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Good afternoon,
We are bringing forward the date of our next update, in order that we can advise our Welsh based clients of the latest developments with regard to the Welsh Government Economic Resilience Fund. We are also taking advantage to include issues affecting Directors of small limited companies, and the self-employed.
Welsh Government Economic Resilience Fund
- Proposals with regard to this fund were announced by First Minister, Mark Drakeford on 30th March, and included in our updates No. 9 and 10. At that time it was suggested that details on what is on offer and how to apply would be released in the coming weeks, with Grant details available mid-April.
- Things are moving quickly! Already the £100m loan scheme through the Development Bank of Wales has been fully subscribed with an unprecedented number of applications in the first week.
- It is likely that there will be the same response with for the £400m grant fund, and it is therefore imperative that applications are submitted as quickly as possible. It is possible that details will be released as soon as tomorrow (9th April), and so we are advising all of clients to be alert! Full details will be available when the applications open, so please check the Business Wales website for details on a regular basis - https://businesswales.gov.wales/coronavirus-advice
- In brief, Grants of up to £10,000 are available to businesses employing up to 9 people, with Grants of up to £100,000 being offered to those businesses employing between 10 and 249 people, and Support for those Welsh companies which are of critical and social importance to Wales.
- To be eligible for Grants from the new Economic Resilience Fund, businesses are likely to have to meet certain criteria and provide hard evidence to strengthen their case for support. The focus will be on those businesses which have not already benefited from the Coronavirus Grants already announced by the Welsh Government.
Company Directors
- A great deal has been published concerning the plight of directors of small companies who have been used to paying themselves by means of a small salary supplemented with dividend income – only to find that their dividend income does not apply for the Coronavirus Job Retention Scheme. Since they do not qualify for the Self-Employed Income Support Scheme either, Directors find themselves falling between two stools!
- There are a number of representative organisations well aware of this problem and are making representations to Government asking for assistance on behalf of their members. Please take the opportunity to state your case to these bodies in order to highlight your predicament.
- The Federation of Small Businesses is one such body and are requesting examples. Please email selfemployed@fsb.org.uk.
- Another organisation worth keeping in touch with is IPSE (Independent Professionals and Self-Employed). Both of these organisations “have the ear“ of Government and are worth keeping in touch with.
Coronavirus Self-Employed Income Support Scheme
- Anyone wishing to apply for a grant under this Scheme needs to have brought their self-assessment returns up to date. The government extended the period for final submission of the 2018/19 return to 23rd April 2020. This deadline is fast approaching so please ensure that your returns are up to date. On the same note, the 2019/20 returns will be issued shortly. Although income tax liabilities have been deferred to January 2021, it may be worth considering submitting the latest return as soon as possible, in order to crystallise any loss relief which might be available, and reclaim any income tax due.
Charities and Voluntary Organisations
- A Voluntary Service Emergency Fund has been launched by Welsh Government as part of a £24m Third Sector COVID-19 Response Fund. It is administered by the Welsh Council for Voluntary Action. More details can be found here
- A package of funds worth £18m will support the creative industries, culture and sports sectors, safeguarding businesses and jobs. The funding is made available by Welsh Government, the Arts Council for Wales, and Sport Wales, and includes:
£7m Arts Resilience Fund led by Arts Council of Wales
£8m Sports Resilience Fund led by Sport Wales
£1m Creative Wales Fund
£1m Cultural Resilience Fund
£750k Emergency Relief Fund administered by the Welsh Museums Federation and Sport Wales
£250k Digital Libraries Resources
Dealing with HMRC
- As professional agents for so many taxpayers, we understand the frustrations that can arise when trying to deal with HMRC. They are expected to publish guidelines about changes to make contact more straightforward. We understand that some individuals are suffering issues with regard to postage, submission of forms and returns, and dealing with enquiries including appeals and penalties.
- Where possible we make contact through HMRC online services in order to reduce pressure on the system. However, we are only too aware that the services available to agents are more limited than those to the taxpayer. It may therefore be worth encouraging you to use the services directly where appropriate.
- This may be particularly useful when applying for grants through the Coronavirus Job Retention Scheme, or the Self-Employed Income Support Scheme, or when chasing up applications when the time comes. To access HMRC online services, visit https://www.gov.uk/personal-tax-account (for personal tax) and https://www.gov.uk/log-in-register-hmrc-online-services (for businesses).
- HMRC themselves are under considerable pressure and have reduced their Helpline hours to 8am- 4pm, with the least busy time being 8-10am.
Additional Information
For those in Wales, some useful help and advice lines are:-
- Business Wales - 03000 603 000
- Development Bank of Wales - 08005 874 140
- Welsh Revenue Authority - 03000 254 000 (for queries related to Welsh taxes)
- HMRC Coronavirus Helpline - 08000 159 559
Best wishes
Mitchell Meredith
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