The government announced an unprecedented financial and business support for businesses due to coronavirus outbreak.
In this simplified guide, we only provide vital information relevant to small businesses.
If you need further advice, please contact us.
Support measures available to all businesses affected by COVID-19
· The coronavirus Job Retention Scheme
· Deferring VAT
· Deferring Self-Assessment payments
· The coronavirus Statutory Sick Pay Rebate Scheme
· Retail, Hospitality and Leisure Grant Fund
· The coronavirus Business Interruption Loan Scheme for SMEs
· A 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
· Business support telephone line 0300 456 3565
The Coronavirus Job Retention Scheme (also known as Furlough Leave)
Under this scheme employers will be able to use an online portal to claim for 80% of furloughed employees’ usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage.
Note: the portal is expected to be available at the end of April 2020.
Deferring VAT payments
If your VAT is due for payment between 20 March 2020 and 30 June 2020 you can choose if you want to pay your VAT as normal or pay it later.
Example: your normal VAT due date is 7 April 2020, you can now pay it by 31 March 2021.
You still need to submit VAT returns on time.
Note: If you pay VAT by direct debit and you choose to defer, please cancel DD payments.
The Coronavirus Statutory Sick Pay Rebate Scheme
Under this scheme employers will be able to recover the costs of sickness payments to current or former employees at the current rate of SSP for periods of sickness starting on or after 13 March 2020.
The repayment will cover the period of up to 2 weeks starting from the first day of sickness if an employee is unable to work because they either have coronavirus or cannot work because they are self-isolating at home.
Keeping records is advisable.
Note: the rebate process is under development.
The Small Business Grant Fund
All businesses in receipt of Small Business Rate Relieve will receive £10,000 grant per property. Applications are not necessary; the local authorities will pay directly to your business bank account if you pay business rates by direct debit.
Note: there are some exclusions, e.g. companies in liquidation, properties occupied for used for personal use, car parks.
In case of fraud, any funding will be subject to clawback.
Retail, Hospitality and Leisure Grant Fund
Under this grant eligible businesses in England in receipt of the Expanded Retail Discount (which covers retail, hospitality and leisure) with a rateable value of less than £51,000 will be eligible for cash grants of £10,000 or £25,000 per property.
Eligible businesses in these sectors with a property that has a rateable value of up to and including £15,000 will receive a grant of £10,000.
Eligible businesses in these sectors with a property that has a rateable value of over £15,000 and less than £51,000 will receive a grant of £25,000.
Note: one grant per property.
Note: there are some exclusions, e.g. companies in liquidation, properties occupied for used for personal use, car parks.
In the case of fraud, any funding will be subject to clawback.
The Coronavirus Business Interruption Loan Scheme for SMEs
You can apply for government-backed loans, overdraft, invoice finance. The Government will make Business Interruption payment to cover 12 months interest and bank levy fees. The government will provide lenders with a guarantee of 80% on each loan (subject to a pre-lender cap on claims).
Note: the company must be viable, if not for the coronavirus pandemic.
A 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
Businesses in the retail, hospitality and leisure sectors in England will not have to pay business rates for the 2020 to 2021 tax year.
Local authorities will apply the discount automatically.
The information provided in this article is not intended to constitute legal, accountancy or financial advice. You should take independent legal, accountancy or financial advice before relying on the information in this article or before decisions are made or before you embark on any course of action.
0207 183 6623
#coronavirus #PennAccounts #TheSmallBusinessGrantFund #SMEs #TheCoronavirusBusinessInterruptionLoanScheme #Covid19 #Covid19SupportMeasures
Comments