COVID-19 – Support for Businesses
The Chancellor has set out a series of measure to help the UK economy cope with the disruption caused by COVID-19, below is a brief summary of the packages announced.
Coronavirus Job Retention Scheme – This will be available to all UK businesses.
Employers will be given help to pay employees wages during the Coronavirus outbreak that otherwise would have been laid off or made unemployed. You will need to make the employees ‘furloughed employees’ and submit the details to HMRC through a forthcoming online portal.
Reimbursement will be made up to 80% of the employees wages up to a cap of £2500 per month.
Details of how the reimbursement will be made as not yet been made public.
Support for Businesses deferring VAT and Income Tax payments – All UK Business are eligible.
Vat – deferral will apply from the 20th of March 2020 to June 30th 2020. This offer is automatically given to UK businesses and it is not necessary to make an application. Vat payments will be deferred until the end of 2020/2021 tax year to pay any outstanding liabilities that have been accumulated during the period.
Income Tax – All self-employed are eligible. Income tax payments that are due on the 31st of July 2020 will be deferred until the 31st of January 2021. This is relating to the July payment on account for income tax, this will be deferred and instead the balancing payment will be made in January 2021 when the tax return is due to be filed. This is automatically given, and it is not necessary to apply.
Time to pay – HMRC are also increasing access to time to pay for business that are suffering financial hardship due to the Coronavirus outbreak and have outstanding tax liabilities.
Support for businesses who are paying sick pay to employees – Eligible for UK businesses with less than 250 employees on the 28th of February 2020.
This will refund up to two weeks SSP per eligible employee off work because of COVID-19. The government will work with employers to set up a system to enable repayment to be made.
Support for Hospitality, leisure and retail that pay business rates – Eligible for UK businesses in these sectors.
Government will introduce a business rates holiday for businesses in the 2020/21 tax year, this is automatically given there is no need to apply and local authorities will reissue your bill to exclude the business rate charge.
Cash grants for businesses in the above sectors
with a cash grant made up to £25,000 per property. Businesses that have a rateable value of £15,000 will receive a £10,000 grant and those of a rateable value of £15,000 to £51,000 will receive a £25,000 cash grant. You do not need to apply for this scheme your local authority will contact you if you are eligible for this grant.
Support for Nursery businesses that pay business rates – Eligible for UK businesses on the Ofsted Early years register and for properties that are used wholly or mainly for the provision of Early Years Foundation Stage.
This will introduce a holiday for the 2020/21 tax year for business rates. This relief is given automatically given and your local authority will reissue your bill to exclude the business rate charge.
Support for Businesses that pay little or no rates.
The Government will provide grants to Small business if they are based in England, receive small business or rural rate relief and occupy a business property. You do not need to do anything your local authority will write to you if you are eligible for this grant.
Coronavirus Business Interruption Loan Scheme –
This will support (SME) businesses with access to loans, overdrafts, invoice finance and asset finance up to £5million for up to 6 years. The Government will make payments to cover the first 12 months interest and loan fees and will provide a guarantee for up to 80% of the value of each loan.