Job Retention Scheme
The government’s Job Retention Scheme was due to end on 31 October 2020, but has been extended until 31 March 2021. The following changes apply:
- The amount employers can claim has increased to 80% of wages, capped at £2,500 each month, until 31 January 2021
- Employees and workers who have not been on furlough previously are now eligible
Find out more on the Gov.uk website.
Deferral of VAT payments
Businesses that deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period. Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest free.
You will need to opt-in to the scheme, and for those who do, this means that your VAT liabilities due between 20 March and 30 June 2020 do not need to be paid in full until the end of March 2022. Those that can pay their deferred VAT can still do so by 31 March 2021.
Find out more on the Gov.uk website.
Self-Employment Income Support Scheme
The Self-Employment Income Support Scheme Grant Extension provides critical support to the self-employed in the form of two grants, each available for three month periods covering November 2020 to January 2021 and February 2021 to April 2021.
Find out more on the Gov.uk website.
Coronavirus Business Interruption Loan Scheme
This scheme provides financial support to smaller businesses affected by Covid-19. It supports businesses to access bank lending and overdrafts. The Government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to small and medium-sized businesses.
The Government will not charge businesses or banks for this guarantee, and the scheme will support loans of up to £5 million in value. Businesses can access the first 12 months of that finance interest free. The borrower always remains 100% liable for the debt
Find out more on the Gov.uk website.
Covid-19 Corporate Financing Facility
A major new scheme delivered through commercial lenders and launched by the Bank of England to support liquidity amongst larger firms. It will operate for at least 12 months, and for as long as steps are needed to relieve cash flow pressures on firms that make a material contribution to the UK economy.
Find out more on the Gov.uk website.
Statutory Sick Pay Rebate Scheme
The Government will support small and medium-sized businesses and employers to cope with the extra costs of paying Covid-19 related Statutory Sick Pay (SSP).
Through the emergency legislation, employers with fewer than 250 employees will be able to reclaim 2 weeks of SSP paid for sickness absences relating to coronavirus during the period of the outbreak.
Find out more on the Gov.uk website.
Time to Pay (HMRC)
HMRC may be able to help those in need regarding their tax liabilities, by providing a bespoke Time to Pay arrangement. HMRC will also waive late payment penalties and interest where a business experiences administrative difficulty contacting HMRC or paying taxes due to Covid-19.
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 0159 559.
Insurance
Businesses that have cover for both pandemics and government-ordered closure should be covered, as the Government and insurance industry confirmed on 17 March 2020 that advice to avoid pubs, theatres and other establishments is sufficient to make a claim.
Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. Most businesses are unlikely to be covered, as standard business interruption insurance policies are dependent on damage to property and will exclude pandemics.
Private lenders
A number of private lenders are also making funds available to small businesses impacted by Covid-19. Lenders may also be launching schemes and businesses must satisfy themselves of the terms and conditions of this before agreeing to loan agreements. Please check with your lender or bank.