COVID 19 Update 2

Universal Credit / Benefits

https://www.gov.uk/employment-support-allowance

https://www.gov.uk/universal-credit

These benefits may be available should you be unable to work as self-employed or employee.

Time To Pay (for Tax)

Cornonavirus Helpline 0800 015 9559 for time to pay on all taxes.

The second payment on account for income tax, normally due in July 2020, will be deferred until January 2021. No payment in July will be necessary, you do not need to apply as this is automatic.

From 20 March until 30 June 2020, businesses do not need to make any VAT payments. This is automatic and you do not need to apply. The payments will be deferred and you will have until the end of the year to pay the outstanding VAT.

Grants and Rate Relief

Grant now up to £10,000 for businesses eligible for Small Business Rates Relief (SBRR). Local government will be contacting eligible businesses from April.

Retail and hospitality businesses can apply for a grant up to £25,000 if they have a rateable property. Again, the local authorities will contact you on eligibility.

100% Rate Relief for eligible businesses should appear automatically on your 2020/21 rates bill – applicable to those in retail and hospitality. A similar scheme will be available for nurseries.

Those based in Derbyshire can apply to Derbyshire County Council for an emergency relief fund of £500. If you fit the criteria, shown on the website, you can apply online.

www.derbyshire.gov.uk/businessgrants

Other councils are likely to have similar schemes in place.

Staff Issues

Follow ACAS guidance when reducing staff hours or laying them off. https://www.acas.org.uk/

Statutory sick pay will be available from day one, reclaimable at a later date from the government, for self isolation purposes. The SSP will be covered for 14 days. This will create short-term cashflow issues for employers.

80% of an employee’s salary up to £2,500 per month will be covered by the government.

This is only for employees that are unable to work (due to work shutdown for example) but are still on the payroll.

The amount will be paid by the employer and then will be reclaimable via HMRC. This may cause a short-term cashflow issue.

At the moment, this does not apply to workers who are still able to work in their job.

More information on this will be provided by HMRC in the coming days.

Low Cost Loans / Mortgage and loan holidays

Three month mortgage holiday – apply directly to your loan provider, normally online via a self-certification form.

As of the 23 March, the British Business Bank will launch loan support for small and medium sized businesses, providing a guarantee to lenders of 80% of the loan, plus paying the interest on the loan for 12 months.

40 lenders will be available, including the majority of high street banks. You should arrange a meeting with the bank or financial advisor in order to access this loan with a business plan.

This allows for lenders to provide loans which may not have fit their criteria in the past, but a loan is not assured in all cases.

Coronavirus Business Interruption Loan Scheme (CBILS)

For existing loans, you should talk to your lender if you require a repayment holiday.

Insurance

Some business insurance may cover pandemics and closures ordered by government. Please check your insurance documents and claim through the normal channels.


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