As the UK goes into a third period of Covid-related lockdown, with non-essential businesses now closed, it’s important to know what financial support is available from the Government.
With your business closed, or running with a skeleton team of essential workers, revenues are likely to have dropped alarmingly – and that’s bad news for your financial stability.
To keep cashflow on an even keel, and to get your company through the challenges of the next few months of lockdown and Covid restrictions, it’s likely that you’ll need to call on the Government for financial support – but what financial support is available this time around?
Available government financial support
During the initial lockdown periods of 2020, the Government provided a range of financial support schemes, with the aims of keeping the UK’s businesses financially solvent, stabilising the economy and protecting the nation’s jobs.
So, are any of these schemes available still in 2021? Here’s a list of the main financial support schemes that are currently available.
Current schemes include:
- Coronavirus Job Retention Scheme (CJRS) – the CJRS, or the ‘furlough scheme’ as we probably all now know it, is still operational and provides government funding to cover the wages of eligible furloughed workers (employees who are now forced to stay at home due to the current lockdown restrictions). The furlough scheme will pay 80% of your employees’ wages and has been extended until 30 April 2021. Find out more about the furlough scheme here
- Coronavirus Business Interruption Loan Scheme (CBIL) – CBIL loans are still available for larger businesses and allow your business to access loans and other kinds of finance up to £5million. The Government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months. Applications are now open until 31 March 2021. Find about more about the CBIL scheme here
- Bounce Back Loan Scheme (BBLS) – you can also still apply for Bounce Back Loans, which offer smaller businesses the chance to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. The BBLS is now available until 31 March 2021. Find out more about the BBLS here
- Lockdown grants – at the beginning of January 2021, new lockdown grants for businesses in the retail, hospitality and leisure sectors were announced. Eligible businesses in the affected sectors will be able to claim a one-off grant worth up to £9,000. Local Restriction Support Grants will also be available through your local authority, with qualifying businesses able to claim grants of up to £3,000 a month. Find out more about lockdown grants here
- Self-Employment Income Support Scheme (SEISS) – if you’re self-employed and have traded in the preceding two tax years, the third round of the Self-Employment Income Support Scheme is still available. The scheme closes to claims on 29 January 2021 and allows you to claim 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total. Find out more about the SEISS here
Talk to us about claiming financial support from the Government
If your business has been adversely affected by Covid-19, or you’ve been forced to close due to the UK-wide lockdown, please do contact us. As your accountant, we’ll review your financial position, advise you on which schemes you’re eligible for, and will help you to produce the relevant financial information that’s needed when making a loan or grant application.
The first quarter of 2021 is likely to be a tough time for many business owners, so reach out now and let us help you get the financial assistance and funding you need.
Get in touch to talk through the government financial schemes.