Home » Small business roundup-11th September 2020

Small business roundup-11th September 2020

Up to £3.5bn furlough claims fraudulent or paid in error!

The Government believe that up to £3.5bn “Coronavirus Job Retention Scheme” payments may have been claimed fraudulently or paid out in error.

The assumed percentage of fraudulent furlough claims could be between 5% and 10%. HMRC have stated that they are not setting out to find employers who have made genuine mistakes however, they do expect employers to check their claims are correct.

So far, 8,000 calls have been received by HMRC alleging fraud, HMRC are reaching out to employees who feel their employer may have been fraudulently claiming furlough money.

Full story available here.

New grants for businesses affected by local lockdowns

New grant support was announced this week offering businesses in areas subject to a local lockdown financial support. According to GOV.UK HM Treasury said:

“Businesses in England required to close due to local lockdowns or targeted restrictions will now be able to receive grants worth up to £1,500 every three weeks, Chief Secretary to the Treasury Steve Barclay told MPs today. To be eligible for the grant, a business must have been required to close due to local COVID-19 restrictions. The largest businesses will receive £1,500 every three weeks they are required to close. Smaller businesses will receive £1,000.”

Payments are triggered by a national decision to close businesses in a high incidence area. Each payment will be made for a 3-week lockdown period. Each new 3-week lockdown period triggers an additional payment.

Full details of the story are available here.

Mortgage deals plummet as lenders play safe

Low-deposit mortgage deals for borrowers have dropped in recent months as lenders play safer during the economic fall from Coronavirus.

Due to the amount of job losses and furlough, lenders are stricter about who they lend amid fears of defaults.

Some lenders are advising they would not currently consider applications from people on furlough.

This will impact first-time buyers as they usually have less in savings to put down upfront.

Full details of the story are available here.

Working from home ‘here to stay’?

Companies were forced to allow their workers to work from home due to the Coronavirus, but many business owners have seen that that working from home doesn’t necessarily impact productivity.

Many companies have found that colleagues have shown they can be productive and in some cases, more productive than the office. This has also urged colleagues to ask for more flexible work in the feature.

Whilst this has been a huge positive for many people the resulting fall in commuters has impacted both small businesses within major cities and train companies too

Read more on this story here.

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