Friday 1 May 2020 – general update
Good morning and welcome to May.
On Monday the Chancellor announced that he would introduce loans that would be 100% backed by the Government. This is in response to criticism of the existing arrangements.
This will be a simple two-page, on-line form and declaration and will offer sole traders, partnerships and Limited companies access to advances of £2,000 to £50,000. The amount is only restricted to 25% of your sales figure. So, if you have a turnover of £100,000 you could claim £25,000.
We do not believe that this means that your turnover must be below £200,000 to qualify. The £50,000 is simply the maximum you can borrow under this new initiative.
Remember this is a loan. It is not free money. Low interest will be charged, after a year, when the repayments start. Access, we believe, will be through your existing bankers from Monday 4 May. They may be more widely available for the 40+ registered lenders.
Here are some useful links:
Please note, if you have applied for a CBILS loan you cannot apply for a bounce-back. You will be able to transfer CBILS loans (up to £50,000) in November.
We are pleased to say that clients have been receiving their furlough support monies this week. Remember that you must follow the guidance when furloughing staff.
Clients have been receiving letters recently, reminding them, that the three-year anniversary of their employment pension scheme will be soon. If you have staff that opted out of the scheme, you will be obliged to opt them back in after the 36-month period has elapsed. If you receive one of these letters, please do let us know.