Applications for the flagship loan schemes have been extended until the end of March 2021 and more details about the Chancellor’s latest financial updates can be found online
Business premises forced to close for this month of tightened restrictions will receive grants worth up to £3,000 under the Local Restrictions Support Grant. Any other businesses impacted by the pandemic and the restrictions can apply for support through the discretionary Additional Restrictions Grant. You can apply for both here
New grants of up to £9,000 are being provided for every retail, leisure and hospitality premises on top of the existing grant system which provides monthly grants for closed businesses worth up to £3,000 per month. Please stay abreast of the Council’s latest announcements here: https://www.wiltshire.gov.uk/news, and find out how to apply to existing grants here: https://www.wiltshire.gov.uk/business-advice-support-covid19-grants.
Mortgage holidays have been extended for up to six months. This means that if you haven’t yet taken payment holidays, you are entitled to a six month holiday, and if you have, you can now top up to six months without this being recorded on your credit file.
The Coronavirus Business Interruption Loan Scheme provides access to loans, overdrafts, invoice finance and asset finance of up to £5 million for up to six years. Delivered through commercial lenders, SMEs with an annual turnover of up to £45m can take out government-backed loans which are interest-free for 12 months. No personal guarantees are required for loans up to £250,000
The Bounce Back Loan is a government-backed loan scheme available to help SMEs borrow between £2,000 and £50,000. This loan is 100% guaranteed by the Government with no fees or interest to pay for the first 12 months and the application process is quick and simple, with businesses receiving the money in a very short time-frame.
– Pay as you Grow is a new option for businesses with a BBL to repay their loan over ten years instead of six years.
– New rules now allow businesses who have borrowed less than their maximum (i.e. less than 25~% of their turnover) to top-up their existing loan.
The Coronavirus Large Business Interruption Loan Scheme has also been launched to support large firms with turnovers of beween £45m and £500m with loans of up to £25m.
The Covid-19 Corporate Financing Facility means the Bank of England will buy short-term debt from larger companies who are fundamentally strong but have been affected by a short-term funding squeeze and more information about this scheme can be found on the Bank of England website.
Future Fund – This is an investment scheme for innovative and fast-growing UK-based businesses, with loans from £125,000 to £5 million subject to at least equal matching from private investors.
The Coronavirus Job Retention Scheme allows employers to furlough employees and receive a grant from the Government for 80% of an employees average earnings.
– The CRJS has been extended until the end of April on the original 80% level for furlough.
The Self-employment Income Support Scheme is being extended yet again through the winter, for those currently eligible for SEISS, with a Grant Extension which will provide two grants over six months at a base rate of 40%, with the first taking into account the 80% level of government support during November. This will mean the first grant will actually come in at 55% of average trading profits for the initial three months.
VAT deferral “New Payment Scheme” – The government will give businesses which deferred VAT due in March to June 2020 the option to spread their payments over the financial year 2021-2022 through an opt-in process which HMRC will have in place in early 2021.
For self-assessment taxpayers, there is a similar Enhanced Time to Pay scheme which allows taxpayers with up to £30,000 of Self-Assessment liabilities due to use HMRC’s self-service Time to Pay facility to secure a plan to pay over an additional 12 months. This ultimately means that Self-Assessment liabilities due in July 2020 will not need to be paid in full until January 2022.
The reduced 5% VAT rate for hospitality and tourism will now run until 31 March 2021, instead of ending on 12th January.