Available financial assistance (other than the furlough scheme)

Loans

The Government has launched several loan schemes designed to finance entities through the difficulties caused by COVID-19.

There are two separate but related schemes that are most likely to be of interest to Christian charities:

• The Coronavirus Business Interruption scheme (loans of £50,001 to £5,000,000)
• The micro loan scheme – also known as business bounce back loans (loans of £2,000 to £5,000)

To be eligible for either scheme, the charity must be based in the UK and have been adversely affected by coronavirus. Both schemes have ‘turnover’ tests, which in practice appear to be the charity’s gross income.

Deferring payments of tax due

Charities in financial distress because of COVID-19, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. Arrangements are agreed on a case-by-case basis and can cover PAYE, National Insurance and Corporation tax.

Charities that are registered for VAT can defer any VAT payments due between 20 March 2020 and 30 June 2020 until 31 March 2021. Returns must still be submitted on time. There will be no interest or penalties for late payment and no need to tell HMRC. Claims and refunds will be processed as normal.

These matters and many others are explained in greater detail in our resource COVID-19: Directory of resources for churches, charities and Christian workers.