Covid-19 Financial Update
1. Coronavirus Job Retention Scheme
The amount of furlough you can reclaim is reducing this month from 80% to 70%, as the scheme begins to wind down over the next 3 months
This means that if you made a furlough payment of lb800 with different monthly salary of lb1000 for instance, you will simply be able to reclaim lb700
You will still have to pay at least 80% for full or flexi-furlough as you've done previously.
From 1st August and before the scheme ends on 30th September, the reclaim will reduce further to 60%
2. Self-Employment income Support Scheme (SEISS)
The fifth and final SEISS grant is going to be open for application: Late July 2021
Ensure you follow the guidelines around turnover levels before claiming. See link below for more information:
https://www.gov.uk/guidance/work-out-your-turnover-so-you-can-claim-the-fifth-seiss-grant
Update as at 14/04/2021
1. Business Bounce Back and CBILS Loan
CLOSED – RECOVERY LOAN SCHEME NOW OPEN
The Recovery Loan Scheme (RLS) replaced the government's CBILS and Bounce Back programmes on Tuesday 6 April.
2. Recovery Loan Scheme (RLS)
The scheme covers term loans, invoice finance, asset finance and overdrafts. Businesses can borrow up to lb10 million, but there's no interest or fee-free period.
The government guarantees 80% from the debt and there's no turnover or trading history requirements. Personal guarantees aren't needed for loans under lb250k.
For more details, read our designated post on RLS
Update as at 08/02/2021
1. Business Bounce Back Loans (BBL)
Information released through the government today around business bounce back loans to help with repayments. For those who have a superb loan , now you can apply for the next if required;
- Extend the length of the borrowed funds from six years to ten
- Make interest-only payments for six months, using the option to make use of this up to three times throughout the loan
- Pause repayments entirely for approximately six months
For more information click here
Update as at 19/01/2021
1. Business interruption insurance claims – Covid Lockdown Losses
The Top court has ruled, insurance providers will need to shell out to smaller businesses that made losses over lockdown.
They were in favour of small firms receiving payments from business interruption insurance plans.
The ruling could cost the insurance coverage sector vast sums of pounds.
Update as at 04/01/2021
lb4.6 billion in new lockdown grants to aid businesses and protect jobs. Business is going to be closed until a minimum of February 2021 half-term in order to help control herpes.
1. Grant for Retail, Hospitality and Leisure industries
One-off top-up grants for retail, hospitality and leisure businesses worth up to lb9,000 per property to assist businesses through to the Spring
- lb4,000 for businesses with a rateable value of lb15,000 or under
- lb6,000 for businesses having a rateable value between lb15,000 and lb51,000
- lb9,000 for businesses with a rateable worth of over lb51,000
- any business that is legally necessary to close, and which cannot operate effectively remotely, is eligible for a grant
Businesses which were open as always, but were then necessary to close between 5 November and 2 December 2021 because of the national restrictions imposed by government may qualify for LRSG (Closed) Addendum.
Eligible businesses might be eligible for a cash grant using their local council for each 28 day period under national restrictions worth as much as lb3,000.
For more details click here
Update as at 17/12/2021
1. Coronavirus Job Retention Scheme
The furlough scheme continues to be extended 'till the end of April 2021 with the government continuing to contribute 80% towards wages.
Previously running from 1st November 2021 to 31st March 2021.
2. Coronavirus Recover Loan
The government-guaranteed Covid-19 business loan schemes happen to be extended until the end of March 2021.
Update as at 30/11/2021
1. Self-Employment income Support Scheme (SEISS)
Applications are actually open for the third SEISS grant to support self-employed people impacted by coronavirus (COVID-19).
The rules on who is permitted to claim will vary to people for that previous SEISS grants. However, a Self Assessment tax return for the tax year 2021 to 2021 showing self-employment income (unless among the existing exceptions applies) will still need have been submitted in order to claim.
The third grant will be based on 80% of three months' average trading profits, paid in one taxable instalment limited to lb7,500, and can cover the period from 1 November to 29 January 2021. Self-employed people who are eligible can claim the third grant at any time from 30 November 2021 to 29 January 2021.
As previously, the 3rd grant may also be subject to Tax and self-employed National Insurance and should be reported on 2021 to 2021 Self Assessment tax statements, due by 31 January 2022.
Update as at 04/11/2021
1. Self-Employment income Support Scheme (SEISS)
Third grant available to claim from 30th November 2021.
55% of average trading profits for 3 months, subject to a cap of lb5,160. This can cover November 2021 to January 2021.
2. Coronavirus Job Retention Scheme
The CJRS extended from 1st November 2021 to 31st March 2021. JSS has been deferred until CJRS ends.
Employees will get 80% of salaries for hours not worked, up to a maximum of lb2,500.
Employer to pay for Employer NICs and minimum pension contributions.
Neither employee or employers must have previously used the CJRS to profit from the extension.
A bonus of lb1000 still paid to employers for every previously furloughed employee cut back to work and continuously used to 31st Jan 2021.
Update as at 23/10/2021
1. Self-Employment income Support Scheme (SEISS)
The extension will last for 6 months, from November 2021 to April 2021. Grants is going to be paid in two lump sum instalments each covering a three-month period.
The third grant covers a three-month period from 1 November 2021 until 31 January 2021. The Government will give you a taxable grant covering 40% of average monthly trading profits, paid out in one instalment covering 3 months' price of profits, and capped at lb3,750 as a whole.
Update as at 24/09/2021
1. “Pay As You Grow” scheme
o Bounce Back Loans can now be repaid over extended periods from 6 to 10 years to lessen repayments by almost 50%;
o This extension won't affect your credit rating;
o Interest only repayments or total loan suspension for up to Six months where companies are in “real trouble”;
o New successor loan guarantee programme to CBILS to become announced in January 2021;
2. Job Support Scheme :
o To exchange Furlough scheme ending on 31st October 2021;
o Will run from 1st November to 30th April 2021;
o Available to employees working in a minimum of 33% of their hours will receive a minimum of 77% of their pay;
o All night not worked, the Government & the business pays 33% each towards the “lost” income;
o Businesses won't be able to provide redundancy notices to employees whilst on this scheme;
3. Self-Employed Grant :
o To become extended on similar terms towards the Job Support Scheme, further information to follow;
4. VAT bills carried forward to March 2021 :
o No more payable as a lump sum on 31st March 2021;
o Repayable over 11 months from March 2021.
o Repayments will be zero interest;
5. Income Tax bills deferred :
o Tax liabilities due on 31st January 2021 of under lb30,000 deferred although not cancelled;
o Can now set up & agree a repayment plan with HMRC;
o Tax debt may then be repaid over 12 months to January 2022;
o The repayments will be zero interest.
o Pertains to self employed or those with Two or more causes of income;
Update as at 15/09/2021
1. Covid related Business Interruption Claims – Policyholders win within the High Court
Policyholders of Business Interruption Insurance (“BII”), have won a “significant” victory in a High Court test case to find out whether the Covid-19 pandemic should trigger pay-outs to claimants.
The judgement present in favour of BII policyholders around the most of the key issues including clauses associated with:
o “non-damage”;
o “denial of access”
According to estimates by the FCA, who brought the situation towards the High Court to explain the confusion gone through by many frustrated policyholders, the findings may affect nearly 400,000 policyholders.
However, this could take a moment. It is likely the insurers who lost the case will appeal towards the Top court against today's 160 page judgement.
Update as at 08/09/2021
1. Coronavirus Job Retention Scheme
Following in the update on 15/06/2021
From September, your furlough reclaim amount will reduce to 70%. The employers NI and pension are no longer included in your claim.
The reduction continues in October with a further 10%.
You are only able to claim for just one month furlough at a time; you aren't allowed to carry forward any undeclared furlough claims.
Working from home allowance
You can pay your staff as much as lb6 per week (lb26 per month) to cover general costs, provided you have required results from home.
Although not a life changing amount, it's well suited for covering your staff's ongoing costs for trivial items for example stationary and other minor consumables.
You do not have to pay it, however it might be a less expensive option to paying larger one-time expense claims, as it is an ongoing payment.
Staff can continue to claim the tax relief element even though you do not pay it, by applying on a form P87 or claiming through their self-assessment
Here may be the link: https://www.gov.uk/tax-relief-for-employees/working-at-home
For more details and FAQs, please click the link to see our dedicated Coronavirus Job Retention Scheme article.
Update as at 18/08/2021
1. Self-Employment income Support Scheme (SEISS)
Following from the update on 16/06/2021
If you have not yet designed a claim for that first grant, as much as lb6,570, the deadline to do so may be the 19th October 2021.
You can claim for the second grant even though you did not claim for the first grant.
Please click here to read our designated post around the SEISS scheme
Update as at 21/07/2021
1. Stamp Duty Holiday
In a bid to boost a housing industry still in shock from the COVID-19 property freeze, Chancellor Rishi Sunak has announced a measure that could save the average homebuyer over lb2,000.
The government has removed SDLT up to a lb500,000 threshold. The present stamp duty holiday will last for around nine months, and will end on 31 March 2021.
The maximum amount a purchaser could save could be if they purchased a home worth lb500,000 which is the threshold for the exemption. Stamp duty on this could be lb15,000!
Update as at 16/06/2021
1. Self-Employment income Support Scheme (SEISS)
Following from the update on 08/06/2021
If you have not yet designed a claim for the first grant, as much as lb7,500, the deadline to do so may be the 13th July 2021.
The second grant will be open to make claims from August 2021 if you are self-employed and have been adversely impacted by Covid-19. You are able to claim for the second grant even if you didn't claim for the first grant.
Please click here to see our designated post on the SEISS scheme
Update as at 15/06/2021
1. Coronavirus Job Retention Scheme
Following from the update on 01/06/2021
CJRS will allow part time furloughing from 1 July and tapering employer contributions from August – see our table below showing a failure from the employer contributions vs the governments on the furlough scheme.
Calculating your claim is not easy, you have to ensure your claim is accurate inorder to be paid for furloughed workers.
For more information click here
Update as at 08/06/2021
1. Self Employment income Support Scheme (SEISS)
(Further to update as at 15/05/2021)
On the 29th May, the federal government announced it will offer self-employed workers another and final grant in August.
Those who are eligible will be able to claim another grant capped at lb6,570.
The grant is going to be worth 70% of average monthly trading profits, covering 3 months' price of profits and capped at lb6,570 as a whole. This is paid out in a single instalment.
Further guidance on the 2nd grant is going to be published on Friday 12 June.
2. Business-Rate Support Scheme – Shared Office Space
Units rented by shared office spaces don't currently have a 'Rateable' value so weren't entitled to the company rates relief. The federal government have acknowleged this now so that businesses with premises run by companies for example WeWork and Regus etc are now eligible to receive support.
Because grants are allocated per business property, just one business will get multiple grants and may receive grants from separate local authorities.
Eligibility
You're potentially eligible if your business:
- is based in England
- has fewer than 50 employees
- has fixed building costs for example rent
- was trading on 11 March 2021
- has been adversely impacted by the coronavirus
If you are eligible, you can apply through your local council. Click the link to find your local council.
- Your local council will run an application process and decide whether or not to provide you with a grant.
- You do not have to spend the money for grant back but it is going to be taxable. Only businesses which will make a general profit once grant income is included will be subject to tax.
For further guidance, click here
Update as at 01/06/2021
1. Coronavirus Job Retention Scheme
The following updates were announced on the 29th May to help ease employees back to work.
| 2021 | Government Pays | Company /Employer Pays | Additional Information |
| June | – 80% of employees wages up to lb2500. – All employers national insurance covered. – All Pension covered | – Nothing | – Scheme closes to new entrants from 30th June, and so the final date for employees to become furloughed is 10th June. |
| July | – 80% of employees wages up to lb2500. – All employers national insurance covered. – All Pension covered | – Purchase the amount of time that their Part-time workers are working – topped up to 80% of full-time wage, to total of lb2,500 by government | – Furloughed staff can be created part time employees – Employers will have until 31 July to make any claims according from the period to 30 June. |
| August | – 80% of employees wages as much as lb2500. | – Pay for the hours that their employees are working – Employers National Insurance. – Minimum Pension Contributions | |
| September | – 70% of employees wages up to lb2,190 | – Pay for the hours that their workers are working – Employers National Insurance. – Minimum Pension Contributions – 10% of furloughed Employee Salary | |
| October | – 60% of employees wages up to lb1,875 | – Purchase the hours their workers are working – Employers National Insurance. – Minimum Pension Contributions – 20% of furloughed Employee Salary |
Update as at 19/05/2021
1. Statutory Sick Pay Rebate Scheme (SSRS)
Statutory Sick Pay Rebate Scheme will launch online on 26 May.
The scheme will enable employers with less than 250 employees to assert coronavirus-related Statutory Sick Pay (SSP). If AEL are your agent, we will be capable of making claims with respect to employers.
Employers are eligible to make use of the scheme if:
- they're claiming for an employee who's entitled to sick pay due to coronavirus
- they had a PAYE payroll scheme in operation before 28 February 2021
- they had fewer than 250 employees across all PAYE schemes on 28 February 2021
- they're eligible to receive State Aid underneath the EU Commission Temporary Framework.
The repayment covers as much as two weeks from the applicable rate of SSP, and it is payable if a current or former employee was unable to focus on or after 13 March 2021 and entitled to SSP, simply because they either:
- have coronavirus
- are self-isolating and unable to work from home
- are shielding because they've been advised they are at high risk of certain illness from coronavirus.
To prepare to make a claim, you need to keep records of all of the SSP payments you wish to claim for.
Update as at 18/05/2021
1. Coronavirus Job Retention SchemeFollowing in the update on 13/05/2021
It's nearly a month because the Coronavirus Job Retention Scheme (CJRS) opened and you may be preparing to make another claim to be able to get money by the end of May.
To ensure you receive a payment by the end of May, you need to apply by Wednesday 20 May.
When you are making claims through the Coronavirus Job Retention Scheme, you'll get the money within six working days.
After creating a claim, please keep all records and calculations, just in case HMRC have to contact you to definitely discuss these.
Update as at 15/05/2021
1. Self-Assessment Employment income Support Scheme (SESS)HMRC has opened the Self-Employed Income Support Scheme, where freelancers and contractors can apply up to 80% of lost earnings in a lb7,500 lump sum payment.
To qualify for this grant, oneself employed income should be below lb50k Which amount must be >50% of total income.
To apply click the link. It's a very quick seamless application process, information required: 1. Personal UTR Number 2. National Insurance Number 3. Government Gateway ID and Password 4. Banking account Information (where you would like the grant paid into) The system automatically calculates if you are entitled to the grant and just how much you're to get based on your historic submitted returns.The grant does not need to be repaid but will be susceptible to tax and national insurance.
Money should hit accounts by May 25 or six business days following a claim is made. Only make this claim if you're self-employed or a person in a partnership and also have been adversely impacted by coronavirus (COVID-19).Update as at 13/05/2021
1. Coronavirus Job Retention SchemeFollowing in the update on 20/04/2021 The scheme continues to be extended to October 2021 and will retain the current form and rules until 31st July 2021. From 1st August :
- Businesses can have greater flexibility when you are able to employ furloughed staff on the part-time basis.
- For furloughed employees, nothing changes in that they'll continue to receive 80% of their salary.
- However, employers will have to contribute towards furloughed staff salaries.
- What number of the furlough cost will the business contribute?
- Will this be voluntary or mandatory?
- How will the part-time furlough rules operate?
- Will employers in various trades have to contribute differing amounts since many businesses will not be permitted to “re-open” simultaneously?
Update as at 04/05/2021
1. Coronavirus Recover Loan Scheme (BBLS)
Following from 28/04/2021 'bounce back loan'
- Scheme is now open for applications
- Fixed 2.5% interest payable after first 12 months
- No personal guarentee required
- If you have an approved CBILS Loan, you cannot make an application for this as well
- Early repayment is permitted at any stage, no repayment fees charged
- If can not pay the loan after 12 months, alert your bank, standard procedures happen to be occur place
- The Scheme is available to most UK businesses, regardless of turnover, who self-declare they meet the eligibility criteria
To watch our designated BBLS blog updates, click here
For further information and FAQs, click here
Update as at 28/04/2021
1. Coronavirus Bounce Back Loan
The Recover Loan scheme will help small , medium-sized businesses to gain access to between lb2,000 and lb50,000
- The government guarantees 100% from the loan
- No fees or interest to cover the very first 12 months.
- Loan terms will be as much as 6 years.
- No repayments will be due during the first 12 months.
The government will work with lenders to agree a minimal interest rate for the remaining loan period.
You can apply for a loan if your business:
- is located in the UK
- has been negatively affected by coronavirus
- was not an 'undertaking in difficulty' on 31 December 2021
The following businesses are not eligible to use:
- banks, insurers and reinsurers (although not insurance brokers)
- public-sector bodies
- further-education establishments, if they are grant-funded
- state-funded primary and secondary schools
If you've already received a loan as high as lb50,000 under CBILS and also transfer it into the Recover Loan scheme, you can arrange this together with your lender until 4 November 2021.
- The Recover Loan scheme will launch on 4 May 2021.
More details about the scheme will be published shortly.
Update as at 20/04/2021
1. Coronavirus Job Retention Scheme
The Job Retention Scheme is now open for submissions.
https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme
You can now claim online for any grant for 80% of your furloughed employees' salaries, up to a more lb2,500 per employee, per month, with the Coronavirus Job Retention Scheme.
This scheme is going to be open 'till the end of June 2021.
After you've made claims:
- keep a note or perhaps a print-out of your claim reference number – you won't get a confirmation SMS or email.
- retain all records and calculations for the claims, just in case HMRC have to contact you about them.
- expect to get the funds six working days after you apply, provided your claim matches records that HMRC hold for the PAYE scheme.
- to receive payment by 30 April, you will have to complete a credit card applicatoin by 22 April
Update as at 17/04/2021
1. Coronavirus Job Retention Scheme
Further to suggest 1 as at 08/04/2021.
-The scheme has been extended from May 2021 to June 2021 (an additional month of employee furlough)
– Employees around the payoll prior to 19th March are now also eligible to be furloughed (not only employees that started just before 28th Feb).
– A director who is furloughed are only able to undertake try to fulfil an obligation or any other obligation as a result of an action of Parliament concerning the filing of company's accounts or provision of other information concerning the administration from the director's company. This can be a very narrow interpretation of directors' duties.
-To claim furlough, the employer and employee must have agreed on paper that the employee will cease all work. This really is significant; the guidance only required notification. The Direction from the Treasury requires written agreement.
Update as at 15/04/2021
1. Self-employment Income Support Scheme (SEISS)
Further to point 2 on the 26/03/2021
-HMRC plans to contact self-employed individuals by mid-May if you are eligible for a grant under the scheme. HMRC still anticipates this is paid in early June.
-Losses arising in the years 2021/17 to 2021/19 are deducted from profits before calculating the average profits for that purposes of the grant.
-If you have run more than one business in a year, those profits/losses should be added together as appropriate, to calculate the figure to use for each tax year.
2. Current Bank Loans
Banks and lenders are expected to offer small businesses and individuals a brief payment freeze on loans and credit cards for up to three months for those who have been impacted by coronavirus.
RBS, HSBC, Barclays Lloyds, Santander and Nationwide have said they will be offering payment freezes from 14th April.
Update as at 08/04/2021
1. Coronavirus Job Retention Scheme
Further to point 4 underneath the 'Dealing with Staff' section and additional to the update on the 3rd April.
-There is a 3 week minimum furlough period, it must be a continuous period. Employees could be introduced and from furlough as long as the periods are greater than 3 weeks.
-You should only make use of the furlough arrangements where there is affordable probability of rehiring workers.
-Foreign nationals can participate if on a UK PAYE scheme.
-Employees on maternity leave and some other statutory leaves might be furloughed. Those found on unpaid leave might not be furloughed when the leave began before 1st March 2021.
-HMRC may audit claims for up to no less than Five years.
-The JRS reclaim portal is planned to go 'live' in the 20th April
Update as at 03/04/2021
1.Business Interruption Loan Scheme (BILS)
Further to suggest 4 underneath the 'Business Funding' section and also the 24/03/20 update below;
The BILS programme is being extended so all viable small businesses affected, not just those not able to secure regular commercial financing, will now be eligible for a loan whenever they need finance to help keep operating.
Lenders have also been stopped from requesting personal guarantees for loans under lb250,000. The federal government continues to pay for the very first 12 months of great interest and fees.
The British Business Bank states that companies that satisfy the following conditions should be considered for CBILS:
-Be UK-based in the business activity
-Have a yearly turnover of no more than lb45 million, of which a lot more than 50 per cent is generated through trading activities
-Have a borrowing proposal that the lender would consider viable, were it not for that current pandemic
-Self-certify that it has been adversely influenced by the coronavirus (COVID-19).
FAQs for SMEs: Coronavirus Business Interruption Loan Scheme (CBILS)
2.Coronavirus Job Retention Scheme
Further to suggest 4 underneath the 'Dealing with Staff' section
Employees who've started a brand new job following the 28 February 2021 will not be able to profit from the scheme.
Employers can re-hire staff that have recently been made redundant but still claim the subsidy. This does not apply if staff left voluntarily.
Update as at 31/03/2021
1. Directors of Companies
Company directors that receive salaries through PAYE can be furloughed and apply for a grant of 80% of their salary.
Individuals who are directors that belongs to them family companies and who're themselves paid via PAYE ought to be eligible for the coronavirus job retention scheme, although the same rules will apply as to other businesses as well as their employees. i.e. no focus on the business should be undertaken.
Furloughed employees must not perform any work for the employing business -Depending around the size and needs of the company, it may be easy to furlough a number of directors.
A director can furlough and continue with their statutory duties. However, references to those duties only mention certain compliance activities such as filing accounts.
Directors paid a nominal salary but receiving the bulk of their reward through dividends would only receive 80% of the nominal salary (if they qualify). Payment-by-dividends is not based on the scheme.
Full information on how the amount of the grant is going to be calculated of these people have yet to be released.
Update as at 26/03/2021
1. Balances Filing Deadline Extension
Companies House are allowing Limited Companies to extend their filing deadline by A few months. A credit card applicatoin needs to be made for the extension and the application must be submitted before you decide to filing deadline.
https://www.gov.uk/guidance/apply-for-more-time-to-file-your-companys-accounts
Companies that have already extended their filing deadline, or shortened their accounting reference period, may not be eligible for extra time.
2. Self-employment Income Support Scheme (SEISS)
Proposed statutory self-employment pay which may cover the lower of lb2,500 or 80 per cent of a self-employed person's monthly earnings, averaged during the last three years.
The scheme is available to a person with trading profits as high as lb50,000. It'll only be available to people who result in the most of their income from self-employment and who filed a tax return for 2021.
If you have not submitted your Income Tax Self-Assessment taxes for the tax year 2021-19, you have to do this by 23 April 2021 to qualify for SEISS.
Claims will be paid out from June directly into your money, in a single instalment. In the meantime, universal credit could be claimed and paid out much faster.
HMRC will contact you if you're entitled to the scheme and invite you to apply online.
3. Update on Coronavirus Job Retention Scheme
Further to suggest 4 under the 'Dealing with staff' section below
Employers may use a portal to claim for 80% of furloughed employees' (employees on the leave of absence) usual monthly wage costs, up to lb2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions with that wage.
Update as at 24/03/2021
1. Businesses in rented properties
Commercial tenants who cannot pay their rent due to coronavirus is going to be protected from eviction;
No business is going to be forced from their premises if they miss a payment in the next three months.
Commercial tenants it's still responsible for the rent after this period, the Government is also actively monitoring the impact on commercial landlords' income and remains in dialogue together.
2. Business Interruption Loan Scheme (BILS)
Further to point 4 underneath the 'Business Funding' section below
Banks have stated they'll only provide these loans like a last resort if all other avenues of funding happen to be exhausted along with the current business rates grant on offer and if the Corona Virus Job Retention Scheme is not enough to help you through this era.
Update as at 23/03/2021
Dealing with staff
1. Statutory Sick Pay (SSP)
Reclaim of SSP for Covid19 = 2 weeks per employee
Eligible if less than 250 employees // Doesn't require doctors certificate
Rebate access tbc
2. Staff into teams whenever we can so that key functions are covered in every team(s); Separate teams to not meet physically to preserve at least one team if virus spreads amongst staff;
3. Staff payment policy on working from home and SSP to be made clear;
4. Coronavirus Job Retention Scheme
Employers able to reclaim 80% of staff salaries up to lb2,500 per month. Staff should be 'furloughed'. Redundancies not included. Three month initial period backdated to 1st March 2021.
All UK companies are eligible.
Designate affected employees as 'furloughed workers,' and notify the 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 which have been furloughed and their earnings via a new online portal (HMRC sets out further details on the information required)
HMRC are working urgently to setup a system for reimbursement. Existing systems aren't set up to facilitate payments to employers.
Business Funding
1. Business rates holiday
Reclaim if in Retail / Hospitality / Leisure, Rebate automatically when rates bills come out
2. Cash grants retail/hospitality & leisure
lb25,000 grant where rateable value is between lb15,000 & lb51,000
Claim from local authority – more details to become provided
3. Cash grants retail/hospitality & leisure
lb10,000 one off grant to people companies that don't pay rates
Eligible rateable value under lb15,000
No have to apply // Local Authority will contact business
4. Business Interruption Loan Scheme (BILS)
The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims). The government won't charge businesses or banks for this guarantee, and also the Scheme will support loans as high as lb5 million in value.
Businesses can connect to the first 12 months of this finance interest free, as government covers the very first 12 months of great interest payments.
Eligibility:
-Business is UK based, with turnover of no more than lb45 million per year
-Your business meets another British Business Bank eligibility criteria
Talk for your bank or finance provider (not the British Business Bank) as quickly as possible and discuss your company plan together. This helps your finance provider to act quickly when the Scheme has launched
The scheme will be offered by week commencing 23 March 2021.
Access via https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/
- Talk with own bank / Provide strategic business plan. May also request AELs help with this.
- Payment holiday for existing loans
5. Time for you to Pay services
Eligibility – Outstanding tax liabilities because of Co-Vid19 disruption
HMRC dedicated helpline 0800 0159 559
6. VAT payment Deferral
VAT payments deferred for A few months to 30 June. This is automatic with no application required and repay by March 2021 o VAT refunds paid as normal
7. Corporation Tax – do not pay as loss relief / time to pay arrangements available; If making a loss this year then don't pay corporation tax for last year;
8. Equipment leasing – request repayment holiday;
9. Business interruption insurance – are you covered ? Usually excludes Pandemics;
10. Rental holiday – Rent free or pay 30 days at any given time (instead of quarterly ahead of time). Claim from landlord.
11. Utilities providers : Claim for holiday on energy bills;
12. Business collection agencies priority – Review credit terms; service / goods without payment on account;
13. Co-Directors / Shareholders of SME's – to discuss salary / dividends reductions with one another;
14. Income retention : Review discretionary costs such as Directors pension contributions // Marketing costs //
Self Employed/Individuals
1. All payments on accounts due by 31st July 2021 have now been deferred to 31st January 2021.
2. Personal Mortgage holiday.
3 month payment holidays offered to Assistance to Buy equity loans, Buy to allow mortgages and Residential mortgages
-It is important to understand that you still owe the amounts you don't pay because of the payment holiday. Interest will continue to be charged around the amount owed.
-Taking a payment holiday won't impact your credit rating.
3. Universal Credit
Can be accessed in full at rates equal to statutory sick pay
