Coronavirus and the illness it causes, Covid-19, could affect you in many different ways. We know that if you're the owner or the employee of a small business, this might be a particularly difficult time for you.
The government have taken steps to try and support businesses in the UK, saying that they will do 'whatever it takes' to stand with businesses.
We've outlined some of the main measures that the government has announced. But you can read about the measures in place to help businesses on the government site here.
You can also find our summary on how the government is helping small businesses specifically here.
The government will offer £330 billion in loans to businesses
This is the money that will go to all UK businesses. It's worth around 15% of the value of the economy. These measures have been taken because of big impact self-isolating will have on the economy.
Any business that would need access to this cash will be able to access a government-backed loan.
There's a scheme for larger firms
For large firms, the Bank of England will offer a new lending facility called the Covid Corporate Financing Facility.
This scheme will be open to larger firms that can show they were in good financial health before the impact of coronavirus. Applications are now open and more information can be found here.
And one especially for smaller businesses
For SMEs (small and medium sized businesses), the government has created a Business Interruption Loan Scheme. Under this scheme, the government will provide lenders with a guarantee of up to 80% on each loan, to give lenders further confidence in continuing to provide finance to SMEs.
The maximum value of those loans is £5m per business, and any business with a turnover of up to £45m can access it. Interest payments and any lender fees for businesses will be covered by the Government for an initial period of up to twelve months.
The Business Interruption Loan Scheme is now available for applications. You can read more about it here.
You can also find our summary on how the government is helping small businesses specifically here.
VAT and income tax payments have been deferred
For businesses, Value Added Tax (VAT) payments have been deferred for 3 months (from the 20th of March 2020 until 30th June 2020). All UK businesses are eligible for this. This will happen automatically and so you won't have to make any extra applications.
If you're self-employed, Self-Assessment Income Tax payments that would have been due in July 2020 will be deferred to January 2021. This will happen automatically and you won't be charged penalties or interest for late payment in the deferral period.
There's a job retention scheme that will help employers pay employees
The Chancellor also has announced a Coronavirus Jobs Retention Scheme under which will provide a grant to employers to keep their employees, instead of making them redundant.
Salaries will be paid at 80% of their current level up to a maximum of £2,500. These grants will be available by the end of April and in the meantime £30bn of cash flow relief has been provided through the deferment of VAT bills.
The hospitality, retail and leisure sectors will pay no business rates for a year
The hospitality, retail and leisure sectors are other areas of business that will be hit hard during this time. Firms in those sectors with insurance that covers pandemics can claim against it. All firms will pay no business rates for a year, whatever their size.
Hospitality, retail and leisure firms operating from smaller premises, with a rateable value over £15,000 and below £51,000, can also claim a cash grant from the government of up to £25k.
Mortgage lenders will offer a three-month mortgage holiday
Mortgage lenders will offer a mortgage holidays of up to three months for homeowners who are in financial difficulty because of the corona outbreak. If you're worried about making your mortgage payments during this period, contact your mortgage provider to discuss the available options. Read more about how banks are trying to support mortgage customers here.
A grant for small businesses of £10,000
The government will also provide a additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR), rural rate relief (RRR) and tapered relief.
This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.
Your local authority will write to you if you are eligible for this grant. Here's where you can find your local council if you'd like to get in touch.
You can also find our summary on how the government is helping small businesses specifically here.
Support if you're paying sick pay to employees
Small and medium sized businesses and employers will be able to reclaim Statutory Sick Pay (SSP) paid for anyone who is off sick because of coronavirus. The refund will cover up to 2 weeks' per employee who has been off because of coronavirus. You'll be eligible for this if your business has fewer than 250 employees.
Find out more about whether your business is eligible and how to reclaim the money here.
Help for businesses paying tax
If you or your business is in need of financial help and you have outstanding tax liabilities to pay, you might be eligible to receive support with your tax through HMRC’s Time To Pay service. This is agreed on a a case-by-case basis and are made to fit individual circumstances and liabilities.
You'll be eligible if your business pays tax to the government and has outstanding tax liabilities. Access the scheme by calling HMRC’s dedicated helpline: 0800 0159 559. And you can read more about it here.
Companies House have updated their service and moved online
Companies House have moved to an online service to help process information, after experiencing delays in processing paper forms. They've also said that if accounts are late because your business is affected by coronavirus, you can apply for an automatic and immediate 3 month extension to file your accounts. Find out more about how they've updated their services during coronavirus here.
If you need help and support for your business, the government site has details of the business support helpline that might be best for you to contact. You can find all the information here. You can also find our summary on how the government is helping small businesses specifically here.
If you are affected by coronavirus, it could also impact your income, your finances, and how you're able to manage your money.
That's why we want to reassure you that we're well-equipped to support you and keep Monzo running, even if we can't make it to the office. Here's how we can support you during the corona virus outbreak.
These figures were last updated on 25th March and if any new information is released, we will update this post.