COVID 19 Support for Business from Government – Summary

 

What a week this has been! In unprecedented measures the UK was put into lockdown on Monday with many businesses forced to close their doors and workers sent home.

In response to the financial uncertainty of many businesses and employees the Government have released information of a massive financial rescue package to help businesses survive during this difficult time. Many of the details of how to access and apply for these support packages are still being worked out but here is a key summary of what the Chancellor has put forward:

We are still waiting on measures to be announced which support the UK’s £4.8 million self-employed workers. This is expected to be announced later today.

 

  • Job retention Scheme

The Government will pay 80% of wages up to £2500 per month for employees who can no longer work due to the Coronavirus epidemic. This can be back dated to 1st March and is initially for 3 months, although it may be extended if needed.

HMRC are working urgently to set up a system for reimbursement to employers.

 

  • Coronavirus Business Interruption Loan Scheme

The Government are providing access to overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years. It is being offered by all major banks and you can go to any of them but it’s recommended that you go to your own bank first. They will require a Business Plan and forecasts to show that you have a viable business going forward

The Government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees.

 

  • HMRC Time To Pay Scheme and Deferral of VAT and Income Tax Payments

VAT Payments can be deferred by 3 months but you will still need to complete the return on time. If your business pays via direct debit this will need to be cancelled before the direct debit is due to be collected.

The self-assessment income tax payments due to be paid in July can be deferred until January 2021

Any business with outstanding tax liabilities can receive support via HMRC’s Time To Pay service. Arrangements are looked at on a case-by-case basis and are tailored to individual circumstances and liabilities

If you have missed a payment or will struggle to pay the next call HMRC’s dedicated helpline on 0800 0159 559

 

  • Business Rates Grants

The Government have announced a business rates holiday for those in retail hospitality and leisure. There is also £25,000 of grant funding available to the businesses who have a rateable value between £15,000 and £15,000 for all business in receipt of small business rate relief or rural rate relief.

These grants are being dealt with via Local Authorities.



 Take a look at the Gov UK website for more information regarding the situation and further support available https://www.gov.uk/coronavirus  




Bookkeeper Buddy is busy working remotely so please get in touch if you have any questions or queries. 

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