You might have recently bought a business, have been running one for years, or are considering starting up for the first time. Whichever category you fall into, the coronavirus crisis has thrown up unique challenges for business owners. Here, Kingsley Sansom of AIMS Accountants for Business has highlighted some of the key support measures that the Government have put in place to support small businesses during this challenging time.
Job Retention Scheme
The job retention scheme was set up to encourage businesses to hang on to workers for whom they have no work. It provides firms with up to 80% of wage costs of employees on the payroll in early March 2020 who are kept on but who are not working (furloughed), up to a maximum of £2,500 per month.
Coronavirus Business Interruption Loan Scheme
The Government has announced the roll-out of the CBILS – Coronavirus Business Interruption Loan Scheme. Under the scheme, the Government is providing up to 80% security for business loans. The loans are also interest free for 12 months. The goal of the scheme is to encourage lenders to continue to support viable businesses in the current climate.
The Chancellor has also announced that it will be introducing a scheme for smaller loans below £50,00 which will be 100% government backed with a simplified application process.
Grant Funding Schemes
There are two schemes providing grants for small businesses, these are the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant Fund. The former provides small businesses in receipt of Small Business Rates Relief with a grant of £10,000. The latter, provides businesses in the retail hospitality and leisure sectors, with a rateable value of less than £51,000 with cash grants between £10,000 and £25,000.
Self-employment Income Support Scheme
This is open to all self-employed individuals who meet certain criteria who were trading prior to the crisis, have lost money as a result and will continue to trade afterwards. It enables business owners to receive a taxable grant of 80% of their last 3 years’ average profits, up to a maximum of £2,500 per month.
Businesses are no longer required to make a VAT payment between 20th March 2020 and 30th June 2020. These payments are still due, but have been deferred until 05/04/2021.
These are just an outline of some of the potential schemes available. And of course, not all businesses will be eligible for all the schemes listed. There are other areas of support available, which we have not mentioned here, for small businesses. To find out more, or discuss what support is available for you, you can contact AIMS directly.