SUPPORT FOR SMALL BUSINESSES THROUGH THE COVID-19 PANDEMIC
JOB RETENTION SCHEME:
All businesses are eligible
You will need to designate affected employees as ‘furloughed workers,’ and notify your employees of this change in writing
submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)
HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. The system is not set up yet for re-imbursements but there will be further details later
The grant can be backdated to the 1st March 2020
If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan
BUSINESS INTERRUPTION LOAN:
Loans upto £5m will be available and upto 80% will be guaranteed by the government
There are 40 lenders that will provide these loans
There will be no set up fees for small businesses
The interest part of the loan and set up fees will be paid by the government for the first 12 months, which means repayments will be lower for the first 12 months
The loans can be from 3 months to 10 years
However, you will still have to go through the normal loan process to be approved. If you are already on the verge of insolvency, then you won’t get help.
HMRC REPAYMENT HOLIDAY:
You will be able to defer the next quarter's VAT payment - No business will pay VAT from now to mid-June. Businesses will have until the end of the financial year to repay those bills.
You can make arrangements with HMRC for time to pay business taxes
The 2nd payment on account for personal tax now does not need to be paid until 31st January 2020
You are eligible for the business rates holiday if:
your business is based in England
your business is in the retail, hospitality and/or leisure sector
There is no action for you. This will apply to your next council tax bill in April 2020. However, local authorities may have to reissue your bill automatically to exclude the business rate charge. They will do this as soon as possible.
If you are eligible for the business rates grants your local authority will be in direct contact, you do not need to apply for anything.