Just like most countries around the world, the United Kingdom is facing a temporary economic crisis due to the Coronavirus pandemic crisis.
We have put together a summary of the latest information available from the Government that may be of interest to you as an employer or a business owner trying to manage day-to-day in very difficult circumstances.
The Chancellor initially introduced £12 billion worth of measures to support businesses during the Coronavirus pandemic.
Funding support
The Government has promised £7bn funding for small businesses and workers in the UK via the Government's business backed bank funding. It will support businesses with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.
The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so businesses can benefit from no upfront costs and lower initial repayments.
More information can be find on the Coronavirus Business Interruption Loan Schemewebsite page.
Business rates suspended
With effect from the 11th March, rates were suspended for one year for shops, cinemas, restaurants and music venues in England with a rateable value of £51,000 or less, plus another £15,000 on top for retail, hospitality and leisure businesses in properties with rateable values between £15,000 and £51,000.
There is also support for businesses who pay little or no business rates. The government will provide an additional £2.2 billion funding for local authorities to support small businesses that already pay little or no business rates because of Small Business Rate Relief (SBBR). Again, this is covered off in a bit more detail via the Coronavirus Business Interruption Loan Scheme website page.
Time to Pay arrangement
Some industries (particularly travel, hotels & restaurants), have been hit very hard by the impact of the Coronavirus. Her Majesties Revenue and Customs (HMRC) will now consider deferring any payments for VAT and PAYE using a 'time to pay' arrangement where your business is affected (by the virus).
Each arrangement is assessed on a case-by-case basis and will look at what you can afford to pay and then use that to work out how much time you need to pay it.
HMRC typically expects you to pay no more than 50% of your disposable income. This may be higher if you have a very high disposable income. There is no upper limit on the amount of time that someone can have to pay & the arrangement can cover all outstanding amounts overdue including penalties and interest.
After an initial deferment (where applicable), the business can also apply for further assistance via a Time to Pay arrangement. Typically, instalments of no longer than 12 months can be granted, however under these circumstances we expect there to be special concessions made.
You can find much more information and support on HMRC's website
We understand that as our clients you will all have different issues and different needs, so there are bound to be some financial questions you may need help with. We are here if you have any questions you would like to ask. Please call us on +44 (0)20 886 7575 or email marketing@lawrencegrant.co.uk
COVID -19 Business Interruption Loans
If your business needs short-term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan.
You can also discuss your financial requirements with LG Financial enabling you to access much needed funding so that your business can overcome the current crisis.
Contact details:
Jessica Silva: +44 (0) 20 7841 2919
Email: jessica@lgfinancial.co.uk
Website: www.lgfinancial.co.uk
We are monitoring the Chancellor's updates very closely and will advise you in due course, on what your next steps could be. In the meantime, we would recommend take some time to review your employee contracts.
HR Support
Employers will be able to access employment advice from Davenport HR to ensure that they continue to comply with employment law.
Contact details:
Barry Dass: +44 (0) 20 8861 7556
Email: contact@davenporthr.com
Website: www.davenporthr.com/covid-19-hub.php