£500m Future Fund launches & Self assessment payment deferrals

23/05/2020 - 4 minutes read

The government’s £500m Future Fund is open for applications, a month after the scheme to invest in innovative start-ups to help them through the coronavirus outbreak was first outlined in response to claims that such companies are unable to access other government business support programmes because they are either pre-revenue or pre-profit

UK-based companies can apply for a convertible loan of between £125,000 and £5m, to support continued growth and innovation in sectors such as technology, life sciences and the creative industries.

The government has made an initial £250m available for investment through the scheme and says it will consider increasing this if needed.

This funding will be matched by private investors, such as venture capital (VC) funds, angel investors and those backed by regional funds.

To qualify, firms must have previously raised at least £250,000 in equity investment from third parties in the last five years.

They will also need to have investors to provide funding to be matched by the government, and have half or more of their employees based in the UK or generate at least half of their revenue through UK sales.

In addition, companies cannot have any of their shares traded on a regulated market, multilateral trading facility or other listing venue, and must have been incorporated on or before 31 December 2019.

Eligible start-ups will then repay the loans or convert them into equity at the next funding round, or after three years.

The government will also amend the rules of the Enterprise Investment Scheme (EIS), which provides tax relief to investors in high growth firms, to protect Future Fund investors from losing relief on their previous investments made prior to any investment through the Future Fund.

The Fund will be open until September and is delivered in partnership with the British Business Bank.

Self assessment payment deferrals

Taxpayers can choose how and when they can delay making a second payment on account for the 2019-20 tax year following updated guidance from HMRC

Taxpayers have the option to defer their second payment on account if they are registered in the UK for self assessment and finding it difficult to make a second payment by 31 July 2020, due to the impact of coronavirus.

HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it is paid on or before 31 January 2021.

Taxpayers do not need to tell HMRC that they are deferring the payment on account, and choosing to defer will not stop people from being entitled to other coronavirus support that HMRC provides.

However, the second payment on account must be made on or before 31 January 2021 if people choose to defer.

Other payments which may need to be paid by this date include any balancing payment due for the 2019 to 2020 tax year, and first payment on account due for the 2020 to 2021 tax year.

To check what payments need to be made towards the next tax bill, taxpayers can sign in to their online account

Contact MCL Chartered Accountants today on 01702 593 029 to optimise your tax position or if you need any assistance with your company accounts, payroll, bookkeeping or VAT returns.