There has been a raft of support measures for businesses which hopefully by now people have been making use of where appropriate, however there are on-going changes so this is just a brief round up on the main governemnt support currently available:
The Coronavirus Job Creation Scheme – this enables staff to be furloughed with 80% of wages paid by government, originally for up to 3 months, it has been extended now up to the end of October with changes to be announced coming in from the end of July possibly to allow part-time working and include employer cost sharing – see: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme.
The Self-employed income support scheme – a grant of up to 80% of prior years profits up to £2,500 per month for 3 months for those whose businesses are effected by Covid 19 – hopefully those who qualify have made claims and potentially received grants by now. Although there have been questions asked as to whether this scheme may be extended , so far there has been no indication that it will. http://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
Statutory sick pay rebate – employers with less than 250 employees will be able to claim back up to two weeks of sick pay at the statutory rate from the first day of illness, the system to claim the relief will be available next week from 26 May, for full details see: https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19 .
HMRC have a useful tool to check whether you have considered all the support available, see https://www.gov.uk/business-coronavirus-support-finder
Other forms of support available (for a full list see https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19#support-for-small-and-medium-sized-businesses) include:
- Deferral of VAT
- Deferral of Self assessment income tax instalments due in July
- Mortgage interest holidays
- Rates relief and grants for small business and the retail and hospitality sectors
- Coronavirus Interruption loan scheme – government backed loans upto £5m interest free for first 12 months https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme
- Bounceback loans – loans up to £50,000, first year interest free, thereafter 2.5% , generally paid quickly with only short application form required see: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
If you are unsure as to what you qualify for, use the HMRC support finder tool which guides you through the options available depending on your circumstances. Remember that the Furlough, self-employed income support, Sick pay scheme, rates relief and grants are essentially free money (though will generally be taxable) whilst tax deferrals and interest holidays will have to be paid for.
If you need to discuss your options please call me on the usual number 01376 571358 or email me at [email protected]
This newsletter is written in general terms and therefore cannot be relied on to cover specific situations; applications of the principles set out will depend on the particular circumstances involved and it is recommended that you take professional advice before acting or refraining from acting on any material in the newsletter.