It’s currently an unsettling and difficult time for businesses but several measures have been announced by the Government in a bid to provide some support and ease any financial strain.

Further information on all of the Government support available and the conditions around each one can be found here but some of the key packages are highlighted below:

Coronavirus job retention scheme

A temporary scheme for all UK employers, available for at least three months, effective from 1 March 2020. Its aim is to support employers whose business operations have been impacted by coronavirus.

Under the scheme, 80% of furloughed employees’ usual monthly wage costs (up to £2,500 a month) can be claimed for, in addition to the relevant Employer National Insurance contributions and minimum automatic enrolment employer pension contributions for the employee.

Business rate holiday

A business rates holiday has been provided for retail, leisure, hospitality and nursery businesses in England for the 2020 to 2021 tax year.

Small business grant funding

Additional Small Business Grant Scheme funding has been provided to local authorities for the support of small businesses that do not pay, or pay very little, business rates due to small business rate relief (SBRR), rural rate relief (RRR) and tapered relief.

A one-off grant of £10,000 can be provided to businesses that are eligible in order to help them with any financial difficulties.

VAT deferral

Value Added Tax payments have been deferred by three months. For UK VAT registered businesses with VAT due between 20 March 2020 and 30 June 2020 payments can be deferred until a later date or paid as normal.

Time to Pay

HMRC’s ‘Time to Pay’ allows businesses and the self-employed, who may be experiencing financial difficulties, to receive support with their taxes. These arrangements are agreed on a case by case basis and are tailored to each business.

Further information on support available is also available using the following links:

Federation of Small Businesses (FSB) COVID-19 advice and guidance

GOV.UK: COVID-19 Support for businesses

At Paragon, we understand and appreciate the impact coronavirus may have on your finances. We have a full range of tools available to support our customers and our key focus is always to support people and businesses through periods of financial stress.

We are aware that an increasing number may require short-term payment arrangements. Payment holidays are just one of the options available and we would discuss your specific situation with you to find the most appropriate solution.

If you are experiencing financial difficulties, please visit our Need Financial Help? section.