We have had a considerable number of enquiries from clients regarding the support available to help them deal with the impact of Covid-19 on their businesses. Here are some of the key support measures that you may wish to consider – some of which you can act on now!
On Tuesday 17 March, we sent out an email to our clients detailing the situation at that point. Since then, we have had the Chancellor’s statement and further details are beginning to emerge. The Government’s declared aim is to give businesses the support they need in order to keep on trading. Here are some of the key areas where you may be able to access financial support.
Do you have tax payments due?
The Government has set up a coronavirus helpline for businesses who are going to find it difficult to pay taxes that are due. This includes Corporation Tax, VAT, PAYE and Duty.
What can you do? If you have a payment due imminently, a Director of the company should call the helpline to see if they can provide support. They will ask you about all taxes due, roll this up, and discuss a payment plan. Interest will not be charged.
Call the HMRC coronavirus Helpline on 0800 0159 559.
Business Interruption Loan Scheme
We have had initial discussions with funders on this and things are moving very quickly. We expect the details to emerge by the beginning of next week. In summary, the government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs.
We will be writing to our clients again and updating our news pages once we have more information.
Business Grants and Rates Relief
Business Support Grants of up to £25k for businesses in certain retail/leisure sectors and £10k for other SMEs are to be made available.
We expect further details on how to claim this money in the next few days. However, it is unlikely that the funding will be made available before April.
In addition, there will be a Business Rates Holiday for affected businesses.
We will be writing to our clients again and updating our news pages once we have more information.
Statutory Sick Pay (SSP) and other employment costs
Businesses will be able to claim refunds for SSP to help them pay staff who are off ill due to Covid-19. The Government is still working on the practicalities of this and it may take some time due to the nature of their systems.
In addition, the government is examining other ways of supporting business, including mitigating employment costs for businesses.
We will be writing to our clients again and updating our news pages once we have more information.
Information guides
We have published a number of guides on our website for business owners, employers and self-employed individuals affected by the coronavirus situation.
Financial support for businesses
This document outlines the package of business support measures announced in last week’s Budget. Read online
Managing coronavirus in the workplace
A guide for employers which sets out your duty of care and provides advice on dealing with different employee scenarios. Read online
Advice to help you through the coronavirus crisis
Practical tips and advice to help you weather the storm. Read online
Next steps
We are committed to keeping you up to date with the latest information – and will continue to do so, as and when new information emerges.
If you need advice on a specific matter, please contact the partner or your key contact at your usual RfM office.