Practical guidance for our rural and farming clients #37 - COVID-19 support
In this week’s Rural Update we provide a reminder of the Government business and self-employed support schemes.
- Supporting your self-employment
- Paying your employees
- Paying sick pay
- Paying tax
- Business rates relief
- Support for businesses of any size
- Support for businesses affected by coronavirus restrictions.
23rd June 2021
Andrew Vickery See profile
Support has been provided by the Government through the Self-Employment Income Support Scheme (SEISS) – with more than 8.8 million grants claimed so far at a cost of £24.5 billion. The fifth grant, covering May to September, will be available to claim from late July. The fifth grant will be determined by how much an individual’s self-employment turnover has been reduced in the year April 2020 to April 2021. If an individual’s turnover has fallen by 30% or more over this period then they will receive 80% of three months’ average trading profits to a maximum of £7,500. Individuals whose turnover reduction is less than 30% of three months’ average trading profits will receive a grant of 30% capped at £2,850.
For more information on the SEISS click here…
The furlough scheme, which has already supported over 11.5 million jobs, was extended at the March Budget until the end of September 2021. Anyone on furlough will continue to receive 80% of their current salary for hours not worked, up to £2,500.
For more information on the Coronavirus Job Retention Scheme click here
The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers sick pay paid to current or former employees if they have coronavirus symptoms or are self-isolating.
For more information on paying sick pay click here
Hospitality and tourism were two of the hardest hit areas during the pandemic. To protect 150,000 businesses and 2.4 million jobs across these sectors, the Government extended the 5% reduced VAT rate until the end of September 2021, with a rate of 12.5% continuing until the end of March 2022.
For more information click the below links…
Last financial year, the Government provided an unprecedented 100% business rates holiday for eligible hospitality, retail and leisure businesses. This financial year over 90% of retail, hospitality, and leisure businesses will receive a 75% business rate cut over the whole year.
- Recovery Loan Scheme
Loan schemes have provided over £75 billion of support to 1.5 million businesses during the pandemic. As these start to wind down as the economy reopens, the Government has introduced Recovery Loans – providing lenders with an 80% Government guarantee on loans of up to £10 million.
For more information on the Recovery Loan Scheme click here…
- Pay As You Grow
And as Bounce Back Loans come to an end, businesses can access the Pay As You Grow scheme, which gives multiple options to reduce monthly repayments, including extending the repayment term to 10 years.
Lenders will inform their customers about PAYG directly, so borrowers should wait until they’re contacted by their lender before enquiring about the scheme.
- Restart Cash Grants
To help businesses get going again, the Government has provided £25 billion in grant support for businesses in England. This includes Restart Cash Grants of up to £6,000 for non-essential retail premises and £18,000 for hospitality and leisure premises to help these sectors reopen.
- Discretionary Grant Funding
Local authorities have also been given £2.1 billion of discretionary grant funding to support businesses in their area which are most important to their local economies – this includes businesses from all sectors that may have been severely impacted by restrictions but aren’t eligible for the Restart Grant scheme, including those which don’t pay business rates.
To apply, visit your local council’s website. Click here to find the website for your local council.
As ever, we are here to help, if you have any questions or queries about COVID-19 Business Support along with any other finance or tax related queries, please contact your Old Mill adviser or alternatively click here