During the coronavirus lockdown, most motor traders have had to significantly reduce their business activity and some have unfortunately had to cease trading entirely.
While garages have been allowed to stay open and provide essential services, many other areas of the motor trade – especially dealers – have been hard hit by the reduction in their ability to trade at this time.
Mindful that many of our customers are sole traders or running small businesses, we’ve pulled together some information on resources available to motor traders affected by the coronavirus outbreak.
FINANCIAL SUPPORT
There are a range of support options available for businesses during this period, which the government have detailed on the gov.uk website. Some which are specific to small business and self-employed individuals are listed below.
What to do if you’re self employed and getting less or no work
Following complaints of delays to providing support and guidance for the self-employed at the beginning of the coronavirus crisis, the government has since published information as to how you can apply for support as a self-employed person if your work has been adversely affected.
You can:
- Claim a grant through the coronavirus Self-employment Income Support Scheme
- Apply online for Universal Credit
- Apply for Employment and Support Allowance if you have a disability or health condition that affects how much you can work
If you cannot pay your Self-Assessment tax bill on time
Due to a drop in earnings, many self-employed people may find it difficult to make their usual Self-Assessment tax payment at this time. If you’re due to make a Self-Assessment payment by 31st July 2020, you can apply to put off the payment until January 2021.
Coronavirus Business Interruption Loan Scheme for SMEs
A specific loan scheme for small to medium sized businesses has been put together by the British Business Bank, backed by government. In their own words, ‘the scheme is designed to support smaller businesses (SMEs) who don’t meet a lender’s normal lending requirements for a fully commercial loan or other facility, but who are considered viable in the longer-term.’
OTHER RESOURCES DURING LOCKDOWN
Car Dealer are running a schedule of broadcasts ‘featuring legal experts, crisis consultants and the boss of one of the biggest dealer groups in the UK.’
The NFDA has a board of industry updates, some of which will also relate to independent motor traders and car dealers.
Don’t forget that if you are still trading, and have vehicles in your possession either for sale or belonging to customers, you still need to make sure these are registered on the MID, even during lockdown. We can help you with this if you’re insured through us – just call us on 0121 248 9300 and we can make the updates for you.
For any queries on your motor trade insurance, we’re here to help, just send us a message below.
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