The current lockdown in the UK is difficult for us all, not least of all the healthcare workers on the front lines and the essential workers that are keeping our country running. For business owners however, an economic downturn as the result of preventative measures can have a huge negative impact. What help is available?
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
Financial Help Available
The trickle-down effects of certain businesses no longer operating can’t be overlooked. Maybe your practice or other business won’t suffer, but what about the companies and firms you deal with regularly? Do you have a plan for how to continue with the possibility of a global recession looming over us?
We always recommend to clients to have a plan for the immediate future to ensure you’re ready for tough times, but also have a solid plan in place for when the eye of the storm passes.
The good news is, to help businesses get through the disruption of COVID-19, the government has developed measures covering things like wage support, tax payments, and loans.
Here’s a summary of some of the government support available for businesses
Employee Wage Support
To prevent layoffs, a grant of up to 80% of an employee’s salary (up to £2,500 pm, plus NI and pensions contributions) is available for furloughed workers for at least three months.
Tax Payments
Statutory Sick Pay (SSP) is available for small and medium-sized businesses for two weeks per employee, maximum, for anyone claiming because of the coronavirus. Additionally, it’s possible for all businesses and self-employed people to get support via HMRC’s Time to Pay service if certain conditions are met. And finally, VAT payments will be deferred for three months and the self-assessment tax payment that’s normally due on 31 July may be deferred until 31 January 2021.
Loan Scheme
The Temporary Coronavirus Business Interruption Loan Scheme has been introduced to smaller businesses allowing interest to be covered by the government for the first 12 months for business where certain qualifications are met. A similar scheme for larger business is expected to roll out shortly.
Other measures
If your England or Wales-based business pays little or no business rates, a one-off grant of up to £10,000 is available to cover ongoing business costs. There’s also been a 3-month extension for filing accounts granted to businesses that apply. And good news for commercial tenants who are at risk of missing rent payments: if you are affected by the coronavirus, you cannot be evicted if the payment is missed in the next 3 months, with the possibility of extension after 30 June.
Where can you find out more?
We’ve only highlighted some of help available.
Visit UHY for more information on how to go about securing assistance and even more tips and advice on how to get your business through the outbreak.
Make sure you check Gov.uk for up to date and accurate information before making plans, as advice changes.
Please note, when you click on the above links, you are departing from the regulatory site of Dental & Medical Financial Services. Dental & Medical Financial Services is not responsible for the accuracy of the information contained within the linked sites.
Always speak to your financial adviser
Remember, we’re here to help your business succeed and are happy to meet via phone call on your schedule. If you need advice, don’t hesitate to schedule a time to talk today.
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