COVID-19 Business Guidance and Assistance

If you cannot maintain your current workforce because your operations have been severely affected by coronavirus, you can furlough employees and apply for a grant. These grants will cover 80% of an employee’s salary, up to a total of £2,500 per month.

If your business has fewer than 250 employees, the government will reimburse the employer statutory sick pay for up to 2 weeks in respect of employees off work as a result of coronavirus. This applies to periods of sickness starting on or after 13 March 2020.

If you are a UK VAT registered business and have a VAT payment due within the three month period 20 March 2020 and 30 June 2020, you are allowed to defer the payment until the end of the financial year (31 March 2021). Please note that VAT returns will still need to be submitted in the usual manner, it is merely the payment that can be deferred. There is no application required. You do not need to inform HMRC that you are deferring your VAT payment.

Income Tax Self-Assessment payments are usually due on 31 January (balancing charge for previous year plus first payment on account) and 31 July (second payment on account). Under this scheme, the second payment on account which was originally due on 31 July 2020 is now allowed to be deferred until 31 January 2021. There is no application required. You do not need to inform HMRC that you are deferring your payment.

If your business’ cashflow has been affected by coronavirus, which is making it difficult to pay taxes due, then you should contact the ‘time to pay’ section at HMRC. You can discuss deferring payments, suspending debt collection proceedings, or cancelling late payment penalties. This aims to help businesses who are struggling to pay PAYE or settle outstanding tax liabilities from the previous year.

Retail, Leisure and Hospitality

Businesses in the retail, hospitality and leisure sectors in England will not have to pay business rates for the 2020-2021 tax year. You do not need to apply for relief. Your local council will automatically apply it to your business rates bills for the 2020 to 2021 tax year.

Nursery Businesses 

Nursery businesses in England will not have to pay business rates for the 2020-2021 tax year. You do not need to apply for relief. Your Local Authority will automatically apply it to your business rates bills for the 2020 to 2021 tax year.

Small Businesses 

Small businesses that already qualify for either Small Business Rates Relief or Rural Rates Relief will receive a cash grant of £10,000. The scheme will be delivered by Local Authorities – if you are eligible, your Local Authority will be in touch with you to arrange payment.

Retail, Hospitality and Leisure

Retail, hospitality, and leisure businesses that operate from premises with a rateable value below £15,000 will receive a cash grant of £10,000. Those with a rateable value between £15,000 and £51,000 will receive a cash grant of £25,000. The scheme will be delivered by Local Authorities – if you are eligible, your Local Authority will be in touch with you to arrange payment.

The scheme will allow the self-employed to claim 80% of trading profits, up to a maximum of £2,500 per month. It will be available for 3 months, but may be extended. This will be a taxable grant, subject to Income Tax and National Insurance contributions, but does not need to be repaid.

The Future Fund will provide government loans to UK-based companies ranging from £125,000 to £5 million, for up to 3 years. The government loan must be matched by equal (or higher) funding from private investors. This scheme is aimed at helping fast-growing early-stage startup companies.

The scheme supports small and medium sized businesses, with an annual turnover of up to £45 million, through loans of up to £5 million for up to 6 years. The government will cover the interest that would have been due for the first 12 months. Furthermore, the government will guarantee 80% of each loan in order to give lenders further confidence in continuing to provide finance to SME’s. The scheme is delivered through commercial lenders, backed by the government-owned British Business Bank.

The scheme supports large businesses, with an annual turnover of between £45 million and £250 million, to access loans of up to £25 million. Businesses with an annual turnover above £250 million can access loans of up to £50 million. The scheme will be delivered through commercial lenders. The government will provide lenders with an 80% guarantee on individual loans for businesses that would be otherwise unable to access the finance they need.

Under this scheme, the Bank of England will buy short-term (under 12-months) debt from large companies. This scheme will support your company if it has been affected by a short-term funding squeeze, and allow you to finance your short-term liabilities. The scheme is delivered through commercial lenders, backed by the Bank of England.