Covid-19 Update - 17th March 2020
On 17th March 2020 The Chancellor of the Exchequer, Rishi Sunak, announced further support for UK businesses affected by Covid-19 (Coronavirus); consisting of a £ 330 billion package, equivalent to 15% of GDP.

Following a challenging day assisting a range of clients with a variety of questions and concerns, this post is designed to explain how the governments financial assistance may affect you and/or your business.

Government Cash Grants:

This will only be available to businesses with premises that either pay business rates or are in receipt of SBRR (Small Business Rates Relief).
  1. The small business Coronavirus cash grant for qualifying entities was increased from £3,000 (originally announced) to £10,000
  2. For those businesses in the retail, leisure and hospitality sectors with a rateable value between £15,000 and £51,000; there will be grants available up to £25,000
We understand that your local council authority will contact eligible business owners directly during April to explain how the grant will actually be paid and also the exact criteria to receive these funds.

Other funding / cash-flow injection options:
  1. Business loan guarantee scheme (backed 80% by the UK Government) for businesses affected
  2. 3 month mortgage payment holidays for people affected by the virus (no help announced for those in rented accommodation)
  3. Potential of business interruption insurance claims from your insurer (Depending on the cover you have taken out)
  4. SSP (Statutory Sick Pay) that will be repaid to employers, this refund will cover up to 2 weeks SSP per eligible employee who has been off work because of COVID-19
  5. HMRC Covid-19 Helpline - A dedicated telephone number has been set up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities to receive support with their tax affairs. Through this, businesses may be able to agree a bespoke Time to Pay arrangement *
What steps should you take next?
  1. Talk to your HR provider, managers and employees for feedback and look into the options available to amend your staff contracts
  2. Talk to any loan providers that you have about delaying payments
  3. Talk to your business insurance providers to see the exact cover you have in place
  4. Talk to suppliers to discuss outstanding payments
  5. Talk to your landlord, if applicable to arrange a payment holiday and plan to help your cash flow
  6. Talk to your bank to see what assistance they can provide you or your business
  7. Talk to HMRC support line which can be accessed on 0800 0159 559 to delay payments of PAYE, VAT and Corporation Tax * see above
What will help you in these discussions will be:
  1. 3, 6 and 12 month cash flow forecasts in terms of income and expenditure & list your personal & business monthly commitments
  2. Latest year end financial statements and also the 3 months net/gross profit results for March 19 to May 19 (For insurance claims)
  3. Details of your current bank facilities
This will be an extremely tough time for small businesses in the UK and the TLA Team will be here to support you and your business to get you back on your feet. We're happy to simply listen to your concerns and will offer advice where appropriate, or we can also act as a sounding board for you to talk things through in an impartial manner. Please feel free to contact us on 01934 440157 to discuss any questions or concerns that may arise.
Share by: