Following on from the raft of announcements over the past few weeks, we appreciate that many individuals are struggling to keep up with all of the new updates. In this article we will provide a brief outline of the relevant announcements made for small and medium enterprises.
Business Interruption Scheme
- Provides loans through the British Business Bank, with 80% of the loan guaranteed by the Government.
- Companies, with a turnover of no more than £45m, can apply for loans of up to £5m.
- The loans would be ‘interest free’ to companies for 12 months. (First 12 months of interest met by the government).
- The Scheme will commence this week.
- Further details on how to access the scheme can be found here.
Job Retention Scheme
- HMRC will reimburse businesses 80% of the wages for furloughed workers – up to a maximum of £2,500 per month. Employers can choose to top up the remainder.
- Employers will need to designate and notify the employees who are to be furloughed. Information regarding which employees have been furloughed and their earnings will then need to be submitted to HMRC through the online portal.
- HMRC are urgently setting up the scheme for reimbursements, with the first payments expected to be made in early April 2020.
Business Rates Relief
- All businesses in England & Scotland in the hospitality, retail and leisure sectors will receive a 12 month ‘holiday’ from business rates. This runs for the 2020-21 tax year.
- For businesses in Northern Ireland, this grace period will only last from April 2020-June 2020. However, it will run for all businesses except utilities and public sectors.
- Your local council should update your next council tax bill to remove the business rates charge.
- At present, there has been no such relief announced in Wales.
Business Grants
- Small businesses that occupy premises in England, who already receive small business rate reliefs, will be eligible for a grant of £10,000.
- The Retail and Hospitality Grant Scheme will allow business to access a grant of £25,000 for each property in England with a rateable value of between £15,001 & £50,000. Similarly, properties with a rateable value below £15,000 will have access to a £10,000 grant.
- Your Local Authority will be able to clarify whether you are eligible for a business grant, should you seek further guidance.
Tax Measures
- VAT payments that are due between 20th March 2020 – 30th June 2020 can now be deferred to 31st March 2021.
- Payments on account for self-employed individuals that are due on 31st July 2020 can now be delayed until January 2021.
- HMRC’s ‘Time to Pay’ service has been expanded. Any requests can be made by calling HMRC’s coronavirus helpline on 0800 015 9559. Requests can be made to defer any tax payments due, including – but not limited to – PAYE & Corporation Tax.
Businesses with fewer than 250 employees can obtain refunds on any statutory sick pay (SSP) payments made to employees, for up to two weeks as a result of self-isolation, in line with government guidelines.
