{"id":4029,"date":"2020-04-01T09:58:24","date_gmt":"2020-04-01T09:58:24","guid":{"rendered":"http:\/\/my-brains.co.uk\/jackross\/?p=4029"},"modified":"2020-04-01T09:58:24","modified_gmt":"2020-04-01T09:58:24","slug":"coronavirus-support-for-businesses","status":"publish","type":"post","link":"https:\/\/my-brains.co.uk\/jackross\/coronavirus-support-for-businesses\/","title":{"rendered":"Coronavirus support for businesses"},"content":{"rendered":"

Options to limit the financial damage of COVID-19<\/strong><\/span><\/h3>\n

It\u2019s hard to believe that Rishi Sunak has only been the Chancellor since Valentine\u2019s Day, given what he\u2019s had to deal with in a matter of weeks since.<\/p>\n

On the back of delivering a Spring Budget, Sunak has revealed an unprecedented multi-billion-pound stimulus package to support businesses in the UK feeling the effects of the coronavirus.<\/p>\n

From business continuity to accessing government grants and loans, we\u2019re here to advise you during this challenging time. If you need a business health-check or immediate advice on managing cashflow, get in touch.<\/p>\n

The following measures are accurate as of 31 March 2020.<\/p>\n

Support for the self-employed<\/strong><\/span><\/h3>\n

Self-employed workers who are affected by COVID-19 can apply for a grant to cover 80% of their average monthly profits over the last three years.<\/p>\n

The taxable grants are worth up to a maximum of \u00a32,500 a month and will be paid in a single lump sum, but the funds won\u2019t arrive until June at the earliest.<\/p>\n

The self-employed income support scheme<\/strong> will be open for an initial three months, although Sunak may extend it beyond that if necessary.<\/p>\n

It will cover around 95% of the UK\u2019s self-employed population of five million workers with trading profits of up to \u00a350,000 a year.<\/p>\n

To further support the self-employed, the next batch of 2019\/20 payments on account<\/strong> – due on 31 July – are being deferred until 31 January 2021.<\/p>\n

During the outbreak, the minimum income floor for universal credit<\/strong> will be suspended for those who have COVID-19 or are self-isolating. The payments are at the same rate as statutory sick pay (SSP).<\/p>\n

Meanwhile, the contributory employment and support allowance<\/strong> will be temporarily available from the first day a person is sick or self-isolating, rather than day eight.<\/p>\n

Subsidised wages<\/strong><\/span><\/h3>\n

Prime Minister Boris Johnson used one of his daily COVID-19 briefings to urge companies to “think very carefully” before laying off any staff in a bid to cut costs. On the back of that, a coronavirus job retention scheme<\/strong> was announced.<\/p>\n

For at least the next three months, all employers can obtain grants from HMRC to cover up to 80% of wages for retained workers, up to \u00a32,500 a month. This scheme can be backdated to 1 March 2020 and may be extended.<\/p>\n

Interest rates<\/strong><\/span><\/h3>\n

Small businesses that rely on credit, such as bank loans or overdrafts, have been boosted by the Bank of England’s decision to reduce interest rates.<\/p>\n

In an emergency move to help firms deal with the coronavirus pandemic, rates were cut to 0.1% – the lowest ever in the Bank\u2019s 325-year history.<\/p>\n

Business rates relief<\/strong><\/span><\/h3>\n

Thousands of additional business properties should benefit from 100% relief on their business rates for 2020\/21, as the business rates retail discount increased this month.<\/p>\n

It usually only applies to retail businesses with a rateable value under \u00a351,000, but has been extended to cover all retail businesses, regardless of their rateable value.<\/p>\n

It also applies to leisure, hospitality and nursery businesses, so museums, theatres, gyms, pubs, shops, music venues, restaurants, hotels and more will pay no business rates in 2020\/21.<\/p>\n

Depending on your local authority, this should apply to your next council tax bill. However, they may have to reissue your bill automatically to exclude the business rate charge.<\/p>\n

Cash grants<\/strong><\/span><\/h3>\n

If your business paid little or no business rates in 2019\/20 because it qualifies for small business rate relief or rural rate relief, you may be eligible for a \u00a310,000 grant. Your local authority will contact you this month about this support.<\/p>\n

Retail, hospitality and leisure firms that operate smaller premises and have a rateable value of between \u00a315,000 and \u00a351,000 can receive a small business grant of up to \u00a325,000. Funding should be provided this month.<\/p>\n

Business interruption loans<\/strong><\/span><\/h3>\n

The coronavirus business interruption loan scheme offers financial support of up to \u00a35m to SMEs that have lost revenue or seen their cashflow disrupted due to COVID-19.<\/p>\n

There are more than 40 lenders offering finance in the form of term loans, overdrafts, asset finance and invoice finance, with no interest due for the first 12 months.<\/p>\n

To be eligible, small firms must:<\/p>\n