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.
