Covid19 – Business Update from Hisbah LLP Chartered Accountants

Covid19 – Business Update
Hisbah LLP Chartered Accountants 7 Greenfield Crescent Edgbaston B15 3BE

In light of the impact COVID-19 is having on the economy, Birmingham City Council would like to ensure our businesses and employees are fully aware of all of the financial support which is being made available through the Government.

Going forward, we will issue a weekly update with details of any grants or relief which business can apply for with links to the relevant sources of information.

Coronavirus Job Retention Scheme
Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month.

Support for Businesses Paying Sick Pay
The Government will bring forward legislation to allow small-and medium-sized businesses (under 250 employees) and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. This refund will cover up to two weeks’ SSP per eligible employee who has been off work because of COVID-19 (subject to eligibility)

Deferring Value Added Tax (VAT) Payments
The Government will support businesses by deferring Valued Added Tax (VAT) payments for three months. The deferral for VAT will apply from 20 March 2020 until 30 June 2020 and is an automatic process with no applications required

Support for retail, hospitality and leisure businesses that pay business rates
A business rates holiday will be implemented for retail, hospitality and leisure businesses in England for the 2020/ 2021 tax year. Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority as soon as possible.

Cash grants for retail, hospitality and leisure businesses
The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property depending upon the property’s rate-able value. The local authority will write to eligible businesses.

Support for nursery businesses that pay business rates
The Government will introduce a business rates holiday for nurseries in England for the 2020 to 2021 tax year. This will apply to your next council tax bill in April 2020. However, local authorities may have to reissue your bill to exclude the business rate charge.

Support for businesses that pay little or no business rates
The Government will provide additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR), rural rate relief (RRR) and tapered relief. This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.

Support for businesses through the Coronavirus Business Interruption Loan Scheme
The new Coronavirus Business Interruption Loan Scheme supports SMEs with access to working capital (including loans, overdrafts, invoice finance and asset finance) of up to £5 million in value and for up to six years. The Government will pay to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will not face any upfront costs and will benefit from lower initial repayments.

Support for Businesses Paying Tax: Time to Pay Service
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.

Please call and speak to one of our experienced members of staff should you require further clarity on 0121 454 7680.

Leave a Reply