Support for Businesses - Financial Assistance

Financial assistance available for businesses

Coronavirus Job Retention Scheme (extended until 30 September)

Self-employment Income Support Scheme (currently closed)

Kickstart Scheme

The Kickstart Scheme provides funding to create 6-month work placements aimed at those aged 16 to 24 who are on Universal Credit and are deemed to be at risk of long-term unemployment. The funding covers 100% of the relevant National Minimum Wage for 25 hours a week, plus employer NI contributions and minimum automatic enrolment contributions.

From 3 February, employers can apply directly to the Kickstart scheme for any number of job placements after the removal of the threshold of 30 job placements.

Find out more here.

Statutory Sick Pay (SSP) rebate for SMEs

HMRC Time to pay scheme

All businesses and self-employed people in financial distress may be eligible to receive support with their tax affairs. On 24 September, the Chancellor annnounced a 12-month extension from HMRC on the “Time to Pay” self-service facility, meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.

If you are concerned about being able to pay your tax due to Covid-19, call HMRC’s dedicated helpline on 0800 0159 559.

Non – domestic rates relief & deferrals

VAT cuts and reductions

The temporary 15% VAT cut for the tourism and hospitality sectors has been extended until the end of September. There will be a further 12.5% rate cut for six months after until 31 March 2022.

In addition, up to half a million business who deferred their VAT bills will be given more breathing space through the New Payment Scheme, which gives them the option to pay back in smaller instalments. Rather than paying a lump sum in full at the end March, they will be able to make 11 smaller interest-free payments during the 2021-22 financial year.

Scotland's Economic Recovery

The Advisory Group on Economic Recovery, chaired by Benny Higgins, published its report on 22 June. A brief summary of the 25 recommendations can be found here and the full report is available here.

The Scottish Government’s response to the Advisory Group on Economic Recovery report “Towards a Robust, Resilient Wellbeing Economy for Scotland: Report of the Advisory Group on Economic Recovery” can be found here.

Find coronavirus financial support for your business

Coronavirus support is available to employers and the self-employed, including sole traders and limited company directors. You may be eligible for loans, tax relief and cash grants, whether your business is open or closed.

Use the Government business support finder to see what support is available for you and your business.

Click here.

Information for businesses on lending and debt

Scottish Enterprise has useful guides on finance options and debt funding for business:

Use your business plan to secure funding

Finance options for your business

Becoming investor ready

Debt funding for your business

Business Gateway has information on financial management and can advise you on how on to manage cash flow, taxes and more.

Covid-19: How borrowers can manage the impact on their financing arrangements

In these uncertain times, borrowers will need to consider the impact of the pandemic on their existing funding arrangements in order to keep businesses viable as a going concern and to ensure that businesses are in the best position to return to normal post-pandemic.

Brodies LLP outline some practical steps borrowers should consider taking to manage the impact of the pandemic on their existing financing arrangements, and some logistical considerations for new facilities or facility amendments. Read the insight article.