Posted: 17 March 2020
Coronavirus - COVID-19 Update
UPDATED 18.3.20
What has the chancellor offered to businesses? Following PM update 17.3.20
Awaiting full clarification on process to claim etc.
- £330bn of loan guarantees to businesses, with more to be made available if needed
- Interest-free business interruption loans will be increased to £5m, up from £1.2m announced at last week's budget. No interest will be due for the first six months
- A 12-month business rates holiday for all shops, pubs, theatres, music venues, restaurants and any other hospitality or leisure business
- A cash grant up to £25,000 for businesses with a rateable value less than £51,000
- Cash grants of £10,000 to 700,000 of the smallest businesses
- Local authorities will be fully compensated for the cost of these measures, with at least £3.5bn going to devolved administrations in Scotland, Wales and Northern Ireland
- A potential support package for airlines and airports in the face of worldwide travel bans
As concerns about the spread of the coronavirus COVID-19 increase for small businesses we wanted to update you on what we are doing at DTA during this time.
Our plan is as follows:
Health comes first: We are encouraging everyone to wash their hands, socially distance, and follow best practices to protect the health and wellbeing of themselves, their family, and our customers.
We’re open for business: Our intention is to remain open to help our clients through this difficult time. Our team is continuing to work normal business hours and have the resources and tools they need to support you – including remotely should it become necessary.
Working remotely: We encourage clients that may be at risk or for those that prefer to to speak with us over the phone, email or Skype.
“ I am concerned how Coronavirus will affect my business?”
Scottish Government Support
New measures to limit the impact of COVID-19 on the business community in Scotland have been announced and the following steps will be put in place to support businesses during the 2020-21 financial year:
· 75% rates relief for retail, hospitality and leisure sectors with a rateable value of less than £69,000 from 1 April 2020
· £80 million fund to provide grants of at least £3,000 to small businesses in sectors facing the worst economic impact of COVID-19
· 6% rates relief for all properties across Scotland, effectively reversing the planned below inflation uplift in the poundage from 1 April 2020
· Fixed rates relief of up to £5,000 for all pubs with a rateable value of less than £100,000 from 1 April 2020
The Scottish Government business helpline number is 0300 303 0660. The helpline will be open Monday to Friday 8.30am to 5.30pm. Callers should select option one to speak to the COVID-19 team.
UK Government Support
The Chancellor has set out a £12 billion package of temporary, timely and targeted measures to support public services, individuals and businesses through the economic disruption caused by COVID-19 including:
Statutory Sick Pay
For businesses with fewer than 250 employees, the cost of providing 14 days of statutory sick pay per employee will be refunded by the government in full. This will provide 2 million businesses with up to £2 billion to cover the costs of large-scale sick leave. Please note that Statutory Sick Pay is now payable from Day 1 instead of Day 8. We will help you through this process as part of us preparing wages.
Sick Pay for the Self Employed
Those who are not eligible for SSP, for example, the self-employed or people earning below the Lower Earnings Limit of £118 per week, can now more easily make a claim for Universal Credit.
For the duration of the outbreak, the requirements of the Universal Credit Minimum Income Floor will be temporarily relaxed for those who have COVID-19 or are self-isolating according to government advice, ensuring self-employed claimants will receive support.
People will be able to claim Universal Credit and access advance payments upfront without the current requirement to attend a jobcentre if they are advised to self- isolate.
Contributory Employment and Support Allowance will be payable, at a rate of £73.10 a week if you are over 25, for eligible people affected by COVID-19 or self- isolating in line with advice from Day 1 of sickness, rather than Day 4
Reduction in Interest Rates by The Bank of England
The Bank of England has also announced a package of measures to help UK businesses and households bridge across the economic disruption that is likely to be associated with COVID-19. Interest rates have been reduced from 0.75% to 0.25% and additional funding will be available for banks to increase lending, especially to SMEs.
Dedicated helpline and Time To Pay
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. These businesses can contact HMRC’s new dedicated COVID-19 helpline for advice and support. To ensure ongoing support, HMRC have made a further 2,000 experienced call handlers available to support firms and individuals when needed.
For Time to Pay support if you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
It’s always better to agree to a plan now rather than wait.
DTA are here to help and support you if you are worried about the effects of Coronavirus on your Small Business.
It’s naturally a worrying time for many small business owners. So, to help you we are here to answer any questions that you may have simply give us a call on 01324 228381 or drop us an email.
“What more can DTA do for me and my business at this time?”
Get on top of your Cashflow
Never before has it been so important for you to fully understand your businesses cashflow position. Having a cashflow forecast can really help you get peace of mind knowing that you have sufficient cash to meet your obligations including paying yourself, your staff, your suppliers and of course, your tax and VAT.
During this difficult time, we can help you prepare a cashflow forecast so that you get a real-time position of where you’re at right now and help you make the right decisions with confidence. If you want help or guidance please get in touch.
If cash is tight or if you have concerns, then there are some options for you for both short and long term business finance. Speak with your Bank they are here to help where they can.
Insurance
Check that your policy includes business interruption for public health closures and infectious diseases. If not, then speak to your insurance provider as soon as possible.
Check that your policy covers you for loss of income. Again, if not, speak to your insurance provider as soon as possible.
Keep yourself up to date on the latest developments
Below are some links you can use to keep up to date on the latest news, current developments and advice and guidance.
What are DTA’s next steps?
We will continue to keep an eye on the situation and make further adjustments to our action plan if, and when necessary.
It’s naturally a worrying time for many small business owners. So, to help you we are here to answer any questions that you may have simply give us a call on 01324 228381 or drop us an email.
