Help for UK businesses affected by coronavirus

The government will help UK businesses affected by the coronavirus COVID-19. The Department for Business, Energy and Industrial Strategy (BEIS) published its budget on 13 March 2020 (Friday) and allocated a £12 billion package for this purpose. This is great news to UK small and medium-sized companies. Additionally, there is also help for self-employed individuals.

The support to UK businesses affected by coronavirus would be in the following ways.

Coronavirus Business Interruption Loan scheme

You can apply for a loan up to £1.2 million with the British Business Bank to finance your business operations.

Grants to help UK businesses affected by Coronavirus

The government will provide local authorities with up to £2.2 billion to help small businesses in the UK. The amount would be around £3000 to help around 700,000 small businesses.

Refund of 14 days statutory sick pay for self-isolating staff to businesses

If your business has less than 250 employees and you have employees off work for self-isolating, your business could claim a statutory sick pay refund for the employee. Every little help during this outbreak.

100% discount on business rates

Restaurants, bars, shops and pubs would receive a 100% discount on business rates with a rateable value below £51,000.

Companies House web filing service

During this coronavirus outbreak, companies and limited liabilities partnerships (LLPs)can use the Companies House web filing service to deliver company accounts and confirmation statement online. For this, you would require your company’s or LLP’s authentication code to file online. It is fast and easy.

How long to keep accounting records

UK companies must keep their accounting records for a number of years. How long to keep accounting records is dependent on whether you are a private company or a public limited company (PLC).

In brief, accounting records include your company accounts, company tax return, VAT returns, Payroll records and other financial records.

Section 388 (a) and (b) of the Companies Act 2006 made this clear. A private limited company must keep their accounting records for 3 years. Whereas, a PLC must keep their accounting records for 6 years. The keeping record date starts from your last company accounting year-end date.

In some cases, your company may require to keep financial records for more than 6 years. For examples,

  • To show a transaction that covers two accounting periods.
  • Your company’s equipment or machinery has an economic useful life span longer than 6 years.
  • You deliver your company tax return to HMRC late.
  • HMRC started a compliance check into your company tax return.

Where to keep your accounting records?

Generally, you must keep your company records at your registered office address in the UK. If for any reasons, you would like to store your records somewhere else, you must notify Companies House. The somewhere else, in the UK company law, it is called the Single Alternative Inspection Location (SAIL).

Usually, you would keep your financial records with your company registers at the same place. Your company registers would include the register of directors, copies of your confirmation statement file with Companies House and so on.

For this purpose, both your registered office address and your SAIL address must not be a P O BOX address. They must be a physical location.

If you have any questions about your company accounts, contact Companies House. For any questions relating to your company tax returns, contact HMRC. You may also speak with our London accountants.

New £20 note with JMW Turner’s portrait

The new £20 note with JMW Turner’s Portrait enters into circulation today according to The Bank of England. The £20 note is issued on 20 February 2020. All you see from today’s date and the event is number two and zero. Today is a lucky day.

Who is JMW Turner? JMW Turner is Joseph Mallord William Turner. He was a very famous English Artist and educated at the prestige Royal Academy of Arts. He was born in London in 1775 and went to be with the Lord in 1851.

The bank of England has published an educational poster about the new £20 note with JMW Turner’s portrait. The poster is to help people to differentiate between a genuine £20 note and a fake £20 note.

You can still continue to use the old paper £20 note with Adam Smith’s portrait, the economist. This paper £20 note was first issued in 2007.

The new polymer £20 note with not easy to forge features shall prevent counterfeits.

The UK Government has not yet officially withdraw the old paper £20. Don’t worry, the government would give 6 months notice of the date when you can no longer use the old £20 note.

The new polymer £20 note would not affect Companies House because they do not usually accept cash. You can pay your confirmation statement and other filings fees either by cheque, postal order or using a debit or credit card or electronically.

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