What financial support is available for me and my business?

Last month the government announced measures to help businesses and individuals during the current COVID-19 pandemic.

What support could be available to your business?

1. Coronavirus Job Retention Scheme

HMRC will cover up to 80% of the salary of workers who are not working but are furloughed during the coronavirus crisis and kept on the payroll, rather than being laid off. This will be worth up to a maximum of £2,500 a month.

How to apply: Visit the government website for full details of how to apply.

2. Coronavirus Business Interruption Loan Scheme

For small and medium-sized businesses, the Chancellor has announced temporary business interruption loans of up to £5million with no interest due for the first six months. The money is aimed at helping businesses pay wages, rent and buy supplies.

How to apply: The loan will come from the British Business Bank. You’ll need to contact them directly to apply. 

3. Cash Grants 

Small companies in business premises with a rateable value (a measure of property values) of between £15,000 and £51,000 can apply for grants of up to £25,000. How to apply: You do not need to do anything. Your local authority will write to you if you are eligible for this grant.

Smaller businesses that are currently eligible for Small Business Rate Relief (SBBR) can apply for a one-off cash grant of up to £10,000. How to apply: You will be contacted by your local authority - you don’t need to apply. Find out more here.

4. Help with tax payments

If you have concerns about being able to pay your tax because of the coronavirus pandemic, contact HMRC’s helpline on 0800 0159 559.

5. Business rates relief

There will be a 12-month business rates ‘holiday’ - meaning no business rates to pay for a year - for the retail, hospitality and leisure industries. How to apply: You don’t need to do anything. This will apply to your next council tax bill in April 2020. However, local authorities may have to reissue your bill to take off the business rate charge.

6. Three-month mortgage holiday

All banks should offer you a three-month holiday from mortgage payments. This basically means deferring payments by three months.

7. Renters protected

The government has announced it is going to bring forward emergency laws to protect private renters from being evicted.The National Housing Federation has said they won’t evict tenants affected by coronavirus who fall behind on rent payments.

8. Credit cards

According to MoneySavingExpert, most banks and credit card firms have said they will allow emergency credit limit increases. Some will let you have repayment holidays and a few will waive fees for missed payments. Contact your credit card provider to find out what they can offer.

What about self-employment?

The government has introduced the Self-Employed Income Support Scheme. If you’ve had a loss of income thanks to COVID-19, you can receive a taxable grant worth 80% of your average monthly profits over the last three years. This will be worth up to a maximum of £2,500 a month. 

How to apply: HMRC will contact you directly. You’ll need to fill in an online form and they will pay the grant directly into your bank account. You’re likely to receive the grant, backdated for three months, at the beginning of June. Applications are expected to open mid May - but keep checking the government website.

Currently, if you’re self-employed you can also:

• access £94.25 a week in universal credit benefits;
• defer your self-assessed tax payments until next year.

With lock-down in place, what now?

It's obviously a concerning time for many, but there are ways to keep your business running during this period.

Stay in touch with your customers

Think about any special offers you could create for when business is back to normal. Maybe full beauty pamper packages if customers haven’t been able to make their normal appointments because of the lock-down. 

Bring your website up to date

This is a good opportunity to do all the admin jobs you’ve had on your list but not had time to do. One could be updating your website with new images, price lists and testimonials from loyal clients.

Stay social media savvy

If you can’t see your customers in person, another way to stay in touch is by doing short ‘how to’ videos and posting on YouTube. You can then share on social media. Try sharing photos of new trends on Instagram!

Create 'from home' care packs for clients

Think about how you can boost your retail sales. Could you put together hair treatment packs for clients to use at home? Or nail care packages? 

*Information correct as of 30th March*