Following the announcement from Boris on Saturday, I am writing this blog with a heavy heart, that once again we return to Lockdown. It is even more saddening knowing how much time, money and effort we have all put in to make our businesses Covid secure. It seems to all have been in vain, but this too shall pass.
I wanted to let you know that Insync are here to support you in any way possible and we will make it through this again together. The government has made several announcements over the last couple of days, and thankfully there are some options to get cash to you.
BOUNCE BACK LOANS - REPAYABLE 100% GOVERNMENT GUARANTEED
As detailed below the government are still providing loans through banks, to businesses affected by Covid-19. However, the government required businesses to guarantee part of the loan (see interruption loans below) and its repayment to the banks, some people couldn't access or get them.
The government have guaranteed 100% of loans from £2,500 to £50,000 to small businesses which you can access by speaking with your business bank, in the first year these have no interest of repayments, the interest is 2.5% after this. Very few people are rejected, and they are quick to get. If you have already received the loan, you can extend the loan amount.
If you're Self Employed
If you are self-employed, you can get a taxable grant (which does not need to be repaid), up to 80% of your profits each month to a maximum of £2,500 per month.
This will be paid in December 2020 but will be backdated to the beginning of November so you will receive three months worth of money in one go. For more information on the Self-Employment Income Support Scheme. please visit the government website here. You will then be able to claim again February 2021.
If you have a Business Premises
There will be new grants available from local authorities for businesses who have had to close as a result. These will be based on the rateable value of the property within the business:
- Rateable value under £15k - £1,334 per month
- Rateable value between £15-£51k - £2,000 per month
- Rateable value above £51k - £3,000 per month
There is also going to be an additional fund available to local authorities for a one-off payment to support businesses more broadly.
I would therefore recommend you consider approaching the council with a business case as soon as possible to request support from this. It is likely to be first come first served, but we should also understand whether this will be focussed on particular sectors/types of businesses in the coming week.
If you do not qualify but have premises, but cannot work from those premises due to Lockdown, you can contact your local council and apply for empty rates relief which will reduce your rates bills to NIL for a period of 3 months.
If you need a loan
All banks are providing Covid 19 interruption loans. The government are providing an 80% guarantee on these loans so that you don't have to, meaning that your personal assets are not at risk.
These can be fixed or variable up to 6 years and with no repayments in the first year with the government paying the first year of interest. For more information, visit the government website here.
If you pay PAYE or VAT
The government has put in place a PAYE and VAT deferral scheme, if you have a PAYE or VAT bill during the crisis, if you contact HMRC they can agree to defer the payment for up to 24 months. For more information, go to the government website here.
If you have staff on the payroll
You will have seen that the government have extended the Furlough scheme until December (at this stage) which will cover up to 80% of an employee's current salary for any hours not worked, up to a maximum of £2,500. Some points from the information released so far are included below; however, further details will be issued this coming week:
- The scheme can cover employees who have been included on an RTI submission on a business payroll on or before 30 October.
- It can be flexible to cover where employees work part of their hours
- Employers will pay employer National Insurance Contributions and pension contributions only for hours the employee does not work
Your personal finances
Banks and credit card lenders have agreed that repayments can be paused for a period of 6 months up from three months. You will need to call your bank or lender, but in most cases, this is not an issue. If you have used some already, you can still claim the rest of the time.