A BREAKDOWN OF THE HELP AVAILABLE TO CBD FIRMS IN THE UK HIT BY COVID-19
By CBD-Intel Editors
Companies in the UK which are struggling and in need of assistance due to lockdown rules in the face of the COVID-19 pandemic have several options to choose from , depending on their size and their needs . These include deferring VAT payments until March 31 2021 , and claiming back sick pay .
The biggest scheme introduced by the UK is the Coronavirus Job Retention Scheme .
All employers are eligible for this scheme , which gives furloughed employees 80 % of their salary , up to £ 2,500 a month . It only covers employees who are paid through the UK ’ s pay-as-you-earn ( PAYE ) tax system and employees must have been on the payroll on February 28 . The programme was recently extended to last until the end of March , 2021
Small and medium-sized companies which have been affected by the pandemic can apply for a Coronavirus Business Interruption loan .
Companies with a turnover of less than £ 45m who can demonstrate that they have been adversely affected by COVID-19 can receive loans and other financing , up to £ 5m . The government will guarantee 80 % of the loan to the lender and will pay any interest and fees for the first 12 months . A similar loan scheme is in place for companies with a turnover of more than £ 45m . At present these businesses may receive up to £ 25m ( for turnover of £ 45m- £ 250m ) or £ 50m ( for turnover above £ 250m ) in loans and financing . As of May , the scheme has allowed companies to borrow up to 25 % of turnover , up to a maximum of £ 200m , with banks underwriting 20 % of the loan and the government
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