Companies Affected by Coronavirus (COVID-19)?
The presence of the pandemic in the UK. Has prompted emergency assistance for Companies Affected By Coronavirus (COVID)19 by the present UK Government.
The shutdown affects have hit the UK economy hard.
The long term effect as yet unknown for business in the UK.
Companies Affected by Coronavirus (COVID-19)? – So what has been done?
The UK Government
- Income Tax due 31 July 2020 deferred to 31 January 2021.
- Chancellor announces a bonus of £1000 per employee paid to employers that allow furloughed employees back.
- The furlough scheme will continue until October, with employees receiving 80% of their monthly wages up to £2,500. From August, employers must pay National Insurance and pension contributions, then 10% of pay from September before this percentage rises to 20% in October.
- Since May 26th, 2020, an extension to max loan available through the CBILS ranging £50m to £200m. (Conditions Apply)
- VAT: reduced rate of 5% for hospitality to January 31st,2021.
- HMRC’s Time to Pay extended.
- Any businesses may apply for a Coronavirus business interruption loan. Companies not required to pay the VAT due until the end of June 2020. Businesses can settle liabilities deferred at the end of the 2020-21 tax year.
- Loans under £250,000 require no guarantees personally.
- Bounce-back loans are obtainable https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/for-businesses-and-advisors.Max loan is available for 25% of turnover with a ceiling of £50,000.No Interest chargeable for the first 12 months.
- The Coronavirus Job Retention scheme (CJRS) – grants cover 80% of the salary of PAYE employees. They are paid by the HMGOV to prevent layoffs.
- Online scheme set up for CJRS.
- Grants available up to £30,000 for small businesses possible. Based on rateable values of the company. (Companies with a rateable value less than £15,000 increased to £10k).
- A tax break, on national insurance contributions.
Update as of August 3rd, 2020
- Since 30 July 2020, changes to the CBILS scheme. The Government declared more small businesses might claim loans up to £5 million. It mainly helps businesses considered as ‘undertakings in difficulty’ therefore, access denied due to EU rules.
- Discounts allowed of £10 per person on meals out. They need to be between Monday-Wednesday during August 2020 at partaking restaurants.
- Face masks will become compulsory by law in public indoor environments commencing 8 August.
- RE furlough scheme: As of 1 August, companies will need to start paying national insurance and pension contributions. They will also have to pay 20% of furlough costs. Furloughed staff can be brought back to work on a part-time basis, but must be paid by their employers for the days they do. For the days they don’t work, the UK Government will pay 80 per cent of their salary, up to a cap of £2,500 per month. The level of grant reduces every month until the scheme ends.
- Eat out a discount of £10 per head on all meals out, Monday-Wednesday in August at participating restaurants.
For further help with Companies Affected by Coronavirus (COVID-19)?
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