What financial support is available during coronavirus? (January 2021 Update)

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 April 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.

Deferring VAT

If you are a UK VAT registered business and had a VAT payment due between 20 March 2020 and 30 June 2020, you can defer payment until 31 March 2021.

Support for businesses paying tax: Time To Pay Service

If you cannot pay your tax bill on time because of coronavirus, you may be able to delay it without penalty using HMRC’s Time to Pay service.

You might be eligible if your UK business:

pays tax to the UK government
has outstanding tax liabilities

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. The amount has not been announced yet.

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 cannot claim for the Self-Employment Income Support Scheme Grant Extension yet. You’ll be able to claim the first grant from 30 November 2020.

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.

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.