VAT deferral relief applies to any VAT payments due between 21 March and 30 June 2020. The latest quarter end you can apply this to will be April – reportable by the end of May, payable by 7 June. The VAT deferred will need to be paid back by April 2021.
To make the most of this, it seems a good idea to invoice any future confirmed sales within this quarter, as this will put the VAT point date within the deferral scheme and qualify it for relief.
The main components of furlough, a mandatory leave of absence which the government have agreed to support with salary rebates, are:
What many small businesses appear to be doing:
The Government has agreed to underwrite 80% of the value of loans up to £5 million, to be issued by your own bank. If you apply for over £250,000, you'll have a few more hoops to jump through.
As banks are on the hook for 20% they will apply some form of commercial due diligence. It seems likely that applications with the best chances of success are for businesses that were viable for the type of loan they want before the virus started; can demonstrate the loss due to the virus; and can demonstrate they will have a future after the virus with the support of the C19 Business Interruption Loan.
Check your business insurance contracts for 'continuous occupancy clauses'. It is often the case that a business premises must not remain unattended for 30 days or more, which poses an obvious issue now. If you think you may be caught by this, flag it up with your brokers ASAP.
Business Support resource from the Government
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