I found much confusion among most potential beneficiaries of the UK Gov Covid-19 support schemes. So thinking this will be helpful, I have prepared this extract for general information in a user-friendly way to understand all supports available in one place.
Coronavirus Support for Business – Grants from the British Government to Business :
Please have a look at different UK Gov Covid-19 Support Schemes.
Small Business Grant
Small businesses that meet the conditions below are eligible for the grant:
- Must be a business that occupies a non-domestic property
- Must be registered with the local council (have business rates accounts in the local council) on or before 11 March 2020.
- Have rateable value below £51,000 (it’s a value of your business for business rate purposes)
Retail, Hospitality and Leisure Grant
Companies in the retail, hospitality or leisure sector that meet the below conditions are eligible for the grant:
- If your business has a property with a rateable value of £15,000 or under, you may qualify for a £10,000.
- If your company has a property that has a rateable value of over £15,000 but less than £51,000, you may be eligible for a grant of £25,000.
- The grant is provided for each business property you have.
Business rates holiday
For businesses in retail, hospitality and leisure sectors:
- 100% relief from business rates for the 2020-21 tax year. This applies to all businesses in these sectors in England and Scotland.
- In Wales, relief is given to businesses with a rateable value below £500,000.
Coronavirus Job Retention Scheme
The employer pays salary to the furloughed employees and can claim up to 80% of the gross salary, the employer’s NI, and the employer’s minimum statutory pension contribution. The money will pay to the employer.
Conditions to meet:
- To be eligible for this scheme, an employer must agree with the employee that they are a ‘furloughed worker’.
- Employees must be notified that they have been furloughed for three weeks to four months.
- The employee cannot work for the employer that has furloughed them.
- You can claim 80% of gross wages up to £2,500 per month per furloughed employee.
- You can only claim for furloughed employees on your PAYE payroll on or before 19 March 2020.
- A Real Time Information (RTI) submission notifying payment regarding that employee to HMRC must have been made on or before 19 March 2020.
- You must have a UK bank account.
Limited Company directors
- The directors on payroll on 19 March 2020 can apply for 80% of their gross pay (maximum £2,500 per month) under the Job Retention Scheme (the same way as the employees).
- The directors who are taking dividends are not eligible for any supply.
- People and lobbying groups to pressure the government to extend support for company directors not taking a salary. The outcome is yet to see.
Self-employed & Partnerships
Self-employed individual memo members partnership can claim up to 80% of their average monthly profits for three months (maximum £7,500).
You are eligible if the below conditions are met:
- You carry on a trade adversely affected by the coronavirus.
- You traded in the tax year 2018 to 2019 and submitted your Self-Assessment tax return on or before 23 April 2ear.
- You continued your trade after 2018-19 and still trading and intend to remain.
- Your trading profits must be £50,000 and equal to your non-trading income (e.g. rental income, interest etc.).
The grant amount will be paid by HMRC directly into your bank account in one instalment and is expected to pay in June 2020.
Loan Schemes for Small & Medium-sized businesses & self-employed people
a. Coronavirus Business Interruption Loan Scheme
- Small to medium-sized businesses (SMEs) may apply for a temporary loan (80% guaranteed by the government) for up to 6 years with no interest and loan repayment in the first 12 months.
- It’s available for UK-based businesses with viable borrowing proposals (business plans).
b. Coronavirus Bounce Back Loan
- If your business is affected by a coronavirus, you can borrow between £2,000 and £50,000 through a Bounce Back Loan scheme.
- The government will guarantee 100% of the loan, and for the first 12 months, you will not have to pay any fees or interest or make repayments.
- This scheme super-based small & medium-sized businesses running smoothly until December 2019 and have been affected by Coronavirus.
- Businesses already struggling for other reasons are not eligible for this scheme.
Extension of the deadline to pay the tax liabilities
If you cannot pay your tax bill on time because of Coronavirus, you may delay it without penalty using HMRC’s Time to Pay service.
Type of liability you have & Extended Deadline
(a) Self-assessment 2nd payment on account due by 31 July 2020 is now extended to 31 January 2021
(b) VAT liability due between 20 March – 30 June 2020 is now extended to 31 March 2021
(c) Other taxes – Talk to HMRC for help. Call HMRC on 0300 200 3835
Those not eligible for the Covid-19 support scheme can apply for Universal Credit. Here is the link for the online application: I hope this is helpful on UK Gov Covid-19 Support Schemes. If you have any queries, please contact L N Ghimire. Stay safe, and take care of yourself and your families and friends.
Author: L N Ghimire
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