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Weekly round-up: Covid-19 Financial Support in week 10

 

As the second full month of lockdown draws to a close, albeit with the beginnings of some kind of lifting of restrictions, it has been a fairly quiet week again for financial developments, albeit we are expecting to hear some significant announcements today.

In particular, we are expecting to hear from the Chancellor today about the detail of the Coronavirus Job Retention Scheme and at what level this will continue for August, September and October.  I have seen reports that the support may drop from 80% of wages paid by the Government to 60% (but with the same £2,500 ceiling), with employers asked to make up the difference, however I do not know yet whether these reports are substantiated.

In addition, there may be some confirmation about a bar to new entrants to the furlough scheme, meaning that as the lockdown eases, businesses will not be able to place additional staff members on furlough.

We will be keeping an eye on announcements today and will provide further details as soon as we have them.

I have also heard rumours that the Self-Employment Income Support Scheme may not be extended beyond May, but again that is not a substantiated report at this stage.  That would be a surprise because the two kinds of support were supposed to run alongside each other throughout the crisis.

In more positive news, our Corporate Finance team have now helped several businesses to successfully apply for Business Interruption Loans.  To help our clients to make the most of their funds and prepare for growth post Covid-19, there are various tools available and Will’s article yesterday on pivoting and repurposing a business gives a good summary of some of the areas we can help.

Following the launch of the Future Fund, the Government have now confirmed that as this is a commercial finance scheme, it is not State Aid, which is good news for any businesses claiming R&D Tax Credits who also wish to make use of the Future Fund.

As I said at the start, there are a lot of announcements imminent, both financial and non-financial, in the next few days so do keep an eye on our website and social media channels for all the latest updates.  We have now put together a landing page which pulls together links to all our articles to date.

James Geary is head of Corporate Tax and is happy to help with any questions or concerns you may have at this time – you can contact James on james.geary@randall-payne.co.uk or 01242 776000 to arrange a call back.