Help available for businesses during Coronavirus
Date Published: April 28, 2020
Category: HMRC News
There’s a lot of help available for businesses which are struggling due to Coronavirus. We’ve compiled a list of the key schemes. You can find the full Government list here.
Coronavirus Job Retention Scheme
The CJRS is designed to help businesses which can’t maintain their workforce due to Coronavirus. They are able to furlough employees and apply for a grant to cover 80% of their usual monthly wage up to a maximum of £2,500.
How to apply: Employers and their agents authorised for PAYE must use the online service to claim.
Self-Employment Income Support Scheme
This scheme allows self-employed individuals and those in partnerships who are not paid through PAYE to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500.
How to apply: HMRC aim to contact eligible individuals by mid-May 2020 to invite them to apply. The payments are expected to be made by June 2020.
Deferral of second Self-Assessment payment on account
Those due to make their second payment on account for Self-Assessment on 31st July 2020 can delay payment until 31st January 2021.
How to apply: there’s no need to apply, but the payment must be made by 31st January 2021.
VAT payment deferral
UK VAT registered businesses can defer their VAT payments due for the period between 20th March and 31st July 2020 until 31st March 2021. VAT returns should be submitted as usual.
How to apply: there’s no need to tell HMRC that you are deferring your payment. Businesses that pay by Direct Debit should cancel their payment with their bank at least five working days before their collection date.
Time to Pay
For businesses struggling to pay other tax bills, the HMRC Coronavirus Helpline can offer advice.
How to apply: contact HMRC.
Small Business Grant Scheme
This scheme provides a grant (at least £10,000) to small businesses in England. Eligible businesses are those in receipt of Small Business Rates Relief, Rural Rates Relief, or the Expanded Retail Discount.
How to apply: Local Authorities will contact eligible businesses to arrange payment of the grant.
Coronavirus Statutory Sick Pay Rebate Scheme
This scheme will allow employers with fewer than 250 employees as of 28th February 2020 to claim back up to two weeks of SSP payments for employees who were absent after 13th March 2020 due to Coronavirus, self-isolation, or shielding in line with public health guidance.
How to apply: HMRC will announce when the online claims portal is live.
Coronavirus Business Interruption Loan Scheme
The CBILS allows small and medium businesses with a turnover of up to £45 million to apply to approved banks for a loan which is guaranteed to 80% by the Government. The Government will also apply a Business interruption Payment to cover the first 12 months of interest payments and any lender levied fees.
How to apply: visit the British Business Bank website
More time to file with Companies House
If a company is unable to file annual accounts with Companies House before their deadline they are able to apply for more time. The application must be made before the filing deadline.
How to apply: apply online with Companies House.
Bounce Back Loan Scheme
The Government will guarantee 100% of loans made under the Bounce Back Loan Scheme which allows small and medium-sized businesses to borrow between £2,000 and £50,000. There are no fees or interest to pay in the first year, and the loan term is up to six years.
Live: launching on 4th May 2020
How to apply: the loan scheme application process will be announced shortly.