Covid-19 Advice for businesses
There have been some big support packages announced for businesses over the last week.
The Chancellor Rishi Sunak has promised the UK they ‘will not face this alone’ and it seems that he intends to stick to that promise with an extensive range of support in the form of schemes, loans and reliefs that intend to keep the UK financially afloat over the next uncertain months.
But what support is actually on offer.
Job Retention Scheme
HMRC will reimburse 80% of all furloughed employees wages, capped at £2,500 a month. The business may choose to top up the extra 20% but this is not a legal requirement.
This scheme is set to go live at the end of April and claims can be submitted through an online portal.
What is furlough?
In short furlough a temporary leave of absence agreed by the employee and employer.
Once on furlough an employee is not permitted to work but will still receive 80% of their normal wage which is paid by HMRC.
The employee does not need to do anything and wages will be paid as normal and on the same date as it normally would.
Once the employee can return to normal duties the furlough ends and normal pay will resume.
Grants
All grants are offered on eligibility enquire at your local authority for full eligibility requirements.
Small businesses in England which occupy premises and are in current receipt of business or rural rate relief will be entitled to a one-off grant of £10,000 to help with their business running costs.
Retail and hospitality businesses in England will be able to apply for grants of £25,000 for each property with a rateable value of £15,000 – £51,000. Properties with a rateable value lower than £15,000 will be able to access a grant of £10,000.
Tax Support
VAT payments due between 20th March and 30 June 2020 have been deferred until 31st March 2021.
Self employed income tax payments due in July 2020 can be postponed until January 2021.
Requests to defer other payments such as corporation tax and PAYE can now also be made to HMRC.
Statutory Sick Pay
Businesses with less than 250 employees are entitled to claim a refund of SSP for up to 2 weeks for every employee absence attributed to Covid-19.
Business Rate Reliefs
All retail, hospitality and leisure businesses will be given a business rates holiday for the 2020-2021 tax year.
You council tax bill should reflect these changes.
Business Interruption Loans
An interest free loan of up to £5m can be taken out by businesses with an annual turnover of under £45m. The interest free period is for a maximum of 12 months. During this period the interest will be paid by the government.
The government will provide the lender with a guarantee for 80% of the loan.
Further details on these loans can be obtained from your existing bank.
There have been some big support packages announced for businesses over the last week.
The Chancellor Rishi Sunak has promised the UK they ‘will not face this alone’ and it seems that he intends to stick to that promise with an extensive range of support in the form of schemes, loans and reliefs that intend to keep the UK financially afloat over the next uncertain months.
But what support is actually on offer.
Job Retention Scheme
HMRC will reimburse 80% of all furloughed employees wages, capped at £2,500 a month. The business may choose to top up the extra 20% but this is not a legal requirement.
This scheme is set to go live at the end of April and claims can be submitted through an online portal.
What is furlough?
In short furlough a temporary leave of absence agreed by the employee and employer.
Once on furlough an employee is not permitted to work but will still receive 80% of their normal wage which is paid by HMRC.
The employee does not need to do anything and wages will be paid as normal and on the same date as it normally would.
Once the employee can return to normal duties the furlough ends and normal pay will resume.
Grants
All grants are offered on eligibility enquire at your local authority for full eligibility requirements.
Small businesses in England which occupy premises and are in current receipt of business or rural rate relief will be entitled to a one-off grant of £10,000 to help with their business running costs.
Retail and hospitality businesses in England will be able to apply for grants of £25,000 for each property with a rateable value of £15,000 – £51,000. Properties with a rateable value lower than £15,000 will be able to access a grant of £10,000.
Tax Support
VAT payments due between 20th March and 30 June 2020 have been deferred until 31st March 2021.
Self employed income tax payments due in July 2020 can be postponed until January 2021.
Requests to defer other payments such as corporation tax and PAYE can now also be made to HMRC.
Statutory Sick Pay
Businesses with less than 250 employees are entitled to claim a refund of SSP for up to 2 weeks for every employee absence attributed to Covid-19.
Business Rate Reliefs
All retail, hospitality and leisure businesses will be given a business rates holiday for the 2020-2021 tax year.
You council tax bill should reflect these changes.
Business Interruption Loans
An interest free loan of up to £5m can be taken out by businesses with an annual turnover of under £45m. The interest free period is for a maximum of 12 months. During this period the interest will be paid by the government.
The government will provide the lender with a guarantee for 80% of the loan.
Further details on these loans can be obtained from your existing bank.
The government seems to have the business world in mind and are putting in place some fiscal policies to which the like has never previously been seen in the UK.