CORONOVIRUS LATEST ADVICE

This page has been designed to provide up-to-date information, guidance and advice with regards to Coronavirus (COVID-19).

***LATEST*** The latest on the Government's Coronavirus strategy is available here and the PM's latest statement to Parliament here. The Chancellor's Winter Economy Plan is available here.

    The Chancellor set out a package of temporary measures to support public services, people and businesses through this period of disruption caused by COVID-19. 

    It was a wide package of measures to support businesses including: 

    • ****NEW**** Business support website
    • ****NEW**** Lockdown 2 - Coronavirus Job Retention Scheme and Self-Employed Support extended and claiming Child Benefit 
    • The Job Support Scheme is in place to support businesses whose demand is lower than usual or who legally have to close as a direct result of coronavirus restrictions.
    • The Coronavirus Statutory Sick Pay Rebate Scheme is now live. More information is available here.
    • Applications for the Bounce Back Loans.
    • 100% Government backed loan scheme for small businesses.
    • Grant scheme for fishing industry announced.
    • The eligibility cut-off date for the Coronavirus Job Retention Scheme has been extended to 19 March 2020.
    • Self-Employment Income Support Scheme
    • The Government is acting so that, if the worst happens, there is a stronger safety net to fall back on by increasing Universal Credit and Working Tax Credit by £1,000 a year for the next 12 months – that’s nearly £7 billion of extra support.
    • Coronavirus Job Retention Scheme
    • Support for self-employed by enabling Universal Credit eligibility and deferral of HMRC self-assessment payments until January 2021
    • a statutory sick pay relief package for SMEs 
    • a 12-month business rates holiday for all retail, hospitality and leisure businesses in England 
    • small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief 
    • grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000 
    • the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank with interest free borrowing for 6 months. *NEW* interest free borrowing extended to 12 month.
    • a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans 
    • the HMRC Time To Pay Scheme 
    • deferring the next three months of VAT until the end of the financial year – an injection of over £30 billion of cash to businesses to help businesses pay people and keep them in work.

    In the Winter Economy Plan, he set out further measures to support individuals, jobs and businesses as we face the impact of the Covid-19 pandemic into the winter and start of 2021.

    13th November 2020

    There is a dedicated support page for businesses to access information on the government support available to them and how to claim. You can find out more here.

    5th November 2020

    The Chancellor has announced that the Coronavirus Job Retention Scheme (CJRS) will be extended until the end of March 2021 for all parts of the UK. For claim periods running to 31 January 2021, the UK Government will pay 80% of employees’ usual wages for hours not worked, up to a cap of £2,500 per month. The UK Government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.

    It was also confirmed that the Job Retention Bonus (JRB) will no longer be paid in February 2021, as CJRS will be available at that time. An alternative retention incentive will be put in place at the appropriate time.

    Further details are available here.

    It was also announced that the UK Government is increasing the overall level of the next Self Employment Income Support Scheme (SEISS) grant from 55% to 80% of trading profits.

    This grant will cover a three-month period from the start of November until the end of January. The Government will pay a taxable grant which is based on 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500.

    The SEISS Grant Extension will last for six months in total, from 1 November 2020 to 30 April 2021. A further grant will cover February to April, as grants will be paid in two lump sum instalments each covering a three-month period. The Government will set out further details, including the level of that grant, in due course.

    Full details will be published w/c 23 November.

    Child Benefit

    Have you had a baby since the first Lockdown? If you've not yet been able to register your child due to the pandemic, you can still register to claim Child Benefit. 

    Normally, to claim Child Benefit, you must first register their child’s birth. However, HMRC announced in April that during the pandemic parents could claim Child Benefit without having to register their child’s birth first.    

    First time parents need to fill in Child Benefit claim form CH2 found online and send it to the Child Benefit Office. If you haven’t registered the birth because of COVID-19, you should add a note with their claim to let us know. 

    If you have already claimed Child Benefit for previous children, you can complete the form or add your new-born’s details over the telephone on 0300 200 3100. You will need their National Insurance number or Child Benefit number. ​​​​​​

    3rd November 2020

    Coronavirus Job Retention Scheme (CJRS)

    Ahead of the start of the second National Lockdown, the Government have already announced economic support for businesses and their employees.

    The Coronavirus Job Retention Scheme (CJRS), which was due to end on 31 October, will now be extended, with the UK Government paying 80% of wages for the hours furloughed employees do not work, up to a cap of £2,500 for periods from 1 November.

    Employers will need to pay all employer National Insurance Contributions (NICs) and pension contributions. You can choose to top up your furloughed employees’ wages beyond the 80% paid by the UK Government for hours not worked, but you are not required to do so.

    There will be no gap in support between the previously announced end date of CJRS and this extension.

    Further information is available here.

    Self-Employment Income Support Scheme (SEISS) Grant Extension

    The generosity of the Self-Employment Income Support Scheme (SEISS) Grant Extension will be increased from 40% of average trading profits, to 55%.

    In addition, the opening of the service has been brought forward from 14 December to 30 November.

    How will it work?

    The SEISS Grant Extension provides critical support to the self-employed in the form of two grants, each available for three-month periods covering November to January and February to April.

    Grants will be paid in two lump sum instalments each covering a three-month period.

    The first grant will cover a three-month period from the start of November until the end of January. The UK Government will provide a taxable grant covering 55% of average monthly trading profits, paid out in a single instalment covering three months’ profits, capped at £5,160 in total.

    The grant will be increased from the previously announced level of 40% of trading profits to 80% for November. This therefore increases the total level of the grant from 40% to 55% of trading profits for November to January.

    The second grant will cover a three-month period from the start of February until the end of April. The UK Government will review the level of the second grant and set this in due course.

    The grants are taxable income and subject to National Insurance contributions.

    Who is eligible?

    To be eligible for the scheme, self-employed individuals - including members of partnerships - must:

    • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
    • intend to continue to trade and either:
      • are currently actively trading but are impacted by reduced demand due to coronavirus
      • were previously trading but are temporarily unable to do so due to coronavirus

    Full guidance will be published on GOV.UK in the next few days. HMRC have asked you wait for the guidance to be published and read it before calling for advice.

    Job Support Scheme (JSS)

    The new Job Support Scheme, which was due to start on Sunday 1st November, has now been postponed.

    22 October 2020

    Throughout this crisis, the economy priority remains the same: protect jobs. But as the crisis evolves: policy evolves.

    The Government has already set out the economic package of support for businesses who are legally required to close, including the expanded Jobs Support Scheme, more generous and frequent cash grants, and more help for the self-employed.

    But the economic situation is damaging even for some businesses who can stay open. That is why the Government has announced a package specifically for those businesses which are not forced to close, but face reduced demand due to additional social distancing restrictions:

    • A more generous Job Support Scheme: employers contributing significantly less, the government a lot more
    • Cash grants for hospitality and leisure businesses in Tier 2 – worth up to £2,100/month and backdated to August o A doubling of our third self-employed grant from 20 per cent to 40 per cent of self-employed people’s profits
    • Alongside the Winter Economy Plan, these announcements will give businesses, whether they are open or required to close, the flexibility to adjust and plan over the coming months – and comes on top of the £200 billion package of support committed since the beginning of the crisis.

    Find further information here.

    13 October 2020

    Job Support Scheme (JSS)

    The government recently announced the Job Support Scheme (JSS) to protect jobs where businesses remain open but are facing lower demand over the winter months due to COVID-19.

    Under JSS the government will contribute towards the wages of employees if they are working fewer than normal hours due to decreased demand. Employers will continue to pay the wages for the hours their staff work. Employees must work at least 33% of their usual hours. For the hours not worked, employers and the government will pay a third each of their usual wages (the government contribution is capped at £697.92 per month).

    The government has also announced a further expansion of the JSS, to provide temporary support to businesses whose premises have been legally required to close as a direct result of coronavirus restrictions.

    Under this expansion, affected businesses will receive grants towards the wages of employees who have been instructed to and cease work. This will cover businesses that, as a result of restrictions set by one or more of the four governments of the UK, are legally required to close their premises, or to provide only delivery and collection services from their premises.

    The government will pay two thirds of employees’ usual wages, up to a maximum of £2,100 per month. They will not be required to contribute towards wages, but do need to cover employer National Insurance and pension contributions.

    Employers in my constituency can apply for the JSS including the new expansion even if they haven’t previously used the Coronavirus Job Retention Scheme (CJRS). JSS is available for six months, from 1 November, with payment of grants in arrears from early December. The scheme will be reviewed in January.

    24 September 2020

    The latest range of measures introduced by the Chancellor include:

    • Job Support Scheme
    • Self-Employment Income Support Scheme Grant Extension
    • VAT cut to 5% for tourism and hospitality sector extended

    22 September 2020

    As the number of cases of Coronavirus begins to increase again, the Prime Minister has set out updated restrictions. You can read more here.

    26 May 2020

    5 May 2020

    27 April 2020

    New 100% Government backed loan scheme for small businesses:

    • Businesses will be able to borrow between £2,000-£50,000 
    • Loans will be interest free for the first 12 months 
    • Businesses can apply online through a short and simple form 
    • The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance within a number of days 
    • No repayments will be due in the first 12 months
    • The scheme will launch for applications from 9am Monday 4 May
    • For most firms, loans should arrive within 24 hours of approval
    • Firms will be able to access these loans through a network of accredited lenders

    20 April 2020

    The Government's Coronavirus Business Retention Scheme has gone live today. For a very useful briefing from the CEO of HRMC, click here.

    17 April 2020

    • A very welcome package of support for the fishing industry has been announced and more information can be found here.

    15 April 2020

    • The eligibility cut-off date for the Coronavirus Job Retention Scheme has been extended to 19 March 2020. 
    • This change is expected to be fully operational next week and will mean that thousands more workers can be furloughed. Under the scheme, employers can claim a grant covering 80% of the wages for a furloughed employee up to the value of £2500 a month. 

    3 April 2020

    New changes to the Coronavirus Business Interruption Loan Scheme made on the 3rd April:

    • The CBILS has been expanded so that more small businesses can benefit.

    • All small viable businesses affected by COVID-19, and not just those unable to secure regular commercial financing, will now be eligible should they need finance to keep operating during this difficult time.

    • Lenders have also been banned from requesting personal guarantees on loans under £250,000 and making operational changes to speed up lending approvals. For loans beyond £250,000 there will be a 20% guarantee required. 

    Please see here for further details and information about applying to the scheme: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/ 

    New Coronavirus Large Business Interruption Loan Scheme (CLBILS): 

    • A new scheme has also been announced to bolster support for larger firms with an annual turnover of between £45-£500 million. 
    • It will provide a government guarantee of 80% to enable banks to make loans of up to £25 million. 

    • This will give banks the confidence to lend to more businesses which are impacted by coronavirus but which they would not lend to without CLBILS. Loans backed by a guarantee under CLBILS will be offered at commercial rates of interest and further details of the scheme will be announced later this month.

    • The new scheme will launch later this month and will support a wide range of businesses to access finance products including short term loans, overdrafts, invoice finance and asset finance.

    • Businesses would remain responsible for repaying any facility they may takeout.

    • We anticipate it will be available through a range of accredited lenders. Details to follow. 

    Further details can be found here: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses 

    2 April 2020

    Full details for employers and employees on furloughing and the Coronavirus Job Retention scheme can be found here...

    Employers: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

    Employees: https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme

    Further details of the scheme have been published which means that: 

    • You'll be permitted to volunteer without risking pay
    • If you have been made redundant or voluntarily left a job after the 28 February, you can be reemployed and then furloughed 
    • The Government will cover employer National Insurance and pension contributions of furloughed workers on top of the 80% of salary

    More details on the Coronavirus Self-Employment Income Support scheme can be found here: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme 

    26 March 2020

    *NEW* Self-Employment Income Support Scheme:

    • The scheme provides a cash grant worth 80% of average monthly trading profit over the last 3 years, up to £2,500 per month.
    • The scheme will be open to those 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. More than half of income in these periods must come from self-employment.
    • To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply. 
    • HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply.
    • Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
    • Self employed people who are eligible for the grant will be able to apply directly to HMRC using a simple online form, with the cash being paid directly into people's bank account. 
    • The income support scheme will cover three months. 
    • 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.
    • 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.
    • Before grant payments are made, the self-employed will still be able to access other available government support for those affected by coronavirus including more generous universal credit and business continuity loans where they have a business bank account. 

    Further details to come...

    UPDATE 23 March 2020

    The Coronavirus Business Interruption Loan Scheme is now available.

    Coronavirus Business Interruption Loan Scheme (CBILS) - for Businesses and Advisors - British Business Bank 

    Application forms for the Covid-19 Corporate Financing Facility have now been made available here.

     

    UPDATE 20 March 2020

    Support for businesses through the Coronavirus Job Retention Scheme

    Eligibility: All UK businesses are eligible.

    How to access the scheme:

    • Businesses need to designate affected employees as ‘furloughed workers,’ and notify 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
    • They must also submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)

    Support for businesses through deferring VAT 

    Eligibility: All UK businesses are eligible.

    How to access the scheme:

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

    Support for businesses through deferring Income Tax Payments

    Eligibility: The self-employed.

    How to access the scheme:

    • Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021.
    • This is an automatic offer with no applications required.
    • No penalties or interest for late payment will be charged in the deferral period.

    Support for businesses who are paying sick pay to employees

    Eligibility:

    • UK based business
    • small or medium-sized business employing fewer than 250 employees as of 28 February 2020

    How to access the scheme:

    • Employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note
    • A rebate scheme is being developed. Further details will be provided in due course once the legalisation has passed.

    Business rates holiday for retail, hospitality and leisure businesses

    Eligibility:

    • business based in England
    • business in the retail, hospitality and/or leisure sector

    How to access the scheme: 

    • No action required. This will apply to your next council tax bill in April 2020. 
    • 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.
    • Further guidance for local authorities is available in the expanded retail discount guidance.

    Cash grants for retail, hospitality and leisure businesses

    Eligibility:

    • business based in England
    • business in the retail, hospitality and/or leisure sector

    How to access the scheme: 

    • No action required. Your local authority will write to you if you are eligible for this grant.
    • Guidance for local authorities on the scheme will be provided shortly.
    • Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority. 

    Grants for businesses that pay little or no business rates

    Eligibility:

    • business based in England
    • small business that already receives SBBR and/or RRR
    • business that occupies property

    How to access the scheme: 

    • You do not need to do anything. Your local authority will write to you if you are eligible for this grant.
    • Guidance for local authorities on the scheme will be provided shortly.
    • Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.

    Support for businesses through the Coronavirus Business Interruption Loan Scheme

    Eligibility: 

    • UK based business, with turnover of no more than £45 million per year
    • business that meets the other British Business Bank eligibility criteria

    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
    • 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 early next week commencing 23 March.

    Support for larger firms through the COVID-19 Corporate Financing Facility

    Eligibility: All UK businesses are eligible.

    How to access the scheme:

    • The scheme will be available early in week beginning 23 March 2020.
    • Information on how to access the scheme will be provided shortly.
    • More information is available from the Bank of England.

    Time to Pay service

    Eligibility:

    • business pays tax to the UK government
    • business with outstanding tax liabilities

    How to access the scheme: 

    • If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559.
    • If you’re worried about a future payment, please call us nearer the time.

    PREVIOUS INFORMATION

    Support for businesses through the Coronavirus Job Retention Scheme

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

    • All UK businesses are eligible.
    • To access the scheme 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
    • submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)
    • HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.
    • If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan (see below).

    Support for the self-employed:

    • The minimum income floor for the self-employed will be suspended which means self-employed people will be able to claim Universal Credit to the equivalent value of Statutory Sick Pay.
    • Ability to defer self-assessment payments to HMRC until January 2021.

    Support for businesses paying sick pay:  

    The government intends to bring forward legislation to allow small- and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. The eligibility criteria for the scheme will be as follows: 

    • this refund will cover up to 2 weeks’ 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 will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19 
    • employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note 
    • eligible period for the scheme will commence the day after the regulations on the extension of Statutory Sick Pay to those staying at home comes into force 
    • the government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible 

    Support for businesses that pay business rates:  

    • The government will introduce a business rates retail holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year. 
    • Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority 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 has been published and can be found here https://www.gov.uk/government/publications/business-rates-retail-discount-guidance  
    • It outlines that the government will reimburse local authorities that use their discretionary relief powers to grant relief. It will be for individual local billing authorities to adopt a local scheme and determine in each individual case when, having regard to this guidance, to grant relief.  

    Support for businesses that pay little or no business rates: 

    • 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 will be contacted by your local authority – you do not need to apply. 
    • 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. 

    Support for businesses through the Coronavirus Business Interruption Loan Scheme: 

    • A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch next week to support primarily small and medium sized businesses to access bank lending and overdrafts.  
    • The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs.  
    • The government will not charge businesses or banks for this guarantee, and 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.  
    • Further details, including on the lenders providing access to this scheme will be announced in the coming days, and the scheme will be available from early week commencing 23 March 2020.  

    Support for larger firms through the COVID-19 Corporate Financing Facility: 

    • To support larger firms, the Bank of England has announced a new lending facility to provide a quick and cost effective way to raise working capital via the purchase of short-term debt.  
    • This will support companies which are fundamentally strong, but have been affected by a short-term funding squeeze, enabling them to continue financing their short-term liabilities. It will also support corporate finance markets overall and ease the supply of credit to all firms.  
    • Further details, including on how to access this funding will follow in the coming days, and the scheme will be available from the week commencing 23 March. 

    Time To Pay service:

    • 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.  
    • These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. 
    • Those concerned about being able to pay tax due to COVID-19 should call HMRC’s dedicated helpline on 0800 0159 559. 

    Insurance: 

    • Businesses that have cover for both pandemics and government-ordered closure should be covered, as the government and insurance industry confirmed on 17 March 2020 that advice to avoid pubs, theatres etc is sufficient to make a claim. 
    • Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. Most businesses are unlikely to be covered, as standard business interruption insurance policies are dependent on damage to property and will exclude pandemics.  

    Supporting the self-employed:  

    Current government guidance to those not eligible for statutory sick pay (of which some gig workers and those on zero hour contracts will be) is to apply for Universal Credit.  

     

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