What Government Help is Available?
The deluge of information from the Government on financial support available during the Covid-19 pandemic for businesses and self-employed can be overwhelming.
Questions on whether as a business, self-employed or individual you understand the financial support that is available for you? What Government grants are available for small businesses affected by Coronavirus? How do you work out whether you are eligible (or not) for a grant? More importantly, how to secure what funding is available to you.
Job Retention Scheme ‘Furlough’
- 80% of an impacted employee’s gross salary is available from the Government (up to £2,500 per employee per month plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage).
- Furlough has a minimum of 3 weeks. No opt-out clause within this time period.
- An employee cannot continue to work for you whilst on furlough.
Further information is available HERE
Grants
In England, the Small Business Grant Fund (SBGF) is managed by local authorities and provides up to £10,000 as a one-off grant to help small business owners meet their operating costs. The small business grant funding of £10,000 is for all businesses in receipt of small business rate relief or rural rate relief.
- Your local authority has sent or is in the process of sending a form to all eligible businesses to complete and return to them.
For businesses in Wales the Welsh Government has announced the following financial support:
- Grants of £10,000 for micro-businesses employing up to nine people. This includes sole traders employing staff. Qualifying businesses will be able to apply by mid-April.
- Grants of up to £100,000 for small to medium-sized businesses with between 10 and 249 employees.
- Check your local authority’s website in the first instance for information on the grant and to download the online application.
Grant funding of up to £25,000 is for retail, hospitality and leisure businesses with a property with a rateable value between £15,000 and £51,000.
A 12-month business rates holiday for 2020-21 tax year is automatically available for all retail, leisure and nursery businesses in England.
Further information is available HERE
Self-employed
Claim up to £2,500 per month based on personal tax returns over the last 3 years.
The grant will be available from the beginning of June.
What you need to know/do:
- You will need your latest management accounts and/or annual accounts. Our bookkeeping service can provide support, if required.
- HMRC will contact those who are eligible directly to invite you to apply and request the completion of a form.
- The grant will then be paid directly into your bank account.
Further information is available HERE
Loans
Times are difficult for most businesses and cash flow may have been compromised. It may now be time to approach your bank for financial support and to discuss loan options. There are two options any business should review:
- A standard loan
- Likely to be very quick.
- Will probably attract charges.
- A CBILS loan (Coronavirus Business Interruption Loan Service)
- Likely to take more than 4 weeks.
- Charges and interest paid by the government for the first 12 months.
- Created by the Government to specifically support during the Coronavirus pandemic.
- Available from 40 approved lenders.
What you need to know/do:
- Contact your bank for all options.
- Review all options, including CBILS, before making any decisions.
- It is important to note that these grants/loans can include clawback and/or penalties and surcharges if conditions are not met.
- Application forms for certain grants, but especially so on loans, are very lengthy and up-to-date financials will be required by the lender.
- Whilst in the medium to long term the loan will need repaying, the Government may back your application so that it is unsecured, minimising any personal liability if the loan process is approved.
Further information is available HERE
Other?
Due to the impact of Coronavirus you may be able to delay (defer) some tax payments without paying a penalty. Check out:
- Time To Pay Scheme.
- Deferred VAT payments.
- Delay to Self-Assessment payment of tax for individuals.
- Statutory Sick Pay refunds.
Further information is available HERE
How can Everett King help?
We are here to help and support you and your business through these unprecedented times – from help with the paperwork to reviewing your application forms for funding or walking you through any questions you may have. To ensure you secure available funding you must take steps now to secure your business for the future.
Why not contact us today for more information.