02089770905 enquiries@davidhoward.co.uk

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;

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;

https://www.youtube.com/watch?v=oNkCuotL2TM&feature=youtu.be

A full summary of the current support measures can found at the links below;

A useful article summarising is as below;

Coronavirus: Wages, sick pay and time off explained

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.

 ·         Loans

  • 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

·         Insurance

  • Businesses insured against pandemics can make a claim based on the governments advice to avoid pubs, restaurants, coffee shops etc.

·         Mortgages

  • 3 month mortgage payment holiday

 Further measures will be announced in the coming days.

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