COVID-19 Government Support for UK SMEs

Job retention scheme

‍• Affected employees must be designated as “furloughed workers” and notified as such.
• HMRC will set up an online portal to submit information.
• HMRC will reimburse 80% of furloughed workers wage costs, up to £2,500 per month.

• The scheme will run for three months from 1 March but may be extended.
• Does not apply to short-time working.
• Consent is required from employees to furlough.
• Can include workers who were in employment on 28 February 2020.

Business interruption loan scheme

• Launches w/c 23 March.
• Government provides lenders with a guarantee of 80% on each loan.

• Supports loans of up to £5m.
• Interest and fees paid by the Government for 12 months.
• List of accredited lenders includes banking partners

Deferral of vat

• VAT payments from 20 March to 30 June will be deferred for 3 months.
• VAT liabilities that accumulate during the deferral period do not need to be paid until the end of FY21.
• VAT reclaims will be processed as normal.

Sick pay support

• Government will refund up to two weeks’ Statutory Sick Pay per employee who has off work because of COVID-19.
• Employees do not need to provide a GP fit note but should acquire an isolation note fromNHS 111 online (infected) or the NHS website (living with someone infected).
• Repayment will happen over the coming months as the mechanism is set up.

Time to pay service

• Payment plans for outstanding tax liabilities available on a case-by-case basis.
• HMRC have a dedicated helpline for companies in financial distress due to COVID-19: 0800 0159 559