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

BUSINESS RATES:

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.