We would like to update you on the various Government schemes available for businesses. There have been a number of new announcements including Bounceback Loans for small and medium sized businesses and the launch of a hardship fund for newly self-employed.
Details of the new announcements and information on existing schemes is provided below.
Bounceback Loans – New
The UK Government has introduced a new loan scheme for small and medium sized businesses with a simplified application procedure. Loans of between £2,000 and £50,000 will be available. The Government will guarantee 100% of the Loan with no fees or interest to pay in the first 12 months. Loan terms will be up to 6 years and no repayments will be due in the first 12 months.
The scheme launches on 4 May and applications will be made through bank websites.
Newly Self-Employed Hardship Fund – New
The Scottish Government has launched a £2,000 grant for people who commenced self-employment after 5 April 2019 and are therefore ineligible for the Self Employed Income Support Scheme. Local councils are administering this grant so applications are made via each authorities website. These can be accessed from the link below.
Creative, Tourism and Hospitality Enterprises Hardship Fund – New
The Scottish Government has launched a grant scheme for businesses within the above sectors that have been unable to access other schemes apart from the Coronavirus Job Retention Scheme. Therefore the scheme is available for businesses with a rateable value of more than £51,000 or who are not registered to pay business rates.
Pivotal Enterprise Resilience Fund – New
This scheme is available to businesses who are providing essential services such as supplying the NHS or who are vital in a local or the national economy.
Coronavirus Job Retention Scheme
The scheme opened on April 20. We are currently processing claims for our payroll clients and will inform them when a claim has been made. Payments from HMRC are due within 6 working days of submission.
If you are submitting your own claim then there is an online calculator at this link:
However in the following circumstances, at the time of writing, the calculator does not work in the following circumstances:
- receive any top-up pay in the claim period
- returned from statutory leave such as maternity leave in the last three months
- get director’s payments
- have been transferred under TUPE
- have been employed at separate times throughout the year
- receive employer pension contributions outside of an auto-enrolment pension scheme
- have an annual pay period
HMRC have indicated that they will update the calculator at some point in the future but in the meantime there is guidance at the above link for manual calculations.
Self-Employment Income Support Scheme
80% of average profits over the last 3 years will be paid to those whose business have been adversely affected by Covid 19.
This scheme is still forecast to be launched this month with payments being made in June. We will keep clients informed as soon as more details are released.
Business Support Grants
The Scottish Government has made some adjustments to this scheme and there is now provision for a claim to be made if a business has more than one property
The return for the quarter ended 31/3/20 is still due by 7/5/20 but HMRC will not be enforcing collection and the payment is deferred until 2021. However if you pay by Direct Debit you must cancel it.
Creative Industry Bursary
There is a bursary available for freelancers who have been most affected by the cancellation of projects due to Covid 19.
Enterprise Relief Fund
Business owners aged between 18 and 30 who have started trading within the last 4 years can apply for a grant at this link: