42 Accountants Somerset and Dorset | Hunts Accountants

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7th April 2020

Covid - 19 7th April Update

Job Retention Scheme
 
I have added more useful details which have been released about the scheme to hopefully answer some of the questions that it is generating.
 
In particular we clarification about Directors of private limited companies as follows:
  
As office holders, salaried company directors are eligible to be furloughed and receive support through this scheme. Company directors owe duties to their company which are set out in the Companies Act 2006. Where a company (acting through its board of directors) considers that it is in compliance with the statutory duties of one or more of its individual salaried directors, the board can decide that such directors should be furloughed.
Where furloughed directors need to carry out particular duties to fulfil the statutory obligations they owe to their company, they may do so provided they do no more than would be judged reasonably necessary for the purposes, such as, they should not do work of a kind they would carry out in normal circumstances to generate commercial revenue or provides services to or on behalf of their company.
This also applies to salaried individuals who are directors of their own personal service company (PSC).
 
This comes from the following link, where there are also further details.
https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme
 
Small Business Grant Funding £10,000
 
I understand from a client yesterday that they have received their payment.This business is West Dorset based, so hopefully those of you who qualify for this will be receiving your payments soon.
 
Business Interruption Loan Scheme 
 
I know lots of you are applying for these and there appears to be considerable variation from the banks as to how these are being offered. As you are probably aware there was coverage at the end of last week where it appeared the Government were becoming frustrated by the lack of loans being approved and getting the funds into businesses. In one article yesterday it stated that just 1000 businesses out of almost six million British SMEs, have been granted loans. 
 
We understand that as a result of these problems the rules for loans were relaxed last Friday, 3rd April.
 
The guidance from the Government in relation to this loans has been updated on the British Business Bank website:
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/
 
British Business Bank plc is the holding company of the group operating under the trading name of British Business Bank. It is a development bank wholly owned by HM Government 
 
Wishing you all well.
 
Very best
Nick Hunt