Coronavirus Job Retention Scheme
The Coronavirus job retention scheme which enables all UK employers to access support to continue paying up to 80% of employees’ salaries up to a cap of £2,500, has been extended until the end of October, with measures to be put in place to ensure the cost is shared more with employers. From 1 July businesses have the option to 'flexible furlough' their employees, meaning they can bring their employees back to work part time. Employers will be able to claim a grant for the hours which these employees do not work, compared to the hours they would normally have worked in that period. However, from this date businesses will only be able to claim a grant for employees that have already been furloughed for three consecutive weeks between 1 March and 30 June 2020.
Coronavirus Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5million and for up to 6 years. The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.
Deferring of VAT and Tax payments
A VAT deferral will apply from 20 March 2020 to 30 June 2020. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period.
In response to those having to self-isolate, the Government has announced that it will refund the cost of up to 14 days statutory sick pay for businesses with less than 250 employees.
Business rates holiday for retail, hospitality and leisure businesses
A business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year. Your Local Authority will be responsible for applying this.
For more information on funding to support your business visit the GOV.UK page here.
Coronavirus Future Fund
Coronavirus Future Fund will issue convertible loans between £125,000 to £5 million to innovative companies facing financing difficulties due to Coronavirus.
Small Business Micro Loans
The chancellor has announced a micro loan scheme for smaller businesses. Businesses can apply for new Bounce Back loans up to a maximum of £50,000 or 25% of turnover, with the government paying the interest for the first 12 months.
Companies House will temporarily pause the strike off process to prevent companies being dissolved. This will give businesses affected the time they need to update their records. In addition, companies issued with a late filing penalty due to the outbreak will have appeals treated sympathetically.