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Covid-19 Business Support & Self Assessment Cash Flow

by | Apr 15, 2020 | Covid19

Back on 22 March 2020 we published Covid-19 Business Support – a Case Study

This is an expanded set of Case Studies covering the Government Support for business and Self Assessment payments

The common theme is “Janes Café” – fictitious – and we are showing three different scenarios

  1. Where the business is paying rates of £16,000 a year and benefits from (a) the £25,000 grant and (b) the rates holiday
  2. Where the business is within Small Business Rates Relief, and benefits from the £10,000 grant – no rates holiday as not paying rates
  3. Where the business was outside of rates – maybe they were paid by the landlord (its come to light in recent weeks that happens in more cases than you would think) – hence no grants

Within each of those we’ve then shown

  1. The pre C19 situation
  2. The post C19 situation assuming 100% staff wages paid, and the Coronavirus Self Employed Income Support Scheme grant
  3. The post C19 situation assuming 80% staff wages paid (would need staff agreement) and the Coronavirus Self Employed Income Support Scheme grant

Each scenario assumes a three month closure and then a 1/3 drop in turnover due to social distancing for another 9 months.

We’ve gone on to show how this impacts tax payments in terms of estimated annual profits and Self Assessment payments.

Of course, every business is different, and there are multiple variations on these themes, but hopefully they help people understand some of the variables.

Where the business is paying rates of £16,000 a year and benefits from (a) the £25,000 grant and (b) the rates holiday

[pdf-embedder url=”https://www.whitefieldtax.co.uk/wp-content/uploads/£25k-Covid-19-Support-POA-Case-Study.pdf” title=”£25k Covid-19 Support & POA Case Study”]

 

Where the business is within Small Business Rates Relief, and benefits from the £10,000 grant – no rates holiday as not paying rates

[pdf-embedder url=”https://www.whitefieldtax.co.uk/wp-content/uploads/£10k-Covid-19-Support-POA-Case-Study.pdf” title=”£10k Covid-19 Support & POA Case Study”]

 

Where the business was outside of rates – maybe they were paid by the landlord (its come to light in recent weeks that happens in more cases than you would think) – hence no grants

[pdf-embedder url=”https://www.whitefieldtax.co.uk/wp-content/uploads/£0k-Covid-19-Support-POA-Case-Study.pdf” title=”£0k Covid-19 Support & POA Case Study”]