Coronavirus (CV19) – Financial support for small and medium sized businesses in England

 

Here is a list of the main categories of financial support.

It should help as a checklist and lead you to the correct place with official guidance.

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FOR INDIVIDUALS (for businesses see lower down)
https://www.gov.uk/coronavirus

 

• Job retention scheme (Employees) (CJRS) (‘furloughment’ – enables employer’s to recover up to 80% of qualifying employee’s wages, capped at £2,500/month. From 10th June no employee can be placed on furlough for the first time)
  https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

       EXTENDED (per Chancellor 29/05/2020) – The extension has built-in reductions which affect employers (see below         for CJRS notes for businesses) and so will indirectly affect employees. Specifics to be announced by govt. later,               but broadly:

       - 1st July (Firms can call back employees part time (previously disallowed) and be responsible for their pay while in         work. Grant covers the rest)

       - 1st August (Employees continue to return to work, but the grants available to employers are progressively                     reduced until the scheme ends on 31st October)
       https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-                     furlough-next-steps

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• Statutory sick pay (SSP) (If you are sick for whatever reason you can claim SSP of £95.85 per week for up to 28 weeks. Employer can choose to leave you on furloughed rate if applicable. For CV19 will need an isolation note from NHS111 https://111.nhs.uk/covid-19/)
  https://www.gov.uk/statutory-sick-pay

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• Self-employed income support scheme (SEISS) (Applies to sole traders and members of a partnership if earning under £50,000pa. Can claim 80% of past 3 tax year’s average profits as a one off claim)
  https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

 

       EXTENDED (per Chancellor 29/05/2020) – Those qualifying for SEISS can now claim a second and final grant in               August. They can claim 70% of average profits, capped at £6,570 in total.
       https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-                     furlough-next-steps

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• Self-assessment payment on account deferral (If you have a tax liability payment in July you can choose to automatically defer payment until 31st January. Interest applies after that date)
  https://www.gov.uk/guidance/defer-your-self-assessment-payment-on-account-due-to-coronavirus-covid-19

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• Difficulties paying tax liabilities (HMRC acknowledge the exceptional times and will discuss payment plans with you)
  https://www.gov.uk/difficulties-paying-hmrc

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• Universal credit (A means-tested benefits option which applies to assist with living costs and is paid monthly. Online calculator good place to start, especially if already receiving some type of tax credit) https://www.gov.uk/benefits-calculators
  https://www.gov.uk/universal-credit

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• Finance payment holidays (The government has an agreement with lenders (mortgage providers, credit cards etc) so they will offer a payment holiday, but is likely to incur additional interest. Can discuss with your lender up to 4th November. Finance payment holidays may affect your credit rating)

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• Rent payment holidays (The finance holidays mean landlords are under less pressure and are strongly encouraged to pass the benefit of that on to struggling tenants)

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• NEW! Stamp Duty Land Tax (The government has changed the amounts and banding to stimulate the housing market. This only applies to residential properties and applies to properties sold from 08/07/2020 to 31/03/2021)
  https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates

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• NEW! VAT rate reduction (This is a temporary reduction to the rate of VAT from 20% to 5% on certain hospitality sectors. The VAT cut will apply to eat-in or hot takeaway food and non-alcoholic drinks from restaurants, cafes and pubs, accommodation in hotels, B&Bs, campsites and caravan sites, and attractions like cinemas, theme parks and zoos. The reduction will apply from 15/07/2020 to 12/01/2021. At the moment it is not clear whether the whole reduction to VAT has to be passed on to the consumer. The concept is to stimulate trade and that can be done by either reducing prices or increasing profit margins to enable business survival and wider investment in things like wages)
  https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2020-temporary-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions/guidance-on-the-temporary-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions

 

• NEW! ‘Eat out to help out’ scheme (This will ONLY apply to eligible eateries who have applied to be part of the scheme. Don’t think it applies everywhere! An automatic 50% discount to a maximum of £10 per head will be applied to your bill for eating out Monday-Wednesday throughout the month of August. There is no limit to how many times this can be used . . . so you may want to make 3 bookings and move a few doors down the high street between courses!)

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• NEW! Green Homes Grant Scheme (Vouchers of up to £5,000 (£10,000 for the poorest households) will be available to fund two thirds of qualifying energy improvement work being done. The offering also applies to landlords so costly energy consumption of tenants is also improved. More information to follow as the system is still being built. Should be ready during September)

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FOR BUSINESSES

https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19

https://www.gov.uk/coronavirus

 

• Grant in respect to retail, hospitality and leisure businesses in England (RHLGF) (Entitles such qualifying businesses ordered to close a one-off grant of £10,000 or £25,000 depending on rateable value. Notice should have come from local authorities, but check if you’ve not heard.)
  https://www.gov.uk/guidance/check-if-youre-eligible-for-the-coronavirus-retail-hospitality-and-leisure-grant-fund

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• Business rates relief (Similarly qualifying businesses will not have to pay business rates for the 2020-21 financial year. Local Authorities will automatically reduce this to zero, but check if you’ve not heard)
  https://www.gov.uk/apply-for-business-rate-relief

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• Small business grant fund (SBGF) (All businesses in England in receipt of small business rates relief or rural rates relief entitled to a grant of £10,000. Notice should have come from local authorities, but check if you’ve not heard.)
  https://www.gov.uk/guidance/check-if-youre-eligible-for-the-coronavirus-small-business-grant-fund

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• Job retention scheme (JRS) (‘furloughment’ – enables employer’s to recover up to 80% of qualifying employee’s wages, capped at £2,500/month, plus Employer’s National Insurance and pension contributions. Grant reduces from August. From 10th June no employee can be placed on furlough for the first time)

       https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

       EXTENDED (per Chancellor 29/05/2020) – The extension has built-in reductions which affect employers. Specifics           to be announced later, but broadly:
       - 1st July (Firms can call back employees part-time (previously disallowed) and be responsible for their pay while in         work. Grant covers the rest. Employees subject to a claim must have been successfully furloughed at some stage           since 1st March)
       - 1st August (Employees continue to return to work, but grants no longer cover Employer’s National Insurance or           Pension Contributions which must now be paid by the employer. 80% of wages still paid by grant and capped at             £2,500)
       - September (grant further reduces to 70% of wages, capped at £2,187.50 –employer pays other 10%)
       - October (grant further reduces to 60% of wages, capped at £1,875 – employer pays other 20%)
       This grant scheme ends on 31st October 2020
       https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-                     furlough-next-steps

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• NEW! Job Retention Scheme Bonus (Bosses who bring back furloughed staff and keep them on the payroll until January next year will get a bonus of £1,000 per employee. They must remain on the payroll and be paid at least £520 per month. Link to more information will be here when available)

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• NEW! Employment support for the youngest in society (The chancellor announced a large amount of support by way of the ‘Kickstarter’ scheme, traineeships and apprenticeships. Link to more information will be here when available)

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• Statutory sick pay rebate scheme (SSP) (Usually SSP cannot be recovered from the government, but for sick pay payable to those self-isolating you can claim the first 2 weeks; 12 weeks if NHS told them to shield. Employers can choose between furloughment or SSP)
  https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19

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• VAT payment deferment (Any VAT payment due between 20th March and 30th June can be deferred until 31st March 2021. Claim is automatic, but must cancel direct debit so the money does not get taken. Remember to start it up again afterwards)
  https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

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• Difficulties paying tax liabilities (HMRC acknowledge the exceptional times and will discuss payment plans with you)
  https://www.gov.uk/difficulties-paying-hmrc
  
  (A note on loans: When assessing loan support it is important to ask yourself the question – Am I in difficulty as a result of CV19, or was I in difficulty anyway? This is a common theme amongst the questions connected with obtaining financial assistance)

 

• Loan type 1 - Business Interruption Loan Scheme (CBILS) (Uncapped and more akin to normal borrowing, but the government guarantees 80% of the loan. Interest free for 12 months. Make the application through your bank)
  https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme

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• Loan type 2 – Bounce Back Loans (BBL) (Capped at 25% of the 2019 calendar year turnover, but the government guarantees 100% of the loan. Interest free for 12 months, then typically 2.5% over 6 years thereafter. Very easy application form and can apply through your bank)
  https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

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• NEW! VAT rate reduction (Although primarily aimed at consumers this could assist your business if you are in the designated sector of hospitality and recreation. This is a temporary reduction to the rate of VAT from 20% to 5% on certain hospitality sectors. The VAT cut will apply to eat-in or hot takeaway food and non-alcoholic drinks from restaurants, cafes and pubs, accommodation in hotels, B&Bs, campsites and caravan sites, and attractions like cinemas, theme parks and zoos. The reduction will apply from 15/07/2020 to 12/01/2021. At the moment it is not clear whether the whole reduction to VAT has to be passed on to the consumer. The concept is to stimulate trade and that can be done by either reducing prices or increasing profit margins to enable business survival and wider investment in things like wages)
  (If you are using the flat rate scheme for VAT and operate in one of these sectors then your flat rate has been temporarily adjusted)
  https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2020-temporary-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions/guidance-on-the-temporary-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions

 

• NEW! ‘Eat out to help out’ scheme (This will ONLY apply to eateries who have applied to be part of the scheme. If you want to be on the scheme you will need to apply for it. Once your application has been accepted an automatic 50% discount to a maximum of £10 per head can be applied to your customer’s bill for eating out Monday-Wednesday throughout the month of August. There is no limit to how many times this can be used. The discount is reclaimable from the government. One of the conditions to be eligible is you need to have applied to your local authority to operate as a food business before the end of 7th July 2020)
  https://www.gov.uk/government/publications/get-more-information-about-the-eat-out-to-help-out-scheme/get-more-information-about-the-eat-out-to-help-out-scheme
   

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