Mendip District Council have provided an outline of the support available for businesses in light of Coronavirus.
See below for what’s covered and some key points, or click on the link to the PDF for full detail.
Coronavirus Support for the self-employed
Self-Employment Income Support Scheme
HMRC will contact you if you’re eligible for the scheme.
If eligible, you can claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months.
There are eligibility criteria. See Covid-19 Business Support (PDF) for details.
BE AWARE OF POTENTIAL SCAMS. If people contact you with a link, or asking for information such as your name, credit card or bank details, it’s a scam.
Coronavirus Support for employers
Coronavirus Job Retention Scheme
All UK businesses with employees are eligible.
Employees must be “furloughed”. Furloughed employees are people who would normally work for you but can’t currently due to Coronavirus. The government will pay up to 80% of a ‘furloughed’ employees’ salary (up to a limit) until the crisis is over.
Information will need to be submitted via an online portal (still to be set up). Employers currently need to email information.
The scheme has been created to help businesses keep their employees and avoid unnecessary redundancies.
Get in touch with your accountant and speak to your business lender if you need short term assistance.
Support for businesses paying sick pay due to Coronavirus
Businesses can get help with paying sick pay for staff impacted by Covid-19.
The mechanism for businesses to get support is still being developed.
Business Loans & Financing
Coronavirus Business Interruption Loan Scheme (CBILS)
Business loan open to all UK businesses with less than 45m annual turnover, and that meet certain criteria. All major banks are offering the scheme.
Loans are government backed and interest free for the 1st 12 months.
COVID-19 Corporate Financing Facility
A scheme for larger businesses. Eligibility criteria are on the Bank of England website.
Tax & VAT
Deferred VAT payments
Businesses will not need to make a VAT payment from 20 March 2020 until 30 June 2020.
Customers who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay, ensuring they do this in good time before payment is due.
Deferred income tax
You’re eligible for deferred income tax if self-employed. This is automatic, no applications are needed.
Taxpayers will have until the end of 2020-2021 tax year to pay.
Support for businesses paying tax: Time to Pay service
Businesses currently owing tax, who have missed, or may miss a tax payment should contact HMRC.
Most insurance won’t cover pandemics or unspecified notifiable diseases, such as COVID-19.
Businesses that have cover including government-ordered closures and unspecified notifiable diseases should be able to make a claim.
Protection from eviction
Protection from eviction for commercial tenants
Commercial tenants unable to pay rent because of COVID-19 will be protected from eviction. This means no business will automatically forfeit their lease and be forced out of their premises if they miss a payment up until 30 June.
This is not a payment holiday.
Business rates holiday for retail, hospitality and leisure businesses
Business rate holidays are available for businesses including:
- Businesses providing services – including Hairdressers, Key Cutters, employment agencies, estate agents (see PDF for the full list)
- Food & Drink outlets
- Leisure businesses
- Businesses providing accommodation
Business rates holidays will be automatically applied. New bills will be sent by the Council as soon as possible showing the discount.
Retail, Hospitality and Leisure Grant Fund (RHLG)
Some retail, hospitality and leisure businesses will be eligible for a grant.
See Covid-19 Business Support (PDF) .for full details of eligibility.
Processes and systems for businesses to apply for grants are currently being created by Mendip District Council. This will be ready as soon as possible. Further communication will follow as soon as this is up and running.
Small Business Grant Fund (SBGF)
English businesses receiving Small Business Rates Relief (SBRR) and Rural Rates Relief (RRR) may be eligible for a grant. See Covid-19 Business Support (PDF) .to find out if you’re eligible.
Again, Mendip District Council will confirm when the system is up and running.