Financial Cures for the Coronavirus

19th March, 2020 by William Shirley

On 17 March 2020, the Chancellor announced “unprecedented” levels of fiscal support to assist businesses and families in the wake of the coronavirus epidemic. The support package at present amounts to £330bn with the strong likelihood that more funds will be made available. This support will be vital for small and medium-sized businesses, who are most likely to be hit by a combination of trading difficulties, a huge slump in demand and staff absences.

A key issue for all of these business will be cash flow and, with this in mind, the Chancellor announced the following measures:

No business rates to be paid on properties in the retail, leisure and hospitality sectors from 1 April 2020 for a period of 12 months. Businesses need to apply to their local authority;
Businesses in the retail, hospitality and leisure sectors will be able to obtain grants of up to £25,000 on properties with a rateable value of between £15,000 and £51,000;
A Coronavirus Business Interruption Loan Scheme which is designed to provide loans of between £1,000 and £5m for businesses facing cash flow difficulties;
Covid Corporate Finance Facility scheme is for larger businesses which allows them to access funds provided by the Bank of England;
HMRC time to pay agreements in relation to VAT, PAYE, NIC and Corporation Tax liabilities. Such requests will be viewed by HMRC on a case by case basis;
Statutory sick pay reclamation for businesses which employ less than 250 employees;
One off grants of £10,000 aimed at small businesses who pay little or no business rates under the existing Small Business Rate Relief scheme;
One off grants of £10,000 under the Rural Relief Scheme; and
A three-month mortgage holiday for those in difficulty because of coronavirus.

Whilst it is some welcome news for businesses and families in financial distress, the devil will be in the detail. Please therefore contact a member of the team to provide advice and assistance in relation to the financial support measures announced by the Chancellor and also in relation to the continued trading of your business.

The information on this site about legal matters is provided as a general guide only. Although we try to ensure that all of the information on this site is accurate and up to date, this cannot be guaranteed. The information on this site should not be relied upon or construed as constituting legal advice and Howes Percival LLP disclaims liability in relation to its use. You should seek appropriate legal advice before taking or refraining from taking any action.

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