Latest Financial Support for Businesses

By
Jessica Dyer
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Coronavirus Job Retention Scheme extended until October

The furlough scheme sees the government paying 80% of employees’ salaries up to £2,500 a month. In April the eligibility date was extended from 28 February 2020 to 19 March 2020 – the day before the scheme was originally announced.

Employers can claim for furloughed employees that were employed and on their PAYE payroll on or before 19 March 2020. This means that the employee must have been notified to HMRC through an RTI submission notifying payment in respect of that employee on or before 19 March.

The CJRS has seen further changes with the announcement this week that the scheme will continue until October (originally scheduled to run until June). The Chancellor will also introduce new flexibility from August to get employees back to work and boost economy, this could see part of an employee’s salary covered as they return to work part time.

Coronavirus Job Retention Scheme Webinar

Lambeth Council has funded a programme of support to be delivered by Get Set. There is still time to register for the upcoming webinar which will cover and explain the Coronavirus Job Retention Scheme, with advise from the Business Advisors, HMRC’s scheme for employers who have furloughed their workers, or who are planning to, this will include:

  • Who can claim
  • Maternity leave considerations
  • National Minimum Wage considerations
  • Effects on holiday entitlement
  • Selecting employees for furlough and gaining agreement
  • Shielding and furlough

Date: Thursday 21st May                   Time: 11.30am

Register now: https://zoom.us/webinar/register/WN_zVqogOvyTPuvSvBwy5em3w

Self-Employment Income Support Scheme

If you’re self-employed or a member of a partnership and have been adversely affected by coronavirus (COVID-19) the government have launched a grant scheme. You will need to have completed 3 years of employment tax returns to qualify for the grant. The scheme will allow individuals to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. This is a temporary scheme, but it may be extended.

Unlike the furlough scheme, if you receive the grant, you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist. The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.

You can check if you can claim a grant through the Self-Employment Income Support Scheme here, you will need your Unique Tax Reference number and National Insurance number. This grant has a short application window so check now if you are eligible.

Bounce Back Loans for Small Businesses

Small businesses can apply for new Bounce Back Loans, up to a maximum of £50,000, or 25% of turnover, with the government paying the interest for the first 12 months.

The length of the loan is 6 years, but you can repay early without paying a fee. No repayments will be due during the first 12 months.

Eligibility:

  • business is based in the UK
  • was established before 1 March 2020
  • has been adversely impacted by the coronavirus

You cannot apply if you are already receiving, the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or COVID-19 Corporate Financing Facility.

Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.

There are 11 lenders participating in the scheme. You should approach a suitable lender yourself via the lender’s website. The lender will ask you to fill in a short online application form and self-declare that you are eligible. The lender will decide whether to offer you a loan or another type of finance and you’ll be responsible for repaying 100% of the amount borrowed. More information can be found here.

Other Financial Support Available

There are other government scheme available these include:

Brixton BID is providing up to date business focused information via there social media platforms (@BrixtonBID) and website.

You can read previous Financial Support round-ups here:

Financial Support Available for Brixton Businesses

Pay It Forward and support local businesses

Support for Brixton self-employed explained

Brixton accountants put together information to help small businesses

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