Chartered Accountants: Covid-19 lockdown – available financial support

Covid-19 really is the grim gift that keeps on giving! As you’re all aware, yesterday the country hopped back into level 4 lockdown for a few days (or a week if in Auckland), pending results of an Auckland community case. While it’s not the best timing for Wellington businesses (with Welly on a Plate in full swing), there are still options for getting financial support for your business while you’re stuck at home deciding whether to get stuck into some gardening, or bake a loaf of sourdough.

So, where to look? Earlier in the year the Government announced a Covid-19 Resurgence Support Payment (RSP), that helps businesses facing a drop in revenue due to recent alert level increases. It was announced yesterday that the RSP has been reinstated, so, you’re free to apply if you meet the following criteria:

 

Covid-19 RSP Criteria

 

-         Your business has experienced a drop in revenue of 30% or more compared to a typical week of trading i.e.: six weeks before the alert level change (rental income, dividends and interest are excluded from this calculation)

-         The revenue drop must be directly due to the alert level increase

-         Your business must have been viable and ongoing for 6 months

-         Charities and not-for profit entities may be entitled if they meet above criteria

-         Businesses’ (including sole traders) must have a New Zealand Business Number

If you meet the eligibility requirements your business can receive $1,500 plus $400 per full-time employee, or four times your actual revenue decline, whichever is lesser. Please note that any employee working more than 20 hours per week are considered full time employees. Sole traders can receive a maximum payment of $1,900.

Click here for more information on the RSP and eligibility, plus a handy tool on calculating how much RSP your business could be entitled to. If you’re stuck and you don’t know whether your business meets the criteria, feel free to give your Outside go-to a bell. We’re eager to help.

 

How to apply

If you meet the above criteria, you can apply through your business’ my IR on the IRD website here

 

If approved, how long will payment take?

Once your application is approved you should receive payment in 5 workings days. Please note that IRD may ask for more information such as:

-         Dates of the affected revenue period and comparison period

-         Amount of revenue earned in each period

-         Your revenue calculations

Reminder – please get in touch with the team if you need a hand on calculating your businesses’ drop in revenue.

 

Covid-19 Wage Subsidy

If you were listening to last night’s 6pm update, Grant Robertson announced that the government will reinstate the Covid-19 Wage Subsidy from Friday – if the country is still in lockdown. In this wave, businesses will be eligible for $600 per week per full-time employee and $359 per week per half time employee. Applications for the wage subsidy are anticipated to open from Friday, with payments reaching you within 3 days of application.

 

Eligibility

Unlike the RSP, the Covid-19 Wage Subsidy requires a 40% loss in revenue due to alert level 4. Please note – you can apply for both the wage subsidy AND the RSP (if you meet the eligibility criteria.) The same calculations can be used for both applications.

 

How to apply

Once applications are open, you can apply via the Work and Income website.

 

That’s it from us for now - Please get in touch with your Outside Go-to  for any queries, concerns, or just for a chat about your new lockdown hobby. We’ll have the latest Covid-19 business updates when they drop. In the meantime, keep healthy, keep warm and keep looking at the glass half full. Remember, now could be a great time to take yourself out of the business and start working on your business – grab the free time while you have it!

 

Your Outside team  

Contact Wellington AccountantsChartered Accountants | Wellington BookkeepersProperty AccountantsHospitality AccountantsContractor AccountantsConstruction Accountants I Business Accountants

Address: Level 2, 182 Vivian Street,
Te Aro, Wellington

Mail: PO Box 24-457, Wellington 6142

Phone: 04 889 2975

Wellington Accountants Wellington Bookkeepers Christchurch Accountants Christchurch Bookkeepers Auckland Accountants Auckland Bookkeepers Palmerston North Accountants Palmerston North Bookkeepers New Plymouth Accountants New Plymouth Bookkeepers Business Accountants Contractor Accountants Chartered Accountants Property Accountants Property Bookkeepers Property Developer Accountants Property Developer Bookkeepers Restaurant Accountants Restaurant Bookkeepers Contractor Accountants Contractor Bookkeepers Café Accountants Café Bookkeepers Business Accountants Business Bookkeepers Construction Accountants Construction Bookkeepers Manufacturing Accountants Manufacturing Bookkeepers Medical Accountants Medical Bookkeepers