We've said it before; absolutely nothing could have prepared us for the impact of the Covid-19 Coronavirus. With information changing all the time finding the right support can be overwhelming, so we've put together a list of measures currently available to help people cope with the financial fall-out of the coronavirus outbreak. These measures cover the Coronavirus Covid-19 financial support you’re entitled to - both for your hair business and for you personally. We will keep updating this blog with new information as announcements are made so be sure to check back regularly.
- Support for people on PAYE
- Support for self-employed people
- Deferral of VAT payments
- Coronavirus Business Interruption Loan Scheme
- Business rates relief
- Cash grants
- Three-month mortgage holiday
- Protection for renters
- Credit cards & personal loans
- Sick pay
Support for people on PAYE
The government has launched the Coronavirus Job Retention Scheme. This will see HMRC reimburse 80% of the salary of furloughed employees. A furloughed employee is still employed by the business but not working. They are kept on the payroll rather than being laid off. This will be worth up to a maximum of £2,500 a month. Find out more and how to claim here.
Support if you’re self-employed
The government has introduced the Self-Employed Income Support Scheme. If you’ve had a loss of income due to COVID-19, you can receive a taxable grant worth 80% of your average monthly profits over the last three years. This will be worth up to a maximum of £2,500 a month.
This scheme is open to self-employed people who were trading in the last financial year, are still trading now, and plan to continue doing so this year. The scheme will cover the three months from now until May.
HMRC will be contacting eligible self employed people directly. You’ll have to fill in an online form and they will pay the grant directly into your bank account. You’re likely to receive the grant, backdated for three months, at the beginning on June. There are hopes this might be paid earlier so keep checking here.
Other financial support for self-employed people includes access to Universal Credit at a rate equivalent to Statutory Sick Pay.
Deferral of VAT payments
You won’t need to pay your business VAT bills from now until mid-June. You’ll then have until the end of the financial year to repay any VAT payments that were deferred between 20 March and 30 June 2020.
Coronavirus Business Interruption Loan Scheme
For small and medium-sized businesses, the Chancellor has announced temporary business interruption loans of up to £5million with no interest due for the first six months. The money is aimed at helping businesses pay wages, rent and suppliers.
How to apply: The Coronavirus Business Interruption Loan Scheme will come from the British Business Bank’s accredited lenders including high street banks. The British Business Bank advises, “In the first instance, businesses should approach their own provider – ideally via the lender’s website.” To find out more about this scheme click here.
Business rates relief
There will be a 12-month business rates holiday. This means the retail, hospitality and leisure industries won’t need to pay business rates for a year. Check if you're eligible here
You don’t need to do anything to claim this. It will apply to your next council tax bill in April 2020. However, local authorities may have to reissue your bill to take off the business rate charge.
Small companies in business premises with a rateable value (a measure of property values) between £15,000 and £51,000 can apply for grants of up to £25,000. You don’t have to do anything to apply for this; your local authority will write to you if you are eligible for this grant. Find out more here.
Smaller businesses that are currently eligible for Small Business Rate Relief (SBBR) can apply for a one-off cash grant of up to £10,000.
All banks should offer you a three-month holiday from mortgage payments. This basically means deferring payments by three months if you are in financial difficulties arising from the coronavirus outbreak. The payment holiday won’t affect your credit rating and it could save you from going into arrears. If you have already taken a holiday or are looking for other options you could apply for “Support for mortgage interest”. Speak to your current lender as soon as possible if you are facing difficulties with your mortgage repayments.
Protection for renters
The government has brought forward emergency laws to protect private renters from being evicted. More is expected to be announced on this. Click here for the latest government advice for renters.
The National Housing Federation has said they won’t evict tenants affected by coronavirus who fall behind on rent payments.
Universal Credit and Housing Benefit will also be increased so that the local housing allowance will cover at least 30% of the market rent in your area.
Credit Cards & Personal Loans
Most banks and credit card firms have said they will allow emergency credit limit increases. The Financial Conduct Authority (FCA), which regulates the lending industry, confirmed that high-street credit card and loan providers would need to offer payment holidays where customers were struggling to pay, with measures needing to be in place by Tuesday 14th April 2020. We suggest following Martin Lewis Money Saving Expert for all of the latest consumer credit and loan updates. You can click here to find out more
For employees If you are employed, you are entitled to Statutory Sick Pay (SSP) from your first day off work.
For employers The government will refund up to two weeks’ SSP for each eligible employee who has been off work because of COVID-19. The government says they’ll set up the repayment system for employers as soon as possible. Find out more here.
This page was last updated on 16th April 2020.