TechHub are pleased to support Coadec, which represents startups to government. They've been working hard to ensure measures are in place for startups to get vital support at this challenging time. Read more about the initiatives below and we'll keep you updated each week.
Self-employed workers or partnerships that have suffered a loss of income due to the coronavirus will be able to apply for a grant worth 80% of their average monthly profits over the past three years - capped at £2,500 a month. Initially the cash will be available for three months in a single lump sum payment, and will probably start to be paid in June at the earliest.
The Coronavirus Self-employment Income Support Scheme is open to those who were trading in the last financial year, still trading now, and planning to continue doing so this year.
These are the criteria to be eligible:
More than half of your income needs to come from self-employment
You must have a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2017-18.
You must have a full year of accounts – those who do not will not be eligible If you pay yourself a salary and dividends through your own company, you won’t be covered by the scheme. However, you may be able to apply for the Coronavirus Job Retention Scheme if you are operating through PAYE.
If you pay yourself a salary and dividends through your own company, you won’t be covered by the scheme. However, you may be able to apply for the Coronavirus Job Retention Scheme if you are operating through PAYE.
Last week's policy announcements included:
The Coronavirus Business Interruption Loan Scheme has opened and will now be interest-free for 12 months. The Scheme is being run through the British Business Bank will support businesses with loans of up to £5 million in value. These loans are likely to be unsuitable for a lot of startups, but they are available via the BBB’s official partners and a guide to the loans can be found here.
Coronavirus Job Retention Scheme. Any businesses can apply for a grant of up to £2,500 a month to cover 80% of salary for a retained but not working employee, as long as they were on the payroll as at 28th February.
VAT payments for businesses have been deferred until the end of June, with an option to postpone longer. This will happen automatically with no applications required, but all deferred VAT payments will need to be repaid at a later date though.
SMEs will be able to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. The refund will cover up to 2 weeks’ sick pay per employee who has been off work because of COVID-19. More information to follow on how to reclaim.
Support for businesses paying tax. All businesses and self-employed people in financial distress may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. Call HMRC’s dedicated tex helpline on 0800 0159 559.
For the self-employed, full Universal Credit at a rate equivalent to statutory sick pay and the next tax self assessment payments will be deferred until the start of next year. Information on Universal Credit is available here.
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