Unprecedented government plans to help businesses

Chancellor Rishi Sunak and the government have introduced a package of financial measures to help the economy against the impact of coronavirus. This article will detail these measures so that you can understand if and how your business may benefit.

If you are worried about your business or finances and have any questions please get in touch and we will be able to advise you.

We are offering this as a free service for clients, please get in touch with your partner at Swindells and they will be able to advise you further using our mobile details or email available on the home page of our website

The following is a list of government measures that will be implemented including £330bn in loans, £20bn in other aid, a business rates holiday and grants for retailers and pubs. Support for airlines is also being considered at this time.

Quick Summary:

• Revenue’s ‘time to pay’ tax suspension - SMEs that cannot afford to pay their tax bills can ask HMRC for a ‘time to pay’ agreement to suspend debt collection
• Business rates relief for 900,000 properties - The government will not charge business rates on companies in the retail, leisure and hospitality sectors in 2020-21)
• Grants for the smallest businesses - The 700,000 smallest businesses already exempt from paying tax will be eligible for £3000 grants
• Extended government backed loan guarantee scheme - The government is offering to underwrite loans to businesses adversely affected by coronavirus)
• SSP costs can be reclaimed - SMEs will be able to reclaim the cost of 14 days SSP per employee
• Mortgage lenders will give a 3-month holiday to those in difficulty

What Rishi Sunak has said

‘Any business who needs access to cash will be able to access a government-backed loan, on attractive terms. If demand is greater than the initial £330bn I’m making available today, I will go further and provide as much capacity as required.’

‘To support lending to small and medium sized businesses, I am extending the new Business Interruption Loan Scheme I announced at the Budget last week, so that rather than loans of £1.2m, it will now provide loans of up to £5m, with no interest due for the first six months.’

‘I announced last week that for businesses in the retail, hospitality and leisure sectors, with a rateable value of less than £51,000, they will pay no business rates this year. Today, I provided those businesses with an additional cash grant of up to £25,000 per business.’

‘I am also extending the business rates holiday to all businesses in those sectors, irrespective of rateable value. That means every single business in the retail, hospitality or leisure sector will pay no business rates whatsoever for 12 months, and if they have a rateable value of less than £51,000, they can now get a cash grant as well.’

‘I also announced last week that we would be providing £3,000 grants to the 700,000 of our smallest businesses. To support their cash flow, today I can increase those grants to £10,000.’

‘Following discussions with industry, I can announce today that for those in difficulty due to coronavirus, mortgage lenders will offer a three month mortgage holiday – so that people will not have to pay a penny towards their mortgage while they get back on their feet.’

If you have questions about how to claim or gain access to the items listed in this article please call your Swindells partner who will be able to advise you further.