UK Gov Covid-19 Support Schemes – British Coronavirus support schemes
I found lots of confusions amongst most of the potential beneficiaries of the UK Gov Covid-19 support schemes. So thinking this will be helpful, I have prepared this extract for general information in a user-friendly way to help a clear understanding of all supports available in one place.
Coronavirus Support for business – Grants from the British Government to Business :
Please have a look as below different UK Gov Covid-19 Support Schemes.
- Small Business Grant
- – Small businesses that meet the conditions below are eligible for the grant:
• Must be a business that occupies a non-domestic property
• Must be registered with the local council (have business rates accounts in local council) on or before 11 March 2020.
• Have rateable value below £51,000 (it’s a value of your business for business rate purposes)
- Retail, Hospitality and Leisure Grant
- – Companies in the retail, hospitality or leisure sector that meet the below conditions are eligible for the grant:
• If your business has a property with a rateable value of £15,000 or under, you may qualify for a grant of £10,000.
• If your company has a property that has a rateable value of over £15,000 but less than £51,000, you may be eligible for a grant of £25,000.
• The grant is provided for each business property you have.
- Business rates holiday
- – for businesses in retail, hospitality and leisure sectors:
• 100% relief from business rates for the 2020-21 tax year. This applies to all businesses in these sectors in England and Scotland.
• In Wales relief is given to businesses with a rateable value below £500,000.
- Coronavirus Job Retention Scheme
The employer continues to pay salary to the furloughed employees and can claim up to 80% of the gross salary, employer’s NI and Employer’s minimum statutory pension contribution. The money will be paid to the employer.
Conditions to meet:
• To be eligible for this scheme, an employer must agree with the employee that they are a ‘furloughed worker’.
• Employees must be notified that they have been furloughed for a minimum of three weeks to the maximum for four months.
• The employee cannot do any work for the employer that has furloughed them.
• You can claim 80% of gross wages up to a maximum of £2,500 per month per furloughed employee.
• You can only claim for furloughed employees that were on your PAYE payroll on or before 19 March 2020.
• A Real Time Information (RTI) submission notifying payment in respect of that employee to HMRC must have been made on or before 19 March 2020.
• You must have a UK bank account.
- Limited Company directors
• The directors who were on payroll on 19th March 2020 can apply for 80% of their gross pay (maximum £2,500 per month) under Job Retention Scheme (the same way as the employees).
• The directors who are taking dividends only are not eligible for any support, unfortunately.
• There are people and lobbying groups trying to put pressure on the government to extend the support for company directors not taking a salary. The outcome is yet to see.
- Self-employed & Partnerships
Self-employed individual or a member of a partnership can claim up to 80% of their average monthly profits for up to 3 months (maximum £7,500).
You are eligible if the below conditions are met:
• you carry on a trade which has been adversely affected by a coronavirus.
• you traded in the tax year 2018 to 2019 and submitted your Self- Assessment tax return on or before 23 April 2020 for that year.
• you continued your trade after 2018-19 and still trading and intent to remain.
• Your trading profits must be no more than £50,000 and at least equal to your non-trading income (e.g. rental income, interest etc.).
The grant amount will be paid by HMRC directly into your bank account, in one instalment, and expected to pay in June 2020.
- Loan Schemes for Small & Medium-sized businesses & self-employed people:
a. Coronavirus Business Interruption Loan Scheme
• Small to medium-sized business (SME) may be able to apply for a temporary loan (80% guaranteed by the government) for up to 6 years with no interest and loan repayment in first 12 months.
• It’s available for UK based business having viable borrowing proposal (business plan).
b. Coronavirus Bounce Back Loan
• If your business is affected by a coronavirus, you may be able to borrow between £2,000 and £50,000 through a Bounce Back Loan scheme.
• The government will guarantee 100% of the loan, and for the first 12 months, you will not have to pay any fees or interest, or make repayments.
• This scheme supports UK based small & medium-sized business which were running smoothly until December 2019 and have been affected by Coronavirus.
• Business already struggling for any other reason are not eligible for this scheme.
- Extension of deadline to pay the tax liabilities
- If you cannot pay your tax bill on time because of coronavirus, you may delay it without penalty using HMRC’s Time to Pay service.
Type of liability you have & Extended Deadline
(a) Self-assessment 2nd payment on account due by 31 July 2020 is now extended to 31 January 2021
(b) VAT liability due between 20 March – 30 June 2020 is now extended to 31 March 2021
(c) Other taxes – Talk to HMRC for help Call HMRC on 0300 200 3835
Those who are not eligible for Covid-19 support scheme, can apply for Universal Credit. Here is the link for online application:
I hope this is helpful on UK Gov Covid-19 Support Schemes. If you have any queries related to this, please contact L N Ghimire. Stay safe, take care of yourself and your families and friends.
Author : L N Ghimire
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