#COVID-19

Statutory Sick Pay Rebate Scheme And Bounce Back Loans – All You Need To Know

Paul Cooper #businesssupport, #coronavirussupport, #COVID-19, #governmentsupport ,

In March, the UK government pledged a wide package of support for UK businesses and their employees. In this latest article from Caroline Streatfield Bookkeeping based in Eastbourne, we look at the new online system that will allow small and medium sized businesses to claim back the Statutory Sick Pay (SSP) that they have paid out to employees during the coronavirus pandemic and also give you details of the Bounce Back Loan Scheme (BBLS), which helps small and medium-sized businesses to borrow money. For both, we give you details as to who is eligible, how much can be claimed, what you need to do and when you will receive the rebate or the loan.

What is Statutory Sick Pay Rebate Scheme?

This is another incentive from the government for employers to claim back the Statutory Sick Pay (SSP) paid to their employees, current or former, who have been off work due to the virus.

Who is eligible to use the Statutory Sick Pay Rebate Scheme?

The scheme covers all types of employment contracts and includes full and part time employees, those on agency contracts, flexible, zero hour and fixed term contracts, with the latter applicable up to the date when the contract ends.

  • You are claiming for an employee who is eligible for sick pay due to coronavirus
  • You have a PAYE payroll scheme that was created and started on or before 28 February 2020
  • You had fewer than 250 employees on 28 February 2020 across all your PAYE payroll schemes

How much can you claim in the Statutory Sick Pay Rebate Scheme?

It will start from the first day of sickness and cover up to 2 weeks. From the 6th April the rate increased to £95.85 from £94.25. You can claim for an employee who had coronavirus or the symptoms or is self-isolating from 13th March 2020 or from 16th April if your employee was shielding because of coronavirus.

How to claim the Statutory Sick Pay Rebate Scheme?

 You will be able to claim online. It is possible to claim for multiple pay periods and employees at the same time.

  • The number of employees you are claiming for
  • Start and end dates for the claims
  • The amount of SSP you have paid
  • Your Government Gateway user ID and password
  • Your employer PAYE reference number
  • Contact number
  • Bank details

The online service is now available and if your claim is valid, you will receive the rebate within 6 working days.

What is the Bounce Back Loan Scheme (BBLS)?

The Bounce Back Loan Scheme (BBLS) enables smaller businesses to access finance more quickly during the COVID-19 outbreak. It applies to businesses that are losing revenue, or seeing their cash flow interrupted. It is available through a range of British Bank accredited lenders and partners, which are listed on the British Business Bank website.

Who is eligible to receive a Bounce Back Loan?

  • Your business is based in the UK
  • It was established before 1 March 2020
  • It has been adversely impacted by the coronavirus

How much can you claim?

Small and medium-sized businesses can borrow between £2,000 and up to 25% of their turnover with the maximum loan being £50,000. The loan is 100% guaranteed by the government and for the first 12 months there are no fees or interest to pay. After the first year, the interest rate will be 2.5% per annum. The loan is for 6 years although you can repay it earlier without incurring a fee. No repayments will be due during the first 12 months.

How to claim a Bounce Back Loan?

11 lenders are taking part in the scheme and you will have to get in touch with a lender with details available on their website. You can fill the application in online and declare that you are eligible and it will up to the lender as to whether they offer you a loan or another type of finance. If a lender refuses to offer you a loan, you can apply to another lender.

The scheme has been set up so that businesses can quickly access the funds and these should be with you within days.

What can Caroline Streatfield Bookkeeping do to help your business?

If you’re not sure whether you can apply for the Bounce Back Loan or are unclear on claiming SSP back for your business, please do get in touch with the experts at Caroline Streatfield Bookkeeping in Eastbourne. Call us on 07982 682746 or email to find out more about how the government packages could help you

We are delighted to say that we are now working full time from our offices at Archer House in Eastbourne and we are fully compliant with social distancing rules if you wish to visit us.

Financial Support For Businesses From The UK Government

Paul Cooper #businesssupport, #COVID-19 , ,

These are certainly unprecedented times that we are living through now and naturally many people are worried about the impact that COVID-19 will have on their businesses. The spread of the virus is bringing challenges and changes that we have not experienced before. Only people who are involved in essential businesses are still working with many running their businesses from home or furloughed.

However, the Chancellor, Rishi Sunak announced a £12 billion package of measures to support businesses, public services and individuals in the Budget and since then has implemented measures aimed at supporting public services, people and their businesses during this period of disruption. In this month’s blog from Caroline Streatfield Bookkeeping, we look at what is included in the package. Please note that support for businesses is continually being reviewed and updated, so please check the latest government news.

Support For Businesses – Small, Medium and Large

  • Statutory Sick Pay (SSP) relief package for SMEs
  • A business rates holiday for all retail, hospitality and leisure businesses in England
  • 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 of 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
  • A new lending facility from the Bank of England to help support liquidity amongst larger firms, helping them bridge coronavirus disruption to their cash flows through loans
  • The HMRC Time To Pay Scheme

SSP Packages For SMEs

SMEs and employers will be able to reclaim SSP where an employee was paid for absence due to COVID-19. Your business must be based in the UK and must have employed fewer than 250 on 28th February 2020. For the full list of eligibility rules surrounding this, click here.

Business Rates Support

The holiday will be for the tax year 2020 – 2021 and applies to businesses in the retail, hospitality and leisure sectors in England. You do not have to do anything to access the scheme, as this will apply to your April 2020 council tax bill.

£25,000 Cash Grant for Retail, Hospitality and Leisure Businesses

Your local authority will be able to advise you and this will be applicable if you are in these sectors and operating from smaller premises with a rateable value of between £15,000 and £51,000.

Support If You Pay Little Or No Business Rates

Additional funding will be made available to these businesses through Small Business Rate Relief (SBBR). A £10,000 one-off grant will be available to businesses eligible for SBRR or rural rate relief. Again you do not need to apply, as your local authority will contact you.

A Coronavirus Business Interruption Loan Scheme

This is a temporary measure for primarily small and medium-sized businesses to access bank lending and overdrafts with the government providing lenders with a guarantee of 80% on each loan. Loans of up to £5m will be supported with the first 6 months of the finance being interest free, as the government will cover interest payments. Your turnover can be no more than £41m and your business must meet the British Business Bank criteria.

Time to Pay Service

This is tax support for businesses with all businesses and self-employed people eligible if they find themselves in financial difficulties. Arrangements are agreed on a case-by-case basis depending on circumstances and liabilities. If you have missed a tax payment due to COVID-19, you can call HMRC’s dedicated helpline on 0800 0159 559.

What To Do Next

If you’re not sure what financial support is available for you and your business from the government, please do get in touch with the experts at Caroline Streatfield Bookkeeping in Eastbourne. Call us on 07982 682746 or email info@bookkeepereastbourne.co.uk to find out more about how the government packages could help you. At this time, we are working remotely to keep you safe and to cover other locations, which are further afield from our Eastbourne offices. Keep looking at our website for future financial support that the government is offering during 2020 and keep checking the government website for up to date information and packages available to the self-employed.