Bounce Back Loan Scheme (BBLS)

Bounce Back Loans for Struggling Businesses: Ending 30 November!

If your small or medium-sized business has struggled due to adverse trading conditions caused by the pandemic, it may be eligible for a support loan through the Government’s Bounce Back Loan Scheme (‘BBLS’). However, time is running out — you only have until 4 November 2020* to arrange the loan with a lender. That’s just a few weeks away at time of writing. There are some great features, so don’t miss out if you need financial support …

Bounce Back Loans are interest-free for 12 months (with no repayments being required during that time). Thereafter, the interest will be just 2½% per annum. Small businesses can borrow between £2000 and £50,000 depending upon their turnover (the maximum allowed is 25% of their turnover in the 2019 calendar year, up to the £50k ceiling). Another major feature is that the Government guarantees the loan. BBLS loans have a six year term, but you can repay the loan early without incurring an early redemption fee.

The main requirements around eligibility are that:

  • your business is UK based;
  • it was established before 1st march 2020;
  • it has been adversely affected by the pandemic;
  • it is not in bankruptcy, liquidation or undergoing debt restructuring.

N.B. Banks, insurers (excluding brokers), re-insurers, public-sector bodies and state-funded primary/secondary schools are not eligible.

* IMPORTANT NOTE: many of the high street banks now seem to be stating a deadline of the end of November instead of the 4th. However, Taxfile’s advice is to apply before 4th November (the Government’s official, published deadline) to avoid possible disappointment.

A few other caveats apply, so Read more

Job Support Scheme Replaces the Job Retention Scheme from 1st November 2020

The Job Support Scheme for employees starts 1 November 2020

The Job Retention Scheme (JRS) winds down at the end of October. It will be followed, for the next six months, by a new job support scheme, which subsidises the wages of employees working at least a third of their normal hours, to further support viable UK employers who face lower demands due to COVID-19.

In an attempt to keep employees attached to the workforce, the Government will be introducing a new Job Support Scheme from 1 November 2020, where employees will need to work a minimum of 33% of their usual hours.

For every hour not worked the employer and the Government will each pay one third of the employee’s usual pay. The government contribution will be capped at £697.92 per month.

Employees using the scheme will receive at least 77% of their pay (where the Government contribution has not been capped) & the employer will be reimbursed in arrears for the government contribution. The employee must not be on a redundancy notice.

The scheme will run for six months from 1 November 2020 and is open to all employers with a UK bank account and a UK PAYE scheme.

All Small and Medium-Sized Enterprises (SMEs) will be eligible. Large businesses will be required to demonstrate that Read more