What has the Government made available?
A summary of the most relevant policies for small businesses as at 23 March 2020:
- Businesses that pay little or no business rates will receive a one-off grant of £10,000. You are eligible for the grant if you currently qualify for small business rate relief, rural rate relief or tapered relief.
- There are also cash grants for businesses within the retail, hospitality and leisure sectors. A grant of £10,000 will be issued if your rateable property value is under £15,000 and a grant of £25,000 is available if the rateable value is between £15,001 and £51,000.
- The cash grants will be issued by your local authority and you do not need to make an application for the grants, your local authority will write to you if you qualify. At present we do not have exact timescales on when these will be issued, unfortunately we do not think that this will be within the next few weeks.
- There is additional Support for retail, hospitality and leisure businesses that pay business rates, with no business rates payable for 2020/21 regardless of the rateable value of the property.
Coronavirus Business Interruption Loan Scheme (CBILS)
- All businesses can apply for a loan through the Coronavirus Business Interruption Loan Scheme which has now launched. The main perk is that these are Government backed loans and that no interest will be payable for one year. We are liaising with the banks to confirm the application and repayment process. Please do speak to us if this is something you are considering as there are a variety of factors that need to be considered.
Coronavirus Job Retention Scheme
- For all UK businesses that employ staff the Government has launched the Coronavirus Job Retention Scheme and allows businesses to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.
- HMRC will reimburse 80% of the workers wage costs, up to a cap of £2,500 per month. This is based on the employees regular salary, or if they are on variable hours, the payments they received in February 2020.
- It has been announced that these repayment will be part of an unprecedented system for HMRC and as such that these payments are not expected to be made at the very earliest until the end of April 2020, and the systems through which claims can be made is not yet built.
- For the self-employed if you are unable to work due to illness then you can claim Universal Credit at the same rate as statutory sick pay for employees. The Minimum Income Floor has been temporarily removed meaning there is no assumed income level for Self-Employed claimants. We are expecting further announcements from the Government, particularly for the self-employed, and we will provide updates on these when they are announced.
- There is no specific mention of payroll or income support for close company directors. However, as a very substantial group of workers within the economy, we are hopeful that either these individuals will feature within the anticipated update on self-employed, or failing that, direct attention to those individuals will feature in the coming days. Once we know more, we shall update!
A full list of the Government support available can be found on the following links:
For more information, please contact the Team.
If you are new to Revel and are keen to find out more, please call our consultant Will Bolter FCCA MAAT ATT (our designated COVID-19 response advisor) on 07379 451484 or contact us by email here.