Business, Consulting
CORONAVIRUS CLIENT BRIEFING – 27th MARCH 2020
April 25, 2020 -
The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.
We have summarized below the key measures that have been announced by the Government in response to the COVID 19 crisis in support of UK businesses.
Coronavirus Job Retention Scheme
| Coronavirus Job Retention Scheme | |
| What is it? | Funding to cover 80% of the wage cost, capped at £2,500/month, for “furloughed workers”. |
| What businesses qualify? | All UK businesses |
| How do I access it? | The scheme will be administered by HMRC.You will need to submit your claims via a new HMRC portal, opening in the next few days.you will need to provide information on each qualifying employee via the portal |
| Other key information | Funding will be backdated to 1st of March and will currently run for 3 months.In order to meet the criteria of a “furloughed worker”, employees must be informed they are to be temporarily absent from work. |
Statutory Sick Pay Support
| Statutory Sick Pay Scheme – “SSP” | |
| What is it? | The government will reimburse Statutory Sick Pay (SSP) for Employees absent as a result of COVID-19. |
| What businesses qualify? | You are a business with fewer than 250 employees as at 28th February 2020. |
| How do I access it | Employers should keep a record of those absent and payments of SSP but will not be required to provide GP fit note evidence.The government is still working on developing a reimbursement mechanism |
| Other key information | The scheme covers a maximum of 2 weeks SSP for eligible employees. |
Self-employment Income Support Scheme
| Self-employment Income Support Scheme | |
| What is it? | This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed. |
| What businesses qualify? | Self-employed individuals or members of partnerships |
| How do I access it? | The scheme will be administered by HMRC.You cannot apply for this scheme yet.HMRC will contact you if you are eligible for the scheme and invite you to apply online. |
| How Much will I get? | You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable): 2016 to 2017 2017 to 2018 2018 to 2019 To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable) and use this to calculate a monthly amount. It will be up to a maximum of £2,500 per month for 3 months. |
| Other key information | To apply you must: have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19 traded in the tax year 2019-20 are trading when you apply, or would be except for COVID-19 intend to continue to trade in the tax year 2020-21 have lost trading/partnership trading profits due to COVID-19 Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true: having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return. |
Cash Grants Available
| The Retail and Hospitality Grant Scheme – the “£10k Grant” | |
| What is it? | A £10k grant (i.e. the money does not have to be paid back like a loan) |
| What businesses qualify? | Businesses with a rateable value of under £15,000, will receive a grant of £10,000.Your business is in the retail, hospitality or leisure sectors |
| The Retail and Hospitality Grant Scheme – the “£25k Grant” | |
| What is it? | A £25k grant (i.e. the money does not have to be paid back like a loan) |
| What businesses qualify? | Businesses with a rateable value of over £15,000, but under £51,000, will receive a grant of £25,000.Your business is in the retail, hospitality or leisure sectors |
| Small Business Grant Scheme – the “£10k grant” | |
| What is it? | A £10k grant (i.e. the money does not have to be paid back like a loan) |
| What businesses qualify? | You are a business that occupies a premises and currently qualifies for either: Small Business Rates Relief (SBRR)Rural Rate Relief (RRR) |
| How do I access it? | All the above schemes will be administered by your Local Council Authority. They will contact you, you don’t need to do anything |
| Other key information | It appears that the local councils are yet to receive instructions on how to administer the scheme. So there could be some delay.In our professional opinion, businesses a rateable value of <£15,000 qualifying for both the retail and hospitality scheme and small business scheme will likely receive only one cash grant of £10,000. |
Business Rates Holiday
| Business Rates Tax Holiday | |
| What is it? | Businesses in retail, hospitality and leisure will pay no business rates tax for the 2020/2021 tax year. |
| What businesses qualify? | Businesses is in the retail, hospitality or leisure sectorsNursery providers on the Early Years Foundation Stage, or those occupied by providers on Ofsted’s Early Years Register. |
| How do I access it? | You do not need to do anything the scheme will automatically be applied to your next council tax bill in April 2020. |
| Other key information | You can estimate the cash saving this will provide, by using the government’s business rates calculator here |
Coronavirus Business Interruption Loan Scheme (CBILS)
| Coronavirus Business Interruption Loan Scheme (CBILS) | ||
| What is it? | Cheap debt financing of up to £5m. | |
| What businesses qualify? | T/O less than £45mSound borrowing proposal, with insufficient security to meet current lenders rates.Not operate in the following sectors (loosely)Financial Services: Banks, Building Societies, Insurance, Reinsurance Education: Primary Education, Secondary EducationOrganisations: Religious, Trade Union, Political, Private Household | |
| How do I access it | The scheme will be co-ordinated by the British Business Bank through their accredited lenders (see below)Current advice is to contact accredited lenders directly, providing evidence of a sound borrowing proposal. (See our Preparing for CBILS guide on what information will likely be expected) | |
| Other key information | The scheme will be available from the week commencing 23rd March.The first 12 months of all schemes are interest free | |
| Accredited Lenders | Abn Amro Commercial FinanceAldermoreArkle Finance LimitedArt Business LoansAskif Inclusive FinanceBank of IrelandBank of ScotlandBarclaysBCRS Business LoansBusiness Enterprise Fund (West & North Yorkshire And The North East)Calverton FinanceChamber Acorn FundClydesdale And Yorkshire BanksCompass Business FinanceCounty Finance Group LimitedCoventry & Warwickshire Reinvestment TrustDanske BankDSL Business FinanceDSL Business FinanceEnterprise AnswersFinance for Enterprise | First EnterpriseGC Business FinanceGenesis Asset FinanceHaydock FinanceHitachi CapitalHSBC Let’s do Business GroupLloydsMerseyside Special Investment FundMetro BankNatwestNewable (formerly GLE)Robert Owen Community BankingSantanderSecureTrust Commercial FinanceSkipton Business FinanceSouth West Investment GroupRoyal Bank of ScotlandTSBUKSEUlster Bank |
Deferral of VAT and Income Tax Payments
| Deferral of VAT and Income Tax Payments | |
| What is it? | A 3-month holiday to VAT payments and a 6 month holiday to Self- Assessment Tax Payments. |
| What businesses qualify? | All UK businesses are eligible. |
| How do I access it | No application necessary, this is an automatic offer. |
| Other key information | Businesses will not need to make VAT payments until the end of June. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period No Self-assessment tax payments are now required until January 2021 |
Companies to receive 3-month extension period to file accounts during COVID-19
| 3-month extension period to file accounts | |
| What is it? | Businesses will be given an additional 3 months to file accounts with Companies House to help companies avoid penalties as they deal with the impact of COVID-19. |
| What businesses qualify? | All UK Companies are eligible. |
| How do I access it | If your accounts will be late because your company is affected by COVID-19, and your filing deadline has not yet passed, you can apply for an automatic and immediate 3 month extension to file your accounts. |
| Other key information | To apply online you’ll need: your company numberinformation about why you need more timeany documents to support your applications (optional) If your application is based on issues around COVID-19, you’ll be automatically and immediately granted a 3 month extension. |
Business Insurance
The government has confirmed that it’s announcement on 16th March to avoid pubs, restaurants and cafés was sufficient instruction for those businesses with pandemic/government ordered closure in their insurance contract to make a claim.
For further help and advice in support of your business during the current emergency, please email your normal Client Manager in the first instance.