Coronavirus: Support for Small Businesses and Self-Employed

Coronavirus: Support for Small Businesses and Self-Employed image

The UK government have announced unprecedented support packages for both businesses and the self-employed that are immediately impacted by the Coronavis COVID-19 pandemic.

We have listed some of the ways the government is helping to support your business financially through these challenging times. For the latest up-to-date information, please visit the official Government website.

Coronavirus Job Retention Scheme

The coronavirus job retention scheme is available to employers with a PAYE scheme. This scheme covers up to 80% of your employees' salary, up to £2,500 per month. This allows employers to retain their staff that would otherwise be laid off. The scheme is in place for 3 months starting from 1st March 2020 but may be extended.

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Coronavirus Business Interruption Loan Scheme

Backed by the government-owned British Business Bank, the Coronavirus Business Interruption Loan Scheme (CBILS) allows businesses to get the financial support they need through these challenging times. The government will provide lenders with a guarantee of 80% on the outstanding balance, but the borrower will be liable for 100% of the loan.

  • Small and medium sized businesses (including the self employed) with a turnover of less than £45 million will be able to access finance up to £5 million with zero interest and fees for the first 12 months.
  • Larger businesses with a turnover from £45 million up to £250 million will be able to access up to £25 million through the Coronavirus Large Business Interruption Loan Scheme (CLBILS) scheme. Businesses with a turnover of over £250 million can get up to £50 million.

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Bounce Back Loan Scheme

The Bounce Back Loan Scheme (BBLS) is a new scheme which will help sole traders, micro-businesses and SME's get access to fast-track loans between £2,000 and £50,000. The loans will be 100% government-backed, meaning the government will guarantee the full amount to the lender (not borrower). The borrower won't pay any fees or interest for the first 12 months. The Bounce Back Loan Scheme be launching in early May 2020.

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The Future Fund

Launching in May 2020, this scheme is designed to help UK businesses that rely on equity investment that are unable to access the Coronavirus Business Interruption Loan Scheme (CBILS). These convertible loans range between £125,000 to £5 million and will be subject to at least equal match funding from private investors.

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Deferring VAT & Income Tax Payments

Businesses will not pay Valued Added Tax (VAT) from 20 March 2020 until 30 June 2020. Payments will be deferred for three months. You do not need to tell HMRC that you are deferring your VAT payment.

For Income Tax Self-Assessment, with a second payment that is due on the 31 July 2020 can defer the payment until 31 January 2021.

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Business Rates Relief

Businesses that operate in the retail, hospitality and/or leisure sector will not pay any business rates for the 2020-2021 tax year.

If your business property has a rateable value under £51,000, you may be eligible for a grant up to £25,000.

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Cash Grants for Businesses

Businesses can access grants of up to £25,000 per property. This Retail and Hospitality Grant Scheme is available to the retail, hospitality and leisure sectors.

  • £10,000 grant is available to businesses with a rateable value up to £15,000.
  • £25,000 grant is available to businesses with a rateable value between £15,000 and less than £51,000.

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Statutory Sick Pay Relief

A Statutory Sick Pay (SSP) relief package is available for SMEs who are paying sick pay to employees on or after 13 March 2020, due to them not working by either having coronavirus, or if they are self-isolating. The government will allow employers to reclaim Statutory Sick Pay (SSP) up to 2 weeks per eligible employee.

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Self-employment Income Support Scheme

The self-employed who have lost income due to the coronavirus can claim a taxable grant worth 80% of trading profits (up to £2,500 p/month) for the next three months through the Self-employment Income Support Scheme (SEISS).

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Businesses in Wales, Scotland and Northern Ireland

Due to devolved UK governments, please visit the official government website where your business is based. We have listed them below.

Wales

If your business is based in Wales, you can view the latest coronavirus support for businesses in Wales.

Scotland

If your business is based in Scotland, you can view the latest coronavirus support for businesses in Scotland.

Northern Ireland

If your business is based in Northern Ireland, you can view the latest coronavirus support for businesses in Northern Ireland.


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