Update on information regarding business support in regards to COVID-19
Following on from our communication last week advising of government measures to support your business during the COVID-19 interruptions, we would like to update you on further measures available to you.
On Friday 20th March, Chancellor Rishi Sunak announced details of new business support packages and amended others. Here are the details you need to know.
Coronavirus Job Retention Scheme – New!
- Available to ALL UK businesses
- To prevent job losses, employees unable to work due to COVID-19 can be ‘furloughed’
- Furloughed workers will be paid by HMRC
- HMRC will pay up to 80% of an employee’s wage, capped at 2.5k. Employers can top this
- up if they are able to do so.
- Notify employees who cannot work that they are to become ‘furloughed workers’
- You may need to take HR/legal advice and/or negotiate this with your employee depending on their contract
- HMRC are setting up a portal where employers can give details of furloughed workers for HMRC to pay
VAT & Income Tax Deferment – New!
- VAT payments can be deferred for 3 months (for the period 20/03-30/06/20)
- All UK businesses are eligible to defer this VAT payment.
- To access this, simply don’t make payment as it normally becomes due. Cancel your direct debit in advance if this is how you normally pay. You will be given until the end of the 2020 to 2021 tax year to repay the liabilities from this period.
- VAT refunds & reclaims will be processed and paid as normal by the government.
- Income Tax Self-Assessment payments (due on 31st July 2020) may be deferred until 31st Jan 2021.
- Income Tax deferments apply to all self-employed people.
HMRC Time To Pay Scheme – Update
- This offer has been scaled up to all firms and individuals struggling financially as a result of COVID-19.
Statutory Sick Pay Relief – Update
- Employees do not need to provide a GP fit note, but employers can ask them to obtain an isolation note from NHS 111 online.
- Employees that live with someone that has symptoms can get a note from the NHS website.
Coronavirus Business Interruption Loan Scheme (CBILS) – Update
- The UK government will make a Business Interruption Payment to cover the interest on the first 12 months of these loan payments, instead of 6 months and will also pay any lender-levied fees.
- Your business must be UK based and turning over less than £45 million p/a to be eligible.
Support for Larger Firms
- New Covid-19 Corporate Finance Facility
- The scheme is available now
- The Bank of England will buy short term debt from larger companies
- More information available at Bank of England website – see links.
In addition to the government support packages for businesses, there are other simple measures you can take to understand and secure your position and to help others to do the same.
- Do speak to your bank and creditors and let them know if you are struggling. They may be able to offer you repayment holidays or additional facilities.
- Do proactively contact your customers and get a good understanding of how they are faring, whether they are still committed to placing business with you and whether they are able to pay. Forewarned is forearmed.
- Conversely, do the same for others. If you can no longer commit to a project or pay in full, give as much notice as possible.
- Check your business insurance policy to see if you are covered for event cancellation and the government ordered industry closures and claim where applicable.
If you have any queries pertaining to these schemes or if we can be of any support to you and your business, please do not hesitate to contact us.
Frequently Asked Questions
Coronavirus: Help & Support for your business webinar by FSB
Bank of England website for Covid-19 Corporate Finance Facility