Instructor Support Update – 8th May
As we continue to assess and respond to the impact of Covid-19, we are looking closely at the Government’s range of financial support measures that are available to you.
Below is a summary of Government assistance being offered to Self Employed individuals in the UK. The information does not constitute any form of advice or recommendation and is not intended to be solely relied upon.
BOUNCE BACK LOAN SCHEME (BBLS)
What is the Bounce Back Loan Scheme?
The Bounce Back Loan Scheme is a new scheme introduced to help support smaller businesses who were trading successfully before Coronavirus but now face difficulty due to the current disruption. It aims to assist those businesses to borrow between £2,000 up to 25% of a business’ turnover (the maximum amount available is £50,000).
Am I eligible?
The Scheme is open to most businesses, regardless of turnover, who meet the eligibility criteria and who were established on or before 1 March 2020.
To be eligible to be considered your business must meet the following criteria:
- You are a UK based business that has been impacted by Covid-19
- You haven’t already applied or received a Bounce Back Loan
- More that 50% of your income is gained from your business
- You must use the loan to provide benefit to the business and not for personal purposes
How do I apply?
The Scheme will be available through the British Business Bank’s accredited lenders. A full list of accredited lenders can be found with the following link- https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/current-accredited-lenders-and-partners/
You will be required to fill in a short online application form and self-declare that they are eligible for the Scheme.
In the first instance, you should apply to your own bank if they are an accredited provider. If not there are banks that are taking applications from non banking customers but may require you to open an account.
How much can I apply for?
You can apply for between £2,000 up to 25% of their turnover for calendar year 2019. If your business was established after 1 January 2019 you should apply the 25% to your estimated turnover from the date you started.
How much will it cost?
The Government states it will be covering interest payment for the first 12 months. No repayments are required for the first 12 months. You won’t need to make a monthly payment until month 13, at which point it will be fixed at 2.5% per annum for the rest of the life of the loan. It is a 6-year loan with no fees or early repayment charges and you can repay the loan at any time.
How long will it take me to get the funds?
The Scheme has been designed to enable businesses to access finance quickly. Businesses are required to complete an online application form, which is expected to be assessed by their lender within a matter of days.
What do I need to apply?
You will need the following information to apply for a loan from the Bounce Back loan Scheme:
- Name, address and post code
- Turnover for calendar year 2019 (estimates can be used if you started trading during 2019)
- Bank account details
- How much you want to borrow
- If you don’t have a business account but only have a personal current account which you use for your business, you will need to provide a copy of the 2018/2019 self assessment tax return.
How long is the scheme open?
The Scheme will initially open until 4 November 2020.
SELF-EMPLOYMENT INCOME SUPPORT SCHEME (SEISS)
From Monday 4th May, HMRC will begin contacting individuals who may be eligible for the government’s Self-Employment Income Support Scheme.
Those who are eligible will be able to claim a taxable grant worth 80% of their average trading profits up to a maximum £7,500 paid in one single instalment.
To check if you are eligible visit the following link – https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference
You should have your UTR and NI number to hand and make sure your details are up to date in your Government Gateway account. The claims service will open on 13th May and those eligible will have the money paid into their bank account by 25th May or within six working days of completing a claim.
Who is eligible?
Individuals are eligible if their business has been adversely affected by Coronavirus, they traded in the tax year 2019 to 2020, intend to continue trading and they:
- Earn at least 50% of their income through self-employment
- Trading profits of no more than £50,000 per year
- Traded in the tax year 2018 to 2019 and have submitted their tax return on or before 23rd April 2020
- HMRC is using information in the tax return to determine their eligibility and is contacting people who may be eligible via email, text message or letter.
Instructor Online Quiz
Last Friday we hosted our first Online Quiz hosted by Laughing Chilli Comedy Club. Congratulations to Leeson Drake who was crowned the Bill Plant Driving School Quiz Winner. Thank you again to Darren Lord for the suggestion.
To help us organise future Quizzes and other events we’d like you to complete this survey – https://forms.gle/FoUtTcDMxvtRdi3u5
Colour our Car Competition
As previously stated our Colour our Car Competition ends at midnight on Monday 11th May. Please can you all help to share this to your friends, family and pupils. Here is the link to share www.billplant.co.uk/cardesign
As ever, we are here for you, do contact your Relationship Manager in the Instructor Support Team on 01765 643374 should you need any assistance.
We continue to do all we can to support our Instructors, Trainers, Trainees, Staff and Pupils.
Head of Instructor Support