COVID-19 Government Business Support Summary
We know it’s a difficult time for everyone right now, especially business owners. We have put together this document which we hope will clarify the help and support that is available to business owners such as yourself.
The Chancellor has issued £350bn in financial support for businesses in the UK effected by COVID-19, below is a summary of what support is or will be available in the near future:
1. Business loans and grants
2. Deferring HMRC payments
3. Relief for employees
BUSINESS LOANS & GRANTS
1. TWELVE MONTH BUSINESS RATES HOLIDAY
Scheme:
Government have introduced a business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.
Eligibility:
You are eligible for the business rates holiday if:
- your business is based in England
- your business is in the retail, hospitality and/or leisure sector
- Properties should be wholly or mainly being used as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, for assembly and leisure, hotels, guest & boarding premises and self-catering accommodation.
How to access:
There is no action for you. This will apply to your next council tax bill in April 2020.
2. GRANT OF £25,000 FOR RETAIL, HOSPITALITY AND LEISURE BUSINESSES
Scheme:
The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.
For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000.
For businesses in these sectors with a rateable value of between £15,001 and £51,000, they will receive a grant of £25,000.
Eligibility:
You are eligible for the grant if:
- your business is based in England
- your business is in the retail, hospitality and/or leisure sector
- Properties should be wholly or mainly being used as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, for assembly and leisure, hotels, guest & boarding premises and self-catering accommodation.
How to access:
You do not need to do anything. Your local authority will write to you if you are eligible for this grant.
Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.
3. CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME
Scheme:
Temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, launched on 23 March 2020 to support primarily small and medium-sized businesses to access bank lending and overdrafts.
The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee.
Businesses can access the first 12 months of that finance interest free, as government will cover the first 12 months of interest payments.
Eligibility:
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 to access:
All the major banks will offer the Scheme once it has launched. There are 40 accredited providers in all.
You should talk to your bank or finance provider (not the British Business Bank) as soon as possible and discuss your business plan with them. If you have an existing loan with monthly repayment you may want to ask for a repayment holiday to help with cash flow.
DEFERRING HMRC PAYMENTS
4. DEFERRING VAT AND INCOME TAX PAYMENTS
Scheme:
Government has deferred Valued Added Tax (VAT) payments for 3 months. The deferral will apply from 20 March 2020 until 30 June 2020.
For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021.
Eligibility:
All UK businesses are eligible.
How to access:
- This is an automatic offer with no applications required.
- Businesses will not need to make a VAT payment during the period from 20 March 2020 to 30 June 2020.
- Businesses will be given until the end of the 2020/2021 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.
- No penalties or interest for late payment will be charged in the deferral period.
5. HMRC TIME TO PAY SCHEME
Scheme:
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
Eligibility:
You are eligible if your business:
- pays tax to the UK government
- has outstanding tax liabilities
How to access:
If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559.
RELIEF FOR EMPLOYEES
6. JOB RETENTION SCHEME
Scheme:
All UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. HMRC will reimburse 80% of furloughed workers wage costs, capped at £2,500 per employee – this scheme is open from 1st March 2020 and valid for 3 months subject to extension.
Eligibility:
All UK businesses are eligible.
How to access:
- Employer have to notify employees of this change of status as ‘furloughed workers.
- Employer will submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal. (HMRC will set out further details on the information required).
7. STATUTORY SICK PAY RELIEF PACKAGE FOR SMES
Scheme:
Government will refund up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19. Employers should maintain records of staff absences and payments of SSP. If required by employer, those with symptoms of coronavirus can get an isolation note from NHS 111 online and those who live with someone that has symptoms can get a note from the NHS website (https://www.nhs.uk/conditions/coronavirus-covid-19/).
Government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible.
Eligibility:
You are eligible for the scheme if:
- your business is UK based
- your business is a small or medium-sized and employs fewer than 250 employees as of 28 February 2020
How to access:
A rebate scheme is being developed. Further details will be announced by HMRC in later dates.
We will continue to share the most up to date information directly with you as it becomes. If you want to discuss above mentioned measures please don’t hesitate to contact us.
BUSINESS LOANS & GRANTS
1. TWELVE MONTH BUSINESS RATES HOLIDAY
Scheme:
Government have introduced a business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.
Eligibility:
You are eligible for the business rates holiday if:
- your business is based in England
- your business is in the retail, hospitality and/or leisure sector
- Properties should be wholly or mainly being used as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, for assembly and leisure, hotels, guest & boarding premises and self-catering accommodation.
How to access:
There is no action for you. This will apply to your next council tax bill in April 2020.
2. GRANT OF £25,000 FOR RETAIL, HOSPITALITY AND LEISURE BUSINESSES
Scheme:
The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.
For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000.
For businesses in these sectors with a rateable value of between £15,001 and £51,000, they will receive a grant of £25,000.
Eligibility:
You are eligible for the grant if:
- your business is based in England
- your business is in the retail, hospitality and/or leisure sector
- Properties should be wholly or mainly being used as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, for assembly and leisure, hotels, guest & boarding premises and self-catering accommodation.
How to access:
You do not need to do anything. Your local authority will write to you if you are eligible for this grant.
Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.
3. CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME
Scheme:
Temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, launched on 23 March 2020 to support primarily small and medium-sized businesses to access bank lending and overdrafts.
The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee.
Businesses can access the first 12 months of that finance interest free, as government will cover the first 12 months of interest payments.
Eligibility:
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 to access:
All the major banks will offer the Scheme once it has launched. There are 40 accredited providers in all.
You should talk to your bank or finance provider (not the British Business Bank) as soon as possible and discuss your business plan with them. If you have an existing loan with monthly repayment you may want to ask for a repayment holiday to help with cash flow.
DEFERRING HMRC PAYMENTS
4. DEFERRING VAT AND INCOME TAX PAYMENTS
Scheme:
Government has deferred Valued Added Tax (VAT) payments for 3 months. The deferral will apply from 20 March 2020 until 30 June 2020.
For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021.
Eligibility:
All UK businesses are eligible.
How to access:
- This is an automatic offer with no applications required.
- Businesses will not need to make a VAT payment during the period from 20 March 2020 to 30 June 2020.
- Businesses will be given until the end of the 2020/2021 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.
- No penalties or interest for late payment will be charged in the deferral period.
5. HMRC TIME TO PAY SCHEME
Scheme:
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
Eligibility:
You are eligible if your business:
- pays tax to the UK government
- has outstanding tax liabilities
How to access:
If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559.
RELIEF FOR EMPLOYEES
6. JOB RETENTION SCHEME
Scheme:
All UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. HMRC will reimburse 80% of furloughed workers wage costs, capped at £2,500 per employee – this scheme is open from 1st March 2020 and valid for 3 months subject to extension.
Eligibility:
All UK businesses are eligible.
How to access:
- Employer have to notify employees of this change of status as ‘furloughed workers.
- Employer will submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal. (HMRC will set out further details on the information required).
7. STATUTORY SICK PAY RELIEF PACKAGE FOR SMES
Scheme:
Government will refund up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19. Employers should maintain records of staff absences and payments of SSP. If required by employer, those with symptoms of coronavirus can get an isolation note from NHS 111 online and those who live with someone that has symptoms can get a note from the NHS website (https://www.nhs.uk/conditions/coronavirus-covid-19/).
Government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible
Eligibility:
You are eligible for the scheme if:
- your business is UK based
- your business is a small or medium-sized and employs fewer than 250 employees as of 28 February 2020
How to access:
A rebate scheme is being developed. Further details will be announced by HMRC in later dates.
We will continue to share the most up to date information directly with you as it becomes. If you want to discuss above mentioned measures please don’t hesitate to contact us.
BUSINESS LOANS & GRANTS
1. GRANT OF £10,000 FOR ALL BUSINESSES IN RECEIPT OF SMALL BUSINESS RATE RELIEF
Scheme:
Government will provide Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR), 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.
Eligibility:
You are eligible for grant if:
- your business is based in England
- you are a small business and already receive SBBR and/or RRR
- you are a business that occupies property
How to access:
You do not need to do anything. Your local authority will write to you if you are eligible for this grant.
Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.
2. CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME
Scheme:
Temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, launched on 23 March 2020 to support primarily small and medium-sized businesses to access bank lending and overdrafts.
The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee. Businesses can access the first 12 months of that finance interest free, as government will cover the first 12 months of interest payments.
Eligibility:
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 to access:
All the major banks will offer the Scheme once it has launched. There are 40 accredited providers in all.
You should talk to your bank or finance provider (not the British Business Bank) as soon as possible and discuss your business plan with them. If you have an existing loan with monthly repayment you may want to ask for a repayment holiday to help with cash flow.
DEFERRING HMRC PAYMENTS
3. DEFERRING VAT AND INCOME TAX PAYMENTS
Scheme:
Government has deferred Valued Added Tax (VAT) payments for 3 months. The deferral will apply from 20 March 2020 until 30 June 2020.
For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021.
Eligibility:
All UK businesses are eligible.
How to access:
- This is an automatic offer with no applications required.
- Businesses will not need to make a VAT payment during the period from 20 March 2020 to 30 June 2020.
- Businesses will be given until the end of the 2020/2021 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.
No penalties or interest for late payment will be charged in the deferral period.
4. HMRC TIME TO PAY SCHEME
Scheme:
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
Eligibility:
You are eligible if your business:
- pays tax to the UK government
- has outstanding tax liabilities
How to access:
If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559.
RELIEF FOR EMPLOYEES
5. JOB RETENTION SCHEME
Scheme:
All UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. HMRC will reimburse 80% of furloughed workers wage costs, capped at £2,500 per employee – this scheme is open from 1st March 2020 and valid for 3 months subject to extension.
Eligibility:
All UK businesses are eligible.
How to access:
- Employer have to notify employees of this change of status as ‘furloughed workers.
- Employer will submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal. (HMRC will set out further details on the information required).
6. STATUTORY SICK PAY RELIEF PACKAGE FOR SMES
Scheme:
Government will refund up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19. Employers should maintain records of staff absences and payments of SSP. If required byemployer, those with symptoms of coronavirus can get an isolation note from NHS 111 online and those who live with someone that has symptoms can get a note from the NHS website (https://www.nhs.uk/conditions/coronavirus-covid-19/).
Government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible
Eligibility:
You are eligible for the scheme if:
- your business is UK based
- your business is a small or medium-sized and employs fewer than 250 employees as of 28 February 2020
How to access:
A rebate scheme is being developed. Further details will be announced by HMRC in later dates. We will continue to share the most up to date information directly with you as it becomes. If you want to discuss above mentioned measures please don’t hesitate to contact us.
BUSINESS LOANS & GRANTS
1. CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME
Scheme:
Temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, launched on 23 March 2020 to support primarily small and medium-sized businesses to access bank lending and overdrafts.
The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee.
Businesses can access the first 12 months of that finance interest free, as government will cover the first 12 months of interest payments.
Eligibility:
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 to access:
All the major banks will offer the Scheme once it has launched. There are 40 accredited providers in all.
You should talk to your bank or finance provider (not the British Business Bank) as soon as possible and discuss your business plan with them. If you have an existing loan with monthly repayment you may want to ask for a repayment holiday to help with cash flow.
DEFERRING HMRC PAYMENTS
2. DEFERRING VAT AND INCOME TAX PAYMENTS
Scheme:
Government has deferred Valued Added Tax (VAT) payments for 3 months. The deferral will apply from 20 March 2020 until 30 June 2020.
For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021.
Eligibility:
All UK businesses are eligible.
How to access:
- This is an automatic offer with no applications required.
- Businesses will not need to make a VAT payment during the period from 20 March 2020 to 30 June 2020.
- Businesses will be given until the end of the 2020/2021 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.
- No penalties or interest for late payment will be charged in the deferral period.
3. HMRC TIME TO PAY SCHEME
Scheme:
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
Eligibility:
You are eligible if your business:
- pays tax to the UK government
- has outstanding tax liabilities
How to access:
If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559.
RELIEF FOR EMPLOYEES
4. JOB RETENTION SCHEME
Scheme:
All UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. HMRC will reimburse 80% of furloughed workers wage costs, capped at £2,500 per employee – this scheme is open from 1st March 2020 and valid for 3 months subject to extension.
Eligibility:
All UK businesses are eligible.
How to access:
- Employer have to notify employees of this change of status as ‘furloughed workers.
- Employer will submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal. (HMRC will set out further details on the information required).
5. STATUTORY SICK PAY RELIEF PACKAGE FOR SMES
Scheme:
Government will refund up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19. Employers should maintain records of staff absences and payments of SSP. If required by employer, those with symptoms of coronavirus can get an isolation note from NHS 111 online and those who live with someone that has symptoms can get a note from the NHS website (https://www.nhs.uk/conditions/coronavirus-covid-19/).
Government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible
Eligibility:
You are eligible for the scheme if:
- your business is UK based
- your business is a small or medium-sized and employs fewer than 250 employees as of 28 February 2020
How to access:
A rebate scheme is being developed. Further details will be announced by HMRC in later dates. We will continue to share the most up to date information directly with you as it becomes. If you want to discuss above mentioned measures please don’t hesitate to contact us.