NOW or Never!
Now that government support in the form of the NOW subsidy is coming to an end for most sectors, the sixth NOW subsidy will be the last for many businesses. The application period for this last NOW subsidy period closes on 30 September. After that, the misery starts.
A settlement must be made for each NOW period. If an entrepreneur has received too much, he must pay it back. Some companies are ‘lucky’ and will still receive a part.
Certainly in the case of somewhat larger businesses, an expert third party (grants between € 25,000 and € 125,000) or an accountant (grants from € 125,000) must assess what the actual grant should be. It will be quite a challenge for all those advisers and accountants to realize this in time and the costs will have to be paid by the customers.
If the NOW1 determination shows that you have to repay part of the subsidy, it may be wise for the liquidity of the company to submit it just before 31 October 2021. Submitting earlier means repaying earlier and that is unnecessary. There is also a possibility to pay back the amount in instalments. Through the UWV, a request can be made for a payment arrangement.
Research shows that many entrepreneurs have to repay a lot. This has mainly to do with the fact that not all rules and calculations were clear beforehand. Especially if there are large differences in the wage bill because people have left. The advances did not take this into account. It also turned out that the TVL subsidy had to be included as turnover for the NOW subsidies up to and including September 2020 (therefore important for NOW1 and NOW2).
Are there other things to take into account besides the determination of the NOW subsidy?
Yes, in addition to this payment arrangement for the NOW, there are also entrepreneurs who must start repaying their deferred tax debts in 5 years from 1 October 2022.
The TVL subsidies must also be calculated and a request for determination must be submitted. You have to be careful here; if you have received more than €125,000 in subsidies, the accountant also has to look at it again. Without a statement, no decision will be issued and therefore no money will be transferred, even if you are entitled to it. The application period for the Q3 2021 TVL period closes on 26 October.
| Make sure that you submit the final figures for the determination of the subsidy on time. Not submitting is refunding everything.
The consequences of the Covid-19 support will in all likelihood only become visible in the coming years. Companies have now survived with the various subsidies. But the repayments could well cause them problems. There are still exciting times ahead. For some companies, this means NOW or Never!
If you need help for the NOW and would like to avoid the ‘never’, please contact us by telephone on (015) 215 88 15 or by e-mail corona[at]aame[d0t]nl!