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Coronavirus - financial measures

This page provides a simple summary of Government financial assistance in response to coronavirus


Last updated: 7th May 2020

EMPLOYMENT

CHANGE
DETAIL
Coronavirus Job Retention Scheme.

Effective from: Backdated to 1st March 2020 open till the end of June 2020 and will continue to be reviewed.

WHAT IS IT

A job retention scheme for employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers’. HMRC will reimburse 80% of their wages, up to £2,500 per month. This is to safeguard workers from being made redundant.

WHO IS ELIGIBLE
  • All UK businesses are eligible.
INFORMATION
Statutory Sick Pay relief package for SMEs
WHAT IS IT

Employers can claim back up to two weeks’ SSP payments, made to employees that have had to take time off due to illness or self-isolation in relation to the coronavirus.

WHO IS ELIGIBLE
  • UK-based business
  • Small or medium sized businesses employing fewer than 250 employees as of 28th Feb 2020
INFORMATION
Additional support through the Coronavirus Job Retention Scheme.

Effective from: Backdated to 1st March 2020 initially open for 3 months

WHAT IS IT

The Government will cover employer national insurance contributions and the auto enrolment pension scheme contributions for all staff furloughed due to the outbreak.

WHO IS ELIGIBLE
  • All UK businesses are eligible.
  • The scheme is open to all UK employers that had created and started a PAYE payroll scheme on 28 February 2020.
INFORMATION
  • This will automatically be included with payments made following a successful claim for coronavirus job retention scheme payments.
Financial assistance for employers unable to pay statutory redundancy payments

Effective from: Published on 7th April 2020

WHAT IS IT

If you cannot afford to pay your employees redundancy pay you can apply to the Redundancy Payments Service (RPS) for financial assistance. If approved, the RPS will make statutory redundancy payments directly to redundant employees on an employer’s behalf.

INFORMATION

SELF-EMPLOYMENT

Self-employment Income Support Scheme

Effective from: Grants are expected to start to be paid by the beginning of June 2020

WHAT IS IT

Support for the self-employed through the Self-employment Income Support Scheme provides a maximum of £2,500 per month for 3 months.

WHO IS ELIGIBLE
  • You must have submitted your Income Tax Self-Assessment tax return for the tax year 2018-19
  • traded in the tax year 2019-20
  • are trading when you apply, or would be except for COVID-19
  • intend to continue to trade in the tax year 2020-21
  • have lost trading/partnership trading profits due to COVID-19
INFORMATION
  • HMRC will contact you if you are eligible for the scheme and invite you to apply online.
Job retention scheme for Directors of own company/ies

Effective from: backdated to 1st March 2020 initially open for 3 months

WHAT IS IT

Directors of their own company/ies paid through PAYE may get financial support using the job retention scheme if they meet the eligibility.

FUNDS/SCHEMES

Coronavirus Business Interruption Loan Scheme
WHAT IS IT

A government backed loan of up to £5 million. The government will cover the cost of the fees and interest for the first 12 months.

WHO IS ELIGIBLE
  • Your application must be for business purposes
  • You must be a UK-based SME with annual turnover of up to £45m
  • Your business must generate more than 50% of its turnover from trading activity
  • Your CBILS-backed facility will be used to support primarily trading in the UK
  • You wish to borrow up to a maximum of £5m.
INFORMATION
Coronavirus Large Business Interruption Loan scheme.

Effective from: Monday 20 April 2020

WHAT IS IT

This scheme will provide government guarantees of 80% to enable accredited lenders to make loans of up to £25m, offered to firms impacted by Covid-19 who are unable to secure regular commercial financing.

WHO IS ELIGIBLE
  • Be UK-based in its business activity
  • Have an annual turnover of no more than £45 million
  • Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
  • Self-certify that it has been adversely impacted by the coronavirus (COVID-19).
INFORMATION
Coronavirus Future Fund Scheme

Effective from: May 2020

WHAT IS IT

In partnership with the British Business Bank, this government loan scheme offers convertible loans, of £125,000 to £5 million, to innovative companies facing financial difficulties due to coronavirus and who are able to at least equal match the funding with private investors.

WHO IS ELIGIBLE
  • Full eligibility criteria to be published shortly.
INFORMATION
Small Business Grant Fund (SMGF)
WHAT IS IT

The Small Business Grant Fund (SGBF) is managed by local authorities and provides up to £10,000 as a one-off grant to help small business owners meet their operating costs.

WHO IS ELIGIBLE
  • All businesses in England in receipt of Small Business Rates Relief (SBRR) and Rural Rates Relief (RRR) in the business rates system will be eligible for a payment of £10,000.
  • Businesses with rateable value below £15,000 per premises.
INFORMATION
  • Local authorities in England will contact those businesses they believe are eligible for the SBFG
Retail, Hospitality and Leisure Grant Fund (FHLG)

Effective from: Eligibility based on circumstances as of 11th March 2020

WHAT IS IT

This fund is for those businesses that would have been in receipt of the Expanded Retail Discount
(which covers retail, hospitality and leisure) will be eligible for cash grants based on their rateable values.

WHO IS ELIGIBLE
  • Eligible businesses with a property that has a rateable value of up to and including £15,000 will receive a grant of £10,000.
  • Eligible businesses in these sectors with a property that has a rateable value of over £15,000 and less than £51,000 will receive a grant of £25,000
INFORMATION
  • Local Authorities will contact eligible businesses to arrange payment of the grants.
Fisheries Response Fund Direct

Effective from: 20 April 2020

WHAT IS IT

£10m support for cash grants fishing and aquaculture businesses to help cover fixed business costs.

INFORMATION
  • The MMO will administer the fund, contacting eligible registered owners and licence holders directly in stages with details of how to apply.
  • Further details available soon
Bounce Bank Loan Scheme

Effective from: 27 April 2020

WHAT IS IT

Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days Loans will be interest free for the first 12 months.

INFORMATION

New funding for dairy farmers

Effective from: 6 May 2020

WHAT IS IT

A new fund to enable eligible dairy farmers in England to access up to £10,000 each to help them overcome the impact of the coronavirus outbreak.

WHO IS ELIGIBLE
  • Specifically for dairy farmers who have seen decreased demand for their products as bars, restaurants and cafes have had to close. Those who have lost more than 25% of their income over April and May will be eligible to access this funding for those qualifying months, and are entitled to up to £10,000 each to cover 70% of their lost income.
INFORMATION
  • Read the announcement here

RATE RELIEF

Business Rates Retail Discount

Effective from: From 6th April 2020 to 5th April 2021

WHAT IS IT

100% discount on business rates for 2020/21 (includes retail, hospitality and leisure (including furnished holiday let) sector).

INFORMATION
Rural Rates Relief Grant.

Effective from: Eligibility based on circumstances as of 11th March 2020

WHAT IS IT

Rates relief for businesses in rural areas with a population below £3000.

WHO IS ELIGIBLE
  • Businesses in receipt of Rural Rates Relief (RRR) in the business rates system will be eligible for a payment of £10,000
  • the only village shop or post office, with a rateable value of up to £8,500
  • the only public house or petrol station, with a rateable value of up to £12,500
INFORMATION
  • Local Authorities will contact eligible businesses to arrange payment of the grants

TAX

Deferring VAT and Income Tax payments.

Effective from: From 20 March 2020 until 30 June 2020

WHAT IS IT

A deferral of payment but you still need to submit your VAT returns to HMRC on time. HMRC will continue to process VAT reclaims and refunds as normal during this time.

WHO IS ELIGIBLE
  • All UK businesses are eligible. It does not cover payments for VAT MOSS or import VAT
INFORMATION
Deferring Self-Assessment Income Tax Payments

Effective from: Tax year 2020/21

WHAT IS IT

A deferral of Income Tax payments due in July 2020 under the Self-Assessment system may be deferred until January 2021.

WHO IS ELIGIBLE
  • All UK businesses are eligible.
INFORMATION
  • Self-Assessment Payment Helpline: Telephone: 0300 200 3822 or Online

Other useful information:


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