Coronavirus (COVID-19) - support for business
UK Government Support
Support for businesses includes:
- Coronavirus Job Retention Scheme – as announced in the Budget 2021, the furlough scheme has now been extended until September 2021. Full details of which can be found here. Employers will be asked to contribute 10% in July and 20% in August and September.
- The Self-Employment Income Scheme (SEISS) - the fifth grant will be made available from May will target support towards those most affected by the pandemic. The scheme will have spent £33 billion on the self-employed.
- Deferring VAT and Income Tax payments - the Chancellor announced in the budget that the 5% reduced rate of VAT for tourism and hospitality will be extended for six months until the end of September.
- Statutory Sick Pay relief package for SMEs.
- Business Rates Holiday for all retail, hospitality and leisure businesses in England– this will continue from April until June.
- Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- The Coronavirus Business Interruption Loan Scheme – to help medium and small sized businesses access loans and other kinds of finance up to £5 million due to COVID-19 difficulties.
- Coronavirus Bounce Back Loan – this scheme helps small and medium sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. The Government guarantees 100% of the loan and there is no interest for the first 12 months.
- A new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
- The HMRC Time To Pay Scheme
- In addition to this, cash grants of up to £3,000 per month will be available for businesses which are closed worth more than £1billion every month.
- Stamp duty cute will continue until the end of June, with the nil band rate set at £250,000.
Detailed information is provided in this guide, which will be updated as new measures are introduced.
The guide includes the following information:
- Support for businesses through the Coronavirus Job Retention Scheme
- Support for businesses through deferring VAT and Income Tax payments
- Support for businesses who are paying sick pay to employees
- Support for businesses that pay business rates
- Support for businesses that pay little or no business rates
- Support for businesses through the Coronavirus Business Interruption Loan Scheme
- Support for larger firms through the COVID-19 Corporate Financing Facility
- Support for businesses paying tax: Time to Pay service
Welsh Government Support
Support announced 30 November 2020
- A new £180m funding block in addition to UK support. This will provide grants of up to £100,000 for small and medium businesses, and £150,000 for larger businesses.
- In addition, hospitality, tourism and leisure businesses will be able to access a sector specific Economic Resilience Fund grant scheme.
- Business Wales Barriers Grant - employment and skills programme to encourage and support people to get back to work. This discretionary grant aims to help up to 600 individuals become self-employed or start a business between December 2020 and March 2021. The grant will be open to unemployed individuals.
ERF Sector Specific Grants
- Targeted at Hospitality, Tourism and Leisure (HTL) businesses and associated supply chain businesses that will be materially impacted by a greater than 60% impact of turnover due to them being so significantly affected by new restrictive measures.
Support announced 18 December 2020
- Welsh Government announced an extra £110 million to support Welsh businesses who are affected by new restrictions. New restrictions under alert level four mean that trading will cease on Christmas Eve.
- This is in addition to the £340 million already available to businesses under alert level three - which aims to help around 35,500 businesses.
- Hospitality and non-essential retail businesses with a rateable value of between £12,001 and £150,000 will be eligible for a £5,000 payment.
- Tourism, leisure, retail and supply chain businesses in the same rateable value bracket will also be eligible for this support if their turnover has fallen by 40% or more during the restriction period.
- Eligible hospitality and non-essential retail businesses, which registered for non-domestic rate support during the firebreak will be paid directly through their local authority. All other eligible businesses and those businesses, which did not register during the firebreak, will need to do so with their local authority in January with payment following soon after.
- Businesses not eligible for non-domestic rates will be able to continue to apply to local authorities for a Lockdown Discretionary Grant of up to £2,000.
Other support measures
The Bank of England has cut their interest rate to 0.1 per cent, as lower interest rates mean cheaper loans for businesses and households. This will reduce the costs faced by both businesses and households in the UK. They are similarly helping businesses pay their staff and suppliers by working closely with HM Government to support large businesses by offering them cash for their corporate debt. This means that banks and building societies can continue to focus on supporting small and medium sized companies.
The Bank of England continues to watch the British economy closely in order to see how it responds to the COVID-19 pandemic and also Brexit.
As of the 05/11/20, the Bank of England injected £150bn into the UK economy to help it recover in a round of 'quantitative easing'.
Last updated 03/03/21