The government has put in place a wide-ranging package of support for UK businesses and employees affected by the coronavirus outbreak. This includes support for employers to continue to pay a part of the salaries of employees that otherwise would have been laid off. An income support scheme for the self-employed has also been announced by the Chancellor of the Exchequer.
Reacting to the news, Ian Levy said, “The measures introduced will make a huge difference in these extremely challenging times. The overall package is one of the most generous that has been made available across the world. It is a clear demonstration of the government’s commitment to do everything that is possible to help individuals, businesses and communities to get through this.”
The specific elements include –
- Coronavirus Job Retention Scheme – HMRC will pay employers a grant worth 80% of an employee’s usual wage costs, up to £2,500 per month, if employees have been asked to stop working, but are being kept on the pay roll as ‘furloughed workers’
- Self-employment Income Support Scheme – a grant for self-employed individuals or partnerships, worth 80% of their profits up to a cap of £2,500 per month
- Coronavirus Business Interruption Loan Scheme – small and medium sized businesses affected can access finance of up to £5m and for up to six years
- Statutory Sick Pay Rebate – legislation will be brought forward to allow small and medium-sized businesses to reclaim statutory sick pay paid for staff sickness absence due to coronavirus
- Small Business Grant Funding – a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs
Further details on these elements and others are available via a telephone helpline (0300 456 3565) and online at – www.businesssupport.gov.uk/coronavirus-business-support/
