The Chancellor has announced a package of measures to provide support for public services, individuals and businesses through this period of disruption caused by coronavirus.
Whilst grants and business rate relief will be administered by us, there is a range of other support provided by the Government.
Self Employed Support
The government has announced the new Self-Employed Income Support Scheme (SEISS). If you’re self-employed, your Income Tax payments will be delayed.
The new income support scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next three months. This may be extended if needed. There are some conditions for applications.
HMRC will contact you if you are eligible for the scheme and invite you to apply online.
Coronavirus Job Retention Scheme
Under the Coronavirus Job Retention Scheme, UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.
From 1 July , you can bring furloughed employees back to work for any amount of time and any work pattern. You can still claim the grant for the hours your employee has not worked.
From this date, only employees that you have successfully claimed a previous grant for will be eligible for more grants under the scheme.
From 1 August 2020, you will be asked to contribute towards the cost of your furloughed employees’ wages. Find out more information on how the Coronavirus Job Retention Scheme is changing.
Deferring VAT and Income Tax payments
The government will support businesses by deferring Valued Added Tax (VAT) payments for three months. If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.
This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period.
Statutory Sick Pay relief package for SMEs
Small and medium sized businesses and employers will be able to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. This refund will cover up to 2 weeks’ SSP per eligible employee and apply to employers with fewer than 250 employees.
You can find out further information on how to make a claim for SSP.
Business Interruption Loan Scheme
A new business interruption loan scheme, delivered by the British Business Bank will support small and medium sized business to access bank lending and overdrafts. The scheme will support loans of up to £5 million in value and the government will provide lenders with a guarantee of 80% on each loan.
The scheme is available via all major banks. There are 40 accredited providers in all.
Large Business Interruption Loan Scheme
The new Coronavirus Large Business Interruption Loan Scheme (CLBILS) provides a government guarantee of 80% to enable loans of up to £25m for firms with an annual turnover of between £45m and £500m.
You can find further information on the CLBIL scheme.
Corporate Financing Facility
Under the new Covid-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies.
You can find more information from the Bank of England.
Time to Pay Service
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.
If you have missed a tax payment or you might miss your next payment due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
The Association of British Insurers have issued a statement on business insurance cover.
They have a COVID-19 Q and A, which includes business insurance, trade credit, income protection and pensions and investments information.
Support for charities
The government has announced that charities across the UK will receive a £750 million package of support. This is to ensure they can continue their vital work during the coronavirus outbreak.
You can find more information about the package of support for charities.
The government has announced a new £500 million loan scheme for high growth firms, called the Future Fund.
Delivered in partnership with the British Business Bank, the Future Fund will provide UK-based companies with between £125,000 and £5 million from the government. Private investors will at least match the government commitment.
The scheme is initially open for applications until September 2020. You can find more information on the Future Fund, including eligibility requirements.
Bounce Back Loan Scheme
A nBounce Back Loan scheme is available to small businesses.
These loans will be 100% government-backed. Businesses will be able to borrow between £2,000 and £50,000. Loans will be interest free for the first 12 months.
You can find details of the eligibility criteria and further information about the Bounce Back Loan Scheme.
Eat Out to Help Out scheme
Businesses can use the Eat Out to Help Out Scheme to offer discount to diners to encourage them to eat at their restaurant.
You can use the Eat Out to Help Out scheme:
- all day, every Monday, Tuesday and Wednesday from 3 to 31 August 2020
- to offer a 50% discount, up to a maximum of £10 per person, to diners for food or non-alcoholic drinks to eat or drink in
- to claim the money back from the government
You can register your business to take part in the scheme.