Sources of help for Business Owners during COVID -19 (Corona Virus)

We are currently living in unprecedented times. In just a few weeks many business owners have seen their business rapidly slowing down, with falling sales and footfall; some sectors have already ground to a stop. For many small, medium and even some larger businesses, there has been quick movement from profit to survival mode as they don’t currently have the financial headroom to support too many months of this situation.

There is hope

Support areas to consider

While there is no glossing over of the seriousness of this situation, there is support during COVID -19. As UK Business owners we are not entirely on our own.  Rishi Sunal, the Chancellor of Exchequer, as part of the Prime Minister Boris Johnson’s daily update, has been – and is still – announcing numerous support packages to support business owners during the Corona Virus.

This assistance may not apply to every business owner but here are few areas where there is support for business owners

More information on these areas will come out over the next few weeks, but this includes a package of measures to support businesses, including:

  • A statutory sick pay relief package for SMEs
  • A 12-month business rates holiday for all retail, hospitality and leisure businesses in England
  • Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
  • Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
  • The Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance – Do you need support applying for this loan – Please contact us
  • The HMRC Time To Pay Scheme

Support for businesses through the Coronavirus Job Retention Scheme

Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis

How to access the scheme

You will need to:

  • designate affected employees as ‘furloughed workers,’ and notify your employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
  • submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)
  • HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month.
  • HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.
  • More information can be found here Coronavirus Job Retention Scheme 

Support for businesses through deferring VAT and Income Tax payments

We will support businesses by deferring Valued Added Tax (VAT) payments for 3 months. If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.

Further information is available here

It is crucial to keep track of the support that the government are unveiling for SMEs entrepreneurs, and claim all the help you’re entitled to. The picture will inevitably change over time as the Government responds to impacts of the crisis.

Talk to your bank

  • The Government has made clear that it expects the banks to take a sympathetic approach to small business customers during this crisis.
  • Talk to your bank about how they might be able to help your business.

Talk to your customers

  • In these tough times, it is crucial to keep cash flowing through your business.
  • Your larger customers may be able to play an important role here.

Talk to your tax authorities

  • HM Revenue and Customs has launched a dedicated telephone helpline for businesses looking to find out more about its Time to Pay service (0800 015 9559).
  • HMRC is also the authority to talk to about the Employment Allowance, which offers financial support to employers with National Insurance bills.
  • You may need to talk to your local authority about your business rates where there was additional help in the Budget.

Talk to your landlord

  • Your landlord may be prepared to discuss reduced rents or even a rent holiday for a period.

Your insurer

  • Check your insurance, are you covered for business interruption and closures caused by any notifiable disease?
  • Talk to your insurance company for advice.
  • Do you have key person insurance, for example, that pays out if a senior figure in the business is unable to work?

Additional support

Useful links for you and your business..

Government support for Coronavirus
Support for small businesses

Got a question?

Talk to a member of our team today.

Contact us on +44 (0) 845 067 8678 or email us at info@entrepreneurshub.co.uk