The last year has been a rollercoaster for not just the public but businesses big and small. As the Government scrambles to catch up, businesses have been left in even more confusing predicaments trying to ensure they not only stay afloat but also meet health and safety laws and have enough staff to cover the work that is there.
The latest guidance may not seem too dissimilar to the previous full lockdown, but for those wishing to know what financial help is available for businesses, here’s a quick roundup.
- Self Employed Workers and Partnerships
For help through the Self-Employment Income Support Scheme, you must have had a new or continuing impact from coronavirus between 1 November 2020 and 29 January 2021, which you reasonably believe will have a significant reduction in your profits.
If you were not eligible for the first two taxable grants in 2020, unfortunately you will not be eligible for this third grant. However, if you were, it is worth 80% of your average monthly trading profits, which will be paid out as a single amount, intended to cover 3 months’ worth of profit, and capped at £7,500.
This grant is subject to Income Tax and self-employed National Insurance.
To find out further information and make a claim, please visit the Support for Self-Employed People government page.
- Support For Employee Wages
The latest guidance has announced that the coronavirus job retention scheme has been extended until the 30th of April 2021.
Business is looking to claim will need a government gateway user ID and password, and the claim can be made before during or after you’ve processed your payroll, provided it meets the relevant claim deadline. Claims must be submitted by 11:59 pm 14 calendar days after the month you’re claiming for.
All payments received under the scheme or calculated as your taxable profits for income tax and corporation tax purposes. Employment costs are then deducted as normal when calculating taxable profits.
As has been previously, employees will receive 80% of the usual salary for hours not worked up to a maximum of £2500 per month. This allows for some stuff to be either fully furloughed or allow them to work less hours. The cap is proportional to the hours not worked. Employers will also not have to contribute for any hours that have not been worked, only having to cover National Insurance and Employer Pension contributions.
- Coronavirus Local Restrictions Support Grant
Depending on the rateable value of your business, you may be entitled to a grant of up to £9,000. The one-off top-up grant will be available for businesses operating in leisure, hospitality and retail. However, as it is from a £549m discretionary fund, other businesses may be able to apply if they have been affected by the lockdown.
Applications for this support grant should be made through your local authority.
- Other funding available
Prior to the latest announcements, there are also other options in place that may be able to offer financial help, such as the Additional Restrictions Grant, that is available for businesses covered by other schemes, and the Bounce Back Loan Scheme which is currently available until the end of March.
There is no doubt that many businesses are struggling but hopefully, with funding available through the Government, they will weather the storm and keep their employees.