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>More about the Government response to the coronavirus

More about the Government response to the coronavirus

On the 20th March the chancellor announced an unprecedented level of financial assistance for businesses. (transcript here https://www.gov.uk/government/speeches/the-chancellor-rishi-sunak-provides-an-updated-statement-on-coronavirus)

We would like to draw your attention to these measures in the event that they may help your business.

New Coronavirus Job Retention Scheme:

  • Covers any business, charity or non-profit organisation
  • Covers up to 80% of the salary (up to £2,500/month) of anyone not working (but retaining job) as a result of Covid-19
  • Wages back dated to 1 March 2020
  • Initial period of 3 months, but extended if necessary
  • No limit on funding
  • Will be in the form of a grant (not a loan)
  • Expect first to be paid within weeks, certainly by the end of April

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses#support-for-businesses-through-the-coronavirus-job-retention-scheme

Updates to Coronavirus Business Interruption Loan:

  • Max turnover from £45m
  • Loans up to £5m re-payable over 6 years.
  • Interest free period for 12 months
  • Loans will now be available starting on Monday 23 March 2020
  • Further details to be announced next week (w/c 23 March 2020) to ensure that larger and medium sized companies can also access the credit they need

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/

Grants available for Hospitality & Leisure businesses.

  • A £25,000 grant will be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.
  • A £10,000 grant for businesses which qualify for small business rate relief.

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

Deferral of Tax and VAT Payments:

  • All UK VAT registered businesses can defer VAT payments due between 20 March 2020 and 30 June 2020 until the end of the tax year
  • The Government has deferred the Income Tax Self Assessment payments for the self employed due on 31 July 2020 to 31 January 2021.

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses#support-for-businesses-through-deferring-vat-and-income-tax-payments

Rates Relief

  • Latest announcements allow for a 100% business rates discount for all retail, leisure and hospitality venues with no limit to Rateable Values.
  • A grant of £10,000 for businesses who do not pay business rates and qualify for small business rate relief.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/873622/Expanded_Retail_Discount_Guidance.pdf

Tax deferral (Time to Pay)

  • HMRC will allow you to defer any current tax/VAT payments due.

https://www.gov.uk/difficulties-paying-hmrc

Statutory sick pay (SSP)

  • SSP is payable to qualifying employees and is now payable from day 1 for those who self isolate or are unwell because of COVID-19 (the first 3 days are normally unpaid). The current rate of SSP is £94.25 per week.
  • HM Treasury has announced that small and medium sized employers (those with fewer than 250 employees) may recover this cost where SSP has been paid as a result of COVID-19 from 13 March for a maximum of two weeks’ sickness per employee.

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses#support-for-businesses-who-are-paying-sick-pay-to-employees

Extra support for the welfare system:

  • Increasing the Universal Credit standard allowance, for the next 12 months, by £1,000/year
  • Increasing the Working Tax Credit basic element, for the next 12 months, by £1,000/year
  • Suspending the minimum income floor for all self-employed affected by the economic impacts of coronavirus

Support for Self Employed:

This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed. More information.