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COVID-19: UK Government Financial Support for Businesses

In the wake of the global pandemic caused by the coronavirus (COVID-19), many businesses have lost revenues and some are at the risk of closing. To help these businesses get through the pandemic, the UK government has initiated different loan schemes, support funds and tax deferrals. Here we have provided a short introduction that will direct you straight to the right package.

First step: Eligibility

Considering the number and range of the applicants and programs, you must first fulfil the eligibility criteria before any other process could be initiated. The link below will direct you to the government website through which you will find out which support scheme you are eligible for:

https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19

This will just take a minute. There are a few general questions related to your business and then the packages fit your business will immediately appear.

Second Step: Packages

Depending on the result of your eligibility test, one or several of these packages will be available to you:

1. Coronavirus Job Retention Scheme

This package is ideal for those businesses that have put on some of their employees on furlough over the fear of coronavirus (COVID-19) spread. In addition to insurance and pension issues, the scheme also covers 80 % of your employee’s wages! More details at:

https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

2. Statutory Sick Pay

Peaking at 300 thousand confirmed coronaviruses (COVID-19) cases, the UK has been struggling hard with the pandemic. To minimize the fatal effects of coronavirus (COVID-19) on the lives of their staff, many employers have paid huge sums of SSP. Coronavirus Statutory Sick Pay Rebate Scheme will help take the edge of the harsh consequences of (COVID-19).

https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19

3. Deferral of Taxes due to Coronavirus (COVID-19)

Tax deferrals are among the most effective measures taken by the governments around the globe to help the taxpayers during the pandemic. The UK government offers two such deferrals:

VAT payments

According to this bill, citizens will not have to make VAT payments due from 20 March until 30 June. Additional information related to the VAT payments are available at:

https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

Self-Assessment payments

Another way of responding to the tax issues in the time of the pandemic has been in the form of deferring self-assessment payments. This gives you the option of deferring your second payment on account only if you are registered in the UK and you have encountered difficulties paying your second SAP. You can find more details at:

https://www.gov.uk/guidance/defer-your-self-assessment-payment-on-account-due-to-coronavirus-covid-19

4. Business Rates Relief

a. For retail, hospitality or leisure business in England

Businesses in the retail, hospitality and leisure sectors in England are exempt from business rates for the 2020 to 2021 tax year.

b. For retail, hospitality or leisure business in Scotland

The Scottish Government has introduced extra rates reliefs and grants to help the citizens who have lost revenues as a result of Coronavirus (COVID-19). More details at:

https://www.mygov.scot/non-domestic-rates-coronavirus/#grants

5. Business Support Grant Funds

a. Coronavirus Small Business Grant Fund

– Designed for small businesses in England which pay little or no business rates.

– The grant is £10,000 which can be collected from the local council. More details at:

https://www.gov.uk/guidance/check-if-youre-eligible-for-the-coronavirus-small-business-grant-fund

b. Retail, Hospitality and Leisure Grant Fund

The one-off cash grant of £25,000 is designed for businesses in the retail, hospitality and leisure sectors.

For more information on extra rates reliefs introduced by the Scottish government refer to https://www.mygov.scot/non-domestic-rates-coronavirus/#grants

6. Support for the self-employed

What if you are self-employed and in dire need of financial assistant? This scheme is exactly what you have been looking for!

The scheme offers a maximum amount of £7,500 as a taxable grant worth 80% of your average monthly trading profits paid in a single instalment.

7. Support for small and medium-sized businesses

a. the Coronavirus Business Interruption Loan Scheme

The scheme offers loans and other kinds of finance up to £5 million. More information at:

https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme

b. the coronavirus Future Fund

The fund offers loans between £125,000 and £5 million.
The deadline for submitting applications is until the end of September 2020. For more information refer to:

https://www.gov.uk/guidance/future-fund