COVID-19: government support for individuals and businesses
The UK Government has announced a number of schemes over the period of time since the start of the Covid-19 pandemic to minimise the impact of the pandemic on the UK business community.
Below is a comprehensive overview of all such measures announced by the government to date.
Business Support Grants
- £10,000 for businesses in receipt of Small Business Rates Relief or Rural Rates Relief
- £10,000 for retail, hospitality or leisure businesses with a rateable value of £15,000 or less
- £25,000 for retail, hospitality and leisure businesses with a rateable value between £15,000 and £51,000
Discretionary Business Grant Scheme
This scheme was announced for businesses who could not receive the business grant due to lack of documentary evidence or some other shortcomings and is purely at the discretion of respective councils on case to case basis. Here is how to apply.
Coronavirus Business Interruption Loan Scheme
- based in the UK
- and has an annual turnover of no more than £45m
- and meets the British Business Bank eligibility criteria
Coronavirus Bounce Back Loan Scheme
Only for small and medium-sized businesses, can borrow between £2,000 and £50,000.
- no fees or interest to pay for the first 12 months
- loan terms up to 6 years
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme. Existing loan up to £50,000 under CBILS can be converted to Bounce Back Loan.
Business Rates Holiday/Deferral of VAT
The Government have extended the Retail Discount to 100% for the year 2020/21. This will apply to all retail, hospitality and leisure sectors, nurseries and child care providers. All businesses will not need to pay VAT from 20 March 2020 to 30 June 2020.
Income tax self-assessment payments due on 31 July 2020 have been deferred until 31 Jan 2021.
Rent Relief for Business and Community Tenants
Following reliefs were announced for all non-residential tenants:
- Arrears enforcement action suspended for an initial 3 months period.
- Business tenants protected against action for re-entry or forfeiture of tenancies for non-payment of rent until 30 June 2020.
- Suspension and/or deferment of various fees, service charges and rents etc. for various businesses depending upon the nature of business and the impact of Covid-19 on respective businesses to be looked into case to case basis.
Coronavirus Job Retention Scheme
The Government will help all UK employers by:
- paying up to 80% of the salaries of employees who would otherwise have been laid off
- paying up to a capped amount of £2,500 per month
Employees must be registered for PAYE online in order to be furloughed.
Statutory Sick Pay Relief
People suffering from coronavirus can take the necessary time off and employers (with fewer than 250 employees) will be able to reclaim Statutory Sick Pay up to 2 weeks per employee.
Support for Self-Employed People
The Government self-employed scheme allows to claim a taxable grant worth 80% of trading profits up to a maximum of £2,500 per month for 3 months.
We at Finance Equation provide every possible support to businesses and entrepreneurs to help them sustain through this time of financial challenges and ensure they get the maximum benefit of the relief measures announced by the government.
If you have not availed these grants or financial assistance measures or you are facing difficulties in accessing these, our financial experts can help to identify the right benefit for you and assist in the application and approval process for the access to these benefits.