Package of Measures
The Chancellor has set out a package of measures to support public services, people and businesses through this period of disruption caused by COVID-19.
This includes a package of measures to support businesses including:
- Statutory Sick Pay relief package for SMEs
- Job Retention Scheme, please see look at our separate article.
- 12-month business rates holiday for all retail, hospitality and leisure businesses in England
- Deferral of payments of VAT and Self - Assessement Tax. Have a look under Latest News
- Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- A Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance
- HMRC Time To Pay Scheme
Although the exact details of all the help is not very clear at the moment, we will be looking at the developments as they happen and will update you. For the moment this is what we know:
Business Interruption Loan:
Please look at our full article.
The Treasury has announced a £3,000 grant for businesses that do not pay business rates to help them survive the coronavirus pandemic. Once again, we are awaiting details as to how this is going to be delivered, but for the moment it is looking like it will be via local authorities.
Most banks have been proactive and already put emergency policies in place to assist businesses through this time. It is worthwhile picking up the phone to see if they can help you with existing borrowing repayments some are offering payment holidays and interest only options, increasing overdrafts, term loans etc. Many are offering to waiver the fees on new facilities.
Things to consider:
- Whilst your business is still strong think about getting finance now, do not leave it until your finances change such as they adversely affect a loan application. You will be risk assessed based on your last set of accounts, current business bank statements and Directors' credit scores.
- If you run a business or are self-employed and are concerned about paying your tax due to coronavirus, you can call HMRC’s helpline for help and advice: 0800 0159 559. Do you want to delay paying some of your taxes?
- Make sure you have a cashflow forecast so you know when the pinch points will be. Myers Clark can assist you with this task.
- Chase outstanding accounts, but be empathic with your debt collection. Maybe offer small discounts to get people to pay you on time. For bigger invoices that historically take 60 days to pay, there are solutions to speed this up. Again please speak to us.
Please call us and speak to your normal relationship director/manager if you would like to discuss any of the above or any other matter. We are here to help you through these tough times.