Helping you access finance
To support our clients, we’ve created this handy guide, designed to help you understand and access the Government’s financial support initiatives.
LATEST INFORMATION AND SUPPORT CORONAVIRUS JOB RETENTION SCHEME
This scheme will reimburse an employer with up to 80% of the pay of an employee who is not working butkept on the payroll (“furloughed”), up to a maximum of £2,500 per month.
SELF-EMPLOYMENT INCOME SUPPORT SCHEME
Aims to support self-employed individuals (including members of partnerships) who have lost income due to coronavirus (COVID-19). This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month.
You cannot apply for this scheme yet. HMRC will contact you if you are eligible for the scheme and invite you to apply online.
STATUTORY SICK PAY RELIEF PACKAGE FOR SMALL AND MEDIUM SIZED BUSINESSES (SMEs)
UK Businesses with fewer than 250 employees can be refunded for the cost of SSP for up to 14 days for employee absences related to COVID-19. You cannot apply for this scheme yet. The legalisation bringing the scheme into force has not yet passed. A form of rebate scheme is understood to be in development. Help with your employment costs
BUSINESS INTERRUPTION LOAN SCHEME OFFERING LOANS OF UP TO £5 MILLION FOR SMES THROUGH THE BRITISH BUSINESS BANK
Business interruption loans are available to small and medium businesses from a range of lenders for up to £5 million, interest free for 12 months. To be eligible, you must:
1. have an annual turnover of no more than £45 million
2. have a borrowing proposal which the lender would consider viable, were it not for the COVID-19 pandemic, and believes will enable you to trade out of any short-term to medium-term difficulty.
You should approach an accredited lender yourself, ideally via the lender’s website.
Note: There is high demand for these facilities. Phone lines are likely to be busy. Click here for the British Business Bank FAQs relating to the scheme.
DEFERRING VAT PAYMENTS
For the period between 20 March 2020 and 30 June 2020, businesses will not need to make a VAT payment. Businesses will have until the end of the 2020/21 to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the
Government as normal. No special application needed. If you pay by Direct Debit you will need to cancel it.
DEFERRING SELF-ASSESSMENT PAYMENTS
Self-Assessment payments due 31 July 2020 deferred until 31 January 2021 – interest and penalty free. This is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment until 31 January 2021.
HMRC TIME TO PAY SCHEME
Potential to agree payment of tax (e.g. income tax) in interest free instalments. Call the time to pay helpline for those affected by coronavirus: 0800 015 9559.
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