Home » United Kingdom: anti Covid loans, non-repayable grants and mass CIG

United Kingdom: anti Covid loans, non-repayable grants and mass CIG

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RESTAURANTS IN EUROPE, MEASURES BY COUNTRY

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Self-employed Income Support Scheme

The Treasury has also thought about protecting the incomes of self-employed workers during the pandemic, using a modified furlough. In its original version, the self-employed income support scheme (Seiss) guaranteed 80% of the average earnings of the last year up to a maximum of 7,500 pounds, paid every three months. It is up to the self-employed worker to pay the contributions. Treasury contributions have been reserved for those earning less than £ 50,000 a year. Hmrc contacted the rightholders directly, based on their tax returns, and paid the money into their bank account at the end of each quarter. There are about five million self-employed workers in Britain, and 77% of them have obtained furlough. Seiss has so far cost £ 20 billion.

Restart Grants

The grants are cash payments of up to £ 18,000 to allow gyms, hairdressers, beauticians, restaurants, pubs and hotels to reopen after the long lockdown period. The grant only one it started on April 1st, closes on June 30th and the last payments will be made by July 31st. The value of the grant is calculated based on the taxable value of the business and ranges from a minimum of 8 thousand pounds for a value under 15 thousand pounds to 12 thousand pounds for a value between 15 thousand and 51 thousand pounds up to a maximum of 18 thousand pounds per business with a taxable value exceeding 51 thousand pounds. Non-essential shops, which were able to reopen earlier, can receive up to £ 6,000. To receive the grant you must contact your Municipality, prove that you are up to date with the payment of taxes and that you have been forced to close due to the lockdown.

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Bounce Back loans & Recovery Loan Scheme

Since the beginning of the pandemic, the Treasury has launched several loan guarantee schemes aimed at small and medium-sized enterprises in difficulty. The “Bounce Back loans”, literally “loans for recovery”, offered interest-free loans for twelve months and then with interest set at 2.5 percent. Loans range from two thousand to 50 thousand pounds, for a maximum amount equal to 25% of the company’s turnover. The loans, 100% guaranteed by the Treasury, started in May 2020, and were available until March 31, 2021. In this period, over 1.5 million companies in crisis have benefited from a “bounce back loan”. In April 2021, another version of this system, called Recovery Loan Scheme, was launched and replaced the previous one. As the name indicates, these are loans aimed at restarting businesses and the economy after the crisis. Businesses can borrow between £ 25,000 and £ 10 million. The government guarantees 80% of the loans until the end of the year.

To obtain funding, businesses must go directly to their banks and prove that their business has been damaged by the pandemic. Major UK lenders have committed to lending in line with the Recovery Loan Scheme. The Treasury has announced facilitated conditions with a new flexible repayment system – “Pay as you Grow” – which allows SMEs to repay loans obtained in ten years instead of six, which was the original duration.

Business Rates

The Government has suspended the payment of taxes for the last fiscal year for all businesses in the hospitality, catering and retail sectors. The suspension was extended until June 2021 for shops, restaurants and bars, cinemas, concert halls, gyms and spas, hotels and guesthouses. After June 2021, taxes will be discounted by 66%, with a maximum reduction of £ 2 million for each business that has been closed. The suspension and then reduction of taxes is automatically implemented by the local authorities and there is no need to request it.

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