A summary of the government funding available to small businesses – during COVID 19
Payment of VAT deferred for the next quarter. If you have a VAT payment due between 20 March 2020 and 30 June 2020 you have the option to defer the payment or pay as usual. 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. VAT refunds and reclaims will be paid by the government as normal. This is the one tax deferral where you MUST cancel the Direct Debit to avoid the money leaving your account to HMRC.
HMRC Time To Pay
You can contact HMRC Time To Pay on 0800 015 9559. HMRC will be generous with any request to defer due tax payments. It’s important you call them to agree this, don’t just cancel your Direct Debit.
Job Retention Scheme
The Coronavirus Job Retention Scheme offers a grant for furloughed staff. It covers 80% of salary costs, capped at £2,500 per month. The HMRC portal will go live 20th April 2020. You may also be eligible for the CJRS if you are a limited company director or a salaried member of a limited liability partnership – but only for the part of your income that you pay yourself as a salary via PAYE.
Hardship Loan Scheme
Contact your local authority about a hardships loan scheme, as many are setting them up for local residents, small business owners and the self-employed.
Invoice Payment Terms
If you receive payments for services and have delivered work for clients and customers, have you issued an invoice? Contact them and ask for the invoice to be paid now, regardless of payment terms.
Mortgage & Rent Breaks
Contact your landlord about rent holidays, or speak to your bank about mortgage holidays. The Treasury announced emergency legislation through the COVID Bill in Parliament to ban evictions for commercial tenants for at least 3 months. This is not a payment holiday, you will still remain liable for your rent and will need to make payments unless your landlord agrees a rent holiday with you. Some landlords such as the Arch Company and Network Rail have done this.
Statutory Sick Pay
The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the current rate of SSP that you pay to current or former employees for periods of sickness starting on or after 13th March 2020. The repayment will cover up to 2 weeks starting from the first day of sickness due to COVID-19. The scheme can be used if you had a PAYE payroll scheme that was created and started on or before 28th February 2020, and you had fewer than 250 employees on 28th February 2020.
Business Rates and Grants
Are you eligible for small Business Rates Relief or Rural Rates Relief ? A £10,000 grant should be available from your local authority, as part of the Small Business Grant Fund – contact your local authority or see their website for details.
Are you a hospitality, retail or leisure business? and do you have a rateable value of between £15,000 and £51,000, and would have been in receipt of the Expanded Retail Discount? If yes to both these questions then you are eligible for a 12 months business rates holiday effective from 1st April 2020. Additionally, a £25,000 grant should be available from your local authority as part of the Retail, Hospitality and Leisure Grant. (If your rateable value is above £51,000 then you are eligible for a 12 months business rates holiday effective from 1st April 2020.)
Is your business a nursery, bingo hall, letting agent or estate agent? You are eligible for 12 months business rates holiday effective from 1st April 2020. Additionally, a £25,000 grant should be available from your local authority as part of the Retail, Hospitality and Leisure Grant.
Is your business a pub? You should be eligible for a £5,000 business rates discount.
Business Interruption Loan Scheme
Do you need to borrow less than £250,000? You may be eligible for the Coronavirus Business Interruption Loan Scheme. This gives an 80% government guarantee to lenders and is 12 months interest free and fee free. Loans of less than £250,000 cannot use the personal guarantee. You can apply directly to one of over 40 accredited lenders.
For more details on all aspects of government funding see the UK Government’s Department for Business, Energy and Industrial Strategy which has launched a dedicated business support helpline, where small business owners in England can get advice on how to minimise/cope with the impacts of Coronavirus.
Call 0300 456 3565 Lines open Mon – Friday 9am – 6pm Email enquiries