The government’s additional measures for entrepreneurs during COVID-19 🇬🇧

The government is taking exceptional economic measures with the aim of protecting jobs and incomes during this time. Measures are also being taken for entrepreneurs in SMEs and freelancers, who are in serious trouble due to the corona crisis. We will highlight the most important ones for you and tell you where to apply for them.

Temporary Emergency Measure Bridging for Work Retention (NOW)

The replacement for the Working Time Reduction (wtv). If an entrepreneur expects a loss of turnover of at least 20%, he can request a compensation for a period of 3 months. The UWV reimburses up to a maximum of 90% of the wage bill and this allows them to continue to pay their employees. The exact compensation depends on the loss of turnover. In addition, the UWV gives an advance of 80% of the requested contribution. The condition is that no staff may be made redundant for economic reasons during the subsidy period.

Important to know about the NOW.
Can I already apply for the NOW? No, the NOW will be opened as soon as possible. The NOW can be applied for retroactively from 1 March. Work time reductions that have already been applied for will be converted to the NOW scheme, you do not need to do anything.
Where to apply for the NOW? At the UWV, as soon as it is open.

Income support for independent entrepreneurs

There will be a temporary, expanded regulation for self-employed entrepreneurs, so that they can continue their business. Self-employed persons can receive additional income support for subsistence for a period of 3 months, through an accelerated procedure. This supplements the income to the social minimum and does not have to be repaid. There is no asset or partner test in this temporary assistance scheme for self-employed persons. Support under this temporary arrangement is also possible in the form of a working capital loan at a reduced interest rate

Important to know.
Can I already apply for this regulaion? Yes this is already possible.
Where can I request this? Applications can be made to the municipality where you are registered.

Deferral of tax payment

The Tax and Customs Administration makes it easier to file for tax deferral applications. This applies to income, corporate, wage and turnover taxes (VAT). Collections are stopped immediately and any penalties for late payment do not have to be paid. Moreover, it is not necessary to send evidence immediately. You will have more time for that. The recovery interest that normally starts after the expiry of the payment term is temporarily reduced from 4% to almost 0%. This applies to all tax debts. The rate of the tax interest also temporarily goes to almost 0%.

Can I already request this? Yes, in fact, nothing has changed. The adjustment in tax rate is adjusted as soon as possible.
Where can I request this? At the tax authorities (Belastingdienst). For income tax, you apply for postponement before you file the tax return, either online or by telephone. For corporate, wage and turnover taxes (VAT), you must complete the declaration in time and you can request deferral by letter.

Broadening of the Guarantee for Business Financing (GO) 

The Entrepreneur Financing Guarantee (GO) regulations has been extended to help companies obtain bank loans and bank guarantees. The proposal has been made to increase the guarantee ceiling from € 400 million to € 1.5 billion. With the JV, the Ministry of Economic Affairs helps both SMEs and large companies with a 50% guarantee on bank loans and bank guarantees. This means a maximum of € 150 million per company. So it is made easier to temporarily borrow more money to get through this period. In addition, as a private person you guarantee a smaller amount and the government takes the majority of the guarantee. This allows you to request a higher amount to borrow. When applying for a loan, the bank itself will request this guarantee from the government.

Questions? We are happy to help you!

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