COVID-19 – How to Access Funding?
We have been asked by several our clients how they can access funding from The Government for their business due to Coronavirus. Due to the nature of the current outbreak a lot of the funding as been announced, but a lot of the systems are not fully working yet and are currently being set up by HM Revenue and Customs.
Coronavirus Job Retention
The Coronavirus Job Retention Scheme is one of these schemes, the scheme was announced by the Chancellor in the first package of support for businesses and employees. The funding will need to be applied for through a new HM Revenue and Customs that is currently being built, the current advice is that this will be available by the end of April 2020.
To make the claim you will need the following:
The PAYE reference number
The number of employees you are furloughing
The claim period
The amount claimed
Your bank details for payment to be made to
Your contact name and number
We will update with you with further details as they are announced. It is expected that the payments will be made to companies by the end of June 2020 at the latest, hopefully it will be earlier.
Deferments
If you wish to defer vat payments during the current Coronavirus outbreak, you do not need to do anything it is a relief that is automatically granted. If you pay your vat by direct debit you should make sure that the direct debit is cancelled and reinstated when you want to resume payments.
The deferment of self-assessment is a relief that is given automatically, you should not make the second payment on account that is due at the end of July 2020 and instead include that payment with the balancing payment that is made at the end of January 2021.
Coronavirus Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme gives SME’s access to loans and finance up to £5million and for up to six years. If you wish to access this finance, you will need to speak to your bank as soon as possible to try to arrange the funding you need to support your business. You will need to make sure that the bank that you are approaching is an accredited lender, if it is not it will more than likely be added in the next few days and weeks so it is important to keep the dialogue open with your bank.
Cash grant
If you are wishing to apply for a cash grant to support your business during the coronavirus crisis you will be sent details if you are eligible and invited to apply. There is no need to apply you will be contacted if you can access these funds.
If you have commercial insurance for your business, it is worth checking your insurance to make sure that there is not coverage in there for government ordered closures. If there is, you will need to speak to your insurance company to discuss how you can make a claim.
If you are claiming a grant through the coronavirus self-employment income support scheme you will be contacted by HM Revenue and Customs and invited to apply for the grant. If you have not submitted your 2019 Self-Assessment Tax Return form you need to do that as a matter of urgency now and before the 23rd of April 2020. The system for making payments is not yet available so the expected payments will more than likely be in line with those for Coronavirus Job Retention Scheme.