The UK government has announced several help and support packages available for small businesses throughout the Coronavirus crisis.
NOTE: Some of the measures below only apply in England.
The coronavirus support includes grants, business rates relief, tax liabilities deferment and business loans. We go through all of these options in more detail below.
The Coronavirus job retention scheme is government funding to provide additional financial support to employers. By providing this support the government hopes that employers will retain staff, which otherwise would have been laid off during the Coronavirus crisis.
Employers see our detailed guidance on the What is the Coronavirus Job Retention Scheme? or Step by Step guide on how to claim the Job Retention Scheme grant.
The VAT deferral scheme will mean that businesses will not be required to make a VAT payment for 3 months. By providing this support the government hopes that it will provide VAT registered businesses with much needed additional cashflow during the Coronavirus crisis.
VAT registered businesses see our detailed guidance on the Coronavirus VAT Deferral Scheme
No personal tax payments will be required to be paid on 31st July 2020. This deferment will assist self-employed businesses and other taxpayers.
Taxpayers with July 2020 payments due see our detailed guidance on Coronavirus Income Tax Deferral
Businesses which currently qualify for small business rates relief will receive a one off grant of £10,000. Further grants are available for businesses in the retail, hospitality and leisure sectors.
There is also a business rates holiday for the tax year 2020/21.
Businesses which occupy business property see our detailed guidance on Coronavirus Business Support Grant
The self-employed can claim a grant due to loss of income. The grant available is 80% of lost profits up to a maximum of £2,500 per month.
Self-employed and members of a partnership see our detailed guidance on Self-employment Income Support Scheme
All businesses including the self-employed are able to request assistance with any outstanding tax liabilities. This can include Corporation Tax, Income Tax, VAT and PAYE/NI payments.
They are known as time to pay arrangements and will be agreed on a case by case basis. HMRC have set up a dedicated helpline to deal with these claims. If you are concerned about tax liabilities due call HMRC on 0800 0159 559.
The British Business Bank will provide support to small and medium sized businesses. This is known as the Coronavirus Business Interruption Loan Scheme.
The government will provide guarantees of 80% on each loan, which can be up to £5 million in value.
The loan will be interest free for the first 12 months as the government will cover the interest payments in this period.
Please see the governments website for more information
See below for other Coronavirus support available to small businesses:
What is the Job Retention Scheme?
How to claim the Job Retention Scheme Grant?
VAT Deferral Scheme
Income Tax Deferral
Business Support Grant & Rates Relief
Self-employment Income Support Scheme
What are Bounce Back Loans?
DISCLAIMER – Please note that the content contained in this article is for general information only and is not a substitute for professional advice – read our full disclaimer