COVID 19 – Summary of Help Available
This information is based on what was available as at 7th May 2020
Self Employed Income Support Scheme Grant
What is the Scheme
The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether.
The grant will be subject to Income Tax and self-employed National Insurance.
Who can Claim
You can claim if you’re a self-employed individual or a member of a partnership and:
- you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
- you traded in the tax year 2019 to 2020
- you intend to continue to trade in the tax year 2020 to 2021
- you carry on a trade which has been adversely affected by coronavirus
HMRC will work out if you’re eligible and how much grant you may get.
Your trading profits must be no more than £50,000 and at least equal to your non-trading income
HMRC are sending letters out to those who are eligible but you can also check online using the below link, you will need your UTR and your National Insurance number, these can be found on your personal tax return information and correspondence from HMRC. Please contact us if you cannot find them.
https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference
How to Claim
HMRC have said the online service will be available from 13 May 2020. If you’re eligible, HMRC will tell you the date you can make your claim from. If your claim is approved you’ll receive your payment within 6 working days.
When making the claim you will need the following:
- Self Assessment UTR
- National Insurance number
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you check your eligibility online or by selecting ‘sign in’ ‘continue to your account’ and then ‘create sign in details’ on following link: https://www.gov.uk/log-in-register-hmrc-online-services
- bank account number and sort code you want HMRC to pay the grant into (only provide bank account details where a Bacs payment can be accepted)
Unfortunately, HMRC have now stated that agents/accountants cannot make claims on behalf of clients, please do contact us though if you need any help or support when making the claim.
More information regarding this scheme can be found here: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme#check
Coronavirus Job Retention Scheme Grant
What is the Scheme
If you cannot maintain your current workforce because your operations have been severely affected by a coronavirus (COVID-19), you can furlough employees and apply for a grant that covers 80% of their usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution) on that subsidised furlough pay.
To be eligible for the grant, when on furlough, an employee cannot undertake work for, or on behalf, of the organisation or any linked or associated organisation. This includes providing services or generating revenue.
Any employees you place on furlough must be furloughed for a minimum of 3 consecutive weeks. When they return to work, they must be taken off furlough. Employees can be furloughed multiple times, but each separate instance must be for a minimum of 3 consecutive weeks. Each period of furlough can be extended by any amount of time whilst the employee is on furlough. However the scheme end date is the last day you can claim for through this scheme. This is currently the end of June 2020.
This scheme does cover the element of company directors pay that is paid through PAYE but does not cover dividend payments.
Who can Claim
You must have:
- created and started a PAYE payroll scheme on or before 19 March 2020
- enrolled for PAYE online
- a UK bank account
Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities.
How to Claim
Majors have made claims for our clients and will continue to make the claims each month as required. If you have any questions about this please just contact us.
More information and information of how to claim can be found on the following link: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme#who-can-claim
Coronavirus Bounce Back Loan Scheme (BBLS)
What is the Scheme
The scheme helps small and medium-sized businesses (including sole traders) to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
The length of the loan is 6 years, but you can repay early without paying a fee. No repayments will be due during the first 12 months.
Who can Claim
You can apply for a loan if your business (including sole traders):
- is based in the UK
- was established before 1 March 2020
- has been adversely impacted by the coronavirus
You cannot apply if you’re already claiming under:
- Coronavirus Business Interruption Loan Scheme (CBILS)
- Coronavirus Large Business Interruption Loan Scheme (CLBILS)
- COVID-19 Corporate Financing Facility
If you’ve already received a loan of up to £50,000 under one of these schemes you can transfer it into the Bounce Back Loan scheme. You have until 4 November 2020 to arrange this with your lender.
How to Apply
The following link has the information needed of how and where to apply: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/for-businesses-and-advisors/
If you bank with one of the banks that are offering the scheme check when you log in to your internet banking to see if they have any information or the application on there.
More information about the BBLS can be found here: https://www.gov.uk/government/news/new-bounce-back-loans-to-launch-today
Coronavirus Business Interruption Loan Scheme
What is the Scheme
The scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million.
The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.
The maximum length of the facility depends on the type of finance you apply for and will be:
- up to 3 years for overdrafts and invoice finance facilities
- up to 6 years, for loans and asset finance facilities
Who can Apply
You can apply for a loan if your business:
- is based in the UK
- has an annual turnover of up to £45 million
You need to show that your business:
- would be viable were it not for the pandemic
- has been adversely impacted by the coronavirus
If you want to borrow £30,000 or more, you also need to confirm that your business wasn’t classed as a business in difficulty on 31 December 2019.
How to Apply
There are over 50 lenders participating in the scheme including all the main retail banks. You should approach a suitable lender yourself via the lender’s website.
Information regarding how to apply can be found on the following link: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/for-businesses-and-advisors/
Coronavirus Statutory Sick Pay Rebate Scheme
What is the Scheme
The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the current rate of SSP that they pay to current or former employees for periods of sickness starting on or after 13 March 2020.
If you’re an employer who pays more than the current rate of SSP you can only claim the current rate amount.
The repayment will cover up to 2 weeks starting from the first day of sickness, if an employee is unable to work because they either:
- have coronavirus
- cannot work because they are self-isolating at home
- are shielding in line with public health guidance
Employees do not have to give you a doctor’s fit note for you to make a claim
Who Can Claim
You can use the scheme as an employer if:
- you’re claiming for an employee who’s eligible for sick pay due to coronavirus
- you’ve had a PAYE payroll scheme that was created and started on or before 28 February 2020
- you’ve had fewer than 250 employees on 28 February 2020
How to Claim
The online service that will be used to reclaim SSP is not available yet. HMRC will announce when the service is available.
More information about the scheme can be found here: https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19
Other Schemes Available
Deferral of VAT payments
Payments of VAT due between 20 March 2020 and 30 June 2020 can be deferred until 31 March 2021. No application necessary you just do not make the VAT payment, if your VAT payment is set up on direct debit you will need to cancel your direct debit with your bank if you wish to defer the payment.
More information available here: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
Deferral of Self Assessment Payments
You can delay your payment on account due on 31 July 2020 until 31 January 2021.
You do not have to apply for this you just do not make the payment due on 31 July 2020, it then becomes due on 31 January 2021.
More information can be found here: https://www.gov.uk/pay-self-assessment-tax-bill
Business Rates Relief
Check if your retail, hospitality or leisure business is eligible for business rates relief on the following link: https://www.gov.uk/guidance/check-if-your-retail-hospitality-or-leisure-business-is-eligible-for-business-rates-relief-due-to-coronavirus-covid-19
Check if your nursery is eligible for business rates relief on the following link: https://www.gov.uk/guidance/check-if-your-nursery-is-eligible-for-business-rates-relief-due-to-coronavirus-covid-19
Cash Grants
Under the Small Business Grant Fund (SBGF) all eligible businesses in England in receipt of either Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR) in the business rates system will be eligible for a payment of £10,000
Under the Retail, Hospitality and Leisure Grant (RHLG) eligible businesses in England in receipt of the Expanded Retail Discount (which covers retail, hospitality and leisure) with a rateable value of less than £51,000 will be eligible for a cash grants of £10,000 or £25,000 per property.
Businesses with a rateable value of £51,000 or over are not eligible for this scheme.
Businesses which are not ratepayers in the business rates system are not included in this scheme.
Your local authority will be distributing the grant to you if you are eligible and they should have an online portal for you to make your claim.
Please contact your local authority or look at the following link for more information: https://www.gov.uk/government/publications/coronavirus-covid-19-business-support-grant-funding-guidance-for-businesses
If you have any questions about any of the above or anything else please do contact us.
The team are working from home but the telephone is still being answered so you can reach us on 01482 212057 or by email on info@majors.co.uk
