Further to the chancellor’s announcement this afternoon, the government have stated that it will do whatever it takes to support the UK economy. This means they have increased the money available to banks and local authorities to enable them to support businesses over the coming months.
Business Interruption Loans (Coronavirus Business Interruption Loan Scheme)
The government have increased the amount available for these loans to £330 billion and increased the maximum for any individual business from £1.2m to £5m, with interest holidays for the 1st 6 months. There is still no guidance on how you can apply for this or anything further on those who are eligible from our update earlier in the week, but Mr Sunak promised this by early next week.
Larger firms will have access to new low cost easily accessible paper but no elaboration on this.
Support for businesses that pay business rates
The hospitality, leisure and retail industries will now all see a business rates exemption for 12 months regardless of their current rateable value. A cash grant of up to £25,000 is also being offered for business in the industry with a rateable value of less than £51,000. Again, no guidance on how to apply for this yet but hopefully in the next few days local government will have the mechanism available.
Support for businesses who pay little or no business rates
The cash grant that was announced last week has been increased from £3,000 to £10,000 to help smaller firms who qualify for the small business rates relief. Again, no guidance on how to apply for this yet but hopefully in the next few days local government will have the mechanism available.
Support for Self-Employed workers
The chancellor mentioned that they are working on several support mechanisms here but did not elaborate on these, hopefully more information will be forthcoming in the next few days.
Mortgage lenders have also agreed to repayment holidays for 3 months, your individual mortgage lenders should be able to assist with how you apply for this.
HMRC time to pay help
There is a dedicated helpline set up by HMRC for those businesses that are struggling to pay their HMRC liabilities, with HMRC offering full support to businesses at this time. After speaking with the helpline today they can offer a postponement of payments and / or payment plans, if cash flow is an issue then these are the times to get help from them. The telephone number is 0800 0159 559.
A further update will be issued once more information is made available and we remain at the end of the phone for any specific questions or help that you require.
As ever, stay safe.
Very Best
Dunnell Accounting