In the fight against Covid-19, each restriction placed on an individual or business came alongside a measure designed to limit the economic fallout. With numerous measures announced over the past week, we have details on the key announcements.
Coronavirus job retention scheme
Businesses with employees who are now unable to work because of coronavirus can apply for grants of up to £2,500 per employee. Employees should be furloughed, so while not working, they remain on the payroll. These grants will be paid via HMRC and are expected to be in place for three months in the first instance. All UK employers are eligible. Information on how to apply has yet to be released.
Extension of the Coronavirus Business Interruption Loan scheme (CBIL)
The maximum turnover for eligible businesses has now been increased to £45m from the previous £41m and the interest-free period has also increased from six to twelve months. The maximum value of a facility provided under the scheme has also increased to £5m from £1.2. Loans were announced as being available as of 23rd March and can be accessed through one of 40 accredited lending providers, including most major banks.
Deferral of tax and VAT payments currently due
Payment from UK-based VAT registered businesses due between 20 March and 30 June 2020 has now been deferred from the usual deadline to the end of the tax year.
For self-assessment income tax payments, the previous deadline of 31st July has now been deferred until 31 January 2021.
Both deferral schemes apply automatically. There is no need to apply for a deferral.
Access to welfare for the self-employed
The self-employed can now access universal credit with the minimum income floor applying.
Retail, Hospitality and Leisure Grant (RHLG)
Further details have now been published on this. Key takeaways include payments to be made to the person listed in the local authority’s records as the ratepayer for the business premises on 11 March 2020 and the exclusion of certain premises such as private stables, beach huts, car parks, and parking spaces. Businesses that were dissolved or in liquidation as of 11th March are ineligible.
For help and advice on the above or any other financial matters, get in touch on 01274 588115, firstname.lastname@example.org or find us on social @smithbutler. We’ll be updating our blog and social media channels as and when new information is announced.