Covid-19: Financial Help and Information
Business Rates Grant
If you pay business rates (or are subject to business rates but receive small business rates relief) on premises from which you trade, you may be eligible for the Government Business Rates Grant.
This provides up to £10,000 for the smallest businesses and tapered grants for larger premises.
ACTION
To obtain the grant
go online to your council and complete the application. You will need your latest rates bill and your bank account details.
Employers - Furlough employees
Employers of any size can use this scheme to receive a Government grant for 80% of the cost of each furloughed employee. Company directors can also be furloughed if they meet the conditions, but whilst furloughed they can still undertake their statutory duties.
The scheme details are in the link below and it should be available for registrations from 20th April.
The scheme has been extended until 31 October 2020 with changes to the amounts that can be claimed from 1 August 2020.
ACTIONS
Check employment contracts and seek employment law assistance to ensure you can furlough employees.
Make all agreements with employees in writing as they may be a variation of your existing employment contract.
Ensure furloughed employees comply with the rules applying to this scheme.
Seek advice if you are unsure or have any queries.
See the link below to find out more.
Bounce Back Loan Scheme
The Government Bounce Back loan scheme is available to businesses through existing lenders including high street banks.
Small businesses can benefit and there is no requirement for personal guarantee. The maximum loan amount is the lower of either £50,000 or 25% of your business turnover. There is no interest or repayments in the first year, and a low rate of interest should apply for the duration of the loan.
Applications are online via the bank's website, and typically require you to upload the last accounts for your business.
Loans should be used for business purposes which can include working capital, repayment of more expensive debt, purchase of capital equipment and business vehicles, payment of business debts and taxes, business expansion and acquisition, amongst other things.
We understand that the loan can be repaid at any time so should you take out a loan and not require some or all of within the next year you should be able to repay some or all of the balance before interest starts accruing.
As usual, we would advise company owners not to use company borrowing to fund personal living costs and expenses, unless the company actually owes you money in respect of loans you made to the company and which are still owed to you.
We can assist with budget and cash flow forecasting produced in a form accepted by all lenders.
See the link below to find out more.
Self-employed 80% Grant
If you are currently self-employed you may be eligible for this grant. You do not have to apply for this grant. HMRC are reviewing the tax returns submitted by self-employed taxpayers and will contact them i due course.
To qualify you:
- must be self-employed in the 2019-20 tax year;
- expect to be self-employed in the 2020-21 tax year;
- have been self-employed in the 2018-19 tax year;
- may have been self-employed in the tax years 2016-17 and 2017-18;
- have self- employed income below £50,000;
- earn more than 50% of your income from self-employment.
Self-employed income includes profit share from a partnership, but excludes rental and investment income.
Grants are to be paid in June 2020 to those taxpayers who qualify. The payment will be a lump sum equating 80% of the average of 3 months taxable profit.
Taxpayers have until 23 April to file their overdue 2019 tax return online.
More information at
Self-employed Income Support Scheme Employment Support Allowance and Universal Credit
This is the £95 approx per week that can be claimed from the Government.
There are qualifying criteria so not everyone will be able to apply.
More information and to apply:
VAT payments Deferred
VAT registered businesses can defer payment of VAT falling due between 20 March and 30 June 2020.
This is automatic and payments do not have to be made until 31 March 2021.
ACTION - ensure you cancel your VAT direct debit to avoid HMRC collecting the vat in error.
If you are due a vat refund HMRC will send it to you as usual.
More information at
Self-assessment tax payments deferred until 31 January 2021
Self-assessment taxpayers do not have to make payments on account by 31 July 2020. These have automatically been deferred until 31 January 2021.
More information
Tax payment Helpline 0800 024 1222
Taxpayers having difficulty paying taxes due to coronavirus should contact this number to make arrangements to pay over an extended period.
Protection from Eviction for Commercial tenants
The Government will legislate to protect commercial tenants from eviction due to no-payment of rent during the crisis.
ACTION
Speak to your landlord early to make arrangements.
More information
Rates holiday for businesses in the retail, hospitality, leisure and nursery sectors
This means that no rates are due for the 2020-21 financial year for businesses in these sectors.
ACTION
Check your industry status with your local council to ensure you are included where appropriate.
More information
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Sick Pay SSP Refund
For employers paying staff who are absent due to Coronavirus, the Government is creating a system to enable a refund of up to 2 weeks SSP.
It is important to keep records and to follow the guidance.
More information
Commercial Insurance Policy
Government has included Coronavirus in the list of notifiable diseases. This brings it within scope of commercial business disruption insurance policies.
ACTION
Check with your insurer to see to what extent you may be covered for losses arising from Coronavirus.
More information
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