The Covid pandemic has impacted everyone and every business whether large, small, local or worldwide.
The government has implemented so many measures to help businesses it can be difficult to see the wood through the trees and identify whether you qualify for covid 19 business grants.
In this blog we have detailed some of the main covid grants for small business which will help your business survive these unprecedented times.
Self Employed Covid Grant
At the time of writing this there have been 3 covid self employed grant claims covering the period to 31 January 2021.
It is expected that there will be a fourth self employed covid grant to continue to assist self employed businesses impacted by the covid 19 pandemic.
Rishi Sunak will provide an update on the fourth covid self employed grant in his budget on 3rd March 2021.
We will provide an update on the fourth self employed covid grant as soon as the information is released.
Covid Business Grant
There were discussions recently that the government was going to implement a covid business grant or a covid small business grant for limited companies and their owners.
It appears that these rumours were unfounded and nothing more has come of it, however Rishi Sunak will provide an update for all covid business grants and support as part of his budget on the 3rd March 2021.
There is currently only two types of covid grant available for limited companies:
- Furlough covid grant
- Local restriction support covid grant
Furlough Covid Business Grant
The furlough covid business grant covers a proportion of employee wages provided they meet certain criteria. This also covers wages of company directors but does not cover dividends.
A claim can be made every month and is usually paid within 6 days of the claim being made.
The scheme is set to run until the end of March 2021, however Rishi Sunak’s budget update on the 3rd March may extend this, however it is not guaranteed.
Local Restriction Support Covid Grant
If your business pays rates or qualifies for small business rates relief and has had to close its premises it may qualify for the Local Restriction Support Covid Grant.
If your business qualifies then you will receive:
|Less than £15,000||£2,001 for every 42 days of restrictions|
|Over £15,000 but less than £51,000||£3,000 for every 42 days of restrictions|
|Over £51,000||£4,500 for every 42 days of restrictions|
You need to submit a claim for the Local Restriction Support Covid Grant through your businesses local council.
Covid VAT Payment Deferral
Did you defer your VAT payment between 20 March and 30 June 2020 and still have payments to make?
Originally HMRC gave VAT registered businesses until 31 March 2021 to pay their deferred VAT, however as the Covid 19 pandemic has continued and impacted businesses for longer than anyone could have anticipated HMRC are offering an extension to the VAT payment deferral until 31 March 2022.
Under the new VAT payment deferral scheme, HMRC are offering businesses that deferred their VAT payment between 20 March and 30 June 2020 the option to pay their outstanding VAT liability in equal monthly instalments interest free.
The new VAT payment deferral scheme goes live on 23 February 2021, with a deadline for joining the scheme of 21 June 2021.
What if I Do Not Qualify for Any Covid 19 Business Grants?
If you do not qualify for any of the covid 19 business grants we have detailed above, you may be eligible for a Bounce Back Loan or Coronavirus Business Interruption loan.
Unlike the support offered under the various covid 19 business grants, these loans need to be paid back to the bank and you will incur interest.
There is nothing to pay for the first 12 months and the loan is backed by the government. There will also be an option to extend the loan term from 6 years to 10 years.
Businesses have until the end of March to apply for a Bounce Back Loan or Coronavirus Business Interruption loan.
Who Can Help Me With My Covid Business Grants?
At Edwards Bailey Chartered Accountants our team are fully up to date with the latest covid business grants. If you would like a free 30 minute consultation to discuss what covid grants and support your business qualifies for please call us on 01708 200675, email us at firstname.lastname@example.org or contact us through our website www.edwardsbailey.co.uk.