Further to our previous blog on Friday 20th March, both the UK and Scottish Governments have updated the support made available to businesses. We have updated the available resources below with the latest information.
This is a fast-moving area so, although we believe this is correct as at 23 March 2020, make sure to get in touch if you’d like to check our own position.
Remember too that we offer advice not just as Scottish lawyers but also on the law of England and Wales. So, if your business crosses the border, we can help with both bits.
WAGE SUPPORT – CORONAVIRUS JOB RETENTION SCHEME (click here for more info)
- All UK employers can access support to continue paying part of their employees’ salary for those employees that would have otherwise been laid off during this crisis.
- To access this support, employers must: (1) designate affected employees as ‘furloughed workers’ and notify employees of this change (changing the status of employees remains subject to existing employment law); (2) submit information to HMRC about the employees who have been furloughed through a new online portal.
- HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month.
- SMEs (with fewer than 250 employees) may also be entitled to reclaim the costs of Statutory Sick Pay (SSP) for sickness of absence due to COVID-19.
HMRC ASSISTANCE WITH TAX BILLS (click here for more info)
- The UK Government has deferred VAT payments for 3 months for all UK businesses. This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
- If you are self-employed, Income Tax payments due on 31 July 2020 will be deferred to 31 January 2021. This is an automatic offer with no application required.
BUSINESS RATES RELIEF (Applicable to Scottish businesses)
- All Scottish Retail, hospitality and leisure business will get 100% rates relief (for occupied properties)
- All non-domestic properties in Scotland will receive a 1.6% rates relief.
- For information on business rates relief in England and Wales, see the UK Government website.
CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME FOR SMEs (click here for more info)
- A new temporary scheme, expected to commence week beginning 23 March 2020, to be delivered by the British Business Bank, to support businesses to access bank lending and overdrafts
- The scheme will support loans of up to £5 million in value.
- The first 6 months of these loans will be interest-free, as the Government will cover these payments.
- Businesses are responsible for repaying 100% of any facility they take out.
GRANTS AND ADDITIONAL FUNDING (click here for more info)
- Grant funding of £25,000 is available for retail, hospitality and leisure businesses with property with a rateable value between £15,000 (England & Wales)/£18,000 (Scotland) and £51,000.
- Small firms receiving the small business bonus or rural relief will be eligible for a £10,000 grant.
The above list is not exhaustive and there may be other support available to your business. The financial support available to businesses is being continually assessed by the UK and Scottish Governments. You can stay up to date with this information on the Scottish Governmentand UK Governmentwebsites.
WE ARE HERE TO HELP
We are here to support you and your business. Get in touch with us by phone (01383 721621) or email one of our team and we will be happy to offer any advice or assistance.