The government has released several measures to support businesses affected by coronavirus, these packages include:
Coronavirus Retention Scheme
This allows employers to claim 80% of employees wages, more information can be found here.
Deferral of VAT payments
If your business has a VAT payment due between 20 March 2020 and 30 June 2020 you can choose to defer this payment until 31 March 2021. You will still need to file your VAT return as normal but do not need to tell HMRC that you are deferring the payment, businesses with a VAT Direct Debit set up will need to contact their bank to cancel this before the payment is due.
Deferral of Self-Assessment payments
If you are due to pay a self-assessment payment on account by 31 July 2020 then you can defer this payment until 31 January 2021, no penalties or interest will be charged for late payment and you do not need to notify HMRC that you will be deferring the payment.
Self-employment Income Support Scheme
The Self-employment Income Support Scheme (SEISS) supports self-employed individuals and members of partnerships who have lost income due to corronavirus, the scheme allows you to claim a taxable grant of 80% of trading profits up to a maximum of £2,500 per month. More information can be found here.
Statutory Sick Pay (SSP) relief package
The package will repay employers the current rate of SSP (currently £95.85 per week) that they pay to employees for period of sickness due to coronavirus, the 3 day waiting period has been removed for coronvirus realted illness. More information can be found here.
Business rates holiday for retail, hospitality, leisure and nursery businesses
Businesses in the retail, hospitality and leisure sector that have property mainly used as:
- as shops, restaurants, cafes, drinking establishments, cinemas and live music venues
- for assembly and leisure
- for hospitality, as hotels, guest & boarding premises or self-catering accommodation
Will be eligible for the business rates holiday. Businesses do not need to apply but local councils may have to reissue your bill to provide this support. The government have advised that they will so this as soon as possible.
Businesses in these sectors with a rateable value between £15,000 and £51,000 may be eligible for a cash grant of up to £25,000 per eligible property, businesses with a rateable value of less than £15,000 may be eligible for a grant of £10,000. As above, businesses do not need to apply and will be contacted by their local authoritym, however, some local authorities have decided to operate an applications process so please check their websites for further details.
Support for nursery businesses that pay business rates
The government have introduced a business rates holiday for nurseries in England for the 2020/21 tax year, hereditaments that are occupied by providers on Ofsted’s Early Years Register and are wholly or mainly used for the providion of the Early Years Foundation Stage will be eligible. As with the normal business rates holiday, businesses do not need to apply and your local council will provide more details as soon as possible.
Small Business grant funding
The government will provide additional Small Business Grant Scheme funding for local authorities to support businessses that already pay little or no business rates because of small business rate relief, rural rate relief and tapered relief. The scheme will provided a one-off grant of £10,000 to eligibles businesses to help with ongoing costs. As with the business rates holiday, businesses do not need to apply and your local council will provide more details as soon as possible.
Coronavirus Business Interruption Loan Scheme
This government backed scheme provides lenders with a guarantee of 80% on each loan, the scheme is delivered through commercial lenders. There are 40 accredited lenders able to offer the scheme, including all the major banks.
The government will cover the first 12 months of interest payments and and lender fees so businesses will benefit from no upfront costs and lower initial repayments.