Has your business been affected by COVID–19? The UK Government recently announced a host of measures to help businesses navigate the crisis. Please see below for the current support available.
Coronavirus Job Retention Scheme
Under the coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis.This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers’. HMRC will reimburse 80% of their wages, up to a cap of £2,500 per month. This is to safeguard workers from being made redundant. All UK-wide employers with a PAYE scheme will be eligible – this includes the public sector, Local Authorities and charities. More details about the scheme can be found here
VAT and Income Tax Scheme
To support small businesses, in response to COVID–19, the government has deferred VAT payments for 3 months (20 March 2020 – 30 June 2020). Self employed workers will also be able to defer Income Tax Self-Assessment due on 31 July 2020 until 31 January 2021. Find more info on the scheme here
In addition, all businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.
Retail, Hospitality and Leisure Grant Scheme
The Retail and Hospitality Grant Scheme provides retail, hospitality and leisure businesses with a cash grant of up to £25,000 per property.
If your business has a rateable value (RV) of under £15,000 you are eligible for a grant of £10,000. If your RV is between £15,001 and £51,000 you are eligible for a grant of £25,000. To find out if your business is eligible for the scheme see here
Business Rates Holiday
The government has introduced a business rates holiday for retail, hospitality and leisure businesses in England for the 20/21 tax year. Businesses that received the retail discount in the 2019 to 2020 tax year will be re-billed by their local authority as soon as possible.
The government will also provide additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR), rural rate relief (RRR) and tapered relief. This one-off grant of £10,000 will allow eligible businesses to help meet their outgoing business costs. More information on the scheme can be found here
Business Interruption Loan Scheme
The temporary Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.
The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments. Find out more on the Business Interruption Scheme here
Statutory Sick Pay
The Government has announced it will bring forward legislation to allow small- and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. More information can be found here