Covid-19 HMRC business support announced
The Chancellor has announced the following business support in light of the pandemic caused by the Coronavirus (Covid-19) outbreak:-
- A new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank via high street lenders, will enable businesses with a turnover of no more than £41 million to apply for a loan of up to £5 million, with the government covering up to 80% of any losses with no fees. The finance can be accessed interest free for the first 6 months.
- For businesses with fewer than 250 employees, the cost of providing 14 days of statutory sick pay per employee will be refunded by the government in full.
- A dedicated helpline has been set up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities receive support with their tax affairs. Through this, businesses may be able to agree a bespoke Time to Pay arrangement. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
- There will be a cash grant available to smaller businesses of up to £10,000, delivered by Local Authorities, to help meet their ongoing costs. This applies to businesses that pay little or no business rates due to Small Business Rates Relief. The funding will be provided to local authorities in early April 2020. Further guidance will be published in due course.
- The government is introducing a business rates holiday for retail, leisure and hospitality business sectors for the 2020-21 tax year. Businesses that received the discount in 2019-20 will be rebilled by their local authority as soon as possible.
- Finally, a grant up to £25,000 will be provided to retail, hospitality and leisure businesses operating from smaller premises with a rateable value between £15,000 and £51,000. Please direct any enquiries on eligibility, provision of or reliefs to the relevant local authority. Further guidance is to be published on 20 March 2020.
In addition to the above it is advised that all businesses review their insurance policies to see if they are covered by their providers in the event of a pandemic. Some businesses may have purchased supply chain or denial of access cover which may meet their needs.
Detailed guidance is still being drafted and will be published in due course by the government. In the interim please use the following link for further information:
We will be updating any advice provided as and when received. Please do not hesitate to contact your relationship partner to see if they can assist in any way.Talk to Barnes Roffe today