Unmuddying the water around financial support

The COVID-19 pandemic, has had an enormous impact on businesses both big and small, putting financial pressure on everyone. The Government has stepped in to help so businesses can survive these difficult times but it may be unclear what is being offered and how to access the help.

I want to unmuddy some of the waters, so you know exactly what support is available and where you can go to make a claim – something that could prove critical if you are self-employed or run an independent firm.

The self-employed Income Support Scheme

The HMRC will pay a taxable grant to self-employed individuals and partners equivalent to 80% of the average trading profits for three months, capped at £2,500 per month for those with trading profits under £50,000. Read more

Coronavirus Job Retention Scheme

All UK employers with a PAYE scheme can access support to continue paying part of their employee’s salary for those who would otherwise have been laid off because of the crisis. You can furlough employees and apply for a grant that covers 80% of their usual monthly wage costs, up to a maximum of £2,500 a month. Read more

Coronavirus Business Interruption Loan Scheme (SMEs)

If you run a small or medium sized business with an annual turnover of up to £45 million, this scheme will help you access bank lending and overdrafts facilities worth up to £5 million. The Government will guarantee up to 80% to give lenders the confidence to provide finance. There is a similar scheme available for larger businesses too. Read more

VAT deferral

Although you will still need to submit a VAT return in the normal timesframes, payments can be delayed, and there’s no application process as it’s offered entirely automatically. The deferral came into effect from the 20th March and will run until 30th June 2020. Read more

Statutory Sick Pay Rebate

If your business has fewer than 250 employees, and some have had to follow advice to stay at home and who can’t work as a result will be eligible for statutory sick pay (SSP). You can now reclaim SSP paid due to coronavirus. The refund will cover up to two weeks’ SSP per eligible employee who has been off work. Read more

Income Tax Payments

Another automatic offer with no application needed and eligible to all self-employed people. The next Income Tax self-assessment payment will be deferred from 31st July 2020 to 31st January 2021, no penalties or interest for late payment will be charged in the deferral period. It’s a small element, but one that will help reduce the stress.

Time to Pay

Some companies will have already found the current situation difficult, and if you are having trouble paying your outstanding tax liabilities because of the pandemic it could be worth contacting the HMRC directly to see if it can help you find a solution to the issue.  Read more

It’s difficult to predict how the situation will develop, but I’m sure the government will continue to support business in whatever way it can and I will keep you up to date on what support is available and how to access it. In the meantime if you have any questions or want to discuss any aspect of the IMI’s plans, please contact us on +44 (0)1992 519025 or by emailing hello@theimi.org.uk

And for all the latest updates and for government-specific information head to our dedicated website: https://www.theimi.org.uk/landing/covid-19/

These are challenging times and we need to look after one another.

With my very best wishes,

Simon James

*Details are provided for information only and the IMI do not hold any responsibility for any actions taken