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Covid-19 and businesses


 

In light of the Covid-19 / Coronavirus outbreak we have created a guidance sheet for our North East businesses to understand what is available to support them and their business in the immediate future.

We completely understand this is a very hard time for everyone at the moment and that everyone is having to change their work patterns and practices to ensure they are keeping themselves and their families safe.

It is important to note that PNE is still available to support you and so if you are a business who wants to have a chat or a current client of ours please do get in touch.

Our appointments are currently through digital methods i.e. no face to face available, but because of this we have been able to make evening appointments available which we hope helps.

NOTE: The government are currently continuously updating their information and are making this available at https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses and things are moving at pace therefore we but also yourself should continue to closely monitor the situation   

If you employ staff

Coronavirus Job Retention Scheme – This is if you are potentially going to let your staff go due to a drop in income to pay wages. You need to designate your employees as ‘furloughed workers’ and let the employee and HMRC know through a portal they haven’t created yet. You will receive up to 80% of the wages up to £2,500 a month.
Note: again, the application hasn’t been created yet and so you will need to wait for this. (See loan below if you need immediate support)

Paying sick pay to employees – you must have employed less than 250 staff before 28th Feb 2020 and the rebate is currently going through legislature procedure and therefore is not available yet so please watch out for more info on this soon. For info you will be refunded 2 weeks Statutory sick pay if they were off because of Covid 19 and so it is important that you retain records as you would normally for people who are off sick.
Note: again, the application hasn’t been created yet and so you will need to wait for this. (See loan below if you need immediate support)

If you are VAT registered

You don’t need to do anything as this is automatic but for info you will have VAT deferred from 20th March 2020 to 30th June 2020.  Note: this is a deferral you will have to pay any VAT at some point so please continue to keep records.

If you are self employed and due to pay an Income Tax bill in July 2020.

You don’t need to do anything as this is automatic but for info you will have your July payment deferred until 31 January 2021. Note: this is a deferral so you will still have to pay just at a later date so please keep all records required.

If you are in the retail, hospitality or leisure industry

Business Rates - You don’t need to do anything this is automatic and will be applied on your next bill from your local authority

Retail and Hospitality Grant Scheme –. If your business rateable value is under £15,000 you will receive £10,000, if your over £15,000 but less that £51,000 you will receive £25,000. You do not apply for this grant; your local authority will write to you to tell you your eligible.

If you pay business rates but are not in the retail, hospitality or leisure industry

You do not need to do anything as this is automatic and your local authority will write to you however for info you will receive a grant of £10,000.

Support for all in business trading and registered as self-employed or a limited company

This is open now and you apply through your business bank or if you do not have a bank account for business purposes through one of 40 providers at https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/accredited-lenders/

Please note that this is a loan and not a grant and is therefore repayable at the terms the lender arranges with you. Lenders i.e. the bank are guaranteed 80% of the loan they make to businesses and so the risk is lessened, and this hopefully makes them more likely to lend to you.

As with all lending you will need to

Step 1 – discuss with the lender before applying including reasons why you need to lend the money

Step 2 – put a business proposal and cash flow forecast showing loan repayments

If you already have borrowing from a bank, then it also may be worth asking for a repayment holiday to help with business cash flow.

Note: You will not need to pay a fee to access this finance and your first 12 months of interest payments will be covered by government. You can access up to 6 years for loans and up to 3 years for overdrafts.

This article was created thanks to a project that is part funded by the North of Tyne CLLD programme and delivered by PNE Enterprise

 


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