The UK and Scottish Governments have set out a support package to protect businesses through the COVID-19 economic disruption. Click on the schemes below to find out more about the financial support package including whether you might be eligible and how you can access the support.
Coronavirus Job Retention Scheme
All UK employers who operate a PAYE scheme and who have furloughed employees are entitled to a grant, administered by HMRC, of 80% of wage costs of each furloughed employee up to a maximum of £2,500 per month. The scheme will be backdated to 1 March 2020 and available for an initial 3 months (although may be extended).
Deferring VAT and Income Tax Payments
All VAT registered businesses benefit from VAT payments being deferred for 3 months starting from20 March 2020 until 30 June 2020, but VAT returns still have to be submitted on time.
Self-Employment Income Support Scheme (SEISS)
This scheme will provide support to self-employed taxpayers who receive most of their income from self-employment and who have been adversely affected by COVID-19.
Coronavirus Business Interruption Loan Scheme (CBILS)
This scheme operated by British Business Bank helps small and medium sized businesses, including sole traders and freelancers affected by COVID-19 access finance of up to £5M.
Bank of England Covid Corporate Financing Facility (CCFF)
This lending facility from the Bank of England helps support liquidity in larger companies which make a 'material contribution' to the UK economy.
HMRC Time to Pay Scheme
HMRC may negotiate time to pay arrangements for tax and have set up a COVID-19 specific hotline.
Business Rates
Depending on the type of business and its location, specific COVID-19 related business rates relief may be available.
Grants for Retail, Hospitality and Leisure and Smaller Businesses
Depending on the type of business and its location, specific COVID-19 related grants may be available.
If you have questions about any of these financial support schemes please get in touch with Bruce Stephen, Derek Stroud, Isobel d'Inverno or your usual Brodies contact.
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