Government support available -Coronavirus/COVID-19 Update

One of our fantastic Next-Up mentors wrote this and happy for us to share this very helpful summary of government support that is available.  Could be useful if you are mentoring a business that needs help. 

Also go to the Business growth Hub and LEP site

Coronavirus Update 23^rd March 2020

Coronavirus Job Retention scheme

All businesses are eligible. Commenced with effect from 1/03/2020 and applies to “Furloughed Workers” – those who are kept on the payroll and not laid off. The Government will contribute 80% of the employees costs up to a monthly figure of £2500. Employees need to be notified of their “Furloughed position” and employers also need to be mindful of employment law. The scheme applies initially for 3 months and it says that it will be fully up and running by the end of April 2020.

Self-Employed Tax Payments Due 31/07/2020

These payments are being deferred until 31/01/2021

VAT

Amounts due to HMRC between 20/03/2020 and 30/06/2020 and are being deferred until the end of the 2020/21 tax year. Repayments will be processed as normal.

Time to Pay arrangements – other taxes

It is possible to agree time to pay arrangements for other taxes – but these arrangements need to be agreed direct with HMRC

Statutory Sick Pay

The Government will pay SSP for up to 2 weeks in respect of employees who are absent from work due to Covid-19. Employers need to keep appropriate records – but there is no requirement for employees to provide any evidence from their GP.

Business Rates Holiday

There will be a business rates holiday in 2020/2021 for businesses in the Retails, Hospitality and Leisure businesses. There is no need to do anything – the local authority will be reissuing bills.

For businesses in the Retail, Hospitality and Leisure industries with a rateable value of less than £15k you will also get a cash grant of £10k.

For businesses in the same industries with properties with a rateable value of between £15k and £51k the cash grant will be £25k per property.

There is no requirement to claim – the process is being managed by the Local Authorities who will contact you direct.

Business Interruption Loans

This is being administered by the British Business Bank (BBB) but loans will be from your existing bankers.Initial enquiries should be made via your normal lenders website. Loans of up to £5million will potentially be available and 80% of the debt will be guaranteed by the BBB. In terms of eligibility the banks will want assurance that the proposal would be viable if not for the Virus. Loans of up to 6 years are available and overdrafts for up to 3 years. BBB will cover the fees and interest for the first 12 months.

In addition there is scope to get a repayment holiday on existing loans.

The funders will be exercising their discretion on the viability of any proposal and any submissions need to structured, well thought through and clearly articulated.

 

Disclaimer…

This is a summary of his understanding of the current support being proposed by the UK Government as things stand 21st March 2020. It is intended as a quick guide for UK based SME agencies only and does not constitute financial advice.

You should check the details yourself or via your accountant before acting upon any of the information listed above.

This article is intended to make sense of the current support and give everyone a helping hand as they cope with the changing world around them.