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.