As 2019 ended, nobody would have believed that our world was about to enter an unprecedented period in its history.
The coronavirus has transformed our daily lives and plunged businesses into uncertainty. But there is help; a full range of business support measures have been made available to UK businesses and employees. We’ve collated much of the help to help any business ensure they have the tools they need to get through this crisis.
Business interruption loan scheme
A UK-wide scheme that helps businesses affected by coronavirus to access loans, overdrafts, invoice finance and asset finance of up to £5 million for up to six years. It supports small and medium-sized businesses with an annual turnover of up to £45m, will be delivered through commercial lenders, and will be backed by the Government-owned British Business Bank.
Coronavirus Job Retention Scheme
A UK-wide scheme where all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis. HMRC will pay employers a grant worth 80% of an employee’s wage up to £2,500 per month.
Coronavirus Large Business Interruption Loan Scheme
A UK-wide scheme that will help large businesses affected by coronavirus to access loans of up to £25m. The businesses will have an annual turnover of between £45m and £500m, and the loans will be delivered through commercial banks who will conduct all their usual credit risk checks.
Small Business Grant Funding
An England-only scheme where the Government provides additional funding for Local Authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief. Eligible businesses will receive £10,000 to meet ongoing costs.
Statutory Sick Pay Rebate
A UK-wide scheme whereby the Government brings forward legislation to allow small and medium-sized businesses to reclaim Statutory Sick Pay (SSP) paid for staff sickness absence due to coronavirus.
Support for Businesses Paying Tax
A UK-wide scheme which means all businesses and self-employed people finding themselves in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.
Covid-19 Corporate Financing Facility
A UK-wide scheme where the new Covid-19 Corporate Financing Facility (CCFF) ensures the Bank of England will buy short-term debt from larger companies. These arrangements will be made on a case-by-case basis.
VAT Deferral
A UK-wide scheme that supports businesses by deferring Valued Added Tax (VAT) payments for 3 months. Payments due between 20 March 2020 and 30 June 2020 will be deferred. The advice to those paying by direct debit is to cancel direct debits if they are unable to pay.
For more information about where to get business support, please visit the CBI’s Coronavirus Hub that includes the most up-to-date guidance for businesses. If you’d like to find out more, we’ve set up our own Covid-19 Helpline on 0114 263 2632. Alternatively, for general enquiries about R&D tax credits, we’re available at 0114 230 8401.
