Due to the current pandemic, most companies have had to resort to funding, along with this there is economic uncertainty which is highly difficult for many companies.
Below is a summary of the 14 key government schemes, which are now available to support businesses during the Covid-19 pandemic:
The UK Government announced business rates holiday for retail, hospitality and leisure businesses in England for the 2020/2021 tax year. Businesses that received the retail discount in the 2019/2020 tax year are expected to be rebilled by their local authority as soon as possible.
Plus, the Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property. For businesses in these sectors with a rateable value of under £15,000, will receive a grant of £10,000. For sectors with a rateable value of between £15,001 – £51,000, they will receive a grant of £25,000.
Reduced bank rates
The Bank of England reduced bank rates by 15bps to 0.1%. The Bank of England will also enlarge the Term Funding Scheme with additional incentives for SMEs (TFSME).
Deferring VAT and income tax payments
Valued Added Tax (VAT) payments will be deferred for 3 months until 30 June 2020. For self-employed, income tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.
HMRC Time To Pay service
Businesses and self-employed people in financial distress, and with outstanding tax liabilities, are eligible to receive tax support through the HMRC Time To Pay service.
Business Interruption Loan Scheme
The temporary Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years. The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.
The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank.
Extension given to file accounts
Businesses will be given an additional 3 months to file accounts with Companies House to help avoid penalties.