Liric Accountants

Covid 19 Support for Businesses from Liric – 19th March 2020

Hello

In light of the ever-changing situation around Covid-19, we wanted to share with you what support and help there is available. Apologies for the general nature of this email but we wanted to get something out before talking to you on an individual basis.

Liric Support…

Firstly, we created some capacity within the team to enable us to grow earlier this year. Whilst that capacity is available, we’re happy to support you on a case by case basis without charging standard rates. So, for example, if you are in an industry that has been severely affected already (travel, tourism, hospitality etc) we’d be delighted to help with some short-term cash flow projections or just act as a sounding board. Please let us know if you need any support like this and we can chat it through.

The Liric team is transitioning to working from home this week and it is likely that the office will not be open after Friday 20 March. Our focus over the last 2 years on moving our client’s businesses to a cloud accounting platform makes this much easier for both us and you. All team members have remote access to our office servers and telephone lines will be open as usual. Should your call go through to voicemail, please leave us a message, we will return your call.

If you need to drop something into the office, please call 07590 042 325 ( Lisa Mobile) before you leave to make sure there will be someone in to meet you.

All meetings going forward will be moved to the telephone or Zoom. We’ll ask what you prefer when we book the appointment.

Talking to several clients this week it is clear the community is already experiencing cancelled orders/events/contracts, supply chain issues and some challenges with cashflow.

What’s App Group…

This advice is a moving target so it is as up to date as it can be as we write this email. To make communication with us as instantly as possible, we have created a WhatsApp Group. You can join the group by following the link below ( we think easier if you do this direct from your phone):- 

https://chat.whatsapp.com/EJhUepkQqm20pckeERxsG1

We will then issue any updates on Government financial action, as soon as we have digested it, to this group with a follow up email. Please be aware if you choose to join this group:-

· Other people may be able to see your telephone number.

· We will not share confidential information in the group.

· Anyone that “spams” the group will be removed instantly without warning.

Review your overheads

If you are predicting cashflow difficulties it is sensible to review your overheads in the business and pause any spending you feel may not be necessary at this time. The first thing to do is categorise expenditure (both personal and business) into “essential” and “nice to have”. Once you have those numbers you can better appraise your situation and we can support you further with short term cash flow forecasts.

HR Dept

Our HR support is through Markel (formerly Abbey Tax). If you need any support relating to HR, please call 0345 250 0762 and quote reference “ABTAX” and state you are a customer of Liric.

Your own Bank

Contact your own bank, either your dedicated manager if you have one or your business call centre to discuss your options should you need a new or increased overdraft limit, asset finance, credit cards or other forms of temporary finance.

Other potential funding sources

Please note these are only a few of the options available to you and these do not form a recommendation by Liric.

Capital On Tap – https://www.capitalontap.com/en/

Funding Circle – https://www.fundingcircle.com/uk/

Iwoca – https://www.iwoca.co.uk/

NatWest Rapid Cash – https://rapidcash.natwest.com/

Satago – https://www.satago.com/

Turning now to the Government support…

In the Budget 2020, the Chancellor announced that a ‘Coronavirus Business Interruption Loan Scheme’ (CBILS) will temporarily replace the Enterprise Finance Guarantee (EFG), becoming available over the coming weeks.

It will operate in a similar way to EFG and be provided by the British Business Bank, but will offer more attractive terms for both businesses and lenders, with the aim of supporting the continued provision of finance to UK businesses during the Covid-19 outbreak.

As it stands, we do not know any more than this. More information will be available in the coming days and weeks, please click on the link below for updated advice:-

Coronavirus Business Interruption Loan Scheme – Temporarily Replacing the Enterprise Finance Guarantee Scheme

HMRC and Time to Pay

HMRC have launched a helpline to help businesses concerned about paying their tax due to coronavirus (COVID-19). Again, this appears to be a “work in progress”. You will find more details below, but if you have any concerns about making payment to the tax authorities please call us immediately for support.

https://www.gov.uk/government/news/tax-helpline-to-support-businesses-affected-by-coronavirus-covid-19

https://www.gov.uk/government/publications/support-for-those-affected-by-covid-19/support-for-those-affected-by-covid-19#to-support-businesses-experiencing-increases-in-costs-or-financial-disruptions

Official guidance for employers

For HMRC’s guidance for employers, please follow the link below:-

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/guidance-for-employers-and-businesses-on-covid-19

Statutory Sick Pay SSP Support

To support businesses experiencing increases in costs or financial disruptions:-

· The government will bring forward legislation to allow small and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19.

· The eligibility criteria for the scheme will be as follows:-

o This refund will cover up to two weeks’ SSP per eligible employee who has been off work because of COVID-19. Employers with fewer than 250 employees will be eligible.

o The size of an employer will be determined by the number of people they employed as of 28 February 2020. Employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19.

o Employers should maintain records of staff absences, but employees will not need to provide a GP fit note.

o The eligible period for the scheme will commence the day after the regulations on the extension of Statutory Sick Pay to self-isolators comes into force.

o The government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible. Existing systems are not designed to facilitate employer refunds for SSP.

The information above has been taken from the following Source:-

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/871900/Covid-19_Budget_fact_sheet_FINAL.pdf

Again, it is unclear how this will be organised and how quickly the payroll software will catch up with the situation.

We are more than happy to discuss your individual circumstances and advise on the best way forward.

We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.

The Liric team are here to help you. If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.

Spring Statement 2019

The Chancellor’s Spring Statement took place yesterday. There was not a lot new apart from clarifying that MTD (Making Tax Digital) will not yet be rolled out for taxes other than VAT, which is coming in from 1 April 2019. We have summarised what was said, together with other topics of interest (‘Looking Ahead’) in our newsletter which we hope you will find of interest. Please download it here.

Our summary includes updated forecasts for the UK economy and public finances, as published by the Office for Budget Responsibility. The Chancellor pledged to bring forward the £700 million reforms for business apprenticeships, and also announced that a £26.6 billion ‘deal dividend’ would be made available to help boost the economy, providing a Brexit agreement can be reached.

For advice on any of the topics covered in our Spring Statement newsletter, and how they may have an impact on your business or personal finances, please give us a call on 01763 853 633.

Liric March newsletter

For all the updates from Liric, please click here.

Xero Gold Partner

Liric December newsletter

For the latest news and reminders from Liric, please click here.

Autumn Budget 2018

This year’s Autumn Budget was presented earlier than usual, due in part to the crucial final stages of the government’s Brexit talks with the EU. Measures for businesses included a cut in business rates for small retail properties in England, together with an increase in the Annual Investment Allowance from £200,000 to £1 million. Individuals will benefit from an increase in the income tax personal allowance a year earlier than planned, in April 2019. The higher rate threshold will also increase at this time.

We’ve put together a Budget Newsletter with all the key points. We give you an overview of the announcements arising from the Chancellor’s speech, and consider how they could affect your personal and business finances.

Please click here to read our Budget Newsletter now.

You can also find more in-depth information in our app which includes fully updated ‘Budget News’.  Just visit our home page for the link to download the app, or download it direct from the iTunes Store or Google Play (search for MyAccountants and then use the code ‘Liric’).

GDRP

GDPR regulations coming into force 25 May – are you ready? See our recent newsletter.

 

 

Liric November newsletter

Did you catch our November newsletter – if not click here

 

 

The Brand new App from Liric

At LIRIC we are constantly looking for ways we can improve the service we offer our customers and we are proud to announce the launch of our brand new LIRIC App.  It’s completely free of charge and it’s available for iPhones, iPads and Android devices.

 

So the next time you need to look up a tax rate or work out a VAT calculation, our new App can help.  It provides you with up to date, important accountancy data at your fingertips.  PLUS:

Photo Receipt Management, Email and Store

Never lose a receipt again! Using the latest App, you can track receipts and expenses literally at the touch of a button. With minimal effort you can take a picture of any receipt and save it to your App. Any additional information can be added later and receipts stored by amount, category, and date. It can help you track all your expenses with ease and enable us to interact digitally with you.

GPS Mileage Tracking and Management tool

When it comes to mileage tracking, half the battle is keeping an accurate tab on your journeys. Using the built-in GPS on your device, it will automatically track your mileage, helping you to record every single trip at the touch of a button. It also manages trips as well, storing them and allowing you to view, edit or email them with complete ease.

Keeping in touch via ‘Push Notifications’

As a LIRIC we are committed to finding ways to communicate and interact with clients in the most efficient possible way.  The new App enables us to send push notifications to all App users.  We will be using this feature to share important news, deadline reminders and financial updates with you.

This App was designed to provide every service you could ask from us. We’ve put your favourite business systems, invaluable tools and features such as calculators, tax tables, logbooks, receipt and income management, instant access to the latest financial news and information and valuable company info, directly from us. With all this on one App, our App will likely be your go-to tool in the future.

It’s available for iPhone, iPad and Android devices completely free of charge right now!

Simplysearch on for the App Store or Google Play for  “liric accountants app” or scan the QR code

Enjoy our App with our compliments!

Spring Budget 2017

The Chancellor’s 2017 Budget contained some important announcements and confirmed a number of changes planned for the new tax year.

There was both good and bad news for sole traders and small businesses in today’s Budget. Following this, we have put together a review which contains the latest tax and financial information, which we trust you will find useful. Please click here to download.

For more information on how the changes in the Budget may affect you, please contact us

In Brief:

Class 4 NICs will increase from 9% to 10% in April 2018, and then to 11% in April 2019 for those earning more than £8,060. Employees currently pay 12%. Class 2 contributions – as previously announced – will be abolished from April 2018. This will affect you if you are self-employed.

In addition, Hammond announced that the tax-free dividend allowance – introduced last year – will be reduced from £5,000 to £2,000 from April 2018. This will affect you if you trade as a Limited Company.

As plans for Making Tax Digital (MTD), continue apace, Hammond also announced that for businesses with turnover below the VAT registration threshold this will be delayed by one year to April 2019 to allow more time to prepare for the changes.

Businesses that have an annual turnover below the VAT registration threshold will have an extra year before they are required to keep records digitally and send HMRC quarterly updates.

Those businesses trading above the VAT threshold will still be required to keep digital records and send HMRC quarterly updates from April 2018.

The exemption threshold for MTD remains at £10,000.

At Liric, we are working on ensuring all our clients have the systems they will need to ensure they comply and there will be much more about this in future newsletters.