Coronavirus Financial Support Update
Posted on 25th March 2020
We are trying to collate all the information and links into one place so you can see what support you can get.
Here’s our best information at the moment:
Paying employees - The government says it will pay up to 80% of wages for workers at risk of being laid off in the current situation as part of a ‘coronavirus job retention scheme’. This is capped at £2500 per employee and payments will be backdated to 1st March. Employees status need to be changed to 'Furloughed workers' if they are no longer working as your business has been closed. HMRC are creating a new online portal where details of furloughed employees and their earnings can be submitted. This is yet to be up and running.
Business Interuption Loans – This is avaliable for sole traders and Limited Companies. The 12 months interest and lender fees will be paid by the Government at the time of the loan being issued. You will need to provide evidence of profitability to prove you or your business can afford to repay the loan. More information about eligibilty and to apply can be found on the British Bank website.
Deferred VAT – The deferral period is from 20th March to 30th June 2020. Every VAT registered business is eligible. Businesses will have until the end of 2020/2021 tax year to pay off any VAT owed without penalties. Direct Debits should be cancelled with the bank to prevent the VAT payment being taken. Please allow plenty of time for this to go through. Reclaims will be processed as usual.
Retail, leisure, hopitality and Nursery businesses – business rates will be deferred for 12 months. If this applies to your business, you can estimate the business rate savings using the business rates calculator. Grants of up to £25,000 will be available for businesses with properties with a rateable value between £15,000 and £51,000. Your local authority will contact you with more information.
Small businesses receiving 'Small business Rates Relief - Small business grant funding of £10,000 will be available for all businesses receiving of small business rate relief, rural rate relief or tapered relief on 11th March 2020. This grant is to help businesses meet their ongoing costs. Businesses do not need to do anything, the local authority will write to you if you are eligible. Any queries should be directed to your local council. More information will be released later but funding is expected in early April.
Self-employed - tax relief will be available for self-employed people, who will be allowed to defer Self Assessment payments until January 2021. They will also be able to claim universal credit at a rate equivalent to statutory sick pay, although this remains at £94.25 per week. The self-employed are also eligible for the Business Interuption Loan. The government are still working on ways to further support the self employed and information should be released tomorrow.
Benefits (Universal Credit) - . To be eligible individuals need to be on low income and have less than £16000 in savings. Partners living together will be assessed on joint income. See the Government website for more information
Tax payments - All businesses and self-employed people in financial distress, and with outstanding tax liabilities, could be eligible to receive support with their tax through HMRC’s Time To Pay service. These are assessed on individual basis but will be opned up to more people than previously.
Business and Private Tenants - commerical and private tenants will be protected from eviction if they cannot pay their rent due to COVID-19 closures. Commerical tenants will not be forced out of their premises if they miss a payment up to 30th June 2020. This could be extended. It should not be seen as a payment holiday as the rent will still remain due.
Mortgages, Loans and Overdrafts - mortgage lenders will offer at least a three-month mortgage holiday, but borrowers should be aware that unpaid sums will be included when their repayments resume, increasing the monthly amount. Many banks are offering other support with loans, creditcards and overdrafts please see individual banks for more information.
MOT's - MOT tests on cars, vans and motocycles due after 30th March have a 6 month exemption, but they must be kept in a roadworthy condition. Garages will remain open for essential repair work. This will not invalidate your insurance if you were to make a claim.
You can see more detailed information on the www.gov.uk website.
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