The UK government has set-up a hub to help businesses find out what support is available to them in response to the global economic emergency brought on by coronavirus. For startups that includes a £5m loan scheme, grant funding, a VAT deferral and more. Here is everything relevant to small and medium-sized businesses.
The Coronavirus Business Interruption Loan Scheme will provide government-backed loans of up to £5m to small and medium-sized businesses. This scheme will help any viable business with a turnover of up to £45m. Interest payments and any lender-levied fees for businesses will be covered by the government for an initial period of up to 12 months. There are 40 accredited lenders able to offer the scheme.
The government is also offering Small Business Grant Funding. It aims to support small businesses that already pay little or no business rates. This will provide a one-off grant of £10,000 to help meet their ongoing business costs. No need to apply, if eligible your local authority will contact you.
HMRC’s Time To Pay service is there to support businesses and self-employed people in financial distress and with outstanding tax liabilities. Eligibility is on a case-by-case basis and is tailored to individual circumstances and liabilities.
Small and medium-sized businesses can reclaim Statutory Sick Pay (SSP) paid for staff sickness absence due to coronavirus. It will cover up to two weeks’ SSP per eligible employee who has been off work because of coronavirus.
To safeguard workers from being made redundant the Job Retention Scheme is available for all UK employers with a PAYE scheme to continue paying part of their employees’ salary for those that would otherwise have been laid off. HMRC will reimburse 80% of their wages, up to £2,500 per month. It will cover the cost of wages backdated to March 1st and is initially open for 3 months, but will be extended if necessary.
All businesses can also defer VAT payments for three months. The deferral will apply from 20 March 2020 until 30 June 2020.
The Corona Virus Business Support hub which has information on support for the self-employed and larger businesses can be viewed here.
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