Help from HMRC for flood-hit businesses

 In General

The recent outbreaks of flooding in Southern England have had dire consequences for many freelancers and micro-businesses. Some have had to cope with water damage to their premises, whereas others have suffered because of the widespread travel disruption preventing them from keeping important appointments.

Flood-hit businesses are excluded from the Government and industry-backed insurance scheme, Flood Re. However, the Government has announced a £10m package of financial support for small businesses affected by the floods, which includes extensions to some of the deadlines for filing accounts with Companies House.

HMRC has also stepped in to help, with a dedicated helpline for self-employed people and small business owners worried about tax issues: 0800 904 7900.

Companies House and HMRC have declared they will be lenient towards self-employed people and small business owners who are late filing their tax returns because of the floods. They have pledged not to penalise late payments from such individuals. Debt collection action will be suspended and payment plans agreed with flood-hit businesses who are struggling to pay their tax bills.

In cases where financial records have been lost or destroyed in the floods, HMRC has promised to agree a “practical approach”, but if this applies to you, it is worth speaking first to your accountant as they may be able to help you obtain replacement copies of important documents.

All small business owners should also consider using online accounting software to enable them to keep important financial information in The Cloud, safe from any physical damage.

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