Shop shut down '80 percent of wages'

[DreamChaser23]

Good Afternoon,

One of my friend had to close his small fish shop. He employs about 5 people. He can pay them this week but can't afford to the following week. He won't even get his salary either. Is he eligible to apply for the 80 percent of wages for both him and his workers.

Not for him as he's self employed but yes for his employees.

If he is paid as an employee of his own company ie PAYE through the payroll then yes.
If he is just a director and pays himself only by dividends, then no.

He needs to be aware that the funding from Govt/HMRC could take some time to come through, so he'll have to find money to pay himself/his staff until he gets reimbursed, which could be a few weeks.

He may need to get one of the Govt backed loans recently announced from his usual lender, bank, etc., to finance the 80% wages until the money comes back to him.

He may need to get one of the Govt backed loans recently announced from his usual lender, bank, etc., to finance the 80% wages until the money comes back to him.

Unrealistic. No small business can take out massive loans to pay staff while it can’t trade and has no money coming in. I doubt the big businesses can too, either. Especially as a lot of high street retailers were struggling already before the pandemic.