COVID-19 – Government Assistance Update

We’re doing our best to digest the information coming from the government and advise what it means for everyone, we’re doing regular e-mails for all of our clients but we’re repeating that information here for all. Please note this information is correct as 21st March 2020.

Further to our previous blog, further assistance for businesses has been announced by the government during the week.
 
The headlines are as follows:
 
Coronavirus Business Interruption Loan Scheme (CBILS)
The detailed terms and conditions for this loan will be released on Monday 23rd March. 
 
It was announced this evening that these loans would be interest free for 12 months.
 
The loans we be accessed via banks rather than HMRC. We are happy to assist with the loan application.
 
Small Business Grant
A £10,000 grant will be available to small businesses who let premises with a rateable value that falls under the Small Business Rates Relief (usually £15,000).
 
A £25,000 grant will be available to small businesses in the hospitality, leisure and retail sectors who let premises with a rateable value of between £15,000 and £51,000
 
These funds will be provided by the local authority in which the premises are situated.
 
The local authority will contact your business during April with details of the grant and how to access this. To ensure more straightforward access to these funds you should ensure that your business is properly registered as the tenant at the premises which you are letting. We are happy to discuss this with you further.
 
Coronavirus Job Retention Scheme (CJRS)
We await detailed guidance next week to confirm the following information which was announced this evening:
 
If businesses cannot afford employees as a result of COVID19, from the 1st March 2020 to the 31st May 2020 the government will pay 80% of employee wages up to a maximum of £2,500 per employee.
 
These funds will be obtained via a grant from HMRC before the end of April.
 
This grant could be extended to wages payments beyond the 31st May 2020.
 
VAT Payment Deferral
We await detailed guidance next week to confirm the following information which was announced this evening:
 
The next quarter of VAT payments will be deferred.
 
No business will pay any VAT from now until the end of June.
 
The exact definitions here will be clarified next week when additional information becomes available.
 
Self Assessment Payment Deferral
We await detailed guidance next week to confirm the following information which was announced this evening:
 
The 31st July 2020 payment on account of income tax for the self employed will be deferred until the 31st January 2021.
 
At this point, the deferral of payment does not appear to relate to directors / owners of limited companies.
 
Self Employed
Those who are self employed, with reduced income as a result of COVID19, will benefit from increased levels of available Universal Credit.
 
If you are concerned by your business survival and personal finances please do not hesitate to contact either myself or Martin to discuss this further. We have already discussed business finance survival strategies with various clients and would like to offer this help to everyone who requires it. Please do not hesitate to contact either of us should you need to.
 
Rebecca and Martin

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