A guide on business grants, loans from the government

Government Aid for Business

We tried summarizing all the help that is available from the Government for Business during these times. Many businesses are downsizing, going under or just trying to survive. We’re working with several accountants already to help them apply for grants and loans and keep their client’s business afloat.



CBIL or Coronavirus Business Interruption Loan Scheme helps small and medium-sized businesses affected by a coronavirus (COVID-19) to access finance of up to £5 million.

  • Business is based in the UK.
  • Business has an annual turnover of up to £45 million.
  • Business has a borrowing proposal which the lender would consider viable, if not for the coronavirus pandemic.
  • Business Owner can self-certify that your business has been adversely impacted by the coronavirus.
  • The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees.
  • The government will provide lenders with a guarantee of 80% on each loan (subject to a pre-lender cap on claims).
  • The scheme is delivered through commercial lenders, backed by the government-owned British Business Bank.

Know more here.



SMBs can maintain their current workforce which is severely affected by coronavirus (COVID-19), by furloughing employees and applying for a grant to the HMRC.

  • PAYE payroll scheme has been created and started on or before 19 March 2020
  • Enrollment for PAYE online
  • UK bank account

Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies, and public authorities.

  • The grant covers 80% of an employees’ usual monthly wage costs up to £2,500 a month.
  • The grant also covers associated Employer National Insurance contributions and pension contributions.
  • Payments may be withheld or need to be repaid in full to HMRC if the claim is based on dishonest or inaccurate information or found to be fraudulent.

Know more here.

VAT & Income Tax Deferrals


If you’re a UK VAT registered business and have a VAT payment due, you can choose to defer it.

  • Your VAT payment should be due between 20 March 2020 and 30 June 2020.
  • Defer the Tax payment until a later date.
  • Pay the VAT due as normal.
Further Options
  • If you’re in temporary financial distress because of COVID-19, more help is available from HMRC’s Time to Pay service.

Know more here.

Statutory sick pay


SSP or Statutory Sick Pay Scheme can be claimed from the employer, if you’re too ill to work, due to various COVID-19 specific or non-specific illness.

  • COVID-19 Specific – 4 days isolation.
  • Non-specific illness – 4 or more days off work in a row.
  • You can get £95.85 per week Statutory Sick Pay (SSP) if you’re too ill to work by your employer for up to 28 weeks.
  • You cannot get less than the statutory amount. You can get more if your company has a sick pay scheme.

Know more here.

Universal Credit


Universal Credit is a payment to help with your living costs. It’s paid monthly – or twice a month.

  • You are on a low income or out of work.
  • You’re 18 or over (there are some exceptions if you’re 16 to 17).
  • You are under State Pension age (or your partner is).
  • You and your partner have £16,000 or less in savings between you.
  • You live in the UK.
  • Single and under 25:  £342.72.
  • Single and 25 or over £409.89.
  • In a couple and you’re both under 25 £488.59 (for you both).
  • In a couple and either of you is 25 or over £594.04 (for you both).

Know more here.

New Style Employment Allowance


If you are ill or have a health condition or disability that limits your ability to work you may be able to get New Style Employment and Support Allowance (ESA). It can be claimed on its own or at the same time as Universal Credit (UC).

  • You should be working within the last 2 to 3 years through employment or self-employment.
  • Made (or been credited with) Class 1 or Class 2 National Insurance contributions.
  • You will also need to have a fit note (sometimes called ‘sick note’ or ‘doctor’s note’).
  • If you’ve been affected by coronavirus (COVID-19).
  • Your (or your partner’s) savings will not affect how much New Style ESA you’re paid.
  • While you receive New Style ESA you’ll earn Class 1 National Insurance credits.
  • It is a regular fortnightly payment.

Know more here.

New Style Jobseeker’s Allowance


If you’re unemployed or work less than 16 hours a week you may be able to get New Style Jobseeker’s Allowance (JSA).

  • Have been working within the last 2 to 3 years as an employee.
  • Have paid (or been credited with) Class 1 National Insurance contributions.
  • You’ll also need to be either unemployed or work less than 16 hours a week.
  • Your savings and capital (or your partner’s savings, capital and income) are not taken into account when claiming New Style JSA.
  • Your earnings and any payment you are getting from a pension can affect the amount you may receive.
  • While you receive New Style JSA you’ll be awarded Class 1 National Insurance credits
  • It is a regular fortnightly payment.

Know more here.

Self-employment Income Support Scheme


This scheme can be used if you’re self-employed or a member of a partnership in the UK and have lost income due to coronavirus (COVID-19).

  • Have submitted your Self Assessment tax return for the tax year 2018 to 2019
  • Traded in the tax year 2019 to 2020.
  • Are trading when you apply, or would be except for coronavirus.
  • Intend to continue to trade in the tax year 2020 to 2021.
  • Have lost trading profits due to coronavirus.
  • Claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 a month.
  • The grant will be subject to Income Tax and National Insurance contributions but does not need to be repaid.
  • You can make a claim for Universal Credit while you wait for the grant by recording the grant as part of your self-employment income.

Know more here.

Other Support

1. Claim back SSP paid to employees: https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19

2. Carry out work in people’s homes safely: https://www.gov.uk/government/publications/covid-19-how-to-work-safely-in-care-homes

3. Drivers’ hours’ rules relaxations: https://www.gov.uk/government/publications/covid-19-guidance-on-drivers-hours-relaxations

4. Mortgage Payment Holiday: https://www.gov.uk/support-for-mortgage-interest

5. Advance Payments: https://www.gov.uk/universal-credit/get-an-advance-first-payment
6. Find a Job: https://www.gov.uk/find-a-job