Coronavirus Business Resources
Chipperfield Accounting sets out below the government measures for small business owners. If you would like to discuss the application of any of the measures to your business then please contact us. Please note that this is simply an overview and clarification of the measures is changing regularly.
More detailed information is available at https://www.businesssupport.gov.uk/coronavirus-business-support/
Coronavirus Business Interruption Loan Scheme (CBILS)
The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/
Coronavirus Cash Grant
Businesses with premises that are eligible for Small Business Rate Relief (SBRR) such that the rateable value of the property is less than £15,000, will receive a cash grant of £10,000. Those with a rateable value £15,001 - £51,000 in certain sectors will receive £25,000.
https://www.gov.uk/contact-your-local-council-about-business-rates
Coronavirus Job Retention Scheme
All UK employers will be able to access support to continue paying part of their employees' salary for those employees that would otherwise have been laid off during this crisis. It will be necessary to subject each worker to furlough in writing.
The scheme allows for employers to claim a grant of up to 80% of the employee's wages up to a cap of £2,500 per month plus employer national insurance and employer pension costs based on February 2020 where possible. Employers can choose to fund the differences between this payment and the total salary.
Directors of limited companies can be subject to furlough provided they are not providing services other than statutory services and not generating revenue for the company.
https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
VAT
Businesses can defer VAT payments due in the period 20 March 2020 - 30 June 2020 until 31 March 2021. This is an automatic offer and you do not need to apply, however if you pay by direct debit then it is your responsibility to cancel the direct debit.
Time to pay
If you are having difficulties paying any of your other business taxes such as PAYE or corporation tax due to Coronavirus you need to get in touch with the HMRC helpline.
https://www.gov.uk/government/organisations/hm-revenue-customs/contact/coronavirus-covid-19-helpline
Self-employment Income Support Scheme
For those registered with HMRC as self-employed, HMRC will contact individuals in June and make a payment for the lower of:
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
Self-Assessment & Payments on Account
Payment on account due 31 July 2020 can now be deferred until 31 January 2021.
https://www.gov.uk/understand-self-assessment-bill/payments-on-account
Statutory Sick Pay
Statutory Sick Pay of £94.25, paid by your employer for up to 28 weeks which now includes people staying at home, caring for others or in the same household as those impacted by COVID-19.
https://www.gov.uk/statutory-sick-pay
Universal Credit
If you are self-employed or not eligible for SSP you may be able to claim Universal Credit.
https://www.understandinguniversalcredit.gov.uk/coronavirus/
Employment and Support Allowance
https://www.gov.uk/guidance/new-style-employment-and-support-allowance
Hospitality Action
https://www.hospitalityaction.org.uk/get-help/
General help
If you are struggling with living or food costs review here:
https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/if-youre-struggling-with-living-costs/
and here: https://www.stepchange.org/debt-info/emergency-funding.aspx
Chipperfield Accounting sets out below the government measures for small business owners. If you would like to discuss the application of any of the measures to your business then please contact us. Please note that this is simply an overview and clarification of the measures is changing regularly.
More detailed information is available at https://www.businesssupport.gov.uk/coronavirus-business-support/
Coronavirus Business Interruption Loan Scheme (CBILS)
The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/
Coronavirus Cash Grant
Businesses with premises that are eligible for Small Business Rate Relief (SBRR) such that the rateable value of the property is less than £15,000, will receive a cash grant of £10,000. Those with a rateable value £15,001 - £51,000 in certain sectors will receive £25,000.
https://www.gov.uk/contact-your-local-council-about-business-rates
Coronavirus Job Retention Scheme
All UK employers will be able to access support to continue paying part of their employees' salary for those employees that would otherwise have been laid off during this crisis. It will be necessary to subject each worker to furlough in writing.
The scheme allows for employers to claim a grant of up to 80% of the employee's wages up to a cap of £2,500 per month plus employer national insurance and employer pension costs based on February 2020 where possible. Employers can choose to fund the differences between this payment and the total salary.
Directors of limited companies can be subject to furlough provided they are not providing services other than statutory services and not generating revenue for the company.
https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
VAT
Businesses can defer VAT payments due in the period 20 March 2020 - 30 June 2020 until 31 March 2021. This is an automatic offer and you do not need to apply, however if you pay by direct debit then it is your responsibility to cancel the direct debit.
Time to pay
If you are having difficulties paying any of your other business taxes such as PAYE or corporation tax due to Coronavirus you need to get in touch with the HMRC helpline.
https://www.gov.uk/government/organisations/hm-revenue-customs/contact/coronavirus-covid-19-helpline
Self-employment Income Support Scheme
For those registered with HMRC as self-employed, HMRC will contact individuals in June and make a payment for the lower of:
- 80% of the average monthly profits for the last 3 years and
- £2,500
- The trading profit is below £50,000 for 2018-2019 tax year or average below £50,000 for 2016-17, 2017-18 and 2018-19
- You have filed tax year 2018-19 personal tax return
- You are adversely impacted by Corona Virus
- 50% of income or more must come from self-employment
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
Self-Assessment & Payments on Account
Payment on account due 31 July 2020 can now be deferred until 31 January 2021.
https://www.gov.uk/understand-self-assessment-bill/payments-on-account
Statutory Sick Pay
Statutory Sick Pay of £94.25, paid by your employer for up to 28 weeks which now includes people staying at home, caring for others or in the same household as those impacted by COVID-19.
https://www.gov.uk/statutory-sick-pay
Universal Credit
If you are self-employed or not eligible for SSP you may be able to claim Universal Credit.
https://www.understandinguniversalcredit.gov.uk/coronavirus/
Employment and Support Allowance
https://www.gov.uk/guidance/new-style-employment-and-support-allowance
Hospitality Action
https://www.hospitalityaction.org.uk/get-help/
General help
If you are struggling with living or food costs review here:
https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/if-youre-struggling-with-living-costs/
and here: https://www.stepchange.org/debt-info/emergency-funding.aspx