Guide to manage the financial health of your business
In the wake of coronavirus pandemic, Rishi Sunak-the Chancellor of the Exchequer has made a formal public announcement and presented different additional measures that can help small businesses as well as self-employed individuals affected greatly by COVID-19.
The Government of the UK and financial stability board has offered more assistance in the intensified situation. Regarding the draft emergency legislation, the UK government is considering multiple legal powers to take and offer great financial help to back all the businesses in the UK. The email shop is also an established business in the UK and has been providing hosting services to all its customers from 15 years. The professionals created a brief report on financial challenges faced due to COVID-19. So, if you are one of those who are suffering from the current condition, have a look and see if you can take any grant from the UK government for financial stability.
Getting through financial emergency challenges:
Financial uncertainties and emergencies are part of life, and we have absolutely no control over them. They can happen anytime, with anyone. Now the emergency could be the result of illness, joblessness, home repairs, flood issues or due to some pandemic diseased like Coronavirus. That severe virus has completely shut down the community for an unlimited period, which is definitely a real concern for both employees and employers.
As the disease is declared a pandemic by WHO, everyone in the UK is badly impacted by the current scenario that happened due to COVID-19 on business finances. This has caused major financial emergency and considerable hardships in the whole world, which is especially stressful for small business owners. They have been worried about managing their finance, as they do not have any additional help to fight this battle.
The government of the UK and FSB has offered a lot of helpful educational resources regarding debt management, budget, credit reports, savings and much more. They have launched several interactive tools and budget calculators that can simply assist you to build great financial health during such critical situations.
What is the government of the UK doing to help?
The Chancellor prepared a detailed package to provide timely, temporary, and targeted support for public services and small businesses facing this extreme disruption caused by a coronavirus.
Their package includes a lot of helpful measures that support every small business:
- They launched a Coronavirus Job Retention Scheme that protects the rights of all the employees.
- They further deferred the VAT and Self-Assessment amounts.
- They have set a Self-employment Income Support Scheme as well.
- Every small and medium scale business can get help from the Statutory Sick Pay relief package.
- A 1-year business rate holiday announced for the retail, leisure, nursery and hospitality businesses in the UK.
- £10,000 grant funding will be provided to small businesses in the receipt of business rate relief.
- £25,000 grant funding will be offered to hospitality, retail, and leisure businesses along with the property of a rate-able value that lies between £15,000- £51,000
- £5 million loans are also launched for small businesses with the help of a British business bank, which is called the Coronavirus Business Interruption Loan Scheme.
- There is a whole new lending strategy launched from the Bank of England that can help liquidity in large organizations, and help them reduce coronavirus disruption through loans.
- Relief in paying HMRC.
Additional support:
The UK Government has offered grants and financial assistance to support all the individuals and small businesses with around £330bn bailout. This huge amount would protect the economy from loss and may help people to run their operations just like before. To provide you a brief breakdown, the treasury field would be guaranteeing the loans of £330bn for businesses that seems to be the equivalent of more than 15% of the economic output of the country. This would simply ensure that all the businesses who want access to cash for managing budget, rent, the employee’s salary, supplier payments, and to buy new stock, would be efficiently able to take the privilege of getting the government-backed loan that is available on handsome payment terms. This sum-out could further increase according to the situation.
Businesses have an opportunity to apply for interest-free loans separately. They can take more than £5m each, which has now expanded from £1.2m in the Budget. It has also been announced a week ago that all the restaurants, shops, pubs, theatres, bars, hospitality businesses, and leisure sectors would have a chance to get their business rates written off for the years 2020 to 2021 regardless of their size and scale.
Some small businesses operating in the same fields that have a rateable value lie between £15,000- £51,000 can even be able to apply and get a grant of £25,000 from the government, so they can easily support their business finances at least for a couple of weeks. Some small businesses related to these industries can make themself eligible to take a loan of £10,000, which has been increased from the amount £3,000 announced earlier in the budget for managing cash flow.
Business owners who are facing an extremely hard time and struggling with their mortgage payment under the current Coronavirus situation would also have the flexibility to have a repayment holiday for 3 months at least. The Chancellor says: “he can go the extra mile to support people and their businesses in this hard time, and offer more assistance in the next coming weeks.”
To be eligible for this grant, every small business should be:
- The UK based and do not have a turnover of up to £41 million per annum
- Operate under some eligible industrial sector.
- Offer a strong borrowing proposal, but have some insufficient security in meeting the normal financial requirements of their business.
- The professionals confirm that they have never been granted a minimal State help beyond €200,000 that is equivalent over 2020, and two previous years.
If you are included in the list of those small business owners who have been affected with COVID-19 pandemic, you have a chance to take a grant from the UK government and streamline your businesses for healthy financial outcomes. If you are stuck at any point, consider the email shop experts help, they can provide better assistance to run things smoothly and efficiently.
