It has
been several weeks now since the whole country has come to a standstill. We
still have strict restrictions in place, however there is still a lot we can do
to ensure our businesses does not just fade away. We have all put endless
efforts into our business and now is not the time to just give up. You should
still be on social media, promoting your business, so once all this is over,
and it will all be over, your business is in the front of everyone’s minds.
Our
previous Coronavirus Blog detailed how you could get support from the
Government Retention Scheme to the grants that are available. To read our
previous blog, please click here https://bit.ly/Covid19interruptionCrossAcc
Bounce
Back Loan
There
will be support in the form of a bounce back loan which will help you to borrow
between £2,000 and up to 25% of their turnover. The maximum loan is capped at
£50,000. The government has guaranteed 100% of the loan and there will not be
any fees or interest to pay for the first 12 months. After 12 months the
interest rate will be 2.5% a year.
To be
able to apply for the loan you will have to be based in the UK, have been in
business before 1st March 2020 and your success or development have
been impacted by the coronavirus.
You
cannot apply if you are already claiming under Coronavirus Business
Interruption Loan Scheme or COVID-19 Corporate Financing Facility. If you have
already received a loan of up to £50,000 under one of these schemes you can
transfer it into the Bounce Back Loan scheme. A deadline of 4 November 2020 has
been set to arrange with your lender.
The
length of the loan is 6 years, but you can repay early without paying a fee. No
repayments will be due during the first 12 months and any charges for the loan
will be covered by the governments guarantee.
There
are several lenders participating in the scheme including many of the main
retail banks. You should approach a suitable lender yourself via the bank’s
website. The lender will ask you to fill in a short online application form and
self-declare that you are eligible. The lender will decide whether to offer you
a loan or another type of finance and you will be responsible for repaying 100%
of the amount borrowed.
Self-Employment
Income Support Scheme
In
line with the Chancellors commitment to help businesses who have been affected
by the coronavirus, HMRC have launched the self-employment scheme. You should
receive a letter through the post stating that you may be eligible. You will
have to go to the HMRC website and complete an eligibility checker to see if
you are eligible. You will need your National Insurance number and
Self-Assessment Unique Taxpayer Reference (UTR) number.
If
HMRC confirm you are eligible, then you will need your Government gateway and
user ID and password, if you have not created this yet, you will have to, to
commence with the claim. You will have to enter your correct contact details as
HMRC will contact you, using these details to tell you when the claim system is
available for use.
HMRC
will automatically calculate the income support you are entitled to, based on
the information submitted from previous tax returns. After HMRC have received
and checked your claim, they will pay the money directly in to your bank
account in six working days.
You
will need to make the claim yourself, although you can seek advice from an
accountant. The grant is also not for limited companies or anyone operating a
trade through a trust. HMRC will check claims and take action to withhold or
recover payments found to be dishonest or inaccurate.
We are
still available on the phone and by email, so if you do want to talk through
what may be your best option, please feel free to contact us. We are always
happy to help.
