I have created this specific page to help you understand the financial solutions available to you during the current Covid-19 pandemic and beyond. This page has live links to ensure that the information I share is up to date and in real time. PLEASE check the date of advice on all the government website pages I share.
All small business owners and self employed people are likely to be eligible for some sort of help with their tax payments for 2020. If you pay tax to the government and you are worried about not being able to keep up your next payments, call the HMRC helpline now on 0800 024 1222.
All VAT registered businesses are eligible and don’t need to do anything. All payments will be deferred between March 20th & June 20th 2020.
Self Assessment Payment on Account
If you pay a self assessment on July 31st 2020 and are worried you cannot pay, you can automatically defer payment until January 31st 2021. There are not charges or interest added to this. Simply let HMRC know through your accountant or directly.
New Information October 2020
Changes to the Coronavirus Job Retention Scheme (CJRS) from the 1st October
From 1 October, HMRC will pay 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work.
Employers will continue to pay furloughed employees 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month.
Employers will need to fund the difference between this and the CJRS grant themselves and employers must still pay their employees at least 80% of their usual wages for the hours they don’t work.
As employers you will also continue to pay furloughed employees’ National Insurance and pension contributions from your own funds.
For help with calculations, please visit HMRC’s latest updated guidance.
In the meantime? While you wait, you can claim Universal Credit [how to apply]
The Kickstart Scheme aims to create high-quality six-month work placements for young people aged 16 to 24 who are claiming Universal Credit and are at risk of long term unemployment.
Under the scheme, the Government will cover 100% of employment costs for 25 hours a week which includes the employee’s salary at the appropriate minimum wage for their age, as well as National Insurance and pension contributions.
There is also £1,500 per job placement available for setup costs, support and training.
Funding is available following a successful application process and applications must be for a minimum of 30 job placements.
If you would like to provide less than 30 job placements, you can find someone to apply on behalf of a group of employers to reach the minimum number.
See the latest updated Department for Work and Pensions collection for more information.
Also the National Federation of Self Employed & Small Businesses (FSB) have an application process to allow access to the scheme for less than 30 placements.
The Local Restrictions Support Grant (LRSG)
The (LRSG) supports businesses that were open as usual, providing services in person to customers from their business premises, but which were then required to close for at least 3 weeks due to local lockdown restrictions imposed by the government.
Your business may be eligible if it occupies property on which it pays business rates, is in a local lockdown area and has been required to close on or after 9 September.
Depending on your businesses property rateable value, you will receive a cash grant of £1,000-£1,500 for each 3-week period your business is closed and the grant will be extended to cover each additional 3-week period.
If you do not pay business rates, or if business is not required to close, but has been severely affected, you may receive a grant of up to £1,500 at the discretion of your local council.
For more details visit the Department for Business, Energy & Industrial Strategy guidance
SME Restart Grants
Applications opened today for SME restart grants whereby businesses can apply for a grant between £1,000 – £5,000 to support them with new technology and other equipment as well as professional, legal, financial or other advice to help them get back on track.
To apply your business must employ between 5 and 9 people and operate within at least one of these sectors; Visitor Economy, Construction, Manufacturing, Business Services, Creative/Cultural and Life sciences & Health.
This has been distributed across England’s Growth Hubs.
All applications must be submitted by 5pm on Friday 9 October 2020, but please note that GBSLEP reserves the right to suspend or close the application process at any time, particularly if they receive a large number of applications.
Therefore, we recommend you submit your application as soon as possible.
Click here to proceed to the Greater Birmingham & Solihull Local Enterprise Partnership (GBSLEP) application form, where you will find the full qualifying criteria and T&Cs.