Government Loans & Grants For Business
The Business Interruption Loan Scheme:
This is a government backed loan of up to £5m and the Government will pay the interest for the first 12 months of the loan. the Government will guarantee 80% of the loan.
The scheme is open to any business with a turnover of less than £45M, excluding banks, insurers and reinsurers (not brokers) , public funded bodies including state aided schools.
The only criteria is that the business must have been viable but for the pandemic and be able to show an adverse impact from the virus.
Coronavirus Future Fund
Bounce Back Loan
Allows small and medium sized businesses to borrow between £2,000 and 25% of their turnover up to maximum of £50,000. Similar eligibility as the Business Interruption Loan Scheme above. the Government guarantees 100% of the loan, there are no fees or interest for 12 months and the rate after that is 2.5%pa.
The Business Rates holiday for 2020/21 is extended to ALL hospitality and retail businesses irrespective of the rateable value of their premises.
The grant announced last week and available to all businesses eligible for Small Business Rates Relief is increased form £3,000 to £10,000.
Further grants to smaller businesses in the hospitality retail or leisure sectors in smaller premises with a rateable value between £15,000 – £51,000.
The Government has also confirmed that its advice to avoid pubs, clubs theatres etc is sufficient to claim for business interruption from your insurance company, provided of course you have that level of cover.
Planning consents will be relaxed to allow pubs and restaurants to provide take away food for people undergoing self isolation.
In addition to the above and for other business sectors not covered by the grants and rates holiday HMRC should be amenable to giving your business a time to pay arrangement or cancelling penalties and interest where you will have difficulties paying immediately. You will have o have submitted the relevant tax or VAT returns and they usually want to encompass all taxes in one payment by direct debit. Contact them direct on 0800 0159 559.
The Off Payroll rules due to kick in next month have also been delayed until April 2021. This moved the requirement to determine if a contractor operating via a personal service company was actually a disguised employee and to operate PAYE to the engaging entity.