The government has just announced as part of their daily media briefings, a series of measures to support businesses and mortgage borrowers impacted by the Coronavirus.
However, the situation is changing on a daily basis and we would advise you to keep up to date with all guidance and measures available here: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19.
This guidance provides details of support available to businesses including:
- statutory sick pay relief package for SMEs
- a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
- small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- the Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance
- the HMRC Time To Pay Scheme to help with tax
Rachel and the team at Finch & Associates are working business as usual (albeit from home). We have a team of specialist tax advisers and are able to provide broad-reaching tax advice to support you and your business throughout this difficult time. Please do not hesitate to call the team on 01275 867350 or send us a message.
Here is a summary of what the Chancellor announced.
Mortgage payment holidays
Those borrowers impacted by Coronavirus who find they cannot
make their mortgage payments will be allowed a payment of three months. This
follows on from Lloyds Banking Group, TSB and NatWest who had already announced
they would offer payment holidays.
Anyone who is concerned about paying their mortgage or any other form of borrowing should contact their lender as soon as possible to discuss their options.
More government loans
The Chancellor has announced guaranteed loan available for
large businesses and SMEs struggling due to Coronavirus. £330 billion (15% of
GDP) has been made available to businesses under what the Chancellor described
as ‘attractive terms’.
There are two schemes available, one for large firms operated through the Bank of England and the second as an extension to the Business Interruption Loan Scheme. The maximum loan for small businesses has been increased from £1.2 million to £5 million. Furthermore, these loans now come with six months interest free. Businesses should apply to the British Business Bank for a Business Interruption Loan. However, the current information available on their website states that:
“We are in the process of defining and agreeing he scheme’s details, specifications and eligibility and therefore information is subject to change.”
The Chancellor stated that the two schemes would be in place at the start of next week.
There was also reference to a specific scheme for airlines and airports would follow.
Support for the hospitality sector
The 12-month business rates holiday has been extended to all hospitality businesses and the Chancellor has made grants of up to £25,000 available for those small businesses with a rateable value of less than £51,000.
Increased cash grants for small businesses
The cash grants announced in the budget for small businesses who qualify for small business rate relief will also be increased from £3,000 to £10,000.