Business Support - Summary of Emergency Measures Covid-19
We are here to offer practical and professional advice and help you navigate the options available. Below are some measures for Business and Individual of Government support and how we believe we can help
- is based in the UK
- has been negatively affected by coronavirus
- was not an ‘undertaking in difficulty’ on 31 December 2019
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- further-education establishments, if they are grant-funded
- state-funded primary and secondary schools
- Can range between £25 K – £25 m
- Are interest free for twelve months
- Are guaranteed by the Government for up to 80% on each loan
- Require no personal guarantees on loans under £250 K
- Will require personal guarantees limited to 20% of any amount outstanding for loans in excess of £250 K
- Should be prohibited from asking business owners to put their house on the line
|Information||How we can help|
|Grants to cover 80% of the salary of PAYE employees not working but furloughed and kept on payroll, up to £2,500 a month. This is backdated to 1 March 2020 and will be open before the end of April, for at least 3 months.|
If we process your payroll, we can guide you through the process from advice on the Coronavirus Job Retention Scheme to making the claim for furloughed employees. Please click below for more details
|We have checked with our professional indemnity providers. We cannot review your staff employment contracts and advise you whether you can ‘furlough’ somebody. However, a pragmatic solution could be to ‘negotiate’ the furlough terms with individual employees (as stated by the government), in writing, as we believe that should suffice.|
For absolute certainty, please contact an employment lawyer.
Or, we have negotiated a special rate with HR Dept who have offices across the UK. Contact Olivia (email@example.com), include your contact details (name, address, phone number) and you will receive a call from your local HR Representative.
For Directors on minimum salary the same principle will apply.
If you are a director and take minimum salary and maximum dividends you are an employee and, if you draw your salary through a PAYE scheme, you can be furloughed from the date you were unable to work. The salary must go through a PAYE scheme, and had to be being paid and in operation before 28.02.2020.
|Use the Corona Virus Business Interruption Loan to help finance the shortfall between the normal remuneration and the grant.|
|Information||How we can help|
Self-Employed Income Support Scheme
If you are on low income or unemployed, you can now more easily make a claim for Universal Credit or Contributory Employment and Support Allowance
For a guide on how to claim click here.
Click below to know more
|Contributory Employment and Support Allowance will be payable, at a rate of £73.10 a week if you are over 25, for eligible people affected by COVID-19 or self-isolating in line with advice from Day 1 of sickness, rather than Day 8|
|You may be able to claim New Style Jobseeker’s Allowance (JSA) with, or instead of, Universal Credit, depending on your National Insurance record.||Click here for more information|
|What other support is available?|
|VAT deferment||How we can help|
|Deferral of VAT payments due between 20 March 2020 and 30 June 2020 until 31 March 2021. This effectively means an interest free loan from HMRC for one quarter’s VAT. The next quarter of VAT payments will be deferred, so no payments until the end of June. Businesses have until the end of the financial year to repay the payments deferred.||Deferment is automatic and we can model in the forecast cashflow as above to see the impact on your business|
|Information||What can we do|
|Mortgage lenders have agreed they will support customers through payment holiday of up to 3 months.||We can assist in liaising with your bank|
|Many banks providing further support on mortgages through reduced or deferred payments, longer term support extending term of their mortgage, switching part/all to interest-only mortgage arrangements|
|Information||What can we do|
|The Government is making changes to the insolvency legislation. These amendments seek to protect businesses, give them breathing space to survive and ensure that, where appropriate, insolvency can be avoided||If you would like information please contact our Insolvency team firstname.lastname@example.org|
|Suspension of Wrongful Trading Action from 1 March 2020 The Government has announced that Wrongful Trading provisions will be suspended from 1 March 2020 for an initial period of 3 months in order for businesses to jeep going without the threat of personal liability.|
|Key relief areas in England|
(slight differences for rest of UK)
|Criteria||Relief||What can we do|
|Small Business Rate Relief|
(retail, hospitality and leisure businesses operating from smaller premises)
|Properties with a Rateable Value over £15,000 and less than £51,000||Small Businesses eligible for 100% relief under SBBR will be eligible for a £25,000 cash grant.||Let us know if your local authority has not contacted you by end of April|
|Small Business Rate Relief||Properties with a Rateable Value of less than £51,000, only occupying one property||Grants of £10,000 to small businesses eligible for Small Business Rate Relief (up from £3,000)||You will be contacted by your local authority, they will not take calls, this may change.|
|Rural Rate Relief||Properties in eligible areas (population less than 3,000) that are the only village shop or post office with a Rateable Value of less than £8,500; or the only pub or petrol station with Rateable Value of less than £12,500|
|Retail Discount (Retail, leisure and hospitality businesses)||100% discount for one year beginning April 1 2020 (applied to all rateable values)||Not required|
|Hardship Relief||Ratepayers experiencing financial difficulties may apply to their local authority for hardship relief which may grant a discount or exemption to the ratepayer at their discretion.|
The Charity Commission and the Government have both been issuing a lot of guidance for the charity sector about how it can respond to the challenges presented by the current situation and the support available to charities, many of which will be seriously impacted at this time. It is summarised here.
It covers advice on how charities can ensure they continue to act within their objects when offering support to those affected by the virus and practical advice on holding meetings and AGMs It also includes guidance on the use of reserves and restricted funds, as well as links to information about the Government’s support package for charities, which Chancellor Rishi Sunak announced on Wednesday 8 April.
Under this package, charities across the UK will receive a £750 million package of support to ensure they can continue their vital work during the coronavirus outbreak. The Government believes that tens of thousands of charities providing vital services will benefit from direct cash grants to ensure they can meet increased demand as a result of the virus as well as continuing their day-to-day activities supporting those in need. As part of a UK-wide package of support, £360 million will be directly allocated by government departments to charities providing key services and supporting vulnerable people during the crisis. As well as this, £370 million will be made available for small and medium-sized charities, including through a grant to the National Lottery Community Fund for those in England, which will support those organisations at the heart of local communities which are making a big difference during the outbreak, including those delivering food, essential medicines and providing financial advice. The Chancellor also announced the Government will match fund whatever the public donates to the BBC’s Big Night In charity appeal on 23 April, starting with a contribution of at least £20 million to the National Emergencies Trust appeal. Charities providing vital services and helping vulnerable people through the current crisis will benefit from the £360 million allocated by government departments which will identify priority recipients, with the aim for charities to receive money in the coming weeks.
These will include:
- Hospices to help increase capacity and give stability to the sector
- St Johns Ambulance to support the NHS
- Victims charities, including domestic abuse, to help with potential increase in demand for charities providing these services
- Vulnerable children charities, so they can continue delivering services on behalf of local authorities
- Children charities, so they can continue delivering services on behalf of local authorities
- Citizens Advice to increase the number of staff providing advice during this difficult time
For those smaller Charities, to which £370million of grant aid will be available, more details are awaited, but the National Lottery Community Fund grant pot is expected to be operational within the next few weeks.
We will continue to update our charity clients of any further Government assistance.
The Government package builds on previous announcements by the Chancellor to support charities and businesses, including deferring their VAT bills, paying no business rates for their shops next year, and furloughing staff where possible with the Government paying 80% of their wages.