What financial support is available for small businesses affected by COVID-19?
PUBLISHED: 11:56 15 May 2020 | UPDATED: 15:44 15 May 2020
Learn what financial support can help your business survive the coronavirus pandemic.
Christopher Way BA, MSc (Accounting and Finance) AIA, CPA, FTA Tax Dip. Bus, principal director of Colyton’s CRW Accountants Ltd explains what loans are available for small businesses.
Q: What should I do if my business is closed?
Firstly, apply for furlough for yourself (if employed by your Company) and your employees to replace lost earnings.
Employees will get 80pc of their regular wage, capped at £2,500, and their national insurance contributions paid. Furlough will last until July, and in some cases may stretch to October.
CRW Accountants Ltd will advise how to furlough your staff and can complete claim forms on their behalf.
Q: How will I pay my income tax?
HMRC is deferring VAT and self-employed income tax bills. Speak to them directly to negotiate extra time to pay corporation tax and PAYE.
CRW Accountants Ltd offer specialist tax services to reduce business costs, avoid unnecessary mistakes and ensure efficiency.
The government has also introduced a business rates holiday for retail, hospitality and leisure businesses.
CRW Accountants Ltd can advise on council cash grants available to support businesses.
Q: What loans are available for small businesses?
The ‘Coronavirus Business Interruption Loan’ is a temporary measure set up by the government to support your cash flow during the pandemic.
You can receive up to £250,000 in unsecured loans. You don’t need to sign over the value of your property to apply. The government will provide an 80pc guarantee on each loan free of charge.
CRW Accountants Ltd can assist with preparing the information the lender is likely to request in support of any loan application.
The ‘Business Bounce Back Loan’ is well suited to small businesses. You can apply online and the process is easy to complete.
You can borrow up to 25pc of your annual turnover amount, anything from £2,000 up to £50,000. It’s repayable over six months, with low-interest rates and no repayments needed for the first 12 months.
The loans from the bank are 100pc backed by the government, meaning there’s no need for you to supply collateral or provide personal guarantees instead.
Q: What help is available, in addition to the foregoing, if I’m self-employed?
You can apply for the ‘Self-Employment Income Support Scheme’ which, subject to the agreement of HMRC that you qualify, will pay 80pc of your average monthly profits, up to £2,500.
The grant is payable for up to three months. It will be paid in one lump sum and will be available from May 25, 2020.
CRW Accountants Ltd can’t apply on your behalf but can answer any questions you may have.
Q: How can you help me understand my options?
CRW Accountants Ltd sent business owners a 12-page newsletter explaining the financial support available during the coronavirus – this is still available, free of charge, to anyone upon request.
They inform their most vulnerable clients of any grants and loans they may benefit from and provide details of the HM government business support, to enable clients to keep fully up to date, daily.
For example, CRW Accountants Ltd helped a client to find some much-needed financial relief.
They knew the business was eligible for the ‘Business Bounce Back Loan’ and explained how an application could be made. The client did it online the same day and the money was transferred to his account within 48 hrs.
CRW Accountants Ltd will inform you of any legislation changes that may affect your business, freeing you up to focus on the important things, like supporting your business.
Q: What help can you offer my business?
Christopher and his staff specialise in supplying financial and taxation services to small businesses. CRW Accountants Ltd have been providing their services for over 35 years. They have many valued clients and are always pleased to welcome new ones.
The team spend time getting to know you and your business in your first appraisal meeting, free of charge and learn how they can best advise you.
Though the office is currently closed to visitors, they continue to offer their services by telephone or email.
This information is provided in good faith but professional advice should be taken prior to actioning any aspects of the foregoing.
If you value what this story gives you, please consider supporting the Midweek Herald. Click the link in the yellow box below for details.