A helpful summary of financial support
available.
Exclusively prepared for
Enjoyably Studley and Studley in
Business from Studley in Business
member, Shohaib Shafiq of Integrity
Accountancy Services.
During these unprecedented times of pandemic and changes within
the UK, many businesses and individuals are suffering financially
with reduced working and fewer customers due to curfews and
lockdown being imposed to protect our NHS, the elderly, and
vulnerable. So, we at Integrity Accountancy Services are producing
a regular blog post exclusively for Studley in Business, and
Enjoyably Studley to offer advice to those in need of additional
support.
Government Financial Support
A range of financial support has been created for UK businesses
and individuals affected by the current restrictions and lockdowns.
This is an up-to-date, extensive list of what is currently available.
Furlough
The furlough scheme has been extended until the end of
September 2021, with 80% of employee wages being covered.
Employers will continue to pay staff pension and National Insurance
contributions and can top up wages to 100% at their own expense if
they wish. The furlough scheme protected over 9 million jobs across
the UK, and self-employed people have received over £13 billion in
support. This is in addition to billions of pounds in tax deferrals and
grants for businesses.
Loans
The Coronavirus Business Interruption Loan Scheme (CBILS) is
available to provide loans, overdrafts, and other forms of financial
support up to £5 million for impacted businesses.
There is also £750 million in loans and grants available to SMEs
focusing on research and development through Innovate UK.
Around £550 million will be used to increase support for existing
customers, while £175,000 will be available for 1,200 firms not
currently receiving Innovate UK funding.
The Bounce Back Loan Scheme (BBLS) is available for SMEs that
need to access finance quickly during the outbreak. The loans
range from £2,000 to £50,000.
The new Recovery Loan Scheme, launched on the 3 rd March 2021,
supports access to finance for UK businesses as they grow and
recover from the disruption of the COVID-19 pandemic.
Up to £10 million is available per business. The actual amount
offered and the terms are at the discretion of participating lenders.
The government guarantees 80% of the finance to the lender. As
the borrower, you are always 100% liable for the debt.
The scheme is open until 31 December 2021, subject to review.
Grants
The Retail, Hospitality and Leisure Grant Fund is available,
providing eligible businesses up to £25,000 from their local council.
To qualify, your business must have had a rateable value of under
£51,000 on 11 March 2020.
An additional grant has been announced in January 2021 to support
retail, hospitality and leisure businesses forced to close. These
one-off top-ups will be granted to closed businesses as follows:
£4,000 for businesses with a rateable value of £15,000 or
under
£6,000 for businesses with a rateable value between £15,000
and £51,000
£9,000 for businesses with a rateable value of over £51,000
If you own an SME that is not within the retail, hospitality or leisure
sectors, you may be eligible to apply for the Small Business Grant
fund. This grant provides a £10,000 one-off cash grant for small and
rural businesses in England.
If you’re not eligible for either of these grants, you can apply to
the Discretionary Grants Fund, where you can receive funding of up
to £25,000 for your business.
Self-Employment Income Support Scheme Grant Extension
You can get 2 one-off taxable payments. The first payment will
cover 1 November 2020 to 31 January 2021. You’ll get 80% of your
average monthly trading profits or £7,500 (whichever is lower).
The second payment will cover 1 February 2021 to 30 April 2021.
You can claim if both the following apply:
you are self-employed – including a member of a partnership
you were eligible for the Self-Employment Income Support
Scheme first and second grant – even if you did not claim
them
You must also plan to continue working and either:
you are currently actively trading and coronavirus has reduced
demand for your business
you were previously trading but temporarily cannot trade
because of coronavirus
You cannot claim the grant if you trade through a limited company
or a trust.
You can claim for the Fourth Self-Employment Income Support
Scheme Grant now through the Government’s online service.
Support to create job placements: Kickstart Scheme
The Kickstart Scheme gives you financial support to create new 6-
month job placements for young people who are currently on
Universal Credit and at risk of long-term unemployment. The
scheme is open to all organisations.
It pays:
100% of the relevant National Minimum Wage for 25 hours a
week
employer National Insurance
minimum automatic pension enrolment contributions
£1,500 per job placement for setup costs, support and training
paid to the employer
Each application is for a minimum of 30 job placements. You can
partner with other organisations if you have fewer than 30 or use a
Kickstart Gateway provider such as Integrity Accountancy Services.
Restart Grants, available from 1 st April 2021, offer eligible
businesses in the hospitality, accommodation, leisure, personal
care and gym sectors a one-off cash grant of up to £18,000 from
their local council.
Additionally, eligible businesses in the non-essential retail sector
may be entitled to a one-off cash grant of up to £6,000.
Other financial support
You might be able to get a Test and Trace Support Payment, New
Style Employment and Support Allowance (ESA), Universal Credit
or Pension Credit.
Test and Trace Support Payment
Your local council might be able to give you £500 if:
you have been told to self-isolate
you live in England
you are a low-income earner
you cannot work from home and will lose income as a result
New Style Employment and Support
Allowance (ESA)
If you or your child has coronavirus, is self-isolating, or shielding,
you might be able to get New Style ESA. You can apply for it if:
you are under State Pension age
you have made enough National Insurance contributions over
the last 2 to 3 years
Your savings and partner’s income will not affect how much you
get. You might be able to get Universal Credit at the same time as
New Style ESA.
New Style Jobseeker’s Allowance
(JSA)
If you were working as an employee within the last 2 to 3 years, you
might be able to get New Style JSA. You can apply for it if:
you work less than 16 hours a week
you are under State Pension age
you have made enough class 1 National Insurance
contributions over the last 2 to 3 years, usually by working as
an employee
Your savings and partner’s income will not affect how much you
get. You might be able to get New Style JSA at the same time as
Universal Credit.
Universal Credit
You could get Universal Credit if:
you have less than £16,000 in savings
you or your partner is under State Pension age
If you are already receiving tax credits, they will stop when you or
your partner applies for Universal Credit.
You might be able to get Universal Credit at the same time as New
Style ESA or New Style JSA. Depending on your circumstances,
Universal Credit can include additional amounts for things like rent
or the costs of raising children.
For further information on financial support available for business
owners, you can contact Integrity Accountancy Services on 0121
777 5361 for a no-obligation, free, remote meeting with a Chartered
Management Accountant.
This information is provided by Integrity Accountancy Services, a
locally based boutique accountancy practice offering proactive
accountancy services, working with business owners as a trusted
adviser for them and their business. For more information on their
services, you can visit their website here, or for contact information
see their page on our Business Directory.
