Government Support

The Chancellor has set out a £12 billion package of temporary, timely and targeted measures to support public services, individuals and businesses through the economic disruption caused by COVID-19 including:

• Statutory Sick Pay - For businesses with fewer than 250 employees, the cost of providing 14 days of statutory sick pay per employee will be refunded by the government in full. This will provide 2 million businesses with up to £2 billion to cover the costs of large-scale sick leave. Please note that Statutory Sick Pay is now payable from Day 1 instead of Day 4. We will help you through this process as part of us preparing wages.
• Sick Pay for the Self Employed - Those who are not eligible for SSP, for example, the self-employed or people earning below the Lower Earnings Limit of £118 per week, can now more easily make a claim for Universal Credit or Contributory Employment and Support Allowance: For the duration of the outbreak, the requirements of the Universal Credit Minimum Income Floor will be temporarily relaxed for those who have COVID-19 or are self-isolating according to government advice, ensuring self-employed claimants will receive support. People will be able to claim Universal Credit and access advance payments upfront without the current requirement to attend a jobcentre if they are advised to self- isolate. Contributory Employment and Support Allowance will be payable, at a rate of £73.10 a week if you are over 25, for eligible people affected by COVID-19 or self- isolating in line with advice from Day 1 of sickness, rather than Day 8
• Funding Support via Coronavirus Business Interruption Loan Scheme - A new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will enable businesses with a turnover of no more than £41 million to apply for a loan of up to £1.2 million, with the government covering up to 80% of any losses with no fees. This will unlock up to £1 billion pounds to protect and support small businesses. We are able to help you to apply for this and have worked with the British Business Bank for a number of years
• £3,000 Grant for small business - The government will provide an additional £2.2 billion in funding for local authorities to support small businesses that already pay little or no Business Rates because of Small Business Rate Relief (SBBR). This will provide a one-off grant of £3,000 to around 700,000 business currently eligible for SBRR or Rural Rate Relief, to help meet their ongoing business costs. For a property with a rateable value of £12,000, this is one-quarter of their rateable value, or comparable to 3 months of rent. There is no need to repay this money and we will be posting separately about how to apply for this Hardship fund for local authorities. The government has announced a new £500 million Hardship Fund so Local Authorities can support economically vulnerable people and households. The government expects most of this funding to be used to provide more council tax relief, either through existing Local Council Tax Support schemes or through similar measures. The Ministry of Housing, Communities and Local Government will set out more detail on this funding, including allocations, shortly.
• Reduction in Interest Rates by The Bank of England - The Bank of England has also announced a package of measures to help UK businesses and households bridge across the economic disruption that is likely to be associated with COVID-19. Interest rates have been reduced from 0.75% to 0.25% and additional funding will be available for banks to increase lending, especially to SMEs.
• Dedicated helpline and Time To Pay - 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. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. These businesses can contact HMRC’s new dedicated COVID-19 helpline from 11 March 2020 for advice and support. To ensure ongoing support, HMRC have made a further 2,000 experienced call handlers available to support firms and individuals when needed. For Time to Pay support if you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.

We have already seen a number of clients have time to pay support agreed by HMRC and can provide guidance and advice about this, please remember this includes all taxes that are due already and those that will become due.  It’s always better to agree to a plan now rather than wait.  Valued are here to help and support you if you are worried about the effects of Coronavirus (COVID-19) on your Small Business.

It’s naturally a worrying time for many small business owners. So, to help you we are here to answer any questions that you may have simply give us a call on 01207 502145 or drop us an email at wecare@yourvalued.co.uk or if you prefer you can contact us via Facebook Messenger.

Every business will have its own challenges and issues, which is why we will running a series of ‘Live’ AMA (Ask Me Anything) sessions via Facebook week commencing 16th March 2020.  If you are interested in joining us for these sessions get in touch or call the office on 01207 502145. We will be posting regular updates on all of our social media platforms and obtaining useful advice and guides from our key partners.