Here is a quick update on what measures the government has announced to support people, jobs and businesses in this current climate.
For the first time in our history, the government is going to step in and help to pay people’s wages. A brand-new Coronavirus Job Retention Scheme has been introduced with the hopes of saving many jobs by paying staff even if the company does not have the means to. Government grants will cover 80% of the salary of retained workers up to a total of £2,500 a month, and employers are able to pay the remaining 20% if they are able to. Any employer in the country – small or large, charitable or non-profit – will be eligible for the scheme. If you need assistance getting your accounts in order to present to HMRC for this scheme, contact us on 02085300720 for more information.
Last week we wrote an article of the brand new, beneficial Coronavirus Business Interruption Loan Scheme, which you can read here. This small business loan will now be interest free for an entire year (12 months) which will help a great deal of businesses who have uncertainty regarding cashflow. This is available from today (23/03/2020) and the banks will treat them the same as any other loan. So, your accounts need to be up to date, you will need to have a business plan in place, and you need will need forecasts. All things that our strategic consultancy team can help you with. Let us work with you to find the best solution for you and your business.
The government is deferring a whopping £30bn of taxes until the end of the financial year. A deferral of VAT payments has been introduced until the next financial quarter. This means no business will pay any VAT from now until the end of June; and you will have until the end of the financial year to repay those bills. The ‘VAT holiday’ will hopefully give your business valuable breathing space to commit to other issues. However, they will still need to be filed. If you would like more information on this, contact us on email@example.com
A small comfort for those who work for themselves as, every self-employed person can now access, in full, Universal Credit at a rate equivalent to Statutory Sick Pay for employees. This equates to £94.25 per week. The government has put together a package of measures to support the self-employed and freelancers, offering improved benefits and tax deferrals.
Every day of the week there will be new announcements made on what plans are in place to help you and your business. Please look very carefully at that support and discuss your options with us before making decisions to lay people off. We appreciate that each business has its own unique circumstances so once you have read through this, feel free to contact one of our highly skilled business advisors for further guidance on the next steps that are suited to you and your business. Contact us on 02085300720 or email firstname.lastname@example.org