Luke Pollard MP Member of Parliament for Plymouth Sutton and Devonport
Coronavirus is having a significant impact on the UK economy, and Plymouth is not be immune. Although the government is confident that the UK economy will recover, measures have been put in place to safeguard businesses, as well as individuals facing difficulties paying expenses such as mortgages.
The following emergency support for businesses who are affected by the Coronavirus pandemic is available:
- Bounce Back Loan – This scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year. You can apply if your business was established before 1 March and has been adversely affected by coronavirus. For restrictions and further information click here.
- Coronavirus Business Interruption Loan Scheme – The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses affected by coronavirus (COVID-19). The scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million. The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months. You can apply if your business is based in the UK and has an annual turnover of less than £45 million. You will need to show that your business has been adversely affected by coronavirus and would be viable if not for the pandemic. For restrictions and further information click here.
- Coronavirus Future Fund – This scheme will issue convertible loans between £125,000 to £5 million to innovative companies which are facing financing difficulties due to the coronavirus outbreak. It will be launched in May 2020. For more information click here.
Coronavirus Job Retention Scheme – Employers can apply for a grant from HMRC to cover 80% of wages up to a limit of £2500 per month employees on the payroll but not currently working (payments backdated to 01/03/20) and will be available for three months initially
Next quarter of VAT be deferred to the end of June – businesses will have until the end of the financial year to pay
Scale up of HMRC Time To Pay service, allowing businesses and the self-employed to defer tax payments (to be agreed with service) – helpline for businesses in distress regarding tax liabilities available on 0800 015 9559
Statutory Sick Pay (SSP) Rebate Scheme – costs for businesses with fewer than 250 employees will be met by the Government in full for up to 14 days per employee
For those who work for themselves – the next round of self-assessments payments will be deferred to January 2021 and the minimum income floor will be suspended so that the self-employed can access Universal Credit at the rate of Statutory Sick Pay.
100% Business Rate holiday for all businesses in the retail, hospitality or leisure sector for one year in 2020-21 (eligible pubs will also be entitled to a business rate discount of £5,000)
Cash grants worth:
£25,000 to the smallest businesses in the retail, hospitality or leisure sector
£10,000 for all business in receipt of Small Business Rates Relief (SBRR) and Rural Rates Relief
For large businesses that need £5m or more the Bank of England’s Covid-19 Corporate Financing Facility (CCFF) may be of assistance – more information is available here and applications can be made at email@example.com.
Insurance: the Government has confirmed its advice for people to avoid social venues (pubs, clubs, theatres) was tantamount to a ban and that insurers would pay out on policies that have this coverage. However, relatively few companies have pandemic business interruption coverage. For those firms the Government says the monetary support should help. The Association of British Insurers advises businesses to check their cover and to discuss concerns with brokers.
Council Tax Support is also available for businesses which may struggle.