FAR-reaching measures to shore up the economy during the coronavirus lockdown give business the best chance of getting through the pandemic intact, says a leading firm of Redditch accountants.
Hayward Wright Accountancy Group has been through the fine print of the £350 billion rescue package announced by the Chancellor, to help businesses survive the lockdown.
The Redditch-based company is drawing attention to the key parts of the government intervention, which has seen the taxpayer take on the responsibility of paying the wages of those who cannot work.
“The most important thing for any employer at the moment, after following government advice to stay home, is that they keep accurate, up to date records,” said managing director Alistair Hayward-Wright.
“They’re going to need them to be able to claim the support they’ve been promised.
“This intervention is timely, temporary and targeted at those most in need. The government won’t want to be doing this for a long time because the country can’t afford it, but it also can’t afford to let so many employers fail.”
The historic measures announced include a 100 per cent business rates discount for the year 2020-21 for retailers, hospitality and leisure premises in England, further grants to councils to support small businesses, and a repayment mechanism for sick pay claimed until mid-November.
There is also a Coronavirus Business Interruption Loan Scheme which will see the government act as guarantor so lenders can continue to provide loans to small businesses.
Employees who are furloughed and cannot work will have 80 per cent of their wages, up to £2,500 a month, covered by the government as long as their employers do not make them redundant.
Other measures include cancelling VAT payments between March 30 and June 30 and deferring income tax payments due by the end of July to the end of January 2021.
On March 27 the Chancellor announced further measures to support the self-employed who can now apply for a grant worth 80 per cent of their average monthly profits from over the past three years to help them cope.
For advice on how to access government support for businesses during the Covid-19 crisis, visit www.haywardwright.co.uk.