Coronavirus support for small limited companies
What steps can you take to get support if you are a director/shareholder of your own limited company?
In this blog we pull together a round up of the support available.
1. Use the Coronavirus Job Retention Scheme (JRS) to furlough your employees
Key points of the JRS
- JRS will cover 80% of the cost of wages capped at £2,500 per month
- This funding is a grant so it is not repayable, it is however taxable
- You can backdate to 1 March 2020 if you have already laid off employees
- You can include workers who were in employment on 28 February 2020. Employees hired after this date cannot be furloughed
- The scheme is set to last for three months but it will be extended if necessary
- HMRC are setting up a portal which you use to claim back the 80%
- Even though you are a director you can still benefit from JRS and be furloughed so long as you do not actively work in the business. The government will pay 80% of your normal salary. But be warned your salary DOES NOT include any income you take as dividends.
2. Rates relief
If you qualify for small business rates relief, you will receive a £10,000 grant from your local authority. They will contact you directly and no action needs to be taken.
3. Coronavirus business interruption loan
Consider applying for a loan from your bank under Coronavirus Business Interruption Loan Scheme (CIBLS). There is potentially funding of up to £5m with a six-month interest holiday.
4. Defer tax and VAT
- Defer VAT payments due between 20 March 2020 and 30 June 2020 until 31 March 2021. You will still need to submit your VAT return as normal but make sure you cancel your VAT direct debit.
- Defer your 31 July 2020 tax payment on account until 31 January 2021.
5. Time to Pay
Contact HMRC Time to Pay team for any tax payments you need to make. The number is 0800 0159 559.
6. Statutory Sick Pay (SSP)
Reclaim any SSP payments made to employees for Coronavirus related sickness
7. Mortgage payment holiday
You should consider using the mortgage three-month repayment holiday to ease the burden on your finances. Please contact your lender as soon as possible to discuss your options. It is only available if you are up to date with your payments.
Please visit our Coronavirus advice hub for additional information or get in touch if you require further guidance.