The coronavirus crisis is still raging, including in financial terms. The current government measures are in place until 1 October 2020. At the end of August, the Government will decide whether to introduce a third package of support measures.
It’s the entrepreneur’s turn
However, when the second package was presented, the Government’s clear message was that, from October onwards, the economy would have to stand (much more) on its own two feet again. In itself, that is of course not illogical. After all, the Government cannot keep pumping money into the economy indefinitely.
It would seem obvious that any new support measures will be targeted (even) more specifically at those sectors of the economy where (additional) support is still deemed necessary. The way in which the support measures from the first two packages are wound up is also likely to be of great importance in this regard.
Make sure you’re prepared
Business owners would therefore be well advised to ensure they are prepared. Make sure your accounts are up to date. Get a clear picture of your business’s current cash position. And draw up a thorough and, above all, as realistic as possible cash flow forecast for the rest of 2020, as well as for the slightly longer term.
The next step is to analyse whether (and when) the projected cash flow in your business is likely to cause problems. And if you do anticipate problems, it is wise to investigate how they can be resolved.
Of course, VWG can help you with these analyses and considerations. We can also link this to your financial planning.
NOW-2: deadline 31 August
You must submit your application for the second tranche of the Temporary Emergency Measure for Job Retention (NOW-2) to the UWV by 31 August 2020 at the latest.
From 7 October 2020, an application may be made to the UWV to finalise the subsidy under the NOW-1 scheme. This request must be submitted within 24 weeks of 6 October 2020 (if an auditor’s report must be attached to the request, the 24-week period is extended to 38 weeks).
Applications for the final determination of the subsidy under NOW-2 may be submitted from 15 November 2020 (if the turnover period ends after this date: from the date on which the turnover period ends). The deadlines for submitting this application are the same as those for NOW-1. It is possible to submit applications for both schemes at the same time.
The UWV will make a final decision on the grant within 52 weeks of receiving the application.
The final settlement of the NOW grant(s) may result in you receiving an additional payment, but you may also be required to repay a (potentially substantial) amount of the grant received. As such, this settlement could have a significant impact on your business’s cash flow.
Any amount due is likely to be paid out promptly once the grant has been finalised. It is not currently clear how the government will handle the repayment of NOW grants. It is likely that payment arrangements will be put in place for this. This could form part of a possible third support package.
Special deferral of tax payments
Many business owners have taken advantage of the extended options to defer payment of their taxes. However, this is merely a deferral, not a cancellation. At some point, the tax will still have to be paid.
For many business owners, the first instalment of the special deferral of payment is due to expire around this time. This first instalment covered the three months following the date on which the application was submitted. These business owners can extend the deferral of payment, but unlike the first instalment, the second instalment is subject to certain conditions. If you do not meet these conditions, you must be fully aware that the Tax and Customs Administration will not extend the deferral of payment.
Business owners who decide not to apply for an extension of the payment deferral do not yet have to pay the tax debts for which the deferral was granted immediately. After the summer, they will receive a proposal for a payment plan from the Tax and Customs Administration. It is not yet known what form this arrangement will take. This may become clearer once more information is available regarding a possible third package of emergency measures.
PLEASE NOTE: new tax liabilities must, of course, be paid on time. See also our article Help! My special extension is about to expire!
Emergency Helpdesk
No statement of account will be issued for the €4,000 grant from the first emergency scheme (Support for Entrepreneurs in Affected Sectors; TOGS). The grant may only be reclaimed from entrepreneurs who, upon subsequent review, are found not to meet the eligibility criteria.
The second emergency scheme (Fixed Costs Allowance; TVL) will be settled. Business owners who have received a grant under the TVL scheme must submit a request for the final determination of this grant by 1 April 2021. As with the NOW scheme, this may result in an amount to be received or an amount to be paid. The final determination of the grant will take place within 16 weeks of receipt of the request.