Coronavirus and your business

The coronavirus epidemic has devasted businesses and jobs, as well as causing the death and illness of thousands. The economic impact will be long lasting due to the massive impact and the government has stepped in with some extraordinary measures to assist businesses. For most smaller businesses, the following should be considered:

  • Furloughing employees
    HMRC will pay up to 80% of the wages of employees who are laid off - furloughed. The employer must pay the employees then reclaim the cost from HMRC. This will ensure that employees continue to have some income and will allow employers to bring them back into the workforce quickly.  This is limited to £2,500 per month per employee.
  • Self-employed income support
    If a self-employed person had submitted a 2019 tax return, they should be entitled to claim a grant from HMRC based on their average profits as reported in the tax return.  Limited to £2,500 per month. 
  • VAT payment deferral
    VAT registered businesses can elect not to pay their next VAT liability, although it is still payable by 31 March 2021. In order to take advantage of this, all VAT returns must still be submitted, and if there is a direct debit to HMRC, this must be cancelled. 
  • Self-assessment payment on account deferral
    Individuals can elect, without incurring penalties, not to pay their self-assessment second payment on account, which would normally be payable on 31 July 2020. It is still payable, in full, on 31 January 2021. 
  • Grants
    Businesses which are already in receipt of small business rates relief will be entitled to claim a grant from the local authority. This grant is not repayable, although it is taxable.  Businesses in the retail and hospitality sectors, depending on their size, can also claim a grant.
  • Loans
    Government-backed loans are also available, but these are currently very difficult to obtain, and the interest rates are not very favourable. 

This is a very brief summary. There is a lot of information online here >>>

Leggate Associates have some more ‘human’ guidance on our website  and are offering a 20-minute free support call to all businesses in the SG11 postcode.  Please give us a call on 01763 289607 or email

Andrew Leggate