We welcomed the Chancellor’s announcement last night of the package of financial support for the five million self-employed people across the UK which provides critical reassurance for the community of freelancers and consultants who support the luxury sector.
The details of the package and mechanism of delivery are being finalised but the scheme includes:
- A grant worth 80% of taxable profits up to £2,500 per month
- The grant covers a period of 3 months for now but can be extended if necessary
- Individuals are able to claim the grant at the same time as continuing to do business
- It is open to anyone with trading profits up to £50,000 and who have filed a tax return in for 2019
We are aware that advice for businesses is evolving very rapidly and guidance still being published and updated, so please do check back if you can’t find what you need immediately. Also, if you are having difficult in accessing the support you need we would like to hear from you, please contact Charlotte Keesing and Carly von Speyr.
Coronavirus Job Retention Scheme Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme that was created and started on or before 28 February 2020, will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis. This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers’. HMRC will pay employers a grant worth 80% of an employee’s usual wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage. This is to safeguard workers from being made redundant. The Coronavirus Job Retention Scheme will cover the cost of wages backdated to March 1st if applicable and is initially open for 3 months, but will be extended if necessary.
Read scheme details and eligibility here
Details on how to access the Job Retention Scheme are yet to be published.
***
Coronavirus Business Interruption Loan Scheme (CBILS) The temporary Coronavirus Business Interruption Loan Scheme supports small and medium-sized businesses with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years. The Government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments. The scheme will be delivered through commercial lenders, backed by the Government-owned British Business Bank. There are 40 accredited lenders able to offer the scheme, including all the major banks.
Read scheme details and eligibility here
How to apply here
***
Covid Corporate Financing Facility (CCFF) The new Covid-19 Corporate Financing Facility (CCFF) means that the Bank of England will buy short-term debt from larger companies. This will support companies which are fundamentally strong, but have been affected by a short-term funding squeeze. It will also support corporate finance markets overall and ease the supply of credit to all firms. The scheme will be funded by central bank reserves – in line with other Bank of England market operations. It will operate for at least 12 months, and for as long as steps are needed to relieve cash flow pressures on firms that make a material contribution to the UK economy.
Read scheme details and how to apply here
***
Small Business Grant Funding The Government is providing additional funding for Local Authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBRR), 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.
Read scheme details and eligibility here
How to apply - You do not need to do anything. Your Local Authority will write to you if you are eligible for this grant.
***
Cash Grant for Retail, Hospitality and Leisure If your business is in the retail, hospitality or leisure sector, you will receive a cash grant of up to £25,000 per property. Businesses in these sectors with a property that has a rateable value of up to £15,000 will receive a grant of £10,000. Businesses in these sectors with a property that has a rateable value of over £15,000 and less than £51,000 will receive a grant of £25,000.
Read scheme details and eligibility here
How to apply - You do not need to do anything. Your Local Authority will write to you if you are eligible for this grant.
