Your business recovery plan – repay loans

Your business recovery plan – repay loans

Does your financial recovery plan include repayment of loans etc?

It’s time to have another look at your business recovery plan. This time we are going to focus on repaying loans or liabilities deferred.

Let’s start by looking at the main financial provisions that have been put in place during this crisis. You need to identify which ones require to be repaid, and which are treated as taxable income of your business. We have produced the following summary table to help you with this analysis (see table at the foot of this message). NB: We have concentrated on the measures that apply within Scotland.

It is important to start now and set aside cash reserves to meet these liabilities as they become due. For many businesses cash flow will continue to be tight during the next six months, however these liabilities will become due for repayment, and it is better to address these issues now when you still have some time to plan and and accumulate the necessary cash.

Get in touch if you want to discuss any aspect of your business.

SchemePlan for repayment or taxation
Bounce Back Loan SchemeRepayment (and interest charge) start from 12 months after the start of the loan.
CBILSRepayment (and interest charge) start from 12 months after the start of the loan.
COVID Working Capital Loan (Scotland)Repayment (and interest charge) start from 3 months after the start of the loan.
Deferral of Self-Assessment PaymentRepayment by 31/01/2021
VAT DeferralRepayment by 31/03/2021
Business loans deferredRepayment as per agreement with business banker?
HMRC Time to Pay ServiceRepayment as per agreement with HMRC
Deferring Payment of Non-Domestic RatesRepayment as per agreement with Local Authority
Business property rent deferredRepayment as  per agreement with property owner or agent?
Coronavirus Job Retention Scheme – Phase 2 – Flexible FurloughingTreated as taxable income, but contribution required from employer as of 1st August 2020. Increasing contributions required until the scheme ends 31st October 20220.
Coronavirus Job Retention Scheme – Phase 1Treated as taxable income
Self-Employed Income Support SchemeTreated as taxable income
Newly Self-Employed Hardship FundTreated as taxable income
Eat Out to Help Out SchemeTreated as taxable income
Retail, Hospitality, Leisure Support Grant:Treated as taxable income?
Small Business Support Grant:Treated as taxable income?
Pivotal Enterprise Resilience FundTreated as taxable income?
Creative, Tourism & Hospitality Enterprises Hardship FundTreated as taxable income?

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