Overview of Grants and Loans

Grants:

Small Business Rate Relief (SBRR) 

A £10,000 grant has been provided to businesses currently eligible for SBBR or Rural Rate Relief. You can put in a claim now to have the grant paid directly into your bank. The Council have started making payments now. Use this link to complete the online form https://forms.leeds.gov.uk/SmallBusinessGrants

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Self Employed and Partnerships

Self Employment Income Support Scheme (SEISS)

SEISS supports self-employed individuals and partnership members whose income has been negatively reduced because of Covid-19. The scheme will provide a grant worth 80% of their average 3 year profits up to  £2,500 per month.

HMRC will use existing information to check potential eligibility and invite applications once the scheme is fully operational – which is expected to be by the end of June. In the interim, the self-employed are eligible for other government support including a more generous universal credit and the bounce back loan scheme. Check your eligibilty now.

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Employers 

Job Retention Scheme – (Furlough staff)

Under this scheme, all UK employers can access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.

You will need to:

  • Designate affected employees as ‘furloughed workers,’ and notify those employees of this change
  • Submit information to HMRC about the employees that have been furloughed and their earnings through an online portal.

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month per employee.

All UK employers can access support to continue paying part of their employees’ salary these are called furloughed staff. HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month per employee.

Statutory Sick Pay (SSP) 

  • SSP is now available to eligible individuals that are diagnosed with Covid-19 or are self-isolating in line with the Government “stay at home” advice.
  • SSP is provided to eligible individuals from day 1 instead of day 4. 
  • Eligible SMEs  will be able to reclaim SSP paid for sickness absence due to Covid-19 for up to two weeks per individual. Employers should maintain records of staff absences to reclaim. Employees do not need to provide a GP fit note. 
  • SSP is not payable if the absence is for any other reason, such as a broken arm, then three waiting days still apply.
  • Those not eligible for SSP (self-employed or below the Lower Earning Limit) can claim for Universal Credit or Contributory Employment and Support Allowance. 

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Limited Companies

Companies House 

If your accounts will be late because your company is affected by Covid-19, and your filing deadline has not yet passed, you can apply for an automatic and immediate 3 month extension to file your accounts. Companies that have already extended their filing deadline prior to Covid-19, or shortened their accounting reference period, may not be eligible for an extension and will need to file on time to avoid a late filing penalty.

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Deferral of VAT and Tax Payments

For VAT, the deferral will apply from 20 March 2020 until 30 June 2020. This is an automatic offer with no requests required. Businesses will not need to make a VAT payment during this period and  will be given until the end of 31 March 2021 to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal. VAT returns must be submitted on time.

Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021. This is an automatic offer with no requests required. No penalties or interest for late payment will be charged in the deferral period.

HMRC’s Time To Pay Service 

Any limited company or self-employed in financial distress and with outstanding tax liabilities may be eligible for support. If you are concerned about being able to pay your tax due to Covid-19, call HMRC’s dedicated Coronavirus helpline on 0800 0159 559.  

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Loan

Bounce Back Loan Scheme

Small Businesses can now get a loan without having to ‘jump through hoops’. The Bounce Back Loan Scheme, will support mainly small businesses with a loan to a maximum of £50,000 for up to 6 years Businesses can access the first year of the finance interest free, as government will cover the interest payments for that period. For more details click here.

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