Home > Blog > April 2020

Coronavirus Update – Bounce Back Loan

April 28, 2020 by JSO

Coronavirus Update – Bounce Back Loans

 

Chancellor Rishi Sunak announced a further measure to help small and medium sized businesses who have been negatively affected by COVID-19 and need to borrow between £2000 and £50000.

Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders.

The existing CBILS (Coronavirus Business Interruption Loan Scheme) is still available for larger loans but some smaller businesses have been unable to meet the criteria for this.

The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.  Loan terms will be up to 6 years. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.  Please note, that this is a loan, not a grant,  and will have to be repaid unless the borrower becomes insolvent.

The scheme will be delivered through a network of accredited lenders.

Eligibility

You can apply for a loan if your business:

  • is based in the UK
  • has been negatively affected by coronavirus
  • was not in financial difficulties on 31 December 2019

Who cannot apply

The following businesses are not eligible to apply:

  • banks, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • further-education establishments, if they are grant-funded
  • state-funded primary and secondary schools

Please note that, for Limited companies, you will not be able to use these funds to pay dividends unless you have the retained profits allowing  you do so.

The online system for application is expected to be available from 4th May.  Please see the link below as this will updated once the system goes live.

https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

Coronavirus Job Retention Scheme update 06-04-2020

April 6, 2020 by JSO

Coronavirus Job Retention Scheme – update 06/04/2020

 

Please see below the latest updated information regarding the above.

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

You will notice that the information says that you need an online PAYE account.  Please wait before applying for this at present if you do not already have one.  We have an online PAYE account as an agent for our employers and this enables us to file the payroll returns on your behalf.  It is not yet clear whether we will be able to use this account to make the Job Retention Scheme claim on your behalf and we will advise further once the full information is available, but we do need to be able to continue to file your returns.

In the meantime, it is very important that you keep us updated if you need to start any of your employees on furlough leave this month before we process your payroll.  For payrolls which remain the same each month so we do not await your instructions, we will start processing on April 16th, so please advise before this date. If you are not sure whether you will need to furlough any employees after this date, but before the end of the month, please email us to ask that we delay processing of your payroll.

This is all of the information that we have at this time.  Thank you for emailing any requests or instructions rather than calling the office, where we only have one member of staff working on the tasks that cannot be completed at home.

Thank you for your patience.

 

All content provided in this blog is for information purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.

Copyright © 2020 Just Simply Organised. All rights reserved. Privacy Policy