Here is an updated summary of the support available for businesses during the Covid-19 outbreak.
Government Retention Scheme
The Government will pay 80% of salaries that would otherwise have been made redundant due to Covid-19. To find out more about this element read our blog on “furloughed workers”.
Statutory Sick Pay
Businesses with fewer than 250 employees, will have the cost of providing 14 days of Statutory Sick Pay per employee refunded by the government in full. Make sure you keep a record of staff absences and payments. As confirmed in our blog about Isolation Notes, GP fit notes are no longer required – click here to read more.
Help with Tax
All VAT payments will be deferred for 3 months, from 20 March 2020 until 30 June 2020. Income Tax payments due July 2020 will be deferred to January 2021 for the self-employed under Self-Assessment. If you pay by direct debit the government advise you to cancel the instruction with your bank if they are unable to pay, in good time so that no attempt to collect payment is made.
If your business is struggling to pay any tax liabilities, then the HMRC dedicated helpline may be able to agree a bespoke Time to Pay arrangement. If you are concerned about being able to pay your tax due to COVID-19, call the helpline on 0800 0159 559. This applies to all businesses and the self-employed.
If you have a query that isn’t covered by this guidance you can contact the Business Support Helpline on 0300 456 3565, Monday to Friday, 9am to 6pm to discuss any concerns.
Specific Sector Help – Retail, Leisure, Hospitality, Nurseries
For businesses in these sectors a business rates holiday has been introduced for the 2020-21 tax year. You can use the business rates calculator to estimate this saving but it will be applied automatically to your council bill.
The government will also make available a grant of up to £25,000 for businesses operating from smaller premises, with a rateable value between £15,000 and £51,000. The funding is tiered based upon value and the Local Authority will contact you if you are eligible. For nurseries, they must be registered with Ofsted’s Early Years Register and mainly provide Early Years Foundation Stage provision.
Help with rent
The Government has issued guidance that protects commercial tenants from eviction when they cannot pay their rent because of COVID-19. If a payment is missed up until 30 June, you cannot be forced to leave the property. You are still liable for payment, but you cannot be evicted.
Funding available
Small Business Grant Funding
Small businesses may be able to apply for a £10,000 cash grant which will be delivered by local authorities. Small businesses that pay little or no business rates and are eligible for small business rate relief (SBBR) or rural rate relief will be contacted by the local authority – you do not need to apply. The funding will be provided to local authorities in early April.
Coronavirus Business Interruption Loan Scheme
Delivered by the British Business Bank, this option will allow businesses to apply for a loan of up to £5 million, with the government covering up to 80% of any losses with no fees. Businesses can access the first 12 months interest free, as the government will cover 12 months of interest payments. You can only apply if your turnover is less than £45 million and you will be able to apply through one of the 40 accredited providers. You can find out more here.
For larger firms there is also help with cashflow through the Bank of England. You can find out more here
Insurance
Insurance cover will depend upon your individual policy and what exclusions apply. We would advise you to check your terms and conditions.
Cover for cancellation of events
You may be able to claim for losses from event cancellation as part of your insurance policy. If the policy includes unspecified notifiable disease extensions, you should be able to make a claim for the necessary and unavoidable cancellation, abandonment, curtailment, postponement and disruption of the event. However, we would advise you to check your individual policy.
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