Just a quick note in response to the key interventions announced by Boris Johnson and Rishi Sunak yesterday.
The measures announced are summarised below and as soon as we receive more information about implementing these incentives we will update you.
I NEED SUPPORT NOW
For those businesses who need immediate support before the new incentives have been established the government are urging businesses to access the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Banks.
The loan is available from this Monday 23rd March for businesses with a turnover of no more than £45 million in addition to other British business eligibility criteria. Go to Business Interruption Loan
SUMMARY OF MEASURES ANNOUNCED
This includes a package of measures to support businesses including:
- Job Retention Scheme (80% of salary upto 2.5k per worker per month to be covered by government if not working)
- universal credit and tax credits to be increased by £20 a week for one year
- deferring VAT and Income Tax payments
- a Statutory Sick Pay relief package for SMEs
- a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
- small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
- a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
- the HMRC Time To Pay Scheme
WHAT ACTION DO I NEED TO TAKE?
- As highlighted above, a business loan is available for immediate help to businesses – Talk to your bank for specific details on how to action this.
- The job retention scheme cannot be claimed currently we will provide information when this is live.
- Your local authority will contact you regarding the 12 month business rates holiday, where eligible and the small business grant funding of £10k or the £25k for retail, hospitality and leisure.
- The VAT deferral is in place from the 20th March to the 30th June 2020. This deferral payment need not be paid until January 2021. No applications to HMRC are required.
- Income Tax due 31st July 2020 will again be deferred until 31st January 2021, again no application to HMRC is required.
- If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559 to access the time to pay service.
- For further details regarding the above support access and other measures put in place go to Covid-19: Support for Business Guidance
We hope this email finds you well and wish you and your business the best during this challenging time.
Take care from all of the Harts team.