From Blog

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.

Coronavirus Job Retention Scheme

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).

Deferring VAT and Income Tax Payments

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.

Self-Employment Income Support Scheme (SEISS)

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.

Scotland’s Newly Self-Employed Hardship Fund

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.

Bounce Back Loan Scheme

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).

Coronavirus Business Interruption Loan Scheme (CBILS)

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.

Coronavirus Large Business Interruption Loan Scheme (CLBILS)

This scheme also operated by British Business Bank helps larger businesses with annual turnover in excess of £45M access finance of up to £50M.

Bank of England Covid Corporate Financing Facility (CCFF)

This lending facility from the Bank of England helps support liquidity in larger companies which make a ‘material contribution’ to the UK economy.

HMRC Time to Pay Scheme

HMRC may negotiate time to pay arrangements for tax and have set up a COVID-19 specific hotline.

Business Rates 

Depending on the type of business and its location, specific COVID-19 related business rates relief may be available.

Grants for Retail, Hospitality and Leisure and Smaller Businesses

Depending on the type of business and its location, specific COVID-19 related grants may be available.

If you have questions about any of these financial support schemes please get in touch with Bruce Stephen, Derek Stroud, Isobel d’Inverno or your usual Brodies contact.

The post COVID-19: Government Support Schemes for Businesses appeared first on Brodies Blog.

View original article