How Online Accountants Can Help in COVID-19 Small Business Loans & Grant?
To support small businesses and help the economy against the disruption caused by the COVID-19, Chancellor Rishi Sunak has revealed numerous targeted and temporary measures. For small and medium-sized businesses, specifically, the government is offering a broader range of support. To help a variety of business sectors in coping with the impacts of coronavirus outbreak and relieving pressure on businesses in the country, the package of measures by the government is extraordinary. Here is a summary of the assistance accessible for businesses to cope with the effects of coronavirus and interruption of what companies are entitled to the diverse dealings.
Support Offered to Small and Medium-Sized Businesses Wedged By COVID-19
Statutory Sick Pay
Employers and small and medium-sized businesses will be competent to reclaim statutory sick pay for taking sickness absence or employee self-isolating because of coronavirus outbreak in the country. As legal sick pay is being remunerated from day 1 instead of day 4, the refund will be applicable for 14 days for every eligible employee. Employers and businesses with up to 250 or fewer employees can qualify for this. The size of the employer or business will be measured based on the number of people hired as of 28th Feb 2020. In this regard, employers will be required to maintain their records of sick pay and attendance of employees; however, employees will not be required to provide a GP note to authorities. The government is working on the mechanism of the repayment scheme to facilitate impacted businesses and employers.
To prevent employees from the impacts of coronavirus and excessive deductions in their wages or risks of job loss, the government has initiated The Coronavirus Job Retention Scheme that provides access to the employers and businesses to support their employees and help them retain their jobs in this crisis. This scheme is available all over the UK along with the PAYE scheme. To prevent employees from being expelled and unemployed, this scheme applies to employees who are asked to stop their services but are still on the payroll. In this regard, HMRC will be repaid 80% of their wages with a maximum amount of £2,500 per month. This scheme is initially available for three months and is backdated to 1st March.
Several measures have been declared to assist small and medium businesses that are being severely affected by the coronavirus outbreak. In the UK for the tax year 2020-21, there will be a business rates holiday for all hospitality, leisure, and retail businesses. These axes are usually charged based on rent estimates in the open market that is titled the rateable value. The eligible businesses include shops, restaurants and cafes, hotels, cinemas, and Leisure and assembly. Local authorities should spontaneously regulate their business rates and provide them to you in your coming council tax bill.
Tax Deferral Arrangements
HMRC is upgrading its Time to Pay services. In the current scenario of coronavirus outbreak, businesses and people with self-employment who are facing financial distress and struggling to pay their outstanding taxes can take advantage of deferring tax payment leverage by the HMRC on Vat and PAYE specifically.
There are numerous loans and grants available for businesses facing troubles due to coronavirus outbreak. The UK government has announced funds for small businesses in the country and will facilitate them with small business tax reliefs. Under this scheme, an eligible business can get a grant of £10,000. For businesses in retail, hoteling, hospitality, and leisure can get grants of £10,000 and £25,000. For being eligible for these grants, a business must have a taxable value under £51,000. There is no need to apply for these grants as if your business is eligible; your local tax authorities will contact you on their own.
To facilitate SMEs Coronavirus Business Interruption Loan Scheme is initiated by the government to provide loans of up to £5 million through the British Business Bank. Businesses will be able to avail of the initial 6 months of finance interest-free and will be able to cope with their cash flow problems. In this regard, the government will be providing a guarantee of 80% on every loan to give lenders confidence and encourage them to provide more loans to small businesses.
Companies with insurance policies that comprise epidemics and government-ordered closings should be enclosed. The administration and industry are also definite in recent times that advice to elude certain formations, such as restaurants, pubs, theatres, and cafes, is enough to make a claim.
Coronavirus has conveyed that standard prohibiting clauses found in many profitable insurance policies don’t cover virus-related contagions or the interruption of trade because of emergency events by management to cover infection.
Support Available to Self-Employed Personnel Affected By COVID-19
Recently an emergency support package has been announced by the government to support self-employed people affected with coronavirus outbreak as the UK is home to up to 5 million self-employed workers that make 15% of the overall workforce in the country.
Under the Self-employment Income Support Scheme by the government, self-employed workers with annual profits of less than £50,000 will be facilitated. To eligible self-employed, the government will be providing them with 80% of their monthly profits on average for the past three years with a maximum of £2,500 per month. This scheme is also backdated to 1st March and will be for 3 months, and its extension will be depending on the circumstances. HMRC will be contacting eligible ones and will ask them to apply for it. In case if you are self-employed for the past one or two years, HMRC will be estimating your monthly profits based on your filed tax returns.
Self-employed workers are also eligible for tax deferrals. If one is due to his/her second self-assessment tax for the 2018/19 tax year on 31 July, one can submit it payment until 31 January 2021 if he/she is facing financial issues because of coronavirus. If you are the one, you are not required to apply for it and will not be facing penalties by HMRC if you defer the payment. For further tax assistance, you should use Time to Pay service and call the dedicated helpline 0800 0159 559.
How Can Weaccountax Help You Get Business Support?
At the front of helping clients in getting any upkeep that is available to them, WeAccountax is assisting small businesses through these challenging times, and getting COVID-19 Small Business Loans & Support. We want to ensure that our clients are applying for all they are eligible for.
WeAccountax is one of the best-known accountancy among accountants in London, and it can help you with every kind of legal, financial, and tax-related problem that you might be facing due to coronavirus outbreak in the country. Just give us a call on +44 20 3807 5353 to witness how we will be facilitating you in this crucial time and get business support that you need.