Insurance News

The coronavirus pandemic has been tough on small businesses in 2020

What support is there for my business during Covid-19?

December 2020


The coronavirus pandemic has been tough on small businesses in 2020, especially those who cannot operate remotely.

However, since lockdown was first introduced in March, there have been various measures put in place by the UK government to help businesses and their employees through this extremely difficult time.

So, what support is there for you as a business owner?

The furlough scheme

Initially introduced earlier this year, the furlough scheme meant that the government paid 80% of employees’ wages if they were unable to work.

This was supposed to end in October, however, due to England heading into a second lockdown, this has now been extended until March 2021.

If your staff are unable to work due to your business being closed, you may be eligible to put your staff onto the government furlough scheme.

To find out more about this, visit: gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced

The Self-Employment Income Support Scheme

From 30th November 2020, if you are self-employed, you may be able to claim for self-employed income support.

This grant is the third in the scheme and will cover you from November to April 2021, with a figure that's calculated by taking 80% of your business’ profits up to £7,500.

You will be paid in two lump sums, each covering a three-month period.*

However, there are specific requirements in order to be eligible for the scheme. For example, if you are newly self-employed, a freelancer or sole trader having previously had more than £50,000 profit, or have payed yourself in dividends, you will not be eligible.

Extra job help

The government is also currently offering additional pay-outs for businesses who are supplying jobs to particular employees over the pandemic. These include:

A £2,000 pay-out for every apprentice under the age of 25 who is taken on until the end of January 2021. Similarly, there is £1,500 up for grabs for any apprentice over the age of 25 who is taken on until the end of January 2021.

A £1,000 pay-out is available for each furloughed employee who is kept in a job until at least the end of January.

Finally, there is a pay-out of £1,500 for each 16-24 year-old who is currently out of work and given a six-month work placement that is deemed high-quality.

Insurance policies 

As your insurance broker, we’re here to help you and your business during this time.

If you have any questions or concerns regarding your current insurance policies, or perhaps areas you may not be insured for, contact us and secure peace of mind this Christmas season.

*GOV.UK

Source: Coronavirus: What support is there for my business? - BBC News