Supporting Companies through a challenging time
Running your own business during this time is tough. It can be hard even at the best of times. To support you through this challenging time, we have put together a list of information with the various Government schemes designed to help you navigate this period. We remain on-hand to help you though the disruption caused by coronavirus COVID-19 and have developed expertise in-house to support you.
Is there any help for my business?
The Chancellor recently set out a series of measures aimed at supporting business throughout COVID-19. These schemes are aimed and maintaining a strong economy and are available to many.
Addition Accounting can help your business secure the following:
- Business rates holidays
- Small Business Grants
- Coronavirus Job Retention Scheme
- DeferredVAT and Income Tax payments
- Statutory Sick Pay relief
- Coronavirus Business Interruption Loan Scheme (CBILS)
- Bounce Back Loan (BBL)
- HMRC Time to Pay
A detailed description of these can be found below.
Business rates holidays
The hospitality industry has been hard hit, and business in other sectors that are affected by social distancing measures have seen a dramatic decrease in demand. For those business most affected, business rates will not be payable until April 2021.
The Small Business Grant Scheme for SMEs affected by COVID-19
Small businesses who pay little in business rates (or none) will alsobenefit from the Small Business Grant Scheme.. The government has announced a one-time grant of £10,000 to help businesses in this time, or £25,000 if you business is in the hospitality sector.
If you qualify, then your local authority will contact you with more information. Contact them if they have not done so already.
Job Retention Scheme
The Job Retention Scheme provides support for employers who continue to pay staff who would otherwise have been laid off during this time.
This scheme will reimburse employers up to 80% of the salaries of workers kept on payroll to a maximum of £2,500 per month. This is open to all industries.
If you’d like to know more about affected employees, furloughed workers and HMRC detailed plans please get in touch.
Deferred VAT and Income Tax payments
VAT payments due between 20 March 2020 until 30 June 2020, can be deferred to March 2021 with no penalty or interest
If your business is VAT registered, then you will not be required to make a VAT payment during this period.
There is also good news on the Self-employed front, workers who might normally have Self-Assessment payments due in July 2020, now have until January 2021 as a deadline to pay.
Statutory Sick Pay Relief
SMEs whose employees are off sick and self isolating during the coronavirus outbreak may be eligible to reclaim Statutory Sick Pay (SSP).
SMEs will be able to reclaim a refund on up to 2 weeks’ worth of SSP. These companies need to have fewer than 250 employees and you must maintain a record of these absences. There are also guidelines specific to health workers than do not require a doctor’s note, but evidence such as an isolation note from NHS 111 may be required.
Coronavirus Business Interruption Loan Scheme (CBILS)
There is an official Coronavirus Business Interruption Loan Scheme that is supported by the British Bank for loans up to £5 million.
This scheme helps SMEs gain access to overdrafts and borrowings designed to help you navigate this difficult time.
The government announced that they will guarantee 80% of the loans. Most high street banks are certified partners for CBILS, however if you need support preparing your business case for the loan please do get in touch with our expert advisors..
There are some criteria listed below. Are you eligible?
- Your business must be based in the UK
- Your annual turnover can be no more than £45 million
- Your business meets the other British Business Bank eligibility criteria
Learn more here: British Business Bank website.
Bounce Back Loan (BBL)
he Bounce Back Loan Scheme (BBLS) enables smaller businesses to access finance more quickly during the coronavirus outbreak. The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
You can apply for a loan if your business:
- is based in the UK
- was established before 1 March 2020
- has been adversely impacted by the coronavirus
Businesses given more ‘Time to Pay’ tax
The HMRC’s “Time to Pay” scheme supports businesses and self-employed people who cannot meet their tax liabilities.
Anyone affected can contact HMRCs helpline: 0800 0159 559.
Addition Accounting remains available to help you through this time. The landscape is changing, and we are making it our priority to support companies currently.