COVID-19: Government Support Schemes for Businesses
The UK and Scottish Governments have set out a support package to protect businesses through the COVID-19 economic disruption. Click on the schemes below to find out more about the financial support package including whether you might be eligible and how you can access the support.
All UK employers who operate a PAYE scheme and who have furloughed employees are entitled to a grant, administered by HMRC, of 80% of wage costs of each furloughed employee up to a maximum of £2,500 per month. The scheme will be backdated to 1 March 2020 and available for an initial 3 months (although may be extended).
All VAT registered businesses benefit from VAT payments being deferred for 3 months starting from 20 March 2020 until 30 June 2020, but VAT returns still have to be submitted on time.
This scheme will provide support to self-employed taxpayers who receive most of their income from self-employment and who have been adversely affected by COVID-19.
The Scottish Government announced an additional £34m for Scotland’s newly self-employed to be managed by local authorities. Those eligible may receive cash grants of £2,000.
This scheme operated by the British Business Bank helps businesses affected by COVID-19 borrow from £2,000 up to 25% of a business’ turnover (the maximum amount available is £50,000).
This scheme operated by British Business Bank helps small and medium sized businesses, including sole traders and freelancers affected by COVID-19 access finance of up to £5M.
This scheme also operated by British Business Bank helps larger businesses with annual turnover in excess of £45M access finance of up to £50M.
This lending facility from the Bank of England helps support liquidity in larger companies which make a ‘material contribution’ to the UK economy.
HMRC may negotiate time to pay arrangements for tax and have set up a COVID-19 specific hotline.
Depending on the type of business and its location, specific COVID-19 related business rates relief may be available.
Depending on the type of business and its location, specific COVID-19 related grants may be available.
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