Corona Virus – Update
Corona Virus – Update
Our aim is to keep ourselves and all of our clients up to date with the latest government advice and provide details of the government support available to UK businesses.
The government has issued a number of measures that aim to help businesses through these difficult times. We have listed these measures below and have added some practical explanations.
We understand that now is the time that you will be looking to us for advice and we will do our upmost to provide the help and assistance that we can.
Coronavirus Job Retention Scheme
HMRC will reimburse 80% of employee’s wage cost, up to a maximum of £2,500 per month, the full details of exactly how this will operate are not yet available. For further details please see the link below Covid-19: support for businesses.
Deferring VAT and Income Tax payments
This is an automatic scheme and no UK business is required to pay VAT until 30th June 2020. Payments on Account for Self-Assessments that are due on 31st July 2020 are deferred to 31st January 2021. The government has not mentioned PAYE and CIS tax but this can also be deferred by ringing the HMRC helpline 0800 015 9559.
Statutory Sick Pay relief package for SMEs
The government will pay 2 weeks’ worth of SSP per eligible employees for employers with less than 250 staff. The employer should maintain records of staff absences and payments of SSP, we are currently awaiting details of how the system for reimbursement will operate. For further details please see the link below Covid-19: support for businesses.
12-month business rates holiday for all retail, hospitality and leisure businesses in England
This is automatic if your business is eligible, you will know if you qualify once the local authority in which you are based issues your council tax bill. If you believe that your business falls within the above sectors but the council has not applied the “holiday” you should contact your local council directly.
The Retail and Hospitality Grant Scheme
If your business qualifies, your local authority will write to you, this is likely to be towards the end of April/beginning of May.
There are 2 levels of grants as follows:
For businesses in these sectors with a rateable value of under £15,000, the business will receive a grant of £10,000.
For businesses in these sectors with a rateable value of between £15,001 and £51,000, the business will receive a grant of £25,000.
Support for businesses that pay little or no business rates
Your local authority will write to you if your business qualifies, the scheme provides a small business grant of £10,000 for all business in receipt of small business rate relief or rural rate relief.
Coronavirus Business Interruption Loan Scheme
This scheme commences from Monday 23rd March 2020 and an eligible business will be able to raise a loan from their bank at 0% interest for the first 12 months, you should contact your bank directly to discuss funding.
You will need to provide the following information:
How has Covid-19 affected your business?
How much money has your business lost and will lose? You should have a list of cancellations/postponements of contracts if you sell B2B. If you sell B2C, you will need details of sales for the last 3 months.
How have you started to reduce the business’ costs?
How much money you wish to raise?
We understand the importance of your business as it is yours and your family’s livelihood and we will work extended hours to help and guide you but please understand that our phone lines and e-mails will be extremely busy during this time, so if we are unable to pick up the phone when you call, it is because we are helping somebody else with their business, so please bear with us and we will call back as soon as we can.
Important government links
Covid-19: support for businesses
Guidance For employers and businesses on coronavirus (COVID-19)
COVID-19: guidance for employees
Please remember that we are all in this together.
Wishing you all the very best during these extremely difficult times.
From all the team at Weaver Wroot.