Small business owners are understandably very concerned about the impact of Coronavirus on their business. Transmit Startups have supported over 6,000 people to start their own business and our thoughts are with every single one of you during this unprecedented situation. Here's the financial support currently being offered by the Government to help keep businesses afloat during the pandemic.

[Last updated 26/5/20 using information from www.gov.uk]

Contents

This page includes information on:

1  Support for sole traders and the self-employed

2  Support for small businesses / SMES

3  Support for larger businesses

4  Help paying employees

5  Help with tax

1.  Support for sole traders and the self-employed during Coronavirus

Self-employment Income Support Scheme

A three-month grant of up to £2,500pm for people registered as self employed / members of a partnership. Numerous criteria apply. To be eligible you must:

  • have submitted a self-assessment tax return to HMRC for the 18/19 tax year
  • have been trading in tax year 19/20
  • intend to keep trading in tax year 20/21
  • have trading profits of no more than £50,000 per year
  • get more than half your income from self-employment
  • have lost trading profits due to COVID-19

Your actual payment will be based based on average trading profits over past three years of completed tax returns, covering 2016 to 2019. You can check your eligibility and claim online.

Employment and Support Allowance (ESA)

This is essentially Statutory Sick Pay for self-employed / freelancers not eligible for SSP. You can apply for ESA if you have a health condition that affects how much you can work (specifically if you need to self-isolate). It is available from day one of illness/isolation. Find out more about Employment Support Allowance.

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2.  Support for small businesses / SMES during Coronavirus

Coronavirus Business Interruption Loan Scheme

A Government-backed loan scheme for SMEs who:

The Government guarantees 80% of the finance and pays interest and fees for the first 12 months. Note, this scheme is not a 'pot of money' from which lending can be drawn. It is a loan scheme to which you'll have to apply and be approved. Your business will be responsible for repaying 100% of the amount you borrow.

Loans of up to £5 million are available. Find out more about applying for a Coronavirus Business Interruption Loan

Bounce Back Loans

A Government-backed loan scheme for smaller businesses who need to access finance more quickly during Coronavirus. For businesses that:

  • are based in the UK
  • were established before March 2020
  • have been adversely affected by Coronavirus
  • haven't received CBILS, CLBILS or COVID-19 corporate financing

The Government guarantees 100% of the finance and pays interest and fees for the first 12 months. Note, this scheme is not a 'pot of money' from which lending can be drawn. It is a loan scheme to which you'll have to apply and be approved.

Loans of £2,00 to £50,000 are available, up to a maximum 25% of your annual turnover. Find out more about applying for a Coronavirus Bounce Back Loan

Coronavirus Future Fund

Convertible loans for innovative businesses that usually raise funds through equity finance and aren't eligible for the Coronavirus Business Interruption Loan Scheme. You’re eligible if your business:

  • is based in the UK
  • can attract the equivalent match funding from third-party private investors and institutions
  • has previously raised at least £250,000 in equity investment from third-party investors in the last 5 years

There are other, more detailed, criteria, so visit the Gov.uk webpage for more information. The scheme is currently open for applications until the end of September 2020. Find out more about the Coronavirus Future Fund

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3.  Support for larger businesses during Coronavirus

Coronavirus Large Business Interruption Loan Scheme (CLBILS)

Like its little brother CBILS, this is a Government-backed loan scheme, but for larger businesses. Your business must:

  • be based in the UK
  • have a turnover of over £45m per year
  • have not received support under the COVID-19 Corporate Financing Facility

Finance is available from 3 months to 3 years. Loans are available up to:

  • £25 million for businesses with a turnover from £45m to £250m
  • £50 million for businesses with a turnover of more than £250m

The Government guarantees 80% of the finance and pays interest and fees for the first 12 months.  Note, this scheme is not a 'pot of money' from which lending can be drawn. It is a loan scheme to which you'll have to apply and be approved. Your business will be responsible for repaying 100% of the amount you borrow.

Find out more about applying for a Coronavirus Large Business Interruption Loan

COVID-19 Corporate Financing Facility (CCFF)

This scheme helps large businesses affected by Coronavirus by purchasing their short-term debt. All companies that meet the criteria set out by the Bank of England are eligible. The scheme is open for applications on the Bank of England website.

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4.  Help paying employees during Coronavirus

Coronavirus Job Retention Scheme (furlough)

The famous 'furlough' scheme that allows all UK businesses to suspend staff on 80% wages during Coronavirus. The Government will pay 80% of salary for furloughed employees, up to a maximum of £2,500 per month. Visit the Gov.uk website to dind out how to claim for furloughed staff

See our articles

Coronavirus Statutory Sick Pay Rebate Scheme (SSP)

For businesses with fewer than 250 employees (business size is determined by the number of people you employed as of 28 Feb 2020), the Government will refund - in full - the cost of providing 14 days of statutory sick pay per employee who is off work with COVID-19. You should maintain records of staff absenses and payments of SSP but employees will not need to provide a sick note. Businesses can reclaim online. Check your eligibility here.

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5.  Help with tax during Coronavirus

Business rate relief

Retail, hospitality and leisure businesses in England

You will receive a business rate holiday for the 2020 to 2021 tax year. You do not need to apply - your local council will contact you. Check your eligibility online.

You may also be entitled to a one-off cash grant of up to £25,000 from your local council under the Retail, Hospitality and Leisure Grant Fund (RHLGF). Check your eligibility online.

Small businesses that pay little or no business rates

If you receive small business rate relief or rural rate relief, you will receive a one-off grant of £10,000 via the Small Business Grant Fund. You will be contacted by your local authority, you do not need to apply. Check your eligibility online.

Nurseries in England

Non-Local Authority-run nurseries will receive a business rate holiday for the 2020 to 2021 tax year. You will be contacted by your local authority, you do not need to apply. Properties that will benefit must be:

  • occupied by providers on Ofsted's Early Years Register
  • wholly or mainly used for the provision of the Early Years Foundation Stage (up to 5 years old)

Deferral of VAT

If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to defer the payment until a later date if you need to. HMRC will not charge interest or penalties on any amount deferred. Find out more.

Tax helpline

If you're concerned about your ability to pay your tax due to Coronavirus, call the dedicated helpline for businesses and self-employed individuals with outstanding tax liabilities. Businesses may be able to agree a bespoke Time to Pay arrangement. Call 0800 0159 559.

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