The Government of the United Kingdom Supports Business Under the COVID-19
As the spread of the new coronavirus is threatening the development of world economy, quite a few businesses include the those in the United Kingdom are facing financial dilemma. Recently the government of the United Kingdom has announced following schemes to support business in the United Kingdom.
A Coronavirus Job Retention Scheme
The employers, who joined the PAYE payroll scheme on or before February 28th, 2020 and had a UK bank account, can claim 80% of furloughed employees’ usual monthly wage, up to £2,500 a month for at least three months starting from March 1st ,2020. The amount of claim also includes the associated Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions on claimed wages.
The UK VAT registered business who have a VAT payment due between March 20, 2020 and June 30 could defer the payment until a later date without any notification to HMRC. The deferring VAT would not include on VAT MOSS payments. The deferment is optional.
Deferring Self-Assessment payments on account
The employer, who has difficulties to pay a self-assessment payment due by July 31st, 2020 due to the new coronavirus, can defer payment until January 2021 without application. The deferment is optional.
The Self-employment Income Support Scheme
The self-employed employer (including members of partnership) who have lost income due to the new coronavirus can claim a taxable grant worth 80% of your trading profits, up to a maximum of £2,500 per month for the next 3 months. The HRMC would evaluate the qualification of the scheme and invite the qualified employees to apply through gov.uk.
Reclaiming Statutory Sick Pay (SSP)
The UK based business with employees fewer than 250 as February 28th, 2020 can reclaim up to two weeks’ SSP per eligible employee who has sickness absence due to the new coronavirus. The employer needs to maintain the records of staff absences and payments of SSP. Employee’s isolation record could be searched on NHS111 Online and NHS website. The scheme is still under development.
Cash Grants for Retail, Hospitality and Leisure Businesses
The England based business in the retail, hospitality or leisure fields with a property which has a rateable value under £15,000 could receive a grant of £10,000 without any action. The England based business in the retail, hospitality or leisure fields with a property which has a rateable value over £15,000 and less than £ 51,000 could apply a received of £25,000 without any action. The local authorities would contact qualified employers.
The Coronavirus Business Interruption Loan
The British Business Bank would support small and medium sized enterprise based in UK based with turnover of no more than £45 million per year in loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years. The business who are not qualified are banks and building societies, insurers and reinsurers (but not insurance brokers, public sector organizations, employer, professional, religious or political membership organizations and trade unions. The qualified employer could apply the loan through your bank and 40 accredited lenders.
The COVID-19 Corporate Financing Facility (CCFF)
The UK based large-scale enterprise which is suffered from a short-term funding squeeze could apply CCFF through the Bank of England, allowing its short-term liabilities.
Protection from Eviction for Commercial Tenants
The commercial tenant would not forfeit their lease and be forced out of their premises if they miss a payment up due to the coronavirus until June 30, 2020. All the commercial tenant will still be liable for the rent.
The government of United Kingdom will further implement some business rate holiday faced to the England based business in nurseries, retail, hospitality and leisure businesses. The business holiday does not need employer’s action. The local authorities would write to the employers who are eligible to the grants. The employers could also check their insurance policies or contact the insurance providers whether the insurances cover the government closure and notifiable disease.