The Government has today launched two much-anticipated schemes directed at small businesses and the self-employed in response to the Coronavirus crisis.
Bounce Back Loans
As of 9 am today, small businesses can gain access to a new fast-track finance option, known as the Coronavirus Bounce Back Loan. Since the launch of the scheme, this morning we have had lots of interaction with the banks on behalf of our clients and the process appears to be working well.
We have covered the scheme in detail elsewhere in previous communications, but the key points you should be aware of at this time are;
- Loans of £2,000 – £50,000 available up to a maximum of a ¼ of a firm’s annual turnover;
- Applications made online via a seven-question form;
- 12 months no interest, fees or repayments;
- Repay over 6 years, 2.5% interest rate, no early penalty;
- Can’t apply if already under CBILS;
- No restriction on the total amount of the facility that may consist of refinancing – whereas with CBILS you can only use 20% of the loan to refinance.
TC Group can work alongside you to collate all the necessary documentation for your self-certification and should you need support to do so is on hand to help submit it for you.
Self-Employment Income Support Scheme
HMRC has today begun contacting customers who may be eligible for the Government’s Self-Employment Income Support Scheme. Those who are eligible will be able to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500 (equivalent to three months’ profits), paid in a single instalment.
Although we cannot claim on your behalf, we can assist you in checking whether you are eligible and when you can make a claim via HMRC’s new online tool.
In order to make a claim you will require the following information:
- Self Assessment Unique Taxpayer Reference (UTR) – if you do not have this you can find it here;
- National Insurance number – if you do not remember it, you can find it here;
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you check your eligibility online;
- An account number and sort code for the bank account you want the grant paid into (only provide details where a Bacs payment can be accepted).
While HMRC will calculate the grant, as your agent TC can check the calculation to see if it is correct. Contact your TC Partner on 0330 088 7111 to discuss further.