Coronavirus (COVID-19) – Latest Update – Support for businesses announced in the UK Budget 2020

Chancellor Rishi Sunak has announced today new important measures to provide support for individuals and businesses to ensure the impact of COVID-19 is minimised. The announced measures include now:

• A new Coronavirus Business Interruption Loan Scheme delivered by the British Business Bank which will enable businesses with a turnover of no more than £41 million to apply for a loan of up to £5 million, with a government-backed guarantee of 80% on each loan. The Government will now cover the first 12 months of interest payments and not 6 months as previously announced, so businesses will benefit from lower repayments during the first year.

You should talk to your bank or finance provider as soon as possible and discuss your business plan with them. This will help your finance provider to act quickly once the Scheme has launched. The scheme will be available from early next week commencing 23 March.

• • It is important to note that presenting a “sound borrowing proposal” has been marked by the Government as one of the main requisites for successful applications. Please speak to us to request more information on how we can advise your business about producing the key financial data and preparing an effective, well-documented loan proposal, crafted to present your business in the best possible light.
• For businesses with fewer than 250 employees, a Statutory Sick Pay relief up to 14 days per eligible employee because of COVID-19.
• A new Corona Virus Job Retention Scheme will allow an employer to claim 80% of the salary of retained workers with a maximum of £2,500 per month per worker which would be backdated to March.
• A dedicated helpline set up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities receive support with their tax affairs. Through this, businesses may be able to agree a bespoke Time to Pay arrangement. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
• No businesses will pay VAT until the end of June.
• Business rates holiday for the tax year 2020-21 for all retail and hospitality firms of any size irrespective of rateable value. There is no action for you. This will apply to your next council tax bill in April 2020.

Guidance for employers addressing Coronavirus (COVID-19)

Please refer to the Guidance published by the Government and available at the following link.