In the Budget (11 March 2020) the Chancellor announced a package of measures to provide support for public services, individuals and businesses to minimise the impact of Covid-19.
The Chancellor confirmed that for businesses with fewer than 250 employees, the cost of providing 14 days of Statutory Sick Pay per employee will be refunded by the government in full. This will provide 2 million businesses with up to £2 billion to cover the costs.
He also confirmed that small businesses may be able to apply for a £10,000 cash grant which will be delivered by local authorities. Small businesses that pay little or no business rates and are eligible for small business rate relief (SBBR) or rural rate relief will be contacted by the local authority – you do not need to apply. The funding will be provided to local authorities in early April.
The announcement also includes a new Coronavirus Business Interruption Loan Scheme. This will be delivered by the British Business Bank and will enable businesses to apply for a loan of up to £5 million, with the government covering up to 80% of any losses with no fees. Businesses can access the first 6 months of the finance interest free, as the government will cover the first 6 months of interest payments. You can find out more about this and the other initiatives on this link.
A number of private lenders are also making funds available to small businesses impacted by COVID-19, including £2 billion from Lloyds Banking Group and £5 billion from NatWest
The Chancellor also focused on the Retail, Leisure and Hospitality sector offering a £25,000 grant for businesses operating from smaller premises, with a rateable value between £15,000 and £51,000. He also introduced a business rates holiday for retail, hospitality and leisure businesses in England as well as private providers of childcare for the 2020 to 2021 tax year.
Any enquiries on eligibility for, or provision of, the reliefs should be directed to the relevant local authority. Guidance for local authorities on the business rates holiday will be published by 20 March.
If you have any financial concerns and need support with outstanding tax liabilities, a dedicated helpline has been set up to help. The HMRC dedicated helpline may be able to agree a bespoke Time to Pay arrangement. If you are concerned about being able to pay your tax due to COVID-19, call the helpline on 0800 0159 559.
If you have a query that isn’t covered by this guidance you can contact the Business Support Helpline on 0300 456 3565, Monday to Friday, 9am to 6pm to discuss any concerns.
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