Important Updates for businesses and the self-employed
Help for those who are self-employed
Self-employed people whose livelihoods have been affected by coronavirus will be able to claim a second payment of up to £6,570 from 17th August – as the government continues to help drive the UK’s recovery.
- the second stage of Self Employment Income Support Scheme (SEISS) opens for applications from 17th
- those eligible will receive a government grant worth up to £6,570
Those eligible will now be able to receive a second and final grant worth 70% of their average monthly trading profits, with the money set to land in their bank accounts within six working days of making a claim.
HMRC will contact all potentially eligible customers to advise them that they can claim for a second and final SEISS grant.
The eligibility criteria remains the same as for the first grant, with people needing to have had trading profits of no more than £50,000, making up at least half of their total income.
The online service for the second and final grant is now available.
How to claim:
You can use the online service to check.
If you’re eligible, HMRC will give you a date you can make your claim from.
Business Rates Grants.
The Government has confirmed that the three grant schemes rolled out to support businesses will close on 28th August 2020, this includes the Small Business Rates Grant Scheme, the Retail, Hospitality and Leisure Grant scheme and the Discretionary Grant Scheme.
You must, if you haven’t already done so, contact your local Council and make an application before 28th August 2020.
Bounce-Back Loans
The Bounce Back Loan Scheme (BBLS) enables smaller businesses to access finance more quickly during the coronavirus outbreak.
The 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 won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
Eligibility
You can apply for a loan if your business:
- is based in the UK
- was established before 1 March 2020
- has been adversely impacted by the coronavirus
How long the loan is for
The length of the loan is 6 years, but you can repay early without paying a fee. No repayments will be due during the first 12 months.
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loanschemes/bounce-back-loans/for-businesses-and-advisors/ The deadline for applications is 4th November 2020.
Coronavirus Business Interruption Loan Scheme (CBILS)
The scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million.
The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.
Eligibility
You can apply for a loan if your business:
- is based in the UK
- has an annual turnover of up to £45 million
You need to show that your business:
- would be viable were it not for the pandemic
- has been adversely impacted by the coronavirus
How long the loan is for
The maximum length of the facility depends on the type of finance you apply for and will be:
- up to 3 years for overdrafts and invoice finance facilities
- up to 6 years, for loans and asset finance facilities
How to apply
There are over 50 lenders participating in the scheme including all the main retail banks. You should approach a suitable lender yourself via the lender’s website.
You’ll need to tell the lender:
- the amount you’d like to borrow
- what the money is for
- how long you’d like to pay it back
Supporting documents
You’ll need to provide documents that show you can afford to repay the loan.
These may include:
- management accounts
- cash flow forecast
- business plan
- historic accounts
- details of assets
The documents required will vary from lender to lender and depend on how much you’re asking for. If you’re asking your existing lender for a small loan, the process may be automated and not require all of the documents.
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loanscheme-cbils-2/for-businesses-and-advisors/
The deadline for applying for a CBILS is (at the time of writing) 30th November 2020.
Changes to the Furlough Scheme.
The Coronavirus Job Retention Scheme will close on 31st October 2020.
As of August 2020, employers must pay their employees’ ER NIC and pension contributions for the hours the employee(s) are on furlough. The Government will still pay 80% of wages up to a cap of £2,500.00.
From September, employers must pay their employees’ ER NIC and pension contributions for the hours the employee(s) are on furlough. The Government will pay 70% of the employee(s) wages up to a cap of £2,187.50. The employer must pay the remaining 10% to the employee(s) to ensure they receive 80% of their wages.
From October the Government will pay 60% of wages, up to a cap of £1,875.00. The employer must pay ER NIC and pension contributions together with topping up the employee(s) wages to ensure the 80% rule is met.
