Businesses have been counting the cost of coronavirus as work has dried up or they have had to temporarily close.
The Government, agencies and organisations have set aside money to support businesses.
Wake Smith Solicitors looks at the schemes designed to help businesses at this unprecedented time.
Business support grants
There are three grants available for small businesses in Sheffield:
- £10,000 for businesses in receipt of Small Business Rates Relief (SBRR) or Rural Rates Relief
- £10,000 for retail, hospitality or leisure businesses with a rateable value of £15,000 or less
- £25,000 for retail, hospitality and leisure businesses with a rateable value between £15,000 and £51,000
- Charities currently occupying premises that have a rateable value, might be entitled to access a grant of £10,000 or £25,000 per property if it is used for retail, hospitality or leisure.
Business rates holiday
The start of the 2020/21 business rate collection has been delayed. July’s business rates will not be collected.
Businesses eligible for a business rate holiday in 2020/21 will receive a new bill from the relevant council.
Businesses entitled to a rate holiday are:
- Any property in the retail, hospitality or leisure sector
- Ofsted registered nurseries
Rent relief schemes
Contact your local council to find out what support is available in your area if you pay business rates.
Nurseries, retail, hospitality and leisure companies do not have to pay business rates up to the end of March 2021. Businesses in these sectors may also be eligible for a grant of up to £25,000.
Coronavirus Business Interruption Loan Scheme (CBILS)
This supports UK-based small and medium sized businesses with an annual turnover of up to £45m to access loans, overdrafts, invoice finance and asset finance.
Your business must meet the British Business Bank eligibility criteria.
To apply for a loan you should contact your business bank.
Coronavirus Job Retention Scheme
Government support is available to help UK employers by:
- paying up to 80% of the salaries of employees who would otherwise have been laid off
- paying up to a capped amount of £2,500 per month
- Employees must be registered for PAYE online in order to be furloughed.
Coronavirus Bounce Back Loan Scheme
This helps small and medium-sized businesses to borrow between £2,000 and £50,000 with no fees or interest to pay for the first 12 months and loan terms up to six years.
You cannot apply if you’re already claiming under the CBILS.
If you’ve already received a loan of up to £50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020
VAT deferral scheme
Businesses will not need to pay VAT from 20 March 2020 to 30 June 2020. All businesses are eligible and you do not need to apply.
Income tax deferral
Income tax self-assessment payments due on 31 July 2020 have been deferred until 31 Jan 2021.
Statutory Sick Pay Relief
Changes have been made to Statutory Sick Pay so people suffering from coronavirus can take the necessary time off to stay at home or to prevent its spread.
Employers with fewer than 250 employees will be able to reclaim Statutory Sick Pay for employees unable to work because of coronavirus. This refund will be for up to 2 weeks per employee.
Support for self-employed people
The Government self-employed scheme will allow individuals or partnerships to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month, based on the average profits from tax returns in 2016-17, 2017-18 and 2018-19.
For further advice on your business’ legal requirements at this time contact Wake Smith Solicitors on 0114 266 6660.
