The government has issued an update to the recent 2020 budget in response to the increasing concerns of the economic impact of the Coronavirus.
In a shock announcement last night, the chief secretary to the treasury, Steve Barclay, has confirmed that the IR35 reforms due in April 2020 will be delayed by 12 months to April 2021 in response to Coronavirus.
Just days before the chancellor stated that no changes were planned, in his 2020 budget.
We wait to see how businesses respond, as many have chosen to use a blanket approach moving all contractors on to umbrella companies and undoubtedly would have spent many resources in doing so.
The 12 month business rates holiday for businesses in the retail, hospitality and leisure sector with a rateable value of below £51,000 has been extended to cover all businesses within the sector regardless of their rateable value.
A £25,000 will be available to businesses in the retail, hospitality and leisure sector with a rateable value of between £15,000 and £51,000.
Last week the chancellor announced in his budget that grants of £3,000 will be available for businesses who qualify for Small Business Rates Relief. These have now been increased to £10,000.
Details of the mechanism to claim are yet to be published. We will release regular updates as soon as this has been confirmed.
It has been confirmed that mortgage lenders have agreed to support those struggling with payments due to the Coronavirus by providing payment holidays of up to 3 months.
Further backing has been given to lenders to offer lending through the Coronavirus Business Interruption Loan Scheme to support long-term viable businesses. With loans if up to £5 million interest-free for the first 6 months.
Time to pay
The government has reiterated its commitment to allow businesses affected by the Coronavirus time to catch up on outstanding tax liabilities.