Whether you’re a business owner, self-employed or an employee of a construction-related business, there are support schemes made available by the government.
Here are some of the main support packages on offer:
Employee retention scheme
Some companies will be unable to operate or trade in the same way due to new government guidelines. To enable you to retain your employees without being out of pocket for salaries, the government is offering to pay 80% of their salary up to £2,500 per month (also known as ‘furloughing’).
You can choose to put any staff who were on your payroll on 28 Feb on 'furlough'.
If you’re a Limited Company Director, you can also furlough your PAYE pay!
Business Interruption Loan Scheme
For businesses that will suffer short-term cash flow issues as a result of the coronavirus pandemic, the Government is offering a Business Interruption Loan. Small and medium business will have access to loans, overdrafts, invoice finance and asset finance of up to £5million and for up to 6 years.
This is available via 40 accredited lenders, which includes all the major banks. To be eligible, you must have a turnover of no more than £45million per year.
Deferring VAT payments
If your business is registered for VAT payments and you are due to make a payment between 20 March and 20 June, you will have the option to defer that payment to a later date.
Small Business Grant Scheme
The Government has given local authorities extra funding to support small business that already pay little or no business rates. This funding will give these businesses a one-off grant of £10,000 to help them meet on-going business costs.
To be eligible your business must be based in England, occupy a property and receive small business rate relief or rural rate relief as of 11 March.
If you are eligible for this grant, your local authority will contact you.
Statutory Sick Pay reclaim
Businesses with fewer than 250 employees will be able to reclaim Statutory Sick Pay for employees unable to work because of coronavirus. This refund from the Government is available for up to 2 weeks per employee.
This refund will also be available for employees who are self-isolating in line with Government guidelines. Read more here.
Self-employed Income Support Scheme
Similar to the Employee Retention Scheme, self-employed workers can claim a non-repayable grant of 80% of trading profits up to per month £2,500 for the next 3 months.
To be eligible you must:
With the payments for Self-employed Income Support not available until June, it may be possible to claim Universal Credit in the meantime.
Self-Assessment payments delayed
Chancellor, Rishi Sunak, announced on 20 March the next self-assessment payments due in July 2020 will be deferred until January 2021.
This coronavirus pandemic will have huge impacts for households, whether you’re a business owner or an employee.
Here are some ways you can help reduce your outgoings over the next few months:
Time To Pay scheme
If you are a business or registered self-employed and have missed a tax payment, or will struggle to make your next tax payment due to coronavirus, you may be able to get support from HMRC.
The Time To Pay scheme is agreed on a case-by-case basis. To find out if you can get support, call 0800 024 1222.
For those effected financially by coronavirus, the government announced that homeowners will be able to apply for a 3-month payment holiday from their mortgage. This will be a huge help for those who will have no or little income over the next few months.
However, lenders don’t have to grant you a payment holiday. For full terms and to see if you are eligible, speak to your mortgage lender.
For those renting and worried about finances, the government has announced measures that will provide stability. Landlords must now give at least 3 months’ notice if they want the property vacated – this is for both social and private rentals.
Landlords with buy-to-let mortgages have been offered a 3-month payment holiday if they have tenants struggling to pay rent. So, it would be worth speaking to your landlord if you have concerns about meeting your rent payments.
Ask your council to restructure your council tax payments
Some local authorities will be able to offer a ‘council tax break’. You will still need to pay your full amount of council tax for the year, but you may be able to reschedule when the payments start. This could provide some much-needed financial relief over the next few months.
Get in touch with your local authority to see what your options are.
All measures outlined in this guide have been compiled from official sources.
For further guidance on coronavirus business support, please visit GOV.uk.