Thank
you for contacting me about the support available for small businesses as a
result of Coronavirus.
We know small business owners are deeply worried about
Coronavirus – the impact it will have on their
incomes and the long-term future of their businesses.
incomes and the long-term future of their businesses.
The Chancellor has set out a package of temporary, timely and targeted measures to protect small businesses through these difficult times as part of the national effort in response to coronavirus, including:
Coronavirus
Job Retention Scheme:
The
Government is stepping in and helping pay people’s wages – a scheme which is
one of the most generous of any in the world – paying grants to support as
many jobs as necessary. Any employer in the
country – large, small, charitable or for profit – who promises to retain
their staff, can apply for a grant to cover most of the cost of paying
people’s wages. Government grants will cover 80 per cent of the salary of
retained workers up to a total of £2,500 a month – above the median
income. We will place no limit on these grants.
The cost of wages will be backdated to 1st March and will be open initially for at least three months – and we will extend the scheme for longer if necessary.
To
apply go to https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
Deferring
VAT and Income Tax payments
Deferring
the next three months of VAT tax, a direct injection of over £30 billion of
cash to
employers, equivalent to 1.5 per cent of GDP.
employers, equivalent to 1.5 per cent of GDP.
That
means no business will pay any VAT from now until the end of June, and
they will have until the end of the financial year to repay those bills.
To
find out more go to https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
Statutory Sick Pay relief package for small and medium sized businesses (SMEs)
Supporting
small and medium-sized businesses to cope with the extra costs of paying
Statutory Sick
Pay (SSP) by refunding eligible SSP costs.
Pay (SSP) by refunding eligible SSP costs.
This will allow
small-and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP)
paid for sickness absence due to COVID-19. The eligibility criteria for the
scheme will be as follows:
·
this refund will cover
up to 2 weeks’ SSP per
eligible employee who has been off work because of COVID-19
·
employers with fewer
than 250 employees will be eligible - the size of an employer will be
determined by the number of people they employed as of 28 February 2020
·
employers will be able
to reclaim expenditure for any employee who has claimed SSP (according
to the new eligibility criteria) as a result of COVID-19
·
employers should
maintain records of staff absences and payments of SSP,
but employees will not need to provide a GP fit note. If evidence is required
by an employer, those with symptoms of coronavirus can get an isolation note
from NHS 111 online and those who live with someone
that has symptoms can get a note from the NHS website
·
eligible period for
the scheme will commence the day after the regulations on the extension of SSP to
those staying at home comes into force
·
the government will
work with employers over the coming months to set up the repayment mechanism
for employers as soon as possible
12-month business rates
holiday
This applies to all
retail, hospitality, leisure and nursery businesses in England
To estimate your
business rates go to the following calculator:
Small business grant
funding
of
£10,000 for all business in receipt of small business rate relief or rural
rate relief grant funding of £25,000 for retail, hospitality and leisure
businesses with property with a rateable value between £15,000 and £51,000
Further
information on this can be found at;
Coronavirus Business Interruption Loan Scheme
offering
loans of up to £5 million for SMEs through British Business Bank, with no
interest for 12 months.
Further
information can be found at:
The Government has also announced measures to help people with the cost of living during this unprecedented time. Self-employed people can benefit from a three-month mortgage holiday, deferring the next three months of VAT tax, deferring income tax self-assessment payments due in July 2020, alongside further measures to protect renters and to help people with their energy bills.
If
demand is greater than the initial £330 billion we are making available,
we will go further and provide as much capacity as required. That means
any good business in financial difficulty who needs access to cash to pay
their rent, the salaries of their employees, pay suppliers, or purchase
stock, will be able to access a government-backed loan, on
attractive terms.
As
you can appreciate, this is a fast-moving situation. I would strongly advise
you to check the Government website, at https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses,
for the very latest guidance and support.