Companies across the country, and indeed the world, are dealing with unparalleled challenges as the enforced closure of premises and increasingly strict social distancing measures slam the brakes on business as we know it in the wake of the escalating coronavirus crisis.

In the face of this challenging environment, the UK government has introduced an unprecedented combination of measures to support businesses across the country as they deal with the potential fallout of this global pandemic. These are temporary schemes put in place to address the unique pinch points which will be felt by companies over the coming months.

Encompassing emergency funding options, tax deferral measures, as well as standalone initiatives to preserve jobs and cut outgoings, the proposals are designed to help as many businesses as possible, irrespective of size or sector.

Funding Options:

As trade decreases and income falls, many companies will be in need of an injection of capital to bolster their cash flow if business is to continue. There are two main schemes to help companies access these much-needed funds.

• Coronavirus Business Interruption Loan Scheme (CBILS)

Providing government-backed loans and other channels of funding such as asset and invoice finance. Both long- and short-term products have been made available, allowing SMEs to access the right type of finance as their unique circumstances require.

• COVID Corporate Financing Facility (CCFF)

For larger corporations that are feeling increasing financial pressure as a direct result of the business disruption caused by COVID-19. Administered by the Bank of England, short-term funding will be made available in the form of commercial paper.

Tax Deferral Schemes:

When cash flow is squeezed, many companies will struggle to find the necessary funds to meet their outgoings as and when they fall due. To ease the burden, businesses will now be permitted to defer certain HMRC debts in order to free up short-term liquidity, allowing for other creditors to be paid and the supply chain to continue flowing.

• Time to Pay (TTP) Arrangements

The existing TTP scheme will be extended, meaning more companies will now be able to enter into an arrangement with HMRC to spread their tax obligations over a longer period of time.

• VAT Deferral

The upcoming quarterly VAT payment will be deferred for businesses.

• Self-Assessment Deferral

Self- Assessment payments for the selfemployed will also be deferred. It has been confirmed that these payments, which were originally scheduled for 31 July 2020, will now not be due until January 2021.