COVID-19 Government Grant, PAYE & Lending Support
Steven Mugglestone BA (Hons) FCA
Accounts & Audit Associate Director at Spencer Gardner Dickins, Chartered Accountants, Chartered Tax Advisers & Independent Financial Advisers
The government has announced a package of comprehensive support and measures to help business, employers, employees and others during the period required to address the corona virus. This is an unprecedented package in what is unprecedented times and challenges faced by the world today.
In summary, these are:
· a Coronavirus Job Retention Scheme
· deferring VAT and Income Tax payments
· a Statutory Sick Pay relief package for SMEs
· a 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
· small business grant funding of ￡10,000 for all business in receipt of small business rate relief or rural rate relief
· grant funding of ￡25,000 for retail, hospitality and leisure businesses with property with a rateable value between ￡15,000 and ￡51,000
· the Coronavirus Business Interruption Loan Scheme offering loans of up to ￡5 million for SMEs through the British Business Bank
· a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
· the HMRC Time To Pay Scheme
Grants are to be administered through local councils, job retention scheme through PAYE and HMRC and the government secured lending through most banks and lenders, guided by the British Business Bank. Details of how to access the secured lending scheme can be found at https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/for-businesses-and-advisors/
As accountants, we will assist clients by signposting to the source of the grants and when lending is required, assisting with the plans and forecasts that will be required by the funder.
Further details of the support can be found at:
Support for business
Guidance for employees, employers and businesses
Business interruption loan scheme outline
Warwickshire business support
https://www.cwgrowthhub.co.uk/service/coronavirus-outbreak-information-and-updates
Leicestershire business support
https://bizgateway.org.uk/our-services/support/coronavirus-covid-19/
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