantees.
The new Covid-19 Corporate Financing Facility (CCFF) will support companies which are fundamentally strong, but have been affected by a short-term funding squeeze. This will act as a vehicle to support corporates who would ordinarily seek market-based finance for their working capital, but find themselves unable to access financial markets in this uncertain operating environment. This facility will primarily provide bridging support to see through the temporary nature of Covid-19 related disruption. It will have the ability to offer unlimited financing to eligible companies over the coming year.
The Bank of England will operate this facility on behalf of HM Treasury, and the Bank will put in place the facility as soon as possible. The Government will indemnify the Bank’s operations under this facility. Full details are available here
The Government has now published details on how the business rate relief scheme will work.
The Fashion & Textile Children’s Trust (FTCT) can support families within the UK fashion and textile industry, particularly in light of the Coronavirus. FTCT offers grants towards the cost of essential items for children aged between 0-18 years, whose parent/carer works in the UK fashion and textile industry.
At this time, FTCT are reaching out to both employees and employers at companies whose income has been or is likely to be affected by closures, short-hours or lay-offs as a result of Coronavirus.
When FTCT can help
If there are dependents aged 0-18 within the family and parents are experiencing financial difficulty due to loss of income, an FTCT grant could cover the cost of essential items such as clothing, school uniform and household essentials.
While FTCT grants can’t help with the immediate issues such as replacing lost income or helping towards the cost of bills, they can be particularly helpful once the Coronavirus crisis begins to subside and the financial impact will really be felt.
Parents are encouraged to find out more about FTCT grants and apply in advance for seasonal items such as school uniform or essential clothing, which will become essential in the summer months.
Click here to find out more.
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