Coronavirus Business Support
The Government has set out a package of temporary measures to support businesses in response to disruption caused by COVID-19. We have assembled a list of the key points you need to know to help you plan and consider your next steps.
The measures include new financial resources to support businesses affected by the Coronavirus (COVID-19) outbreak:
- Businesses do not need to make VAT payments before June and have until the end of the 2020 to 2021 tax year to pay any liabilities that accumulate during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
- The Corona Virus Job Retention Scheme enables employers to access and HMRC grant to continue paying part of their employees’ salary to keep people on payroll.
- An allowance for small-and medium-sized employers to reclaim up to two weeks Statutory Sick Pay paid for sickness absence due to Coronavirus. The eligibility criteria for the scheme will be as follows:
- The Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance. Support will be through access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.
- A business grant fund of £10,000 for all business currently receiving small business rate relief or rural rate relief.
- Businesses in financial distress with outstanding tax liabilities may be eligible to receive support with their tax affairs through HMRC’s Time to Pay
- For retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000 a grant of £25,000 for and a rates holiday in England for the 2020 to 2021 tax year.
- Nursery businesses will receive a business rates holiday in England for the 2020 to 2021 tax year.
- The IR35 tax reforms have been pushed back by one year.
- Support for ‘non-financial’ larger firms to meet short term liabilities is through the COVID-19 Corporate Financing Facility provided by the Bank of England.
- Commercial Tenant Protection. Protection for commercial tenants who cannot pay their rent because of Coronavirus will be protected from eviction for 3 months.
- Statutory Redundancy Payments provide financial assistance for insolvent employers to pay their employees redundancy pay.