The government package to help business during coronavirus fears

Local accountants and tax advisers, Trueman Brown, advise business of the Government’s package to help them through the coronavirus fear.

On Wednesday, 11th March 2020, the Chancellor, Rishi Sunak announced a spending package of around £30 billion specifically designed to protect the UK economy from the coronavirus outbreak.

These measures included: –

Statutory Sick Pay (SSP)

SSP will be available for all those employees who have been advised to self-isolate whether or not those workers have shown symptoms of the virus or not.

This followed the Prime Minister’s, Boris Johnson, promise that SSP will be paid from day one rather than the normal fourth day of sickness.

Employees will be able to receive a sick note equivalent by phoning 111, without having to go to their doctor.

For those employees not entitled SSP, Sunak stated that it will become easier to claim benefits. For example, the government will temporarily remove the minimum income floor on universal credit, and relax a series of requirements related to benefits, including the need to attend job centres.

For smaller businesses, with less than 250 employees, the government will refund the cost of SSP for up to 14 days. The government will work with employers to set up a repayment mechanism.

Although generous, many business groups have pointed out these measures may be good enough.

Trade Unions have stated that employees on low income or on a zero-hour contracts may not qualify for SSP. Those taxpayers who are self-employed will not qualify for SSP.

Business Rates

The government has increased the Business Rates retail discount to 100% for one year. The discount will also be expanded to the leisure and hospitality sectors for the same time period only. Full relief will be given for properties with a rateable value of below £51,000.

Local authorities will also be provided with funds to grant businesses funding of £3,000 if they are currently in receipt of Small Business Rate Relief (SBRR) and Rural Rate Relief.

If the business received the retail discount (which provides full relief for businesses using a single property with a rateable of below £12,000) during 2019/20 then they should be rebilled by their local authority soon.

Other businesses who now believe that they are eligible for the temporary, expanded discount should make enquires to their relevant local authority.

Coronavirus Business Interruption Loan Scheme

The government also announced a new Coronavirus Business Interruption Loan Scheme, which will see the government guarantee 80% of bank loans of up to £1.2m to small and medium-sized businesses.

The scheme will be operated by the British Business Bank. A finance company that we work with is hoping to become an accredited company under the scheme.

Time To Pay

HMRC have set up a new helpline, called “Time To Pay”, to help businesses concerned about paying their taxes due to coronavirus with 2,000 experienced staff working the line.

These include options for: –

  1. Agreeing an instalment plan.
  2. Suspending debt collection proceedings.
  3. Cancelling penalties and interest.

You can call the helpline on 0800 0159 559. It is open Monday to Friday 8am to 8pm and on Saturday 8am to 4pm.

Be warned – call queues are expected!

Will be kept you in touch with any further government measures.

Local accountants and tax advisers, Trueman Brown, deliver services vital to small business. Please contact us if you require any assistance.

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