The government has introduced a number of measures to support businesses impacted by COVID-19 that require temporary financial relief including the furlough scheme and emergency loans.
Initiatives available include:
Coronavirus Job Retention Scheme
To help UK businesses retain their staff on the payroll when business has been forced to stop.
- Wage subsidy which covers 80% of a qualifying employee’s wage, at a monthly cap of £2,500
- Employers must identify ‘furloughed’ workers and notify them that their status has changed
- Employers can top up salaries above this level if they choose
- Scheme will run from 1 March 2020 and has been extended until the end of September 2021
- From July 2021, employers will be required to contribute towards the scheme
Business Rates Holiday
A reprieve from paying business rates for those in the retail, leisure, and hospitality sector regardless of their rateable value.
- The business rates holiday is available to all sizes of companies within this sector
- Automatic entitlement with no application necessary
- Business rates holiday will run until the end of June 2021, with the remaining nine months of the 2021-22 financial year discounted by two thirds for closed businesses
- A business rates holiday will also be introduced for nurseries in England for the 2020–21 tax year
Statutory Sick Pay (SSP) Reimbursed
UK-based companies with fewer than 250 employees will now be able to reclaim SSP which has been paid to employees for up to two weeks.
- Employees will be eligible for SSP from the first day of illness rather than the fourth
- When illness is directly related to coronavirus, employers can claim back the cost from the government to cover a two-week absence
Re-Start Grant Scheme
Non-repayable cash grants will be made available to help those in the retail, leisure, and hospitality industry hardest hit by the Covid-19 pandemic. 700,000, pubs, clubs, bars, hotels, restaurants, gyms, and hair salons will being given up to £18,000 each, while non-essential retailers will receive £6,000 per premise.
If you would like further information on the above, please speak to your usual Begbies Traynor contact, or fill in the form below to request a call back