News

Coronavirus government help

20/03/2020

Please note that all information given below is intended as guidance only.

Whilst updates will be provided on a regular basis, the situation is evolving so rapidly that accuracy cannot be guaranteed.

In deciding whether to apply for financial help, please consider your own situation and seek professional advice if necessary.

Statutory Sick Pay (SSP)

Employers can reclaim SSP paid to employees as a result of an absence relating to Coronavirus e.g. employees forced to self-isolate.

The refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19.

Employees are entitled to SSP from day one of any absence

Employers with fewer than 250 employees will be eligible - the size of an employer will be determined by the number of people they employed as of 28 February 2020.

Employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note.

How do I apply for the reimbursement?

The government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible.

What about employees not entitled to SSP

Certain categories of workers are not entitled to SSP e.g. the self employed or those earning below £118 per week.

Help may be provided to such individuals via Universal Credit or the Employment and Support Allowance (ESA) - https://www.gov.uk/universal-credit

https://www.gov.uk/employment-support-allowance

Cash grants for retail, hospitality and leisure businesses

A £25,000 grant will be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.

How to access the grant?

If your business is eligible, you should be contacted by your local authority. You do not need to apply. No definite timeline has been given for when payments will be made but local authorities are not likely to have access to the funds until at least April.

Business rates holiday for retail, hospitality and leisure businesses

There will be a business rates holiday (i.e. no business rates need to be paid) for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year (April 2020 to March 2021).

Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority as soon as possible.

Qualifying businesses include:

• shops, restaurants, cafes, drinking establishments, cinemas and live music venues

• venues designed for assembly and leisure

• hotels, guest & boarding premises and self-catering accommodation

How to access the scheme?

There is no action for you to take. This will apply to your next council tax bill in April 2020. However, local authorities may have to reissue your bill automatically to exclude the business rate charge. They will do this as soon as possible.

You can estimate the business rate charge you will no longer have to pay this year using the business rates calculator - https://www.gov.uk/calculate-your-business-rates

Cash grants for businesses that pay little or no business rates

Businesses that already pay little or no business rates because of small business rate relief (SBBR) will benefit from a one-off grant of £10,000 to help meet their ongoing business costs.

How to access the grant?

If your business is eligible for SBRR or rural rate relief, you will be contacted by your local authority. You do not need to apply. No definite timeline has been given for when payments will be made but local authorities are not likely to have access to the funds until at least April.

Coronavirus Business Interruption Loan Scheme

A new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will enable 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 6 months of that finance interest free, as government will cover the first 6 months of interest payments. It is hoped that the scheme will be up and running by the beginning of week commencing 23rd March 2020.

How to access the scheme?

The full rules of the Scheme and the list of accredited lenders is available on the British Business Bank website - https://www.british-businessbank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/

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. This will help your finance provider to act quickly once the Scheme has launched. If you have an existing loan with monthly repayments, you may want to ask for a repayment holiday to help with cash flow.

The scheme will be available from week commencing 23rd March 2020.

Extra time to pay tax liabilities to HMRC

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.

How to apply for extra time to pay?

Call HMRC’s dedicated COVID-19 helpline on 0800 0159 559.

HMRC have made a further 2,000 experienced call handlers available to support firms and individuals when needed.

Mortgage Payment Holidays

If you think you'll struggle to make your monthly mortgage (personal or commercial) payments because of coronavirus, many lenders will help by offering payment holiday (typically 3 months in the first instance).

A mortgage payment holiday is a break from paying your mortgage. It won’t affect your credit rating.

How to access the scheme?

Contact your mortgage provider.

Insurance Claims

Most insurance policies do not cover for pandemic related losses, unless such cover was specifically added as an addition to the policy.

If in any doubt, please contact your insurance provider.