COVID-19 - Business Support

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.

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.

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.

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:

https://www.gov.uk/calculate-your-business-rates

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;

https://www.cornwall.gov.uk/council-and-democracy/council-news-room/media-releases/news-from-2020/news-from-march-2020/help-for-cornwall-businesses-through-the-covid-19-pandemic/

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:

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/current-accredited-lenders-and-partners/

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.