NEW! RESOURCES: Whitehall and City Hall Support Measures for Coronavirus (COVID-19)
Coronavirus Financial Support
HM Government
The Chancellor of The Exchequer and The Department for Business, Energy and Industrial Strategy (BEIS)
https://www.businesssupport.gov.uk/coronavirus-business-support/
Get answers to business questions in FAQs.
Essential workers: apply for a coronavirus test
Essential workers and members of their households who are showing symptoms of coronavirus are now able to get tested.
Booking the test has been made simpler via a new online system.
Find further information here.
Business Support Checker Tool
A new ‘support finder’ tool will help businesses and self-employed people across the UK to quickly and easily determine what financial support is available to them during the coronavirus pandemic. The new online platform on gov.uk asks business owners and the self-employed to fill out a quick and simple online questionnaire. They will then be directed to a list of all the financial support they may be eligible for. You can find out more about the tool here.
Coronavirus business support hub
Coronavirus Act 2020
Governmental Bill: Department for Health and Social Care
A Bill to make provision in connection with coronavirus; and for connected purposes.
Following agreement by both Houses on the text of the Bill it received Royal Assent on 25 March.
The Bill is now an Act of Parliament (law).
Business Support: Grants
Small Business Grant Funding
Guidance for Local Authorities
Eligibility: Small businesses based in England
Already registered as SBRR or RRR
Businesses that occupy a property
Availability: Local Authorities will contact eligible businesses
- The government will provide additional funding for local authorities to support small businesses based in England that already pay little or no business rates.
- This funding will provide a one-off grant of £10,000 to businesses currently eligible for small business rate relief (SBRR) or rural rate relief (RRR), which occupy a property.
- If your business is eligible and already registered as SBRR or RRR, you will be contacted by your Local Authority – you do not need to apply.
Cash Grant for Retail, Hospitality and Leisure
Guidance for Local Authorities
Eligibility: Businesses based in England
Retail (shops), hospitality and leisure businesses
Businesses that occupy a property
Availability: Local Authorities will contact eligible businesses
- A £25,000 grant will be provided to retail, hospitality and leisure businesses based in England, operating from smaller premises.
- Businesses in these sectors with a rateable value of under £15,000 will receive a grant of £10,000.
- Businesses with a rateable value of between £15,001 and £51,000 will receive a grant of £25,000.
- You do not need to do anything. Your Local Authority will write to you if you are eligible for this grant.
Business Support: Tax & Rates
Support for Businesses Paying Tax: Time to Pay Service
Eligibility: All UK Businesses or Self-Employed
With Outstanding Liabilities
Availability: Currently Live
- All UK 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.
- If you’ve missed, or are worried about missing, your next tax payment due to coronavirus, please contact HMRC
Support for Businesses through VAT Deferral
Eligibility: All UK Businesses or Self-Employed
Availability: Currently Live
- Support by deferring Valued Added Tax (VAT) payments for 3 months for all UK businesses.
- UK Registered businesses will not need to make VAT payments normally due with VAT returns during this period. Taxpayers will be given until the end of the 2020-21 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.
- The deferral will apply from 20 March 2020 until 30 June 2020.
- Customers who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay.
12-Months Business Rates Holiday for Retail, Hospitality and Leisure
Expanded Retail Discount 2020/21: Coronavirus Response- Guidance for Local Authorities
Eligibility: Businesses based in England
Retail (shops), hospitality and leisure businesses
Businesses that occupy a property
Availability: Local Authorities will apply the business rates holiday to your bills
- All businesses in the retail, hospitality and leisure sectors will pay no business rates in England for 12 months from 1 April 2020, for 2020-21 tax year.
- There will be no rateable value threshold on this relief – businesses large and small will benefit.
- There is no action for you. Local authorities will apply the business rates holiday to your bills.
- You can estimate the business rate charge you will no longer have to pay this year using the business rates calculator.
- Guidance for local authorities on the application of the holiday has been published.
- Any enquiries on eligibility for, or provision of, the reliefs should be directed to the relevant local authority. https://www.gov.uk/government/publications/business-rates-retail-discount-guidance
Business Support: Large Companies
COVID-19 Corporate Financing Facility (CCFF)
Eligibility: Large UK Businesses
Availability: Currently Live, Contact your bank
- Covid-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies.
- This will support companies which are fundamentally strong, but have been affected by a short-term funding squeeze.
- It will also support corporate finance markets overall and ease the supply of credit to all firms.
- The scheme will be funded by central bank reserves – in line with other Bank of England market operations.
- It will operate for at least 12 months, and for as long as steps are needed to relieve cash flow pressures on firms that make a material contribution to the UK economy.
- In order to access the CCFF, you will need to contact your bank. It is important to note that not all banks issue commercial paper. If your bank does not issue commercial paper, UK Finance will provide a list of banks that are able to assist.
- This scheme is now available for applications.
Business Support: Loans
New Bounce Back Loan Scheme
Eligibility: UK Small Businesses
Availability: 4th May 2020
- Allow businesses to borrow between £2,000 and £50,000 and access the cash within days.
- Loans will be interest-free for the first 12 months.
- The Government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.
- The loans will be easy to apply for through a short, standardised online application. Loans should reach businesses within days – providing immediate support to those that need it as easily as possible.
- The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree to a low standardised level of interest for the remaining period of the loan.
Coronavirus Business Interruption Loan Scheme (CBILS)
Eligibility: UK Businesses with an annual turnover below £45m
Businesses that meet the other British Business Bank eligibility criteria
Availability: Currently Live, Available in all major banks. The scheme is expected to run for an initial period of 6 months.
- To support small and medium-sized businesses, with turnover no more than £45 million per year and based in the UK.
- It will give access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years.
- Personal guarantees are not required to secure lending below £250,000.
- For any borrowing above £250,000, personal guarantees will be capped at 20% of the outstanding value of the loan, as the Government is providing the guarantee for the remaining 80% of the finance.
- This will apply to all customers that have secured a loan under the scheme since its launch on 23rd March.
- The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees.
Coronavirus Large Business Interruption Loan Scheme (CLBILS)
Eligibility: UK Businesses with an annual turnover between £45m and £500m
Businesses that secure regular commercial financing
Availability: 20 April 2020
- This scheme will provide government guarantees of 80% on individual loans to enable banks to make loans and complements existing support including the Covid Corporate Financing Facility and the Coronavirus Business Interruption Loan Scheme
- For firms with a turnover of more than £45 million will be able to apply for up to £25 million of finance, and up to £50 million for firms with a turnover of more than £250 million.
- Delivered thought accredited lenders, listed on British Business Bank.
Support for PAYE Employees: Reimbursements
Coronavirus Job Retention Scheme
Eligibility: All UK-wide employers with a PAYE scheme: businesses, charities, recruitment agencies and public authorities.
Covers employees on employer’s PAYE payroll before or on 19 March 2020 and notified to HMRC on an RTI submission on or before 19 March 2020.
Individuals employed on PAYE payroll as of 28 February 2020 but stopped working before 19 March 2020, can qualify if the employer reemploys them and agrees to place them on furlough.
Availability: 20 April 2020 and backed by the Government for the period 1 March to End of June
- Government Gateway (GG) ID and password – if not having a GG account, you can apply for one online, or by going to GOV.UK and searching for 'HMRC services: sign in or register'.
- Be enrolled for PAYE online – if you aren’t registered yet, employers can do so now, or by going to GOV.UK and searching for 'PAYE Online for employers'.
- The following information for each furloughed employee claiming for: Name, National Insurance number, Claim period and claim amount, PAYE/employee number (optional).
- If having fewer than 100 furloughed staff – you will need to input information directly into the system for each employee.
- If having 100 or more furloughed staff – employers can upload a file with information for each employee; HMRC will accept the following file types: .xls .xlsx .csv .ods.
- HMRC will reimburse up to 80% of employees’ salaries and up to a total of £2,500 per month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage.
- Employees will still continue to accrue leave whilst on furlough
- The cap is gross pay of £2500, which is still taxable and applies to each job.
- Employers will be able to contact HMRC for a grant to cover most of the wages of people who are working but are furloughed and kept on payroll rather than being laid off.
- Wages would be paid for 4 months, backdated from 1 March until the end of June.
- Employees can be on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts. Foreign nationals are eligible to be furloughed.
- Once the new online portal is live, employers can submit information to HMRC about the employees that have been furloughed and their earnings (HMRC will set out further details on the information required)
- HMRC are working urgently to set up a system for reimbursement.
Statutory Sick Pay (SSP) Relief Package for SMEs
Eligibility: UK-based Small or Medium-sized Organisations: businesses, Connected Companies and Charities with fewer than 250 employees on or before 28 February 2020
Availability: In progress by Government working with Businesses to set-up in coming months
- The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the current rate of SSP that they pay to current or former employees for periods of sickness starting on or after 13 March 2020.
- An employer who pays more than the current rate of SSP can only claim the current rate amount.
- The repayment will cover up to 2 weeks starting from the first day of sickness, if an employee is unable to work because they either: have coronavirus, or cannot work because they are self-isolating at home.
- Employees do not have to give you a doctor’s fit note for you to make a claim.
- The scheme covers all types of employment contracts, including:
· full-time employees
· part-time employees
· employees on agency contracts
· employees on flexible or zero-hour contracts
- Records must be kept for 3 years:
· the reason why an employee could not work
· details of each period when an employee could not work, including start and end dates
· details of the SSP qualifying days when an employee could not work
· National Insurance numbers of all employees who you have paid SSP.
Support for Self-Employed: Grants
Self-Employed Income Support Scheme
Eligibility: UK self-employed individuals and members of partnerships
With a trading profit of less than £50,000 in 2018-19
Or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19
And having more than half of their income in these periods from self-employment.
Availability: In progress by HMRC. Eligible individuals will be contacted by HMRC for guidance.
- The income support scheme, which is being designed by HMRC from scratch, will cover the three months to May. Grants will be paid in a single lump-sum instalment covering all 3 months, and will start to be paid at the beginning of June.
- Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
- Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.
Support for Self-Employed: Tax & Rates
Deferral of Self-Assessment Payment
Eligibility: All UK Self-Employed
With Self- Assessment payment on account, that is ordinarily due to be paid to HMRC by 31 July 2020
Availability: Automatic
- For UK self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.
- No penalties or interest for late payment will be charged in the deferral period.
- HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of coronavirus and have outstanding tax liabilities.
Support for Self-Employed Paying Tax: Time to Pay Service
Eligibility: All UK Businesses or Self-Employed
With Outstanding Liabilities
Availability: Currently Live
- All UK 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.
- If you’ve missed, or are worried about missing, your next tax payment due to coronavirus, please contact HMRC
Support for Self-Employed through VAT Deferral
Eligibility: All UK Businesses or Self-Employed
Availability: Currently Live
- Support by deferring Valued Added Tax (VAT) payments for 3 months for all UK businesses.
- UK Registered businesses will not need to make VAT payments normally due with VAT returns during this period. Taxpayers will be given until the end of the 2020-21 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.
- The deferral will apply from 20 March 2020 until 30 June 2020.
- Customers who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay.
Duty Deferment Account Holders
HMRC Guidance
Duty deferment account holders who are experiencing severe financial difficulty as a result of Covid-19 and who are unable to make payment of deferred customs duties and import VAT due on 15 April 2020 can contact HMRC for approval to enter into an extended period to make full or partial payment, without having their guarantee called upon or their deferment account suspended. The account holder should contact the Duty Deferment Office 03000 594243 or by email cdoenquiries@hmrc.gov.uk or the COVID-19 helpline on 0800 024 1222. Account holders will be asked to provide an explanation of how Covid-19 has impacted their business finances and cash flow.
Duty Deferment account holders will be able to use their accounts during the extended payment period agreed unless they default on a subsequent payment in that period, in which case HMRC may consider suspending their account. The outstanding payment will not affect their duty deferment limit so they will not need to increase their guarantee to cover the outstanding payment. Where HMRC agree to an extended payment period, interest will not be charged on the outstanding payments provided they are paid in full by the agreed date.
Duty/import VAT Payments Not Covered by a Duty Deferment Account
Registered Importers who pay cash or an equivalent and are facing severe financial difficulties as a direct result of Covid-19 can contact HMRC to request an extension to the payment deadline at the time the payment is due. They will be asked to provide an explanation of how Covid-19 has impacted on their business finances. HMRC will consider this request and decide whether or not to agree an additional time to pay. The decision will be taken on a case-by-case basis and could be refused.
If the request is approved the conditions, including the length of time offered, will depend upon the importer’s individual circumstances and may require the holding of a guarantee for the period of the time extension. We cannot offer this facility to non-registered importers. For further information, please contact the Customs Debt Policy inbox (custdebtrr.customspolicy@hmrc.gov.uk)
Support for UK Exporters: Guarantees, Loans and Insurance
UK Export Finance (UKEF) Facilities
Department for International Trade (DIT)
DIT support for UK Businesses Trading Internationally
Eligibility: All UK Exporters
Availability: Currently Live
UK Export Finance (UKEF) works with banks and insurance brokers to help companies of all sizes fulfil and get paid for export contracts. It provides guarantees, loans and insurance on behalf of the government that can protect UK exporters facing delayed payments or transit restrictions.
- Export Working Capital Scheme: partial guarantees covering up to 80% of the risk to lenders to cover the credit risks associated with export working capital facilities both pre- and post-shipment. https://www.gov.uk/guidance/export-working-capital-scheme-overview-and-how-to-apply
- Export Insurance Policy: up to 95% cover, against loss suffered due to specified risks. https://www.gov.uk/guidance/export-insurance-policy
- Direct Lending Facility: provides loans within an overall limit of £3 billion to overseas buyers, allowing them to finance the purchase of capital goods and/or services from UK exporters. https://www.gov.uk/guidance/direct-lending-scheme
Moving goods through customs during the coronavirus (COVID-19)
Find out about moving goods and clearing customs during the coronavirus (COVID-19) outbreak.
Customs authorisations during the coronavirus (COVID-19)
Find out about temporary changes to customs policy and authorisations to assist businesses during the coronavirus (COVID-19) outbreak.
Local Advice and Support for Business
Growth hubs are local public/private sector partnerships backed by the Government, led and governed by Local Enterprise Partnerships (LEPs).
The network of 38 Growth Hubs across England provide a free to use, impartial and local single point of contact to all businesses, so that they can access the right advice and support when they need it. The hubs can advise businesses on local and national business support - including schemes put in place to help businesses through the current Covid 19 situation - and help businesses build their resilience. Businesses can find their local Growth Hub here.
Relaxed Rules to Support Businesses
The Full List of Relaxed Rules can be found here
Companies to receive a 3-month extension period to file accounts during COVID-19
Companies House have announced that businesses will be given an additional 3 months to file accounts to help companies avoid penalties as they deal with the impacts of COVID-19. Full guidance on applying for an extension can be found here.
Commercial insurance
Most commercial insurance policies are unlikely to cover pandemics or unspecified notifiable diseases, such as COVID-19. However, those businesses which have an insurance policy that covers government ordered closure and pandemics or government ordered closure and unspecified notifiable disease should be able to make a claim (subject to the terms and conditions of their policy). Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. Further information is available.
Protection from eviction for commercial tenants
Commercial tenants who cannot pay their rent because of COVID-19 will be protected from eviction. Further details are now available.
Employers do not have to report gender pay gaps
Enforcement of the gender pay gap reporting deadlines are suspended for this reporting year (2019/20) due to the Coronavirus outbreak. The decision means there will be no expectation on employers to report their data.
Rules on carrying over annual leave to be relaxed to support key industries during COVID-19
Department for Environment, Food and Rural Affairs (DEFRA)
The Department for Business, Energy and Industrial Strategy (BEIS)
Eligibility: Workers who have not taken all of their statutory annual leave
Availability: Currently Live
Workers who have not taken all of their statutory annual leave entitlement due to COVID-19 will now be able to carry it over into the next 2 leave years, under measures introduced by Business Secretary Alok Sharma today (Friday 27 March).
The regulations will allow up to 4 weeks of unused leave to be carried into the next 2 leave years, easing the requirements on business to ensure that workers take statutory amount of annual leave in any one year.
The regulations will allow up to 4 weeks of unused leave to be carried into the next 2 leave years, easing the requirements on business to ensure that workers take statutory amount of annual leave in any one year.
This will mean staff can continue working in the national effort against the coronavirus without losing out on annual leave entitlement.
Coronavirus (COVID-19): right to work checks
https://www.gov.uk/guidance/coronavirus-covid-19-right-to-work-checks
Pay it forward campaign - Supporting businesses through the coronavirus crisis
The Business Support campaign is working with Crowdfunder to build awareness about the support provided to small businesses through the Pay it Forward campaign. Small businesses can set-up a Pay it Forward campaign to pre-sell their services and diversify trading now to ensure continuous cash flow. Crowdfunder is covering all platform and transaction fees making it free to small businesses. Enterprise Nation is providing access to free training and support for business, to help with online sales, marketing, cashflow, and diversifying, if necessary. This campaign is nationwide and you can someone who is self-employed, a micro or small businesses can set-up a Pay it Forward campaign here.
Government amends insolvency law to help companies keep trading while they explore options for rescue
Under the plans, the UK’s Insolvency Framework will add new restructuring tools to give companies breathing space and keep trading while they explore options for rescue. The proposals will also include key safeguards for creditors and suppliers to ensure they are paid. The Insolvency Act will be temporarily suspended specifically to give confidence to directors to continue trading without the threat of personal liability, should the company ultimately fall into insolvency. Find out more here
Coronavirus (COVID-19) Guidance for Landlords and Tenants can be found here
Non-statutory guidance for landlords and tenants in the private and social rented sectors on:
- Measures relating to notices seeking possession as amended by the Coronavirus Act 2020
- Court action on possession cases during the Coronavirus (COVID-19) outbreak
- Property access and health and safety obligations in the context of Coronavirus (COVID-19) restrictions
Industry Available Grants
Textiles Recycling and Re-use Small Scale Grant
Department for Environment, Food and Rural Affairs (DEFRA) and The Waste and Resources Action Programme (WRAP)
GRANT
Eligibility: UK Enterprise of any size, including not-for-profit organisations
Availability: Open for Applications
- The funding is available to any enterprise of any size, including not-for-profit organisations.
- Administered by WRAP and aims to support innovative projects that will enable textile waste to be recycled or reused and thus diverted from landfill.
- Up to £1.5 million is available and grant awards will range in value from £20,000 to £170,000.
- Closing date: 18 June, 2020 - 13:00.
Support for Charities
The London Community Response Fund
Greater London Authority and the City Bridge Trust
Members of London Funders, The Greater London Authority and the City Bridge Trust, have contributed £1m each to launch a new fund to support London’s voluntary sector. Coordinated by London Funders: https://londonfunders.org.uk
Wave 1 Small Grants
Availability: Currently live
Eligibility: Registered charity, Registered Community Interest Company (CIC), Registered Charitable Incorporated Organisation (CIO), Charitable company (limited by guarantee)
- The first wave of funding will be for up to £5k for food and essentials only
- The grant is intended to enable organisations to cover essential and urgent costs so that they can carry on providing support to Londoners.
- The Grant is designed to cover expenditure to meet short-term needs around food and essential items such as mobile phones, data and cleaning products in these initial weeks.
The Second Wave
Availability: Currently live
Eligibility: London Voluntary Sector Organisations
- The grant is intended for larger grants, service transformation.
- Crisis response – grants of up to £10,000 to enable meeting the immediate needs of communities, from food and essentials to equipment and additional short-term staff costs.
- Delivering differently – grants of between £10,000 and £50,000 to enable changing the way work is delivered to ensure it continues to meet the needs of communities, from switching to digital channels to redeploying staff to boost applicant’s capacity at a time of increased demand.
In some circumstances, grants above £50,000 are considered but there must be a strong rationale in the application for this.
New General Updates for Coronavirus
Coronavirus business support hub
https://www.gov.uk/coronavirus/business-support
Government launches Coronavirus Information Service on WhatsApp
The UK Government has launched a GOV.UK Coronavirus Information service on WhatsApp. The new free to use service aims to provide official, trustworthy and timely information and advice. To use the free GOV.UK Coronavirus Information Service on WhatsApp, simply add 07860 064422 in your phone contacts and then message the word ‘hi’ in a WhatsApp message to get started. Further information can be found here.
Upcoming Webinars
UK Government’s Business Support Website has a list of upcoming webinar events from Government and non-government partners. You can find more information here.
HMRC are delivering a programme of webinars on measures to support employers, employees and the self-employed through this period of disruption caused by COVID-19. You can watch a video of the recorded webinar on the HMRC YouTube channel Coronavirus – (COVID-19): helping employers to support employees
Maria Stoica
Policy Researcher, Fashion Roundtable