COVID-19 Support for Businesses

As of the 27th March 2020 the current support for businesses is as follows:

1) Coronavirus Job Retention Scheme

Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis.

This applies to 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.

The Coronavirus Job Retention Scheme will cover the cost of wages backdated to 1 March and is initially open for 3 months, but will be extended if necessary. HMRC will set out more details shortly.

You will need to designate affected employees as ‘furloughed workers’ and notify your employees of this change - changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation

2) VAT Deferral

  • For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.

  • This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period.

  • Please cancel your direct debit for your VAT payment falling in this period.

  • Taxpayers will be given until the end of the 2020 to 2021 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.

3) Help with Statutory Sick Pay

  • The government will refund up to 2 weeks’ Statutory Sick Pay (SSP) per eligible employee who has been off work because of COVID-19.

  • 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.

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

4) Support for businesses that pay business rates

  • We will introduce a business rates retail holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.

  • There is no action for you on this. 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.

  • 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.

  • Any enquiries on eligibility for, or provision of, the reliefs should be directed to the relevant local authority. Guidance for local authorities on the business rates holiday will be published by 20 March by the government.

  • For bedfordshire you can fill in your application for the grant here - https://bedford-self.achieveservice.com/service/Small_Business_Grant_Fund_and_Retail__Hospitality_and_Leisure_Grant_Fund

5) Support for smaller businesses

  • The government will provide additional funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR).

  • This will provide a one-off grant of £10,000 to businesses currently eligible for SBRR or rural rate relief, to help meet their ongoing business costs.

  • If your business is eligible for SBRR or rural rate relief,you can apply here - https://bedford-self.achieveservice.com/service/Small_Business_Grant_Fund_and_Retail__Hospitality_and_Leisure_Grant_Fund

  • Funding for the scheme will be provided to local authorities by government in early April. Guidance for local authorities on the scheme will be provided shortly by the government.

  • Any enquiries on eligibility for, or provision of, the reliefs should be directed to the relevant local authority.

6) Business Interruption Loan

  • A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch next week to support businesses to access bank lending and overdrafts. 

  • The Scheme will support loans of up to £5 million in value.

  • Businesses can access the first 12 months of that finance interest free, as government will cover the first 6 months of interest payments.

  • The full rules of the Scheme and the list of accredited lenders is available on the British Business Bank website. 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 scheme is available now.

7) Your Outstanding Tax Liabilities

  • 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. 

  • If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.

Vinesh Camiah