There are measures that you can take to mitigate the impact of the COVID-19 outbreak on your business.

Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme allows all UK employers to access a financial subsidy worth 80% of their workers’ wage costs up to a cap of £2,500 per worker per month. Employers would need to class their employees as ‘Furloughed Workers’ to be eligible for the scheme.

See our dedicated Employers section of our website to understand more.

Deferral of VAT payments

VAT payable between 20 March 2020 and 30 June 2020 can be deferred. This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period and will not be charged interest or surcharges, but your VAT return should be filed on time as normal.

If you choose to defer your VAT payment as a result of coronavirus (COVID-19), you must pay the VAT due on or before 31 March 2021. Businesses who normally pay by Direct Debit should cancel their Direct Debit with their bank if they are unable to pay.

Understand your cash flow

Now, more than ever, is an important time for businesses to make a cash flow plan. You need to know if, and if so when, you will run out of cash in this crisis. Be in control of your cash flow, not the other way around.

Use our downloadable resources to obtain tools to help you to do this.

Coronavirus business interruption loan scheme

The coronavirus business interruption loan scheme (CBILS) is now available through participating lenders.

CBILS is a new scheme that can provide facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.

CBILS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance. The scheme provides the lender with a government-backed guarantee potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’. The borrower always remains 100% liable for the debt.

In the first instance you should contact your bank, normally via an online application.

Bounce back loan – a government finance scheme for small businesses

Coronavirus has caused disruption for many small business owners, leaving them with flow issues.  Government schemes such as CBILS are typically more suitable for established small businesses, leaving those with smaller turnovers and less trading time to fall through the cracks.

The scheme will offer small businesses 100% government guaranteed loans of between £2,000 and £50,000, with no repayments, interest or fees payable for the first 12 months. The loans have terms of up to six years and boast fast application times to help make funds available as soon as possible.  The government will work with lenders to agree a low rate of interest for the period of the loan.  The 100% guarantee covers the losses of the lender, so the borrower remains 100% liable for the debt.

The scheme will launch for applications on Monday 4 May.  Businesses will be able to access these loans through a network of accredited lenders.

Business rates and cash grants

To help businesses, the Governments of England, Scotland, Northern Ireland and Wales announced a series of business rate and cash grant packages to help them through the coronavirus outbreak.

See our dedicated business rates and cash grants section of our website to understand more.

Time to pay arrangement with HMRC

All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s time to pay service. You can contact HMRC’s dedicated helpline 0800 024 1222.

Statutory Sick Pay (“SSP”)

The Coronavirus Statutory Sick Pay Rebate Scheme will repay small and medium sized business employers the current rate of SSP (£94.25) that they pay to current or former employees for periods of sickness starting on or after 13 March 2020.

See our dedicated Employers section of our website to understand more.

Would you like to know more?

Please feel free to get in touch via phone, email or our quick contact form.

We offer initial free consultations simply contact us to find out more.

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