The British government is taking new measures to reduce the level of damage to the world’s fifth largest economy following the crisis caused by the epidemic. British minister of Finance, Rishi Sunak, has just ended a decade of budgetary austerity implemented so far by the Conservatives, as his budget outlines a significant increase in spendings and a massive £12 billion allotted to the fight against the economic consequences of the pandemic.
Sunak said the government would protect the affected businesses and allotted additional money to help the National Health System (NHS), saying it would provide as many “millions or billions” as needed to overcome the virus.
This sort of measure will help companies that are active in the most dynamic sectors of the UK economy in order for them to continue to develop new products and stimulate recovery after the epidemic.
Two examples of immediate help offered by the British Government to companies and individuals are the 80% self-employment income support scheme – SEISS and the bounce back loans – BBLS.
Self-employment Income Support Scheme – SEISS
If you are self-employed, earn less than £50,000 a year and you are affected by the COVID-19 crisis you will get immediate help from the British Government for three months: 80% of the monthly income, calculated as the monthly average of the last three years, but not more than £2500/month.
The HMRC has announced that it began contacting self-employed people who might be eligible for the 80% Self-employment Income Support Scheme – SEISS as a result of the COVID-19 crisis.
You can claim the 80% GRANT if you are a self-employed individual or a member of a partnership and you:
– have submitted your Self Assessment tax return for the tax year 2018 to 2019
– traded in the tax year 2019 to 2020
– are still trading when you applied, except for Coronavirus affected period
– intend to continue to trade in the tax year 2020 to 2021
How is your SEISS help going to be calculated?
You will receive a taxable grant which represents 80% of the average profits in the following tax years (if applicable):
– 2016 – 2017
– 2017 – 2018
– 2018 – 2019
To calculate the average trading profits, HMRC will add together your total trading profits or losses for the 3 tax years then divide by 3. The amount received will not exceed £2,500 per month, and this grant will be paid into your account in a single instalment for 3 months.
Bounce Back Loans – BBLS
The Bounce Back Loan Scheme (BBLS) helps smaller companies get quicker access to funding of up to £50,000 during the coronavirus outbreak. Bounce back loans are 100% backed by the Treasury in the hope this will speed up lending to those businesses impacted by the coronavirus pandemic. Eligible business must be based in the UK and already established by 1 March 2020. They will need to generate at least 50% of their income from trading activity and have to prove that this has been disrupted due to Coronavirus. Businesses cannot have been in difficulty on 31 December 2019 and cannot be in bankruptcy or liquidation at the time of applying for a Bounceback loan.
Some business sectors are excluded from bounce back loans; these include banks, insurers, re-insurers, public-sector bodies, further education establishments if they receive grant funding, state-funded primary and secondary schools.
How to apply for Bounce Back Loans
The scheme comprises 11 lenders including many of the big retail banks. We can assist you with applying for this type of loan and all you have to do is write to us.
The lender decides whether to offer you a loan or another type of finance and you will be responsible for repaying 100% of the amount borrowed.
• You can apply starting from 9am Monday 4 May 2020
• It is easy to apply, especially if you take advantage of our experience
• There will be a network of accredited lenders
• Cash should be available within 48 hours of your application
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