Amid the Coronavirus pandemic, there is an understandable amount of uncertainty concerning business. In particular, finance, cash flow, wages, VAT, business rates.
As part of the commitment of the Johnson Reed commitment to helping support our businesses during this time, check out our guide on everything the government has published so far.
All accurate and updated information can be found at: https://www.businesssupport.gov.uk/coronavirus-business-support/
In addition, Johnson Reed has provided a support page:
https://www.johnsonreed.co.uk/coronavirus
Coronavirus Business Interruption Loan Scheme
What is it?
- Will support small and medium-sized businesses with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years
- The Government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments
- The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs
- The scheme will be delivered through commercial lenders, backed by the Government-owned British Business Bank
- There are 40 accredited lenders able to offer the scheme, including all the major banks
Am I eligible?
You are eligible for the scheme if:
- your business is UK based, with turnover of no more than £45 million per year
- your business meets the other British Business Bank eligibility criteria
How do I access it?
- Talk to your bank or one of the 40 accredited finance providers offering the scheme as soon as possible to discuss your business plan with them
- You can find out the latest on the best ways to contact them via their websites
- The full rules of the Scheme and the list of accredited lenders is available on the British Business Bank website
- If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow
When can I access it?
The scheme is now open for applications. All major banks are offering this scheme.
Business Rates Holiday for Retail, Hospitality and Leisure
What is it?
- Businesses in the retail, hospitality and leisure sectors in England will not have to pay business rates for the 2020-21 tax year
- Businesses that received the retail discount in the 2019-20 tax year will be rebilled by their local authority as soon as possible
Am I eligible?
You will be eligible if:
1. Your business is based in England, AND
2. Your business is in the retail, hospitality and/or leisure sector
Properties that will benefit from the relief will be those that are wholly or mainly being used:
a. as shops, restaurants, cafes, drinking establishments, cinemas and live music venues,
b. for assembly and leisure; or
c. as hotels, guest and boarding premises and self-catering accommodation
How do I access it?
1. There is no action for you. Local authorities will apply the business rates holiday to your bills. For more information please check the guidance on gov.uk
2. You can estimate the business rate charge you will no longer have to pay this year using the business rates calculator
3. You can find your local authority on gov.uk
When can I access it?
This will apply to your business rates bills for the 2020/2021 tax year.
However, local authorities may have to reissue your bill. They will do this as soon as possible.
Cash Grant for Retail, Hospitality and Leisure
What is it?
If your business is in the retail, hospitality or leisure sector, you will receive a cash grant of up to £25,000 per property.
Businesses in these sectors with a rateable value of under £15,000 will receive a grant of £10,000.
Businesses with a rateable value of between £15,001 and £51,000 will receive a grant of £25,000.
Am I eligible?
You will be eligible if:
1. Your business is based in England
2. Your business is in the retail, hospitality and/or leisure sector
3. Properties that will benefit from the relief will be occupied properties that are wholly or mainly being used:
- as shops, restaurants, cafes, drinking establishments, cinemas and live music venues for assembly and leisure
- as hotels, guest and boarding premises and self-catering accommodation
How do I access it?
1. You do not need to do anything
2. Your Local Authority will write to you if you are eligible for this grant
When can I access it?
Local Authorities will write to all eligible businesses with information on how to claim this grant.
Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant Local Authority.
Coronavirus Job Retention Scheme
What is it?
Under the coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis.
This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers’.
HMRC will reimburse 80% of their wages, up to £2,500 per month.
This is to safeguard workers from being made redundant.
The Coronavirus Job Retention Scheme will cover the cost of wages backdated to March 1st and is initially open for 3 months, but will be extended if necessary.
Am I eligible?
All UK-wide employers with a PAYE scheme will be eligible – this includes the public sector, Local Authorities and charities.
How do I access it?
You will need to:
1. Designate affected employees as ‘furloughed workers,’ and notify your employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation.
2. Once the new online portal is live, submit information to HMRC about the employees that have been furloughed and their earnings (HMRC will set out further details on the information required)
When can I access it?
- HMRC are working urgently to set up a system for reimbursement
- We expect the first grants to be paid within weeks
- Aiming to get it done before the end of April
Small Business Grant Funding
What is it?
- The Government is providing additional funding for Local Authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief
- This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs
Am I eligible?
You will be eligible if
1. Your business is based in England AND
2. You are a small business and already receive SBRR and/or RRR AND
3. You are a business that occupies property
How do I access it?
You do not need to do anything. Your Local Authority will write to you if you are eligible for this grant.
When can I access it?
Local Authorities will write to all eligible businesses with information on how to claim this grant.
Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant Local Authority.
Statutory Sick Pay Rebate
What is it?
The Government will bring forward legislation to allow small and medium-sized businesses to reclaim Statutory Sick Pay (SSP) paid for staff sickness absence due to coronavirus.
This refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of coronavirus.
Am I eligible?
You will be eligible if:
1. Your business is UK based AND
2. Your business is a small or medium sized and employs fewer than 250 employees as of 28 February 2020
How do I access it?
A rebate scheme is being developed, further details will be provided in due course.
When can I access it?
- The Government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible
- Existing systems are not designed to facilitate employer refunds for SSP
Time to Pay
What is it?
- All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service
- These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities
Am I eligible?
You will be eligible if:
1. Your business pays tax to the UK Government
2. Your business has outstanding tax liabilities
How do I access it?
- If you’ve missed, or are worried about missing, your next tax payment due to coronavirus, please contact HMRC
- You can also call the HMRC helpline for advice on
0800 0159 559
- For more information on late payments, check with HMRC
- If you’re worried about a future payment, please call HMRC nearer the time
When can I access it?
You can access this support now.
VAT Deferral
What is it?
Deferred Valued Added Tax (VAT) payments for 3 months.
Am I eligible?
All VAT-registered UK businesses are eligible.
How do I access it?
- This is an automatic offer with no applications required
- UK Registered businesses will not need to make VAT payments normally due with VAT returns during this period
- Taxpayers will be given until the end of the 2020-21 tax year to pay any liabilities that have accumulated during the deferral period
- VAT refunds and reclaims will be paid by the government as normal
When can I access it?
The deferral will apply from 20 March 2020 until 30 June 2020.
