How small businesses can strike back and win the Coronavirus war...

Today is the day the most useful loan initiative for SMEs goes live, the Bounce Back Loan Scheme (BBLS). Coincidence? Parallel universe? It probably feels like it!

Why are they so good?

The Chancellor yesterday evening announced further measures to help businesses with their cashflow to bridge the gap during this extended period of reduced income. Now the gym is closed make sure you 'work out' which the best ones for you.

Income Tax and VAT Deferrals

The self employed July 2020 income tax payment on account for the 2019/20 tax year, will be automatically deferred until January 2021 with no interest or penalties accruing. This appears to be for sole traders and partnerships only, and not include directors or employees also due to make payments on account. [EDIT: This has been amended and now seems to include anyone making payments on account under self assessment including directors or employee].

Similarly, VAT due between 20 March and 30 June 2020 won't be collected by HMRC. [EDIT: HMRC have amended their guidance and now state that if you pay by Direct Debit you need to cancel it in good time and reinstate it later]. You will have until 5 April 2021 to catch up with this deferral. VAT refunds will be made as usual. If you're on an annual VAT scheme to end of March, any VAT due will be deferred and if you're due a refund, that will be paid. You're still required to prepare your VAT return so you'll receive a refund as normal if one is due. 

Your accounts need exercising as much as you do.

This starts with putting in quality figures fit for purpose. And ends with the ability to work the figures so they demonstrate and clarify things for you, helping you make better decisions. 

Following the non-reversible Brexit vote last Thursday, how should you navigate your business through the inevitable uncertainty?