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
This scheme will issues convertible loans between £125,000 and £5 million to innovative companies which are facing financial difficulties due to Corona Virus
Find out more here
Bounce Back Loan Scheme
The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
Further information is available here
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
Instantly Check out what Covid-19 support you might qualify for
The government have developed this excellent tool to help businesses owners find out what financial support they may qualify for
Check what you may qualify for – Coronavirus Support Finder Tool