1. Support for businesses through the Coronavirus Business Interruption Loan Scheme
The temporary Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million 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.
The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the Government-owned British Business Bank.
The scheme is open until January 2021.
Eligibility
You are eligible for the scheme if:
• your business is UK based, with turnover of no more than £45 million per year
You need to show that your business:
• would be viable were it not for the pandemic
• has been adversely impacted b the coronavirus
How to access the scheme
The scheme is now open for applications. All major banks are offering this scheme.
To apply, you should talk to your bank or one of the 50 accredited finance providers (not the British Business Bank) as soon as possible, to discuss your business plan. You can find out the latest on the best ways to contact them via their websites. Please note that branches may currently be shut down to enable social distancing.
The full rules of the scheme and the list of accredited lenders are available on the British Business Bank website.
If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.
2. Support for businesses through the Coronavirus Bounce Back Loan Scheme
The Bounce Back Loan Scheme enables smaller businesses to access finance more quickly during the coronavirus outbreak.
The scheme helps small and medium sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
The scheme is open until 31 January 2021.
If you already have a Bounce Back Loan but borrowed less than you were entitled to, from 10 November 2020 you can top up your existing loan to your maximum amount. You must request the top up by 31 January 2021.
Eligibility
You are eligible for the scheme if:
• your business is UK based and was established before 1 March 2020
• has been adversely impacted by the coronavirus
• you cannot claim if you are already claiming under the Coronavirus Business Loan Interruption Loan Scheme
How to access the scheme
There are 28 lenders participating in the scheme including many of the main retail banks. You should approach a suitable lender yourself via the lender’s website.
The lender will ask you to fill in a short online application form and self-declare that you are eligible.
The lender will decide whether to offer you a loan or another type of finance and you’ll be responsible for repaying 100% of the amount borrowed.
3. Support for businesses through Business Support Grants
If your business is required to close due to lockdown restrictions you will be eligible for the following grants:
• For properties with a rateable value of £15k or under – grants of £1,334 per month or £667 per two weeks
• For properties with a rateable value between £15k-£51k – grants of £2,000 per month or £1,000 per two weeks
• For properties with a rateable value of £51k or over – grants of £3,000 per month or £1,500 per two weeks
Grants will be allocated by local authorities. Further support may be available from local authorities which can be found on individual local authorities websites.
4. Support for businesses through the Coronavirus Job Retention Scheme
The Coronavirus Job Retention Scheme has now been extended to March 2021.
Employers can claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month.
Employers will only pay employer National Insurance and pension contributions for the hours not worked.
The scheme is open to all UK employers with a UK bank account and UK PAYE scheme.
Employees must be on the PAYE payroll by 30October 2020
The Job Support Scheme that was set to replace the Job Retention Scheme has been postponed.
5. Support for businesses through deferring VAT payments
We will support businesses by deferring Valued Added Tax (VAT) payments for 3 months.
If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to:
• defer the payment until a later date
• pay the VAT due as normal
If you’re in temporary
financial distress because of COVID-19 more help is available from HMRC’s Time
to Pay scheme.
6. Support for businesses through deferring Self-Assessment payments on account
If you’re due to pay a self-assessment payment on account by 31 July 2020 but the impact of the coronavirus causes you difficulty in making payment by that date, then you may defer payment until January 2021.
Eligibility
You are eligible if you are due to pay your second self-assessment payment on account on 31 July. You do not need to be self-employed to be eligible for the deferment.
The deferment is optional. If you are still able to pay your second payment on account on 31 July you should do so.
How to access the scheme
This is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment until 31 January 2021.
During the deferral period you can set up a budget payment plan to help you pay the deferred payment on account when it comes due.
If you’re in temporary financial distress because of COVID-19 more help is available from HMRC’s Time to Pay scheme.
7. Support for self-employed through the Self-employment Income Support Scheme
The third SEISS covering November to January will now cover 80% of average monthly trading profits, £7,500 in total. All other eligibility criteria remain the same as previous grants and you are experiencing reduced demand due to Covid-19 or have been forced to close during the period the grant covers. Applications will open 30 November 2020.
The fourth grant will cover February to April but the level of this has not been set yet
8. Support for businesses paying tax: Time to Pay service
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.
These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
Eligibility
You are eligible if your business:
• pays tax to the UK government
• has outstanding tax liabilities
How to access the scheme
If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 024 1222.
If you’re worried about a future payment, please call HMRC nearer the time.