How the government is supporting small and medium sized businesses through the coronavirus crisis
Recent weeks have wreaked havoc upon businesses across the globe, with SMEs in the UK now being forced to consider how they will traverse the rapidly evolving Covid-19 landscape. Will fewer customers be coming through your doors? Will your employees need to self-isolate or take time off sick? Any small business with an already tight cash flow will undoubtedly be hit the hardest through these testing times. JACK MOORE, our Cloud Accounting Manager, explains how the UK government is helping soften the blow:
Delay your tax payments with a Time to Pay arrangement
A dedicated helpline has been set up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities receive support with their tax affairs. Through this, businesses may be able to agree a bespoke Time to Pay arrangement. If you are concerned about being able to pay your tax due to Covid-19, call HMRC's dedicated helpline on 0800 0159 559. Find more information regarding Time to Pay arrangements here - https://www.gov.uk/difficulties-paying-hmrc
Statutory Sick Pay support
For businesses with fewer than 250 employees, the cost of providing 14 days of statutory sick pay per employee will be refunded by the government in full. This will provide two million businesses with up to £2 billion to cover the costs of large-scale sick leave. Presumably this will be claimed through your payroll, but HMRC have not yet released details on how to access the rebate.
Cash grant of up to £3,000 for qualifying businesses
The Treasury has announced that small businesses who are already exempt from paying business rates will be eligible for a one-off Covid-19 grant of up to £3,000. It is not yet clear how businesses will access and claim the grants, but keep an eye on the gov.uk website as information around this develops.
Business rates relief
The government will not charge business rates on premises occupied by businesses in the retail, leisure and hospitality sectors in 2020-21. This relief encompasses hotels, restaurants and coffee shops, amongst other types of businesses. This announcement means that almost 900,000 properties, or 45 percent of all business premises in England, will not pay business rates in 2020-21.
Coronavirus Business Interruption Loan Scheme (CBILS)
A new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will enable businesses with a turnover of no more than £41 million to apply for a loan of up to £1.2 million, with the government covering up to 80% of any losses with no fees. This will unlock up to £1 billion pounds to protect and support small businesses. Find more information about the Coronavirus Business Interruption Loans here: https://www.british-business-bank.co.uk/ourpartners/supporting-business-loans-enterprise-finance-guarantee/
Further information and guidance for businesses and employers, including additional resources for the above points, can be found here: https://www.gov.uk/government/news/coronavirus-covid-19-guidance-for-employees-employers-and-businesses.
Nottingham accountants Page Kirk are able to support businesses through this crisis and if you need any more information about how we can help, please contact one of our business advisors on 0115 955 5500 or email enquires@pagekirk.co.uk.