On Wednesday, Budget Chancellor Rishi Sunak announced that due to the recent outbreak of Coronavirus (COVID-19) that the Government will be supporting businesses who are experiencing increased costs or disruptions to their cash flow.
This includes a temporary Coronavirus Business Interruption Loan Scheme which will support a further £1 billion lending to SMEs, a £2.2 billion grant scheme for small businesses and a dedicated helpline for those who need a deferral period on their tax liabilities.
How to apply for the Coronavirus Business Interruption Loan Scheme
This scheme means that the Government will provide lenders with a guarantee of 80% on each loan (subject to cap on claims) in order to give lenders further confidence in lending to SMEs. The loan value of £1.2 million will not charge businesses or banks to ensure the 80% guarantee and will support up to £1 billion in lending on top of current support offered through the British Business Bank.
The scheme will be delivered by the British Business Bank in the next few weeks and it will operate in a similar way to the Enterprise Finance Guarantee (EFG) Scheme which it is temporarily replacing.
Keep up to date on the latest developments from The British Business Bank here.
How to contact the dedicated helpline to defer tax liabilities
If your business has been affected by the Coronavirus, the Government has set up a dedicated helpline to support businesses and self-employed people concerned about being able to pay their tax.
You can contact HMRC’s helpline on 0800 0159 559.
Their opening hours are Monday to Friday 8am until 8pm and Saturday from 8am until 4pm.
They will discuss your specific circumstances and explore whether you could agree to an instalment agreement, have your debt collection proceedings suspended or if any penalties could be cancelled.
How to get the £3,000 coronavirus grant
The Government also announced that small businesses who pay little to no business rates will be eligible for a one-off coronavirus grant worth up to £3,000. Around 700,000 businesses in the UK currently qualify for Small Business Rate Relief (SBBR) or Rural Rate Relief and can apply for the emergency funding.
This funding will be delivered by your local authority in the coming weeks for small businesses with a rateable value of less than £12,000.
How to apply for the 100% discount on business rates
Businesses within the retail, leisure and hospitality sectors with a rateable value of less than £51,000 will now have their business rates discounted by 100% for 20/21. This measure was taken by the Government to help support businesses with their finances and cash flow during this time.
Whilst the Government already announced a 50% discount rate to businesses to be applied from the 20/21 billing cycle, this has now been extended by abolishing the business rates charge for the 20/21 financial year.
Please contact your local council to discuss your business rate discount for the 20/21 financial year.
As more information is released this page will be updated accordingly.
The post The Budget 2020: How to save money on your business rates appeared first on Ecommerce Blog.
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