29.04.20 Coronavirus Business Support Update

As more and more people are making use of the many government support options now available, please see below an update of some of the latest changes or new schemes available.

Coronavirus Business Support Update

Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme will be available for an additional month, until the end of June. This scheme has helped to keep millions of people in jobs by allowing firms to furlough their employees.

The grants issued to cover 80% of wages are now being paid and those who have taken advantage of the scheme are beginning to see the payments in their accounts.

See:  https://www.gov.uk/government/news/chancellor-extends-furlough-scheme-to-end-of-june

You can check if you are eligible to claim for your employees’ wages here.

 

Newly Self-Employed Hardship Fund

Support for the newly self-employed and firms suffering hardship will be paid in early May.

The Economy Secretary recently confirmed that grant funding for newly self-employed and SMEs suffering hardship will be available shortly.

£34 million Newly Self-Employed Hardship Fund, managed by Local Authorities, will be allocated to this fund through £2,000 grants.

However, the support and larger grants for pivotal SME enterprises will depend on the specific need of the enterprise and be developed by the relevant enterprise agency with wraparound business advice and support.

 

Extending small business grants

The Chancellor has announced a new 100% government backed loan scheme for small business.

Businesses will be able to borrow between £2,000 and £50,000, can access the cash within days and the loans are interest free for the first year. There will be a simple online form to access them. The government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months.  Applications will open on Monday 4th May. The government will be working with lenders directly to ensure the loans are delivered as quickly as possible.

 

The Chancellor of the Exchequer, Rishi Sunak, said:

“Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.”

Business Secretary Alok Sharma said:

“Our small businesses are vital in ensuring our communities thrive and will be crucial in creating jobs and securing economic growth as we recover.”

 

Coronavirus Self Employment Income Support Scheme

If you have suffered a loss in income, a grant worth 80% of profits up to £2,500/month is available.

Initially, this will be available for three months in one lump-sum payment and will start to be paid from the beginning of June.

You cannot apply for this scheme yet. HMRC will contact you if you are eligible for the scheme and invite you to apply online.

 

We will continue to give you Coronavirus business support updates.

As always, we are very happy to answer any questions you may have. Feel free to contact us.