In the ongoing Covid-19 pandemic, the government have made several announcements of economic support.
We have summarised these below, including updates to some of the budget announcements. We will look to add more information to the blog as it comes in, as the situation is fluid.
- IR35 - The new rules on IR35 in the private sector will not now be implemented until April 2021.
- Grant of £3,000 increased to £10,000 - The grant to small businesses with premises that qualify for Small Business Rates Relief has been increased from £3,000 in the budget to £10,000. Current information is that this will be administered by local authorities and that qualifying businesses will be contacted without having to apply separately. There is currently no timescale on when this will take place
- Support for retail and leisure - Businesses in the retail, hospitality and leisure sectors will get a business rates holiday for the next 12 months. Small businesses in these sectors (rateable value below £51,000) will also be eligible for a grant of up to £25,000. As with the grant to all business above, further details are to follow.
- Sick Pay - Employees and directors who have to self-isolate can have up to two weeks SSP paid for by the government. No detail has yet been provided, but this is likely to be covered by offset against PAYE liabilities as was previously the case for SSP.
- Time to pay Tax bills - If you need time to pay your taxes the Chancellor has promised HMRC will be understanding and adopt a more lenient approach. https://www.gov.uk/difficulties-paying-hmrc
- Bank Loans - The government will guarantee loans to small businesses to help them through this difficult period. Your bank should be able to lend money to you quickly without the normal requirements for security and personal guarantees. Loans under this scheme should also not be subject to interest for the first six months. These should be available from next week.
- Mortgages - You can take a 3-month holiday on your mortgage payments. These will either add to your term or require higher payments afterwards to catch up.
- Insurance - If you have business interruption insurance, Rishi Sunak has said the government advice to avoid certain businesses should be enough to allow a claim.
We are following developments and will provide more information as it becomes available.