Chancellor Rishi Sunak has unveiled a suite of support measures for self-employed workers to match the government’s Coronavirus Job Retention Scheme for PAYE employees.
Self-employed people facing financial difficulties will receive a grant worth up to 80% of average monthly profits over last three financial years. Support will be capped at £2,500 per month, and will initially last three months, although could be extended if necessary.
The grant will be open to any business with trading profits of up to £50,000 and only available to those in self employment who submitted a tax return in 2019. The Chancellor also announced a four week extension from today for anyone who missed the January tax return deadline.
It is expected that people will be able to access the scheme no later than the beginning of June. HMRC will contact eligible people and they will be paid directly.
Speaking at last night’s press conference, the Chancellor said: “I am proud of what we have done so far but we know that many self-employed people are deeply anxious. Through no fault of their own, they risk losing their livelihoods. To you I say, you have not been forgotten.
“I am confident we will support millions of businesses, families and self-employed people to get through this, together, and will emerge on the other side both stronger and more united.”
The Chancellor also promised detailed guidance around the Coronavirus Job Retention Scheme would be published.
Additional new guidance
Business Rates Expanded Retail Discount: Guidance on the operation of expanded retail discount 2020 to 2021 has been updated so that certain properties previously excluded from the relief, but that have been the forced to close as a result of coronavirus restrictions, will now be eligible for the relief. Many high street businesses that have closed due to Covid-19 restrictions will now be exempt from business rates including retail, leisure, and hospitality properties, estate agents, lettings agencies and bingo halls. Click here for more information.
Vehicle owners to be granted MOT exemption: Temporary exemption will enable vital services to continue, frontline workers to get to work, and people to get essential food and medicine. Further information can be found here.
Producing hand sanitiser and gel for coronavirus (COVID-19): HMRC have produced guidance on temporary changes to the use and supply of denatured alcohol and duty-free spirits, to help businesses who produce hand sanitiser and gel. All guidance on the production and supply of hand sanitiser can be found here.
Hotel accommodation to support key workers and vulnerable people: Guidance has been updated to clarify the exemption for hotels, hostels, and B&Bs to open so they can offer accommodation to key workers and support rough sleepers to keep them off the streets and in suitable accommodation. Further guidance can be found here.
Business support packages: latest updates
The government and British Business Bank have issued further guidelines regarding the Coronavirus Business Interruption Loan Scheme, making further clarification on the subject of personal guarantees. Click here for more information.
Whether a lender requires a personal guarantee for a loan supported by the (CBILS) is at the discretion of the lender, who is accredited by the British Business Bank. However, a lender is not allowed to take a personal guarantee against a borrower’s principle residence under the scheme. So even if a personal guarantee is required under the lender’s credit policy, it cannot be taken against the borrower’s home. Some major lenders have announced that they are not going to require personal guarantees on loans under CBILS the scheme (of any size). More information can be found here.
This information and advice is ever changing and developing. The latest information about these initiatives can be found here:
- Extra protection for businesses with ban on evictions for commercial tenants who miss rent payments
- Financial assistance for employers unable to pay statutory redundancy payments
- The Coronavirus Job Retention Scheme
- Deferring VAT and Income Tax payments
- Statutory Sick Pay relief package for SMEs
- 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
- Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- The Coronavirus Business Interruption Loan Scheme offering loans of up to £5million for SMEs through the British Business Bank. NOW OPEN FOR APPLICATIONS
- A new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans. NOW OPEN FOR APPLICATIONS
- The HMRC Time To Pay Scheme
The government has set up a business support helpline, which is open Monday-Friday, 9am-6pm. More information can be found here. The latest UK Government advice can be found here.
There is a dedicated Government Business Support site here.
Call for business help
Do you have an innovative or novel approach to get ambulances cleaner quicker to help combat Coronavirus? The Defence and Security Accelerator has launched a new Innovation Focus Area as part of its Open Call for Innovation seeking industry’s help to identify rapid sanitising technology solutions that can be demonstrated in a live trial on an ambulance. More information is available here.
Government launches Coronavirus information service on WhatsApp
The UK Government has launched a GOV.UK Coronavirus Information service on WhatsApp. The new free to use service aims to provide official, trustworthy and timely information and advice. To use the free GOV.UK Coronavirus Information Service on WhatsApp, simply add 07860 064422 in your phone contacts and then message the word ‘hi’ in a WhatsApp message to get started. Further information can be found here.