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Samantha Skuse

Samantha Skuse

Financial Advisor

Intelligent Perspective – Coronavirus Support

Our message

The past few weeks have been extremely difficult and act as an unfortunate reminder of how we can all be adversely affected by events completely outside our control.

We want you to know we stand by ready to help. If you have any money worries (personal or business related), please let us know. We may not have all the answers, however we can provide a unique sense of perspective and, if appropriate, connect you to other specialist professionals.

Below is a brief guide for help available to businesses and individuals. While we have endeavoured to cover everything, this is a fast-moving situation and the government may adopt new measures or make changes to schemes.

You can find more about government support at the following web address:

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19

Coronavirus Job Retention Scheme

All UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis.

This applies to employees who have been asked to stop working, but who are being kept on the payroll, otherwise described as ‘furloughed workers’. HMRC will reimburse 80% of their wages, up to £2,500 per month. This is to safeguard workers from being made redundant.

The Coronavirus Job Retention Scheme will cover the cost of wages backdated to 1 March. It is initially open for three months but will be extended if necessary.

Deferring VAT and income tax payments via self-assessment

For VAT, the deferral will apply from 20 March 2020 until 30 June 2020. For income tax self-assessment, payments due on the 31 July 2020 may be deferred until 31 January 2021.

Self-employment Income Support Scheme

The Self-employment Income Support Scheme (SEISS) will support self-employed individuals (including members of partnerships) who have lost income due to coronavirus.

The 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.

Business Rates holiday for retail, hospitality and leisure

12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England for the 2020/21 tax year.

Businesses that received the retail discount in the 2019/20 tax year will be rebilled by their local authority as soon as possible.

Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief

The government will provide additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief. This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.

Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000

The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property. Properties that have a rateable value of up to £15,000 will receive a grant of £10,000. Properties with a rateable value of between £15,000 and £51,000 will receive a grant of £25,000.

Coronavirus Business Interruption Loan Scheme

Offering loans of up to £5 million for SMEs through the British Business Bank. The government is providing lenders with a guarantee of 80% on each business loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs.

The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank. The government will also make a Business Interruption Payment to cover the first twelve months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.

HMRC Time To PayScheme

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.

 

Our Understanding

This is our understanding of the Government Support available as at 2nd April 2020 and the content within does not constitute as advice.

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