Your most pressing questions answered
Understandably, we’re being inundated with calls from our valued clients, looking for clarity on matters that are important to them during this crisis. The situation is changing on a daily basis, but we’ve prepared a few helpful notes and highlighted some trusted sources of information here.
How can my employees access the 80% wage reimbursement?
This is currently perhaps the most pressing question and it comes under the umbrella of the Coronavirus Job Retention Scheme. To access this, you’ll need to designate affected employees as ‘furloughed workers’ (and notify them of this change). You’ll also have to submit information to HMRC about the employees that have been furloughed and their earnings. How do you do this? Through a new online portal that HMRC is setting up. Watch this space for further details.
How do I defer my VAT and Income Tax payments?
The government will support every UK business by deferring their Valued Added Tax (VAT) payments for three months (from 20 March 2020 until 30 June 2020). If you’re self-employed, the Income Tax payments that are due in July 2020 under the Self-Assessment system will be deferred to January 2021.
You need do nothing to qualify for the VAT or Income Tax support as it’s an automatic offer. There’ll be more clarity on this in the coming weeks, but in the meantime for more details, check here.
How do I access support to cover sick pay?
Again, the government has announced support for businesses that are paying sick pay to employees. This support has not yet been legislated for, but some details are known already and small-and medium-sized businesses and employers will be able to reclaim the Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19.
You will be eligible for the scheme if:
- Your business is UK based
- Your business is a small or medium-sized and employs fewer than 250 employees as of 28 February 2020
There’s a more comprehensive list of how the scheme will work here but many details are still being developed.
How do I access the Coronavirus Business Interruption Loan Scheme?
This scheme is now open for applications and is being organised by the British Business Bank. It will be highly sought-after as it will provide loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years.
The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any fees levied by lenders, so smaller businesses will benefit from no upfront costs and lower initial repayments.
And for added reassurance for all parties, the government will provide lenders with a guarantee of 80% on each loan.
All major banks are offering this scheme and to apply, you should talk to your bank or one of the 40 accredited finance providers as soon as possible. For more information, head to the website of the British Business Bank.
What do I need to do to access the Small Business Grant Scheme?
This one-off £10,000 grant will be given to small businesses that already pay little or no business rates because of small business rate relief (SBBR), rural rate relief (RRR) and tapered relief. Thankfully, you won’t need to do anything to access the grant as your local authority will write to you if you are eligible for this grant.
In the meantime, it’s worth noting that the eligibility criteria is currently:
- your business is based in England
- you are a small business and already receive SBBR and/or RRR
- you are a business that occupies property
Please check back tomorrow for more information as we’ll be publishing a new brand blog with the very latest information and financial support for business owners.
Better still, you can access a whole host of resources for business owners including blogs, smart guides and infographics for free. Simply opt in here.
