Alexandr Walker
Banner 3.jpg

Tax updates

Tax updates

Banners-Tax.jpg
 

Further Government financial support for small businesses in the form of a New Bounce Back Loan

Banner 4.jpg

Government has introduced further support for small businesses in the form of a New Bounce Back Loans as of Monday 4 May 2020.

Small businesses will be able to borrow 25% of their turnover up to £50,000, whichever is the lower.

The loans would be 100% backed by the Government, repayable over 6 years, and carry a flat rate of interest of 2.5%.

The loan would be interest free for the first 12 months - Government to cover the costs of any fees and interest of the borrower for the first 12 months.

Most importantly, no repayment will be due during the first 12 months to enable small businesses to get back on their feet.

Any businesses that have already taken out a Coronavirus Business Interruption Loan of £50,000 or less can apply to have these switched over to the Bounce Back Loans which carry a lower rate of interest.

Other Government financial supports for businesses include:

  • Job Retention Scheme - Government paying up to 80% of the salaries of staff who have been furloughed;

  • Financial grants to the self employed and partners of partnerships worth 80% of their trading profits up to a maximum of £2500 per month for three months;

  • Corona Virus Business Interruption Loan Scheme - Access to loans, overdrafts, invoice finance and asset finance of up to £5 million over 6 years for SMEs;

  • Government reimbursing sick pay paid to employees of SMEs who have been off work due to Coronavirus;

  • Deferral of VAT liability payment until 31 March 2021;

  • Support for businesses who are payinmg sick pay to employees;

  • Deferral of self assessment second payment on account due in July 2020 until 31 January 2021; and

  • Time to pay arrangement for all businesses and the self employed in financial distress

Finally, please feel free to email/call us if you wish to talk through the Bounce Back Loan Scheme and/or to find out more about the other Government financial supports available.

We can be reached at enquiries@alexandrwalker.com or on 020 8191 9867.

Mohamad Auhammud