RESPONDING TO COVID-19: PRACTICAL SUPPORT FOR UK BUSINESSES & INDIVIDUALS
Businesses suddenly find themselves scrambling to understand Government schemes, their financial position amidst a plethora of unknowns and their options to ensure that their companies survive the next few months.
This is not a time to go it alone and we are here to help. This portal aims to provide you with tips and advice to help safeguard your employees, your business and your finances while weathering the impact of Coronavirus.
5 key areas businesses should be focusing on now:
Coronavirus Job Retention Scheme (CJRS) and Job Retention Bonus
The CJRS has been extended until 30 April 2021.
The government will continue to pay 80% of the salary of employees for hours not worked until the end of April. Employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked.
Kickstart Scheme and Measures to Help People Find Work
In order to support people finding jobs, the Chancellor announced the Kickstart Scheme, which will provide £2 billion to support the creation of “high quality” six-month work placements for 16 to 24-year-olds on Universal Credit and at risk of long-term unemployment.
The Government will provide employers that offer the placements funding equivalent to 100 per cent of the relevant level of the National Minimum Wage (NMW) for 25 hours a week. It will also cover the associated Employer NICs and minimum automatic enrolment pension contributions.
The Chancellor, Rishi Sunak, also outlined additional measures, including funding for traineeships and employers that hire new apprentices, as well as funding for several careers and job-finding programmes.
The apprenticeships funding will provide £2,000 to employers in England for every apprentice hired under the age of 25 and £1,500 for each newly hired apprentice aged 25 or older. This funding is in addition to schemes already in place to support employers in taking on apprentices.
Mortgage payment holiday
As announced on 31 October, mortgage payment holidays will no longer end. Borrowers who have been impacted by Coronavirus and have not yet had a mortgage payment holiday will be entitled to a six month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.
SDLT holiday
There is a temporary cut in Stamp Duty Land Tax (SDLT) from 8 July by raising the nil-rate band from £125,000 to £500,000 until 31 March 2021. The Treasury estimates that, as a consequence, around nine in 10 people buying a main residence will pay no SDLT.
Further details can be found on SDLT changes here.
VAT Deferral Scheme
- Businesses who deferred their VAT bills will be given more breathing space through the New Payment Scheme, which gives them the option to pay back in smaller instalments – Rather than paying a lump sum in full at the end March next year, businesses will be able to make 11 smaller interest-free payments during the 2021-22 financial year
- The temporary 15% VAT cut for the tourism and hospitality sectors has now been extended to the end of March 2021
Expansion of HMRC’s Time to Pay Arrangements
Deferral of Self-Assessment Payment
Self-Employment Income Support Scheme (SEISS)
SEISS is in place until April 2021. The scheme is currently in its third stage and will offer grants to the self-employed at 80 per cent of average trading profits for November to January, capped at £7,500 in total.
Access to Finance schemes:
- Under the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS), the Government provides lenders with an 80 per cent guarantee to enable them to support viable small and medium sized enterprises (SMEs) and larger businesses respectively.
- Under the Bounce Back Loans Scheme (BBLS), the Government provides lenders with a 100 per cent guarantee to enable them to provide loans between £2,000 and £50,000 to small and medium-sized businesses with a simple, streamlined application process.
- All three government-backed loan schemes are open until the end of January 2021.
Local Restrictions Support Grants:
Businesses in England that are forced to close will receive up to £3,000 for each 28 day period. Where businesses have not been required to close but have been severely affected by restrictions in tier 2 or tier 3 areas, local authorities will receive funding that will enable them to make grants worth up to £2,100 for each 28 day period.
For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.
Business Rates holiday:
All eligible businesses in the retail, hospitality and leisure sectors will pay no business rates in England for 12 months from 1 April 2020, and nurseries in England will also receive a one-year holiday.
The Coronavirus Large Business Interruption Loan Scheme (CLBILS)
CLBILS helps medium and large sized businesses to access loans and other kinds of finance up to £200 million. The government guarantees 80% of the finance to the lender.
You can apply for a loan if your business:
- is based in the UK
- has an annual turnover of over £45 million
- has not received support under the Bank of England’s COVID-19 Corporate Financing Facility, for investment grade companies.
You need to show that:
- your business would be viable were it not for the pandemic
- your business has been affected by Coronavirus
- the loan will enable you to trade out of any short-term to medium-term difficulty resulting from Coronavirus
If you’re borrowing more than £50 million you must agree to restrictions on dividend payments, senior pay and share buy-backs during the period of the loan. Check the eligibility requirements.
Reduced VAT rate for hospitality and tourism:
The Government is extending the reduced VAT rate of 5% for eligible businesses in the hospitality and tourism sectors until 31 March 2021.
Business Rates Holiday
Cash Grants
Protection against aggressive rent collection and closure
Future Fund
On 30 June, the Future Fund was extended. Companies who have participated in highly selective accelerator programmes and were required, as part of that programme, to have parent companies outside of the UK are now be able to apply for investment. Read more here.
Research and development (R&D) Tax Relief for innovation
Find out more here.
For further information or to arrange for a no obligation preliminary discussion on how your company could qualify under this Government business support scheme, contact Steve Govey or your usual Beavis Morgan Client Partner.
Support for SMEs focusing on R&D
Contact Steve Govey or your usual Beavis Morgan Client Partner for more information and for support in submitting your application.
This is a fast-changing situation and it is anticipated that the new measures announced will continue to evolve.
The team at Beavis Morgan is on hand to guide business owners and managers through the weeks and months ahead.
We will continually monitor the situation and update you via this online portal. We also offer the opportunity for you to receive news alerts as they happen directly to your inbox.
You can register to receive these alerts via the contact form provided on this page.
Alternatively, if you have any concerns or queries and require business advice and support at this challenging time, email us at info@beavismorgan.com.
REGISTER FOR CORONAVIRUS BUSINESS SUPPORT NEWS ALERTS
If you have a particular query related to Coronavirus crisis and how we can help you and your business then please email us via info@beavismorgan.com.
Newsletter
Our Coronavirus updates, summaries and guides for employers and businesses are listed below:
17 December 2020 Furlough scheme extended to 30 April 2021
2 December 2020 Boost for high street as shopping hours extended for the Festive Season
27 November 2020 What does the spending review mean for businesses?
24 November 2020 Government’s Winter Plan – Supporting businesses & minimising economic impact
12 November 2020 Boost for restaurants, pubs and cafes as takeaway services are extended
5 November 2020 Government extends furlough to March and increases self-employed support
3 November 2020 Application deadlines extended for emergency business loans
3 November 2020 Government increases support for self-employed
2 November 2020 Furlough Scheme extended and further economic support announced
22 October 2020 Chancellor unveils extra measures to support businesses and jobs
12 October 2020 – Job Support Scheme expanded to firms required to close due to Covid Restrictions
30 September 2020 – Winter Economy Plan – Key points for SMEs
7 August – The impact of the Coronavirus on the UK economy and society
4 August – Changes to CJRS ‘furlough’ claims
3 August – Government launches leadership programmes to help small businesses grow
1 July – “Flexible furlough” commences
1 July – More start-ups and innovative firms can now benefit from the Future Fund
27 June – £200 million support package for innovative businesses
27 June – Rules that have been relaxed to help businesses during the Coronavirus pandemic
27 June – Taxable expenses when working from home due to Coronavirus
1 June – Coronavirus JRS updated – New furlough applications close 10 June
28 May – Reopening guidance for retailers – COVID-19
19 May – New Coronavirus Statutory Sick Pay Rebate Scheme set to launch
12 May – Government extends furlough leave by four months
12 May 2020 – New guidance launched to help businesses safely back to work
4 May 2020 – Further grants for small businesses
27 April – 100% Government backed loan scheme for small businesses
24 April – Government unveils measures to protect high street and other companies
20 April – New ‘support finder’ tool for UK businesses and individuals
20 April – Billion pound support package for UK businesses driving innovation and development
20 April – Furlough leave: HMRC portal now open
17 April – Government expands loan scheme for large businesses
16 April – Coronavirus Business Interruption Loan Scheme (CBILS): FAQs for Lenders
16 April – Coronavirus Job Retention Scheme: Help to claim
15 April 2020 – HMRC updates Self-employment Income Support Scheme guidance
15 April 2020 – Coronavirus JRS update: Furlough scheme cut-off date extended to 19 March
14 April 2020 – CBILS: Support for businesses struggling to access emergency cash loans
06 April – Government updates guidance on furlough leave
03 April – Update: Government bolsters business interruption loans for SMEs and larger businesses
27 March 2020 – The Coronavirus Job Retention Scheme: Furlough guidance
26 March 2020 – Finance for business interruption: The Coronavirus Loan Scheme
20 March 2020 – Government support package for UK businesses: An overview