Budget 2020 – COVID-19

In his budget on 11 March the Chancellor announced various measures to help businesses deal with the potential financial implications of the COVID-19 pandemic.

Small Business Grant Funding

The government recognises that many small businesses pay little or no business rates because of Small Business Rate Relief (SBRR). To further support businesses that benefit from Small Business Rate Relief (SBRR) or Rural Rate Relief (RRR), the government will provide £2.2 billion of funding for Local authorities in England. This will provide £3,000 to around 700,000 business currently eligible for SBRR or RRR, to help meet their ongoing business costs.

Time to Pay

HM Revenue & Customs has set up a dedicated COVID-19 helpline to support both companies and unincorporated businesses who are concerned about their ability to meet a tax bill due to COVID-19.

The number is 0800 0159 559.

HMRC will also consider waiving late payment penalties and interest where a business experiences administrative difficulty contacting them or paying taxes due to COVID-19.

Coronavirus Business Interruption Loan Scheme

A new temporary Coronavirus Business Interruption Loan Scheme will be launched to support businesses to access bank lending and overdrafts. The scheme will be delivered by the British Business Bank.

The government will provide lenders with a guarantee of 80% on each loan (subject to a per lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs.

The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £1.2 million in value. This new guarantee will initially support up to £1 billion of lending on top of current support offered through the British Business Bank.

A summary of the measures to support businesses through this period of disruption caused by COVID-19.

• a statutory sick pay relief package for SMEs
• a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
• small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
• grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
• the Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance
• the HMRC Time To Pay Scheme

Below is a link to the Government website with more details regarding each of the above measures which will be continually updated as more measures are announced.

Here, at Mitchells Accountants & Business Advisers, we are making use of our cutting edge technology and are open for business as usual. If you need any support in these challenging times please get in touch.

Our Budget Summary provides an overview of the key announcements arising from the Chancellor’s speech. However, it also looks beyond the headlines and offers details on the less-publicised changes that are most likely to have an impact upon your business and your personal finances.