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Overview of Covid-19 Business Support Schemes for Yoga Businesses

by | Mar 27, 2020 | Covid-19

This Content Was Last Updated on July 10, 2020 by Jessica Garbett

 

Updated 14 April 2020

The range of support from Government for businesses is extensive, and can easily become confusing and overwhelming.

This is our understanding of whats available for typical Yoga Businesses – as always E&OE

 

 

 

Scheme Eligibility and details
You Have Business Premises (regardless of business structure)
If your Rateable Value is below £15,000 Small Business Grant Scheme £10k All businesses claiming Small Business Rate Relief (SBRR) or Rural Rate Relief (RRR).  Being paid by Local Authorities early April, register via your Local Authority – non repayable grant.
If your Rateable Value is over £15,000 and below £51,000 Retail and Hospitality Grant Scheme £15k Businesses in Retail / Hospitality / Leisure – should include Yoga Businesses.  Being paid by Local Authorities early April, register via your Local Authority – non repayable grant..
If your premises are not assessed for Business Rates, eg sub letting or working from home No scheme
You are a Sole Trader or in a Partnership
Loss of Business Profits COVID-19 Self-employment Income Support Scheme Non repayable grant of 80% of averaged business profits for three months, or £2,500/m whichever is lower.

  • Based either on average of 2016-17, 2017-18, and 2018-19, or just on 2018-19 depending how long you have been trading.
  • Only available if averaged profits less than £50,000 and are over half your income.
  • Chancellor promised verbally help for businesses starting after this, no details
  • Payments will be made in June.  HMRC claim they will identify eligible individuals automatically.
  • Need to demonstrate a loss of income due to Covid-19 – not sure how rigorous this will be.
  • No prohibition on continuing to work.

More details and analysis
If you are unable to work due to Sickness or Isolation Employment Support Allowance Claim via HMRC – not means tested. Subject to having paid NI.

NSESA is £73.10 (or £57.90 if aged under 24) a week – rises to £74.35 for 2020/21
If you fall outside the above schemes / your profits are low Universal Credit Claim via HMRC – means tested
Standard Universal Credit amounts (2019/20):

  • Single and under 25 £251.77 / month
  • Single and 25 or over £317.82 / month
  • In a couple and you’re both under 25 £395.20 (for you both) / month
  • In a couple and either of you are 25 or over £498.89 (for you both) / month
You are a Director / Shareholder in a Limited Company
Loss of Business Profits No scheme available at present
80% Grant toward salary Coronavirus Job Retention Scheme 80% of your directors salary up to maximum £2,500/m.

  • Paid as a grant to company to allow salary to continue.
  • Salary, not dividend.  Based on salary at 28 February 2020.
  • Scheme initially running for three months from 1 March 2020, may extend.
  • Cannot carry on with work for company, so only suitable if you cannot work at all.
  • Claims via a portal being launched in April.
  • it looks like claims have to be linked to Covid-19, but it is not clear how much scrutiny there will be.

More details
If you are unable to work due to sickness or isolation SSP Via company payroll.

  • Available from Day 1, reimbursed to business for up to 14 days.
    SSP is £94.25/week 2019/20 and £95.85/week 2020/21.
  • The amount is subject to Tax and NI under PAYE.
  • Average earnings requirement £118 p/w 2019/20 and £120 2020/21
If you fall outside the above schemes Universal Credit Claim via HMRC – means tested
Standard Universal Credit amounts (2019/20):

  • Single and under 25 £251.77 / month
  • Single and 25 or over £317.82 / month
  • In a couple and you’re both under 25 £395.20 (for you both) / month
  • In a couple and either of you are 25 or over £498.89 (for you both) / month
All Businesses regardless of Structure or Premises
VAT Deferral No claim needed – but need to cancel your Direct Debit.   Arrears will need to be made up.  Details
Self Assessment Deferral – July 2020 2nd Payment on Account 2019/20 Automatic, no need to apply.  The payment due in January 2021 will be higher accordingly.   Applies to anyone with a Self Assessment payment due 31 July 2020 (2nd Payment on Account 2019/20)
80% Grant toward employees salaries if you have to Furlough (lay them off) Coronavirus Job Retention Scheme Details as above
HMRC time to pay on taxes (in addition to VAT and Self Assessment measures above) Apply to HMRC
Government Supported Loans Coronavirus Business Interruption Loan Scheme Offered by major banks, with security provided by Government and Government meeting interest and fees.

 

Image by Gerd Altmann from Pixabay