Small Business Support & Advice re Coronavirus
Following on from the Chancellor’s recent measures to assist small business in light of the Coronavirus we have summarised below some key points on the page below as well as other useful updates most recent first;
26/3/20 The Government announced Guidance for employers on the coronavirus (COVID-19) Job Retention Scheme.
26/3/20 The Government announced details of a Self-employment Income Support Scheme in addition to other measures already announced to assist self employed tax payers which are also detailed on this link
25/3/20 The Government is expected to announce measures to assist the Self Employed to offer 'parity' with employed workers https://www.theguardian.com/world/2020/mar/25/uk-government-set-to-pay-self-employed-workers-80-of-earnings
25/3/20 A new government page has been published https://www.businesssupport.gov.uk/coronavirus-business-support/ with sub pages giving further details of support measures under different headings
25/3/20 - ICAEW have issued some initial details on the Job Retention Scheme
Companies House have announced (in their announcement 25/3/20) Companies to receive 3-month extension period to file accounts during COVID-19
The government unveiled (in their announcement 20/3/20) a package of financial measures to shore up the economy against the coronavirus impact, which include;
Wages cover for businesses hit by virus.The government is to pay 80% of wages for employees unable to work due to the coronavirus pandemic, up to £2,500 a month. Backdated to 1st March 2020
No VAT payments due for the current quarter, and deferral of VAT payments until the end of 2020
- The business interruption loan scheme will commence on Monday 23rd March. The interest free holiday will now be extended to 12 months
- Support for the Self Employed will be extended though Universal Credits at a rate equivalent to Statutory Sick Pay (SSP)
- Self Assessment payments due at 31st July 2020 will be deferred until January 2021
- To assist tenants, there will be an increase to local housing allowance through Universal Credit and Housing benefit to cover at least 30% of market rent
The full announcement can be viewed at;
A full summary of the current support measures can found at the links below;
A useful article summarising is as below;
Other measures already announced;
· Time to pay taxes
- The government have urged HMRC to enhance their existing time to pay service. HMRC are reportedly asking for minimal evidence in order to agree an arrangement to pay by instalments which is good news.
- The dedicated helpline is 0800 0159 559.
· Business rates
- For businesses claiming small rate relief they will be eligible for a cash grant of up to £25k (this will be dealt with by the local authorities).
- Increased business rates relief for retail, hospitality and leisure businesses of 100% discount for 12mths
Support for businesses that pay little or no business rates;
The government will provide additional funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR). This will provide a one-off grant of £10,000 to businesses currently eligible for SBRR or rural rate relief, to help meet their ongoing business costs.
If your business is eligible for SBRR or rural rate relief, you will be contacted by your local authority – you do not need to apply.
Funding for the scheme will be provided to local authorities by government in early April. Guidance for local authorities on the scheme will be provided shortly.
- Temporary Coronavirus Business Interruption Loan Scheme – to be launched as soon as possible
- Loans of up to £5m, available to businesses with a sound borrowing proposal but insufficient security
- 80% government guarantee to give lenders confidence
- Interest free holidays of 6 months
· Employment costs
- Ability to claim back SSP from the government
- Employment allowance increase to £4k per annum
- Further guidance here regarding working from home, employees rights etc https://www.acas.org.uk/coronavirus
- Businesses insured against pandemics can make a claim based on the governments advice to avoid pubs, restaurants, coffee shops etc.
- 3 month mortgage payment holiday
Further measures will be announced in the coming days.
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