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Covid-19 Response for Business

The government has released a number of measures which are designed to assist businesses and it’s our job to be up to date with all of them so that we may best advise you.  A webinar we attended to this end has a few take outs which you may find useful.

  • The Loss Carry Back scheme allows businesses expecting a loss in either 2020 or 2021 years to offset this against income in the previous year.  If this is you, contact us to discuss how this might best be managed; perhaps we delay filing your 2020 return until we have a better idea of what 2021 will look like.

 

  • The Small Business Cashflow Loan Scheme is for firms employing up to 50 full time equivalent workers, and allows for interest free loans up to $100,000 plus $1,800 per employee.  Talk to us about the longer term impacts of this and whether it is a good fit for your business.

 

  • The Provisional Tax threshold has been raised from $2,500 to $5,000 which will assist some tax payers.

 

  • 31 March stocktake can be delayed till 31 May but adjustments will have to be made for post balance date sales and purchases.

 

  • Inland Revenue has some discretion in terms of remitting Use of Money Interest, and arranging payment agreements for hardship. Our Tax Manager may be your person for this.

 

  • The Business Finance Guarantee Scheme might be suitable for you – loans in this scheme are intended to provide for operating cash flow needs including things like rent and staff expenses.

 

  • The 8 week Wage Subsidy Scheme Extension will be important for some of you but the reduction of turnover now needs to be 50% compared to the previous year in the month prior to making application.

There’s a lot to absorb, and while most of you will be up with the play, you can read the full official version of the Covid-19 response for businesses here.

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