On 17 March, Chancellor Rishi Sunak unveiled a £330 billion package of support for the UK economy as it combats the COVID 19 pandemic. The measures dwarf the £12 billion made available in the 2020 Budget. The package includes an increase in government-backed loans, higher cash grants, widened business rates relief for some sectors and mortgage holidays for struggling homeowners. The government has extended the Coronavirus Business Interruption Loan Scheme announced in the Budget from £1.2 million to £5 million, with no interest due for the first 12 months.
On 3 April, the Chancellor announced changes to the loan scheme in order to make it easier for small businesses to access loans. The current Business Interruption Loan Scheme has been extended so more small businesses benefit. Lenders will be banned from requesting personal guarantees on loans under £250,000. Additionally, a new scheme has been announced to bolster support for larger firms not currently eligible for loans.
Changes to business rates as a result of the coronavirus COVID 19 pandemic have been put into place as well as some grants.
Commenting on the measures, Dame Carolyn Fairbairn, Director General of the Confederation of British Industry (CBI), said:
‘This is a landmark package of measures for business, people and jobs. The Chancellor’s offer of substantial payroll support, fast access to cash and tax deferral will support the livelihoods of millions.’
At DE Ball we are aware that in such unprecedented circumstances some businesses may need some additional guidance about the financial support available to them, dealing with sick pay requests and how as a business they can navigate these tricky times.
Our comprehensive payroll and corporation tax services take into account all legal requirements to ensure you don’t get caught out. If you are worried about your business’s current financial situation contact us today to discuss how we can help you.