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Overview of new financial measures introduced by the Government

Since March 2020, the UK Government has announced a number of new financial measures to help businesses and the self employed to survive the Coronavirus crisis

Below we provide an overview of these measures, as well as links to dedicated articles if you would like to know more.

1. Coronavirus Job Retention Scheme/Job Support Scheme

For all employees who remain on the payroll with no work to do, the Government will pay 80% of their basic salary up to £2,500 per month. They will also give employers the ability to top-up the salary to 100%. All businesses are eligible for this scheme. This subsequently evolved into supporting part-time working and the final evolution is the Job Support Scheme where the Government and employer each pay 33% of an employees lost hours.

We explore the various job retention/support schemes in our dedicated article here.

2. Coronavirus Business Interruption Loan Scheme

To support small and medium sized business, the Chancellor is extending the Business Interruption Loan Scheme. This will be administered through the British Business Bank.

The scheme provides the lender with a Government-backed guarantee against the outstanding facility balance.

We explore the Coronavirus Business Interruption Loan Scheme in our article on funding measures here.

3. Loans for large business with turnover over £45m

The Government has two schemes in place for large business to access additional funding. These are the Coronavirus Large Business Interruption Loan Scheme and the Co-Vid 19 Corporate Financing Facility.

You can find out more about both schemes here.

4. Self-Employed Income Support Scheme

The Chancellor has announced that, like the Coronavirus Job Retention Scheme, HM Revenue & Customs (HMRC) will pay self-employed people a taxable grant worth 80% of average monthly profits over last three-years, up to a maximum £2,500 per month.

The Scheme will be open to anyone with averaged annual profits of up to £50,000 and the Chancellor stated this covers 95% of all self-employed.

This has been updated to continue into 2021.

For further information, please read our article here.

5. ‘Time to Pay’ arrangements with HMRC

A dedicated helpline has been set-up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities to receive support with their tax affairs. Through this, businesses may be able to agree a bespoke ‘Time to Pay’ arrangement.

You can find out more about Time to Pay in our article here.

6. Sick pay

The Chancellor, Rishi Sunak, announced in the Budget that for businesses with fewer than 250 employees, the cost of providing 14 days of Statutory Sick Pay per employee would be funded by the Government in full. This will also apply to those who are in self isolation.

The Government has announced that the three-day waiting period for statutory sick pay will also be removed, but legislation will be needed to implement this.

7. Cash grants for retail, hospitality and leisure sectors

The grant scheme provides businesses in these sectors with a cash grant of up to £25,000 per property.

For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000. For businesses in these sectors with a rateable value of between £15,001 and £51,000, they will receive a grant of £25,000.

Please use the following link to determine your business’ rateable value:

You can find out more about these cash grants in the following article.

8. Filings with Companies House

All Companies received an automatic three month extension to their filing requirements at Companies House.

Would you like to know more?

If you would like to discuss any of the above guidance or have other queries about how you can make the right decisions for the future of your business and your income, please contact your usual Blick Rothenberg contact or one of the partners to the right.

You can also visit our Coronavirus – Practical Guidance for businesses today Hub for our latest insights and sign up here to receive important Practical Guidance updates delivered directly to your inbox.

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