Covid Support: What options are available to you and your business?
Melanie Richardson
16/11/2020
Date published 10 November 2020
There have been significant changes to the financial support measures from the government in the past fortnight, following rapid changes in lockdown rules. This article will summarise the current available options to businesses and individuals at the time of publishing and links to the most up to date information.
We recommend reading this article and understanding what you or your business are eligible for and then if you have any questions we are here to help.
Please use your partner contact details available on the home page of our website HERE
Support measures for businesses
Quick actions - Coronavirus business support finder
This link will take you to a government online system that will assess your business situation and provide an outline of what financial support your business may be entitled to
Quick links
Coronavirus Job Support Scheme https://www.gov.uk/government/collections/coronavirus-job-retention-scheme
Kickstart Scheme:
For employers with over 30 job placements
https://www.gov.uk/guidance/apply-for-a-kickstart-scheme-grant-30-or-more-job-placements
For employers with 29 or fewer job placements
https://www.gov.uk/guidance/apply-for-a-kickstart-scheme-grant-29-or-less-job-placements
Claim back Statutory Sick Pay
Coronavirus Job Support Scheme
The Coronavirus Job Retention Scheme (CJRS) was due to end on 31 October but has now been extended to the end of March 2021.
The key change to the scheme is that employees are not required to have been furloughed previously and it is also now open to employees who were employed at 30 October 2020 and who were included on the employer’s payroll on or before 30 October 2020 (and notified to HMRC via an RTI submission on or before 30 October 2020).
For further information on eligibility please follow the following link
https://www.gov.uk/government/collections/coronavirus-job-retention-scheme
Kickstart Scheme
If you are an employer looking to create 30 or more job placements for young people, you can apply for funding as part of the Kickstart Scheme. The scheme provides funding to create new job placements for 16 to 24 year olds on Universal Credit who are at risk of long term unemployment. Employers of all sizes can apply for funding and you’ll get £1,500 funding per job placement.
For further information please follow the following links; the first for employers with over 30 job placements available and the second for 29 or less
For employers with over 30 job placements
https://www.gov.uk/guidance/apply-for-a-kickstart-scheme-grant-30-or-more-job-placements
For employers with 29 or fewer job placements
https://www.gov.uk/guidance/apply-for-a-kickstart-scheme-grant-29-or-less-job-placements
Claim back Statutory Sick Pay
If you are an employer you may be eligible to claim back Statutory Sick Pay already paid to employees due to Covid-19.
For more information please follow this link
Paying tax
Deferring VAT payments due to Covid-19
On 24 September 2020, the Chancellor announced that businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period.
Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest free.
You will need to opt in to the scheme, and for those who do, this means that your VAT liabilities due between 20 March and 30 June 2020, will not need to be paid in full until the end of March 2022.
For more information please follow
https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
If you feel that you may not be able to meet your tax liabilities please get in touch with your Swindells partner who will be able to advise you further.
Funding for businesses
Coronavirus business interruption loans
Small & medium size businesses with an annual turnover of up to £45 million
The scheme helps small and medium size businesses to access loan finance up to £5 million. The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months. The scheme is open until 31 January 2021.
Follow the link below for more information
https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme
Large businesses with an annual turnover of over £45 million
The scheme helps medium and large size businesses to access loans and other kinds of finance up to £200 million. The government guarantees 80% of the finance to the lender and the scheme is open to applications until 31 January 2021.
Follow the link below for more information
https://www.gov.uk/guidance/apply-for-the-coronavirus-large-business-interruption-loan-scheme
Bounce Back Loans
The Bounce Back Loan Scheme (BBLS) enables smaller businesses to access finance more quickly during the coronavirus outbreak.
The scheme helps small and medium size businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
The scheme is open to applications until 31 January 2021.
Follow this link for more information
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
Support measures for the self-employed
Self Employed Income Support Scheme (SEISS)
The Self Employed Income Support Scheme grant extension, provides support to the self employed in the form of 2 further grants, each available for 3 month periods covering November 2020 to January 2021 and February 2021 to April 2021.
The online service for the next grant will be available from 30 November 2020. HMRC will provide full details about claiming and applications in guidance on gov.uk in due course.
To be eligible for the grant extension self employed individuals, including members of partnerships, must:
- have been previously eligible for the Self Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants) declare that they intend to continue to trade and either:
- are currently actively trading but are impacted by reduced demand due to coronavirus
- were previously trading but are temporarily unable to do so due to coronavirus
For up to date information please visit the government’s SEISS page here
Self Employed Income Support Scheme (SEISS)
The Self Employed Income Support Scheme grant extension, provides support to the self employed in the form of 2 further grants, each available for 3 month periods covering November 2020 to January 2021 and February 2021 to April 2021.
The online service for the next grant will be available from 30 November 2020. HMRC will provide full details about claiming and applications in guidance on gov.uk in due course.
Pay in instalments
If you’ve already filed your Self Assessment tax return, you might be able to pay the bill in instalments.
What you need to do depends on whether you want to:
- make payments against your latest bill
- make advance payments against your next bill
You can set up a payment plan to spread the cost of your latest Self Assessment bill if you:
- owe £30,000 or less
- do not have any other payment plans or debts with HMRC
You can choose how much to pay straight away and how much you want to pay each month. You’ll have to pay interest.
Follow this link to learn more:
https://www.gov.uk/pay-self-assessment-tax-bill/pay-in-instalments
Self employment & Universal Credit
Universal Credit is a monthly payment to help with your living costs. You may be able to get it if you’re on a low income, out of work or if you are unable to work.
To find out if you are eligible please visit
https://www.gov.uk/universal-credit/eligibility
If you are having trouble finding out whether you might be eligible you can contact Citizens’ Advice who will be able to help you further
https://www.citizensadvice.org.uk/
Deferring your tax payment on account – what you need to do
You had the option to defer your July 2020 payment on account if you were:
- registered in the UK for self assessment and,
- finding it difficult to make that payment by 31 July 2020 because of the impact of coronavirus
You can still pay your July 2020 payment on account any time up to 31 January 2021. There’ll be no interest or penalty as long as you pay in full by that date.
For more information please follow
Support measures for individuals
Mortgage payment holiday
For the latest information on mortgage payment holidays please visit the following link
There are many schemes available, those listed above are extensive but not exhaustive, please follow this link to review the full list
We are aware that this is not a perfect system and not everyone may qualify or understand how to go about claiming. If you have any questions, please get in touch with your Swindells’ partner who will be able to advise you further.
You can find our contact details here:
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