Chancellor Rishi Sunak has committed to doing “whatever it takes” and announced some drastic measures to help businesses in financial difficulty due to the Coronavirus crisis.
We have outlined some of the relief options available for businesses across the UK below.
Details are constantly updated by the Government and details are available on the Government website.
The government has announced a fast-track finance scheme which will be launched on the 4th of May 2020. The new scheme will allow businesses to borrow between £2,000 and £50,000, up to 25% of their turnover. The government will guarantee 100% of the loan and there will be no fees or interest for the first 12 months of the loan.
Businesses may not apply for this loan if you are already claiming under Coronavirus Business Interruption Loan Scheme. However, if you have already received a loan of up to £50,000 under CBILS, you can transfer it into the Bounce Back Loan scheme by arranging this with your lender before 31 January 2021.
The details:
Eligibility requirements:
Excluded business types:
Official details regarding the Bounce Back Loan can be found here.
12-month business rates holiday for all retail, hospitality and leisure businesses in England irrespective of rateable value. This will apply for the 2020 to 2021 tax year.
Detailed information about which businesses do and do not qualify can be found here.
No action will be required on your part, the business rates holiday will automatically be applied to your next council tax bill in April 2020.
For the latest news, visit your local authority website.
£10,000 cash grant to over 700,000 small businesses who are eligible for Small Business Rate Relief (SBRR) or rural rate relief:
No action will be required on your part, your local authority will write to all those that are eligible for this grant, no details on when this is expected have been announced yet.
For the latest news, visit your local authority website.
If you get a second property, you’ll keep getting any existing relief on your main property for 12 months.
You can still get small business rate relief on your main property after this if both the following apply:
For further details regarding SBRR, please read the government Small Business Rates Relief website.
Your business is in an eligible area and either:
For further details regarding RRR, please read the government Rural Rate Relief website.
If you are unsure, contact your local council to see if you’re eligible for RRR.
Funding for the scheme will be provided to local authorities by the government in early April.
£25,000 cash grant for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000. You can check how much your business rates are at the following: Calculate your business rates.
Check the Local Authority Guidance for further details and to see if your business will be eligible.
No action will be required on your part, your local authority will write to all those that are eligible for this grant, no details on when this is expected have been announced yet.
For the latest news, visit your local authority website.
For businesses with fewer than 250 employees, the cost of providing 14 days of Statutory Sick Pay per employee will be refunded by the government in full. This will provide 2 million businesses with up to £2 billion to cover the costs of large-scale sick leave.
You’ll be able to get SSP from the first day you’re self-isolating and cannot work. This will begin from 13 March. For further information, please check out the SSP Guide.
If you are having issues meeting your tax obligations, the government has set up a dedicated helpline to help businesses and self-employed individuals. Call the number below and the HRMC may be able to provide a Time to Pay arrangement.
HMRC’s dedicated helpline on 0800 0159 559.
Chancellor Rishi Sunak announced that 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 and therefore the above cash grants have been announced.
With the government advocating for social distancing and advising people to avoid visiting public spaces including pubs, restaurants and bars, it was announced that pubs will be able to deliver hot food without planning application during the crisis.
“The government has confirmed regulations will be relaxed to enable businesses to deliver this service without a planning application.”
For pubs that would like to take advantage of this option, below are some options that provide 3rd party delivery options for restaurants and pubs.
https://restaurants.deliveroo.com/en-gb/
https://www.ubereats.com/restaurant/en-GB/signup
https://restaurants.just-eat.co.uk/
On March 20th, Chancellor Rishi Sunak announced a grant to cover 80% of furloughed workers up to £2,500 per month per employee. This will allow employers to retain staff that would otherwise be made redundant.
As this is reimbursement, the net pay will have to initially be paid by the employer. If you have any issues paying the PAYE or tax payments due, the government have set up a dedicated Time To Pay team.
*The scheme will be able to be backdated to March 1st and has initially been set to run for three months. This will be reviewed if necessary by the government and may be extended.
On April 17th, Chancellor Rishi Sunak announced the scheme will be extended to at least the end of June. The scheme provides an alternative to a salary loan.
The government expect this scheme to be up and running before the end of April.
The scheme was officially launched and accepting applications on the 20th April, you can find details about applying for the scheme here.
All UK businesses are eligible.
Businesses will need to:
*changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
Full transcript and details can be found here.
The government will pay to cover the first 12 months of interest and any lender-levied fees to reduce upfront costs and for small businesses and reduced initial repayments.
To ensure lenders continue to provide SME’s the funding they require the government will provide lenders with a guarantee of 80% on each loan that qualifies.
Full details can be found on the British Business Bank website.
To access the scheme, simply speak with your bank or one of the 40 accredited finance providers that are part of the scheme.
All the major banks are offering this scheme and the government has suggested that all affected businesses with an existing loan should ask for a repayment holiday.
On 18th March 2020, childcare providers will be added to the list of businesses that will be exempt from
business rates in 2020 to 2021.
There is no required action from business owners, your local council will automatically apply this to your next council tax bill in April 2020.
Further details and requirements can be found in the Local Authority Nursery Discount guidance document.
The government have announced a 3-month ban on evictions for commercial tenants if you are unable to pay rent due to the coronavirus.
This will initially protect business owners who miss a payment in the next 3 months, however the government has an option to extend this period. Important to note the commercial tenant will still be liable for the rent after this period.
This will cover commercial tenants in England, Wales and Northern Ireland.
Further details can be found in the Eviction ban announcement.
Follow our social pages to get the latest business coronavirus news as we get them.
https://www.facebook.com/cubefunder/
https://www.linkedin.com/company/cubefunder/
https://twitter.com/cubefunder
The government have provided a Support Finder Tool to help find what relief is available for you.
https://www.businesssupport.gov.uk/
coronavirus-business-support/
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19
https://www.gov.uk/introduction-to-business-rates
https://www.gov.uk/find-local-council
https://www.gov.uk/coronavirus
If you are unable to get the financial support you require from the government measures, a short-term business loan from Cubefunder may be an ideal solution.
Disclaimer: While we have made every attempt to ensure the accuracy of all the information provided in the article, Cubefunder assumes no responsibility or liability for any errors or omissions in the content of this article. The information contained in this article is provided on an “as is” basis with no guarantees of completeness, accuracy or timeliness.
Please make sure to seek legal advice where applicable and check your local authority and government websites for the latest news.
