The COVID-19 pandemic, more popularly known as Coronavirus, is causing the rupture of the business base or specifically altering it.
The UK has taken the run up against the spread of COVID19 by implementing several unprecedent economic measures to support businesses and save jobs during this period of disruption.
What does these economic measures mean?
- Businesses may be eligible for 80% of wages support – Please see Adam’s blog here.
- VAT payments due between now and the end of June will be deferred. No VAT registered business will have to make a VAT payment normally due with their VAT return to HMRC in that period.
- Income tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.
- Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief.
- Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- The Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
How do I apply for these economic measures?
Some of the measurements are automatic, meaning you do not need to make an application such as deferring your VAT payments to three months and/or Income Tax payments due in July 2020 to January 2021. Also, business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.
In contrast, there are other measurements that to be eligible you will need to seek external assistant. For example, access to the Coronavirus Job Retention Scheme will be subject to current employment law as changing the statue of employees falls within its ambit. Also, negotiations between the employer and its employees may be required depending on the employment contract put in place.
If for example you want to access the temporary Coronavirus Business Interruption Loan Scheme you will need to prepare a business plan and discuss it as soon as possible with your bank or financial provider. The full rules of the Scheme and the list of accredited lenders is available on the British Business Bank website.
There are still some schemes where the government has to put in place legislation which will confirm how to access them such as allowing small-and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19.
Is there any other support or guidance from the government?
You can find further information of the economic measurements put in place by the government and how to apply for them by clicking on this link.
This note does not go through all the economic measures put in place to combat the effects of the Coronavirus but is meant to give you an overview of the schemes put in place and which may be right for you.
If you need any financial advice, please ensure you obtain your own independent advice: We can recommend advisors, so just ask.