COVID-19: Support Available for Businesses - Kuits Solicitors Manchester

COVID-19: Support Available for Businesses

COVID-19: Support Available for Businesses

12th October 2020 - Published by Commercial team

Coronavirus Business Interruption Loan Scheme (CBILS)

Coronavirus Business Interruption Loan Scheme for North West

Coronavirus Large Business Interruption Loan Scheme (CLBILS)

Coronavirus bounceback loan scheme

Covid Corporate Financing Facility (CCFF)

Coronavirus Job Retention Scheme

Coronavirus Job Support Scheme (nation wide)

Coronavirus Job Support Scheme (local lockdown areas)

Job Retention Bonus

Coronavirus Job Support Scheme

Deferring VAT (including VAT New Payment Scheme)

Enhanced Time to Pay for Self-Assessment Taxpayers

Deferring Income Tax

Time to Pay Service

Reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19

Business Rates Holiday for Retail, Hospitality and Leisure Businesses - Nationally

Business Rates Holiday for all businesses – Manchester City Council (MCC)

Business Rates Holiday for Nurseries in England

The Retail, Hospitality and Leisure Business Grant Fund

Small Business Grant Fund

Insurance

Commercial Rent Protections

Extension Period to File Company Accounts

The Arts Council England’s Emergency Package

Extension of Business Improvement Districts (BIDs) arrangement

Self-Employed Income Support Scheme

Suspension of Wrongful Trading Law

New Legislation regarding Annual General Meetings (AGMs)

IR35 Tax Reforms Suspended

Coronavirus Future Fund

Small Business Grant Fund

Legal Support for Litigants in Person Grant

Trade Credit Insurance Guarantee

Local Authority Discretionary Grants Fund

Growth Hub Funding as supported by the England European Regional Development Fund (as part of the European Structural and Investment Funds Growth Programme 2014-2020)

VAT Reduction Rate

Kickstart Scheme

Manchester Employment Support Partnership

Local Lockdown Business Grants

Local Lockdown Business Grants

National Insurance Exemption for COVID-19 Test and Trace Support Payments

Here, we have gathered together details of all the support currently available to businesses affected by COVID-19. We will be updating this resource as information becomes available.

 

Coronavirus Business Interruption Loan Scheme (CBILS)

Key Features

  • Up to £5 million facility available on repayment terms of up to 10 years (the term was extended from 6 years to 10 years on 24 September 2020).
  • Provides the lender with a government backed, partial guarantee (80%) against the outstanding facility balance, subject to an overall cap per lender.
  • No guarantee fee for SMEs to access the scheme.
  • The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and lender-levied fees so that smaller businesses will benefit from no upfront costs and lower initial repayments.
  • Finance terms are up to 6 years for term loans and asset finance facilities. For overdrafts and invoice facilities, terms will be up to 3 years.
  • At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under. For facilities above £250,000, the lender must establish a lack or absence of security prior to businesses using CBILS. If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.

Eligibility Criteria

To be eligible to apply for a CBILS-backed facility:

1. Be UK-based in your business activity.
2. Have an annual turnover of no more than £45 million.
3. Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic.
4. Self-certify that your business has been adversely impacted by COVID-19.

Businesses from any sector can apply, except the following:

1. Banks, insurers and reinsurers (but not insurance brokers).
2. Public-sector bodies.
3. Further-education establishments, if they are grant-funded.
4. State-funded primary and secondary schools.

The deadline for new applications has been extended from 30 September2020 to 30 November 2020.

How to Access Support

  • CBILS is available through the British Business Bank’s 40+ accredited lenders, which are listed here.
  • Lenders are managing these applications largely through their Relationship Manager networks or call centres.
  • Affordability assessments still apply and funding applications still require credit committee approval.
  • Please note applications will not be limited to businesses that have been refused a loan on commercial terms, as previously required for small businesses to receive government-backed loans.
  • At present, it is estimated that this scheme will take between 4 and 12 weeks to access.
  • For loans over £250,000, personal guarantees will be limited to just 20% of any amount outstanding on the CBILS lending after any other recoveries from business assets and will exclude the Principal Private Residence (PPR). This will apply to finance already offered under the scheme, to ensure that all businesses receive the same level of government protection.
  • Lenders are banned from requesting personal guarantees for loans under £250k.
  • Personal guarantees are expected for loans over £250k but are not required for loans under £250k.
  • It is important to note that some banks, such as Yorkshire/CYBG, Co-operative Bank and Arbuthnot, are only accepting their own customers or those of challenger banks. Alternative lenders, for example iwoca, Esme, Satago, Funding Circle, will be taking applications from any business.

When approaching a bank, your business should consider the following points to inform the bank:

  • The manner in which the crisis has affected your business.
  • The mitigating actions you have taken to deal with the operational and financial impacts.
  • What further levers could you pull if needed.
  • Your considered view on what the impact might be on your market once the immediate crisis has abated.

You will also need to provide certain evidence to show that you can afford to repay the loan. This is likely to include:

  • Management accounts.
  • Cash flow forecast.
  • Business plan.
  • Historic accounts.
  • Details of assets.

If you would like Independent Legal Advice (ILA) on the agreement with your lender in relation to this scheme, please contact George MacMillan on 0161 838 7998 or email georgemacmillan@kuits.com.

Coronavirus Business Interruption Loan Scheme for North West

Key Features

  •  Administered by GC Business Finance.
  • Businesses who apply must have been declined by a bank.
  • Business is B2B (you can’t apply if your business is B2C).
  • This will provide loans of between £50,001 and £100,000 to eligible businesses.

Eligibility Criteria

Businesses are eligible if they:

  • Are based in the North West;
  • Have been declined by the bank;
  • Have an annual turnover up to £45million;
  • Are a B2B business;
  • Will use the facility to primarily support trading in the UK; and
  • Generate more than 50% of their turnover from trading activity.

How to Access Support 

Coronavirus Large Business Interruption Loan Scheme (CLBILS)

Key Features

  • This will provide a government guarantee of 80% to enable banks to make loans of up to £25 million to your company if you have an annual turnover of between £45 million and £250 million and up to £50 million if you have an annual turnover of over £250 million.
  • Finance is available in the form of: (i) term loans; (ii) revolving credit facilities (including overdrafts); (iii) invoice finance; and (iv) asset finance.
  • Loans backed by a guarantee under CLBILS will be offered at commercial rates of interest.
  • CLBILS gives the lender a government backed partial guarantee (80%) against the outstanding balance of the facility.
  • The borrower remains fully liable for the debt.

Eligibility Criteria

To be eligible, your business must:

  1. Be UK-based business.
  2. Have an annual turnover over £45 million.
  3. You can self-certify that your business has been adversely impacted by coronavirus; and
  4. Your business has not received a facility under the Bank of England’s COVID-19 Corporate Financing Facility.
  5. Have a borrowing proposal which the lender:
  6. Would consider viable, were it not for the COVID-19 pandemic.
  7. Believes will enable you to trade out of any short-term to medium-term difficulty.

 

Businesses from any sector can apply, except the following:

  1. Banks and building societies.
  2. Insurers and reinsurers (but not insurance brokers).
  3. Public-sector organisations, including state-funded primary and secondary schools.
  4. Further education establishments (if they are grant funded)
  5. State-funded primary and secondary schools.

The deadline for new applications has been extended to 30 November 2020.

How to Access Support 

  • The scheme opened on Monday 20 April 2020.
  • CLBILS is available through the British Business Bank’s (currently) 10 accredited lenders, which are listed here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/clbils/current-accredited-lenders-and-partners-2/.
  • For loans under £250,000, personal guarantees will not be taken. For loans above £250,000, personal guarantee may be required but they cannot exceed 20% of losses after all other recoveries have been applied.
  • The term of the finance granted will be between three months and three years.
  • The amount borrowed should not be greater than (i) double the borrower’s annual wage bill for the most recent year available, or (ii) 25% of the borrower’s total turnover for the most recent year available, or (iii) with appropriate justification and based on self-certification of the borrower, the amount may be increased to cover their liquidity needs for the next 12 months.

Coronavirus bounceback loan scheme

Key Features

  • Available from 4 May 2020.
  • Term loans of between £2000 and £50,000 (up to a maximum of 25% of turnover).
  • Cash available within days of application.
  • No capital or interest rate repayments during the first year (government pays the interest for the first 12 months).
  • 100% underwritten by the UK government.
  • Accessed via a network of accredited lenders.
  • Entities that have already received a loan under CBILS can transfer the loan to the micro-loan scheme.
  • No personal guarantees will be required.
  • From 24 September 2020 businesses who need to reduce their monthly repayments may:
    • extend the term of their loan so that it can be repaid over a period of up to 10 years;
    • move to interest only repayments for up to six months (this may be done up to three times over the term of the loan); or
    • pause their repayments entirely for up to six months (this can only be done once and businesses will only be eligible after they have made six repayments

Eligibility Criteria

You can apply for a loan if your business:

  • Is based in the UK
  • Was established before 1 March 2020
  • Has been adversely impacted by the coronavirus.
  • Is not from one of the following sectors:
  1. Banks, insurers and reinsurers (insurance brokers are permitted)
  2. Public-sector bodies
  3. State-funded primary and secondary schools
  • If your business was classed as a business in difficulty on 31 December 2019, you will need to confirm that you are complying with additional state aid restrictions.
  • You cannot apply if you are already claiming under: Coronavirus Business interruption Loan Scheme, Coronavirus Large Business Interruption Loan Scheme or COVID-19 Corporate Financing Facility.
  • If you have already received a loan of up to £50,000 under one of these schemes, you can transfer it into the Bounce Back Loan scheme. You have until 4 November 2020 to arrange this with your lender.

How to Access Support 

  • There are 11 lenders participating in the scheme including many of the retail banks. You should approach a suitable lender yourself via the lender’s website.
  • The lender will ask you to fill in a short online application form and self-declare that you are eligible.
  • The lender will decide whether to offer you a loan or another type of finance and you’ll be responsible for repaying 100% of the amount borrowed.
  • Note that accredited lenders are only permitted to provide term loans under the Scheme. They are prohibited from providing any other type of finance option. The Scheme is targeted at supporting those businesses who need access to finance quickly and, therefore, requires lenders to offer a standard product. Businesses seeking asset or invoice finance under £50,000 may be able to use existing accredited lenders under the Coronavirus Business Interruption Loan Scheme.

The deadline for new applications has been extended to 30 November 2020.

Covid Corporate Financing Facility (CCFF)

Key Features

  • Under the CCFF, the Bank of England will buy short term debt from larger companies.
  • This will support your company if it has been affected by a short-term funding squeeze, and allow you to finance your short-term liabilities.
  • It will also support corporate finance markets overall and ease the supply of credit to all firms.

Eligibility Criteria

The CCFF is available to all non-financial companies that:

  • Make a material contribution to the UK economy.
  • Are capable of demonstrating they were in sound financial health prior to the shock of Covid-19 (i.e. short or long-term rating of investment grade, as at 1st March 2020, or equivalent).

Firms that meet these requirements would normally be:
(i) UK incorporated companies, including those with foreign-incorporated parents and with a genuine business in the UK.
(ii) Companies with significant employment in the UK.
(iii) Firms with their headquarters in the UK.

How to Access Support

If you have spoken to your financial advisor and you believe that your company is eligible, please complete the forms listed below, which can be found here.

After speaking with your bank, if you are unsure whether you are eligible, contact the Bank of England on CCFFeligibleissuers@bankofengland.co.uk.

1. Issuer Eligibility Form.
2. Issuer Undertaking and Confidentiality Agreement.
3. If your commercial paper will be issued by an entity other than the primary entity in your group, then you may also need to provide a guarantee.
4. Associated legal opinion from the primary entity in your group.
5. You will also need to provide evidence of authority to sign on behalf of your company. Guidance on the type of evidence required can be found using the link above.

Coronavirus Job Retention Scheme

Key Features

  • Since the end of March employers who were unable to operate or had reduced staffing requirements as a result of coronavirus have been able to furlough employees; that is they remain employed and on the payroll but the employer is entitled to receive a Government grant covering a proportion of the employee’s regular salary.
  • Since 1 July 2020 employees have been able to bring furloughed employees back to work for a proportion of their usual hours, whilst still being able to claim a grant for the hours not worked.
  • From August 2020 the proportion of the employee’s wages covered by the Government grant has reduced. For October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay NI and pension contributions and top up employees’ wages to ensure they receive 80% of their wages for the time they are furloughed up to a cap of £2,500 per month.
  • The scheme will close on 31 October 2020 and you must decide to either:
  1. bring your employees back to work on their normal contracted hours;reduce your employees working hours; or
  2. terminate their employment

Eligibility Criteria

All UK organisations with a UK bank account are eligible including:

  1. Businesses
  2. Charities
  3. Recruitment agencies (agency workers paid through PAYE)
  4. Public authorities

How to Access Support

You will need to take the following steps:

1. 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. To make a claim with HMRC, you will need:

  • To be registered for PAYE online;
  • Your UK bank account number and sort code;
  • Your employer’s PAYE reference number;
  • The number of employees being furloughed;
  • Each employee’s national insurance number;
  • Each employee’s payroll or employee number (optional);
  • The claim period (start and end date);
  • Amount claimed (per the minimum length of furloughing of 3 weeks);
  • Employer bank account number and sort code;
  • Employer contact name; and
  • Employer phone number.

3. If you’re furloughing 100 or more employees, you’ll need to upload a file (in .xls, .xlsx, .csv or .ods format) with the details of each employee’s:

  • full name;
  • National Insurance number;
  • payroll number (optional);
  • furlough start date;
  • furlough end date (if known); and
  • full amount claimed.

4. Claims should be made via the Government Gateway (available here: https://www.access.service.gov.uk/login/signin/creds)

5. HMRC have a calculator to assist in determining the amount that can be claimed. The calculator is available here: https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme.

6. HMRC will retain the right to retrospectively audit all aspects of your claim.

7. You can only submit one claim at least every 3 weeks, which is the minimum length an employee can be furloughed for. Claims can be backdated until the 1 March if applicable.

8. Once HMRC have received your claim and you are eligible for the grant, HMRC will pay it via BACS payment to a UK bank account within six working days.

The scheme will end on 31 October 2020. All claims for wages must be submitted to HMRC by 30 November 2020. After this date claims cannot be amended to increase the amount being claimed.

If you would like to speak to an advisor on furloughing measures, including communications with staff and letters of variation to contracts, lay-offs or redundancies, please call Mark McKeating on 0161 838 7810 or email markmckeating@kuits.com.

Coronavirus Job Support Scheme (nation wide)

Key Features

  • The scheme will cover up to one third of employees monthly wages.
  • Employees must work for at least one third of their usual hours for the first three months of the scheme. The Government may review the minimum hours threshold for the remainder of the scheme.
  • Employees must be paid their usual salary by their employer for the hours that they work.
  • For every hour not worked the Government and the employer will each pay one third of the employee’s usual pay so that employees receive at least 77% of their usual monthly pay. The Government’s contribution will be capped at £697.92 per month.
  • For employee’s who have been on furlough their underlying usual pay or hours will be used to calculate their usual wages, and not the amount they received whilst on furlough.
  • Employees can cycle on and off the scheme and do not have to have the same working pattern each month.
  • Employers will be reimbursed in arrears for the Government contribution.
  • Employers will be responsible for paying for Class 1 employer NIC and pension contributions.
  • Employers using the scheme will be able to apply for the Job Retention Bonus provided they meet the qualifying criteria.

Key Eligibility

  • The scheme is open to all small and medium sized employers with a UK bank account and PAYE scheme.
  • Large businesses will need to demonstrate that their turnover has been adversely affected by COVID-19 in order to be eligible. Large employers are not permitted to make dividend payments or other contributions to shareholders whilst using the scheme.
  • All small and medium sized businesses can apply, even if they did not use the previous Coronavirus Job Retention Scheme (furlough)
  • To be eligible employees must have been on the employer’s PAYE payroll before 23 September 2020.
  • Employee’s must not be made redundant or put at notice of redundancy whilst on the scheme.

How to Access Support 

  • The scheme will be available from 1 November 2020 and will run until the end of April 2021.
  • HMRC will check claims. Employer’s will need to agree new short time working arrangements with employees in writing and the written agreement should be provided to HMRC if requested.
  • HMRC will inform employees of the details of the claim.
  • Applications for the scheme will open in December 2020 and applications must be made online at Gov.uk. Further information on how to apply will be announced shortly.
  • Further information on the scheme, including an example of how it will work is available here.

Coronavirus Job Support Scheme (local lockdown areas)

Key Features

  • For businesses forced to close due to local lockdown measures the government will provide a grant to employers which covers a proportion of the salary of employees who are unable to work as a result of the lockdown.
  • The grant will cover up to 67% of employees salaries up to a maximum of £2,100 per month. This is a higher cap than under the nationwide Coronavirus Job Support Scheme which was recently announced.

Key Eligibility

  • Businesses that are legally obliged to close as a result of a local lockdown.
  • Businesses can claim for employees who are unable to work for a minimum of seven consecutive days as a result of local lockdown measures.

How to Access Support

The scheme will launch on 1 November 2020 to coincide with the end of the Coronavirus Job Retention Scheme and will run for six months with a review planned in January 2021.

Job Retention Bonus

Key Features

  • Provides additional support to employers who keep on their furloughed employees in meaningful employment, after the government’s Coronavirus Job Retention Scheme ends on 31 October 2020.
  • Claims can be made for individuals who are not employees, such as agency workers, provided a claim has been made for them through the Coronavirus Job Retention Scheme and they meet the other eligibility criteria.
  • The bonus can also be claimed for employees who have been supported through the Coronavirus Job Support Scheme. Further guidance on how the bonus applies to this scheme will be published shortly.

Key Eligibility

  • The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the Coronavirus Job Retention Scheme, and who remains continuously employed through to 31 January 2021.
  • Where a claim for an employee was incorrectly made, a Job Retention Bonus will not be payable.
  • You will not be able to claim for employees who are serving either a contractual or statutory notice period (including employees who are serving notice of retirement) on 31 January 2021.
  • Employers who have repaid the Job Retention Scheme grants will not be eligible for the bonus, regardless of the reason the grant was repaid.

How to Access Support

  • Claims for the Job Retention Bonus can be made between 15 February and 31 March 2021.
  • To be eligible to claim you must make sure that:
  1. employees have been paid at least a total (gross) amount of £1,560 between 6 November 2020 – 5 February 2021; and
  2. employees have received at least one payment of taxable earnings in each of the following tax months: 6 November – 5 December 2020, 6 December 2021 – 5 January 2021, 6 January – 5 February 2021. These payments can be for any amount.
  • All payments made to employees between 6 November 2020 and 5 February 2021 need to be submitted to HMRC through Full Payment Submissions via Real Time Information before claims for the bonus can be made. HMRC will check that employees have received the minimum threshold payment based on the information submitted.
  • If you have submitted a claim for an employee through the Coronavirus Job Retention Scheme but your application is still being reviewed by HRMC you can make a claim for the Job Retention Bonus however your claim will be delayed until after HRMC has completed its checks.
  • Worked examples of how the Job Retention Bonus will apply are available on Gov.uk.
  • Further information on eligibility can be found is available on Gov.uk- click here to view

Coronavirus Job Support Scheme

Key Features

  • The scheme will cover up to one third of employees monthly wages.
  • Employees must work for at least one third of their usual hours for the first three months of the scheme. The Government may review the minimum hours threshold for the remainder of the scheme.
  • Employees must be paid their usual salary by their employer for the hours that they work.
  • For every hour not worked the Government and the employer will each pay one third of the employee’s usual pay so that employees receive at least 77% of their usual monthly pay. The Government’s contribution will be capped at £697.92 per month.
  • For employee’s who have been on furlough their underlying usual pay or hours will be used to calculate their usual wages, and not the amount they received whilst on furlough.
  • Employees can cycle on and off the scheme and do not have to have the same working pattern each month.
  • Employers will be reimbursed in arrears for the Government contribution.
  • Employers will be responsible for paying for Class 1 employer NIC and pension contributions.
  • Employers using the scheme will be able to apply for the Job Retention Bonus provided they meet the qualifying criteria

Eligibility Criteria

  • The scheme is open to all small and medium sized employers with a UK bank account and PAYE scheme.
  • Large businesses will need to demonstrate that their turnover has been adversely affected by COVID-19 in order to be eligible. Large employers are not permitted to make dividend payments or other contributions to shareholders whilst using the scheme.
  • All small and medium sized businesses can apply, even if they did not use the previous Coronavirus Job Retention Scheme (furlough)
  • To be eligible employees must have been on the employer’s PAYE payroll before 23 September 2020.
  • Employee’s must not be made redundant or put at notice of redundancy whilst on the scheme.

How to Access Support

  • The scheme will be available from 1 November 2020 and will run until the end of April 2021.
  • HMRC will check claims. Employer’s will need to agree new short time working arrangements with employees in writing and the written agreement should be provided to HMRC if requested.
  • HMRC will inform employees of the details of the claim.
  • Applications for the scheme will open in December 2020 and applications must be made online at Gov.uk. Further information on how to apply will be announced shortly.
  • Further information on the scheme, including an example of how it will work is available here.

Deferring VAT

Key Features

  • Deferring Valued Added Tax (VAT) payments for 3 months for your business. This covers quarterly and monthly VAT returns’ payments for the periods ending in February, March and April; payments on account due between 20 March 2020 and 30 June 2020 and annual accounting advance payments due between 20 March 2020 and 30 June 2020.
  • Deferral does not cover payments for VAT MOSS or import VAT.
  • If a payment on account is deferred but the balancing payment is outside of these dates, the amount to be paid is the balancing payment less any deferred payments.
  • HMRC will not charge interest or penalties on any amount deferred as a result of this support.

New Payment Scheme  

  • Deferred VAT due for the period March to June 2020 was due to be paid in full by 31 March 2021. Businesses now have the option of spreading their deferred VAT payments over 11 equal instalments to be paid across the 2021-22 tax year.

Eligibility Criteria

  • Any UK VAT registered business that has a VAT payment due between 20 March 2020 and 30 June 2020.
  • All businesses which took advantage of the VAT deferral scheme will be eligible for the New Repayment Scheme

How to Access Support

  • The VAT payment deferral period ended on 30 June 2020.
  • VAT refunds and reclaims will continue to be paid by the government as normal.
  • Businesses who want to take advantage of the New Payment Scheme will need to opt in.
  • HMRC will put in place an opt-in process in early 2021.

Enhanced Time to Pay for Self-Assessment Taxpayers

Key Features

  • The scheme builds on the income tax deferral for self-assessment tax payers announced in July 2020.
  • Self-employed and other self-assessment tax payers will receive an additional 12 months to pay tax due in January 2021. This means that self- assessment liabilities due in July 2021 will not need to be paid in full until January 2022.

Key Eligibility

Taxpayers with up to £30,000 self- assessment liabilities will be eligible.

How to Access Support

  • Payment plans should be set up online through HMRC’s self-service Time to Pay facilities
  • Any self-assessment tax payers who are unable to pay their tax bill on time or are unable to use the online Time to Pay service should contact HRMC’s Time to Pay Self-Assessment helpline to agree a payment plan on 0800 0159 559.

Deferring Income Tax

Key Features

  • If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred until 31 January 2021.
  • If you prefer to pay regularly throughout the year, you can use a budget payment plan.
  • Self-assessment returns should still be filed by the due date.

Eligibility Criteria

All UK self-assessment taxpayers are eligible.

How to Access Support

  • This is an automatic offer with no applications required.
  • No penalties or interest for late payment will be charged in the deferral period.
  • HMRC have also scaled up their Time to Pay offer (please see below) to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities.

Time to Pay Service

Key Features

  • Debt repayment plan for your outstanding taxes.
  • Companies that have defaulted on their payments to settle their Corporation Tax, VAT and/or PAYE can ask HMRC for extra time to pay.
  • These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

Eligibility Criteria

You are eligible if your business:

  • Pays tax to the UK government.
  • Has outstanding tax liabilities.

How to Access Support

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

Business Rates Holiday for Retail, Hospitality and Leisure Businesses – Nationally

Key Features

  • A business rates holiday for retail, hospitality and leisure businesses in England will be introduced 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.

Eligibility Criteria

You are eligible for the business rates holiday if:

  • Your business is based in England.
  • Your business is a shop; restaurant, café, bar or pub; cinema or live music venue; assembly or leisure property (e.g. a sports club, gym or spa); or hospitality property (e.g. a hotel, guest house or self-catering accommodation).

How to Access Support

  • There is no action for you. 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.
  • You can estimate the business rate charge you will no longer have to pay this year using the business rates calculator, which can be here.

Business Rates Holiday for all businesses – Manchester City Council (MCC)

Key Features

  • MCC will be postponing the collection of business rates on the 1st April 2020 to help all businesses in Manchester.
  • Business rates due for 2020/21 will be split over 9 months from July 2020 to March 2021.

Eligibility Criteria

All Manchester businesses are eligible.

How to Access Support

Business Rates Holiday for Nurseries in England

Key Features

A business rates holiday will be introduced for nurseries in England for the 2020 to 2021 tax year.

Eligibility Criteria

Properties that will benefit from the relief will be hereditaments:

  • Occupied by providers on Ofsted’s Early Years Register.
  • Wholly or mainly used for the provision of the Early Years Foundation Stage.

How to Access Support

You can estimate the business rate charge you will no longer have to pay this year using the business rates calculator, which can be found here.

The Retail and Hospitality Grant Scheme

Key Features

  • Provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.
  • Businesses in these sectors with a property that has a rateable value of £15,000 and under will receive a grant of £10,000.
  • Businesses in these sectors with a property that has a rateable value of between £15,001 and £51,000 will receive a grant of £25,000.
  • Businesses and venues with a rateable value of over £51,000 are not included in this scheme. .

Eligibility Criteria

Your business is eligible for the grant if:

  • It is based in England.
  • It is in the retail, hospitality and/or leisure sector.

Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:

  • As shops, restaurants, cafes, drinking establishments, cinemas and live music venues.
  • For assembly and leisure.
  • As hotels, guest and boarding premises and self-catering accommodation.

How to Access Support

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

To speak to our leisure team about licensing variations, planning relaxations and re-opening strategiesplease contact Felicity Tulloch on 0161 838 7804 or email felicitytulloch@kuits.com.

Small Business Grant Scheme

Key Features

  • The government will provide additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR), rural rate relief (RRR) and tapered relief.
  • This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.

Eligibility Criteria

Your business will be eligible if:

  • You are based in England.
  • You are a small business and already receive SBBR and/or RRR, or that you were eligible for relief under either of those schemes on the 11th March 2020.
  • You are a business that occupies property.

How to Access Support

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

Insurance

Key Features

Businesses that have cover for both pandemics and government-ordered closure should be covered, as the government and insurance industry confirmed on 17th March 2020 that advice to avoid pubs, theatres etc is sufficient to make a claim as long as all other terms and conditions are met.

Eligibility Criteria

  • Businesses with insurance cover for both pandemics and government-ordered closure.
  • Please note that most businesses are unlikely to be covered, as standard business interruption insurance policies are dependent on damage to property and will exclude pandemics.

How to Access Support

You will need to check the terms and conditions of your specific policy and contact your insurance provider.

If you have had a claim rejected by your insurer or have been told you cannot claim and would like the opinion of a legal advisor, please contact Phil Warburton on 0161 838 8171 or email phillipwarburton@kuits.com.

Commercial Rent Protections

Key Features

  • These measures, included in the emergency Coronavirus Bill mean that no business will be evicted from their premises if they miss a payment in the period up to 31 December 2020 (extended from 30 September).
  • Measures support ongoing conversations between landlords and tenants about voluntary arrangements.
  • Commercial tenants will still be liable for the rent after 30th September.
  • The Government is also actively monitoring the impact on commercial landlords’ cash flow and continues to be in dialogue with them.

Eligibility Criteria

All Commercial tenants in England, Wales and Northern Ireland.

How to Access Support

  • Where possible, commercial tenants should continue to pay rents.
  • Commercial tenants should plan ahead by discussing entering into payment plans with landlords in order that any rent arrears can be paid once the protection period has passed.
  • Landlords will have a right to forfeit and recover any rent arrears again from 1 October 2020, so tenants should be cautious about not paying their rent at all.
  • The protection was due to end on 30 September 2020 but has been extended to 31 December 2020.
  • Secondary legislation has been introduced which stops landlords from using Commercial Rent Arrears Recovery unless they are owed at least 276 days rent at 29 September 2020 (extended from 189 days unpaid rent). From 25 December 2020 this will increase again to 366 days unpaid rent. The restriction will apply until 31 December 2020, although the Government has the option to extend it until April 2020.

Extension Period to File Company Accounts

Key Features

  • Your company will be given an additional 3 months to file accounts with Companies House to help you avoid penalties.
  • This joint initiative between the government and Companies House will mean that you can prioritise managing the impact of Coronavirus.

Eligibility Criteria

Any company if your accounts will be late because your business is affected by Covid-19.

How to Access Support

  • From 25th March, you will be able to apply for a 3-month extension for filing your accounts.
  • If your company cites issues around COVID-19, you will be automatically and immediately granted an extension.
  • Applications can be made through a fast-tracked online system which will take 15 minutes to complete here.
  • You will need your company number, an email address, information about your extension reasons and any documents that support your application (optional).

The Arts Council England’s Emergency Package

Key Features

  • Total of £160 million emergency funding available.
  • £90 million available to National Portfolio Organisations (NPOs) to reboot your creative work or alleviate financial pressures.
  • £50 million available to your business if you are not in receipt of regular funding from the Arts Council England.
  • £20 million of financial support available to individuals. If you are an artist or creative practitioner with a track record in publicly funded culture, you will be able to apply for grants of up to £2,500. £4 million of this budget will go towards grants to benevolent funds targeted at other cultural workers.

Eligibility Criteria

If your organisation is within the Arts Council’s 2018-22 National Portfolio of Organisations, including Bands 1-3 and Sector Support Organisations, you are eligible for the £90m available to NPOs.

  • If your organisations has a track record in publicly funded culture, you are eligible for the £50m of funding available.
  • If you are a creative practitioner whose main work is focused on the following art forms and disciplines, you are eligible to apply for grants:
    i) Music
    ii) Theatre
    iii) Dance
    iv) Visual Arts
    v) Literature
    vi) Combined Arts
    vii) Museums practice
  • This work includes choreographers, writers, translators, producers, editors, freelance educators in the disciplines and art forms we support, composers, directors, designers, artists, craft makers and curators.
  • Magicians and comedians can apply to this fund, as long as you have a track record of receiving public funding for your work.

How to Access Support

  • Funding available to NPOs will be available as soon as possible. The Arts Council England will contact you with a timeline as soon as they can.
  • If your organisation is not in receipt of regular funding from the Art Council England, guidance, including the detailed timetable, will be available on 30th March. You will need to register for Grantium by Friday 3rd April. There will be support for you to do this.
  • The Arts Council England will publish guidance if you are applying for a grant, including the detailed timetable for this fund, on 30th March. You will need to register on their application portal Grantium by Friday 3rd April. There will be support for you to do this.

Extension of Business Improvement Districts (BIDs) arrangements

Key Features

  • BIDs will be able to extend the maximum duration of their BID arrangements until 31st March 2021 by delaying BID ballots due to take place this year.
  • This enables BIDs and local authorities who administer the ballot process, to concentrate on responding to the current emergency.
  • New funding package for BIDs across England announced on 1 May 2020. The monies, totalling £6.1 million, will be distributed by way of grant funding to local authorities, to be passed on to the BIDs. It will cover funding for three months and contribute towards the BIDs’ day-to-day operational costs.

Eligibility Criteria

The measures apply to any BID in England due to ballot between now and 31 December 2020.

How to Access Support

The change entered force on 25 March 2020.

Self-Employed Income Support Scheme

Key Features

  • Receive 80% of your average monthly trading profits, paid out in one single instalment by the government.
  • This has been calculated using average monthly profits over the last three years.
  • This support will cover 3 months trading profits, capped at £7,500 altogether.
  • If you receive the grant, you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist.
  • The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.
  • The third grant (the first grant under the extended scheme) will cover 20% of average monthly trading profit for the three months from November 2020 to the end of January 2021. It will be paid in a single instalment which will be capped at £1,875.
  • The fourth grant (and second grant under the extended scheme) will cover the three months from February 2021 to the end of April 2021. The level of monthly trading profits that will be covered by this grant has yet to be announced.

Eligibility Criteria

  • If you are a self-employed person or a member of a partnership and all of the following apply:
  • You traded in the tax year 2018 to 2019 and submitted your Self-Assessment tax return on or before 23 April 2020 for that year;
  • You traded in the tax year 2019 to 2020;
  • You intended to continue to trade in the tax year 2020 to 2021; and
  • You carry on a trade which has been adversely affected by coronavirus.
  • The extended scheme is available to self-employed individuals who were eligible for the first self-employed income support scheme and who are actively continuing to trade but who are facing reduced remand due to COVID-19.

How to Access Support

  • You can check online to find out if you’re eligible to make a claim at https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference. Your tax agent or adviser can also check your eligibility on your behalf.
  • Individuals will need their Self-Assessment Unique Taxpayer Reference number and their National Insurance Number.
  • If you are eligible, HMRC will tell you the date you will be able to make your claim from, and as you to add your contact details.
  • The scheme has been extended for a further six months and will pay a further two taxable grants, covering the period November 2020 to April 2021.

Suspension of Wrongful Trading Law

Key Features

  • This measure will prevent your business from being forced to file for bankruptcy if you are unable to meet debts due to the impact of coronavirus.
  • It will also ensure that you can still pay staff and suppliers even if you fear your company may become insolvent.
  • Will give your company, “breathing space,” and enable you to keep trading while you explore options for rescue.
  • Your supplies will be protected to enable your business to continue trading during the moratorium.

Eligibility Criteria

UK companies undergoing a rescue or restructure process to continue trading.

How to Access Support

  • Wrongful Trading Law will be temporarily suspended retrospectively from 1 March 2020 for three months for company directors so that you can keep your business going without the threat of personal liability.
  • All of other checks and balances that help to ensure directors fulfil their duties properly will remain in force.

To discuss the suspension of Wrongful Trading Law with an advisor, please contact Richard Palmer on 0161 503 2996 or email richardpalmer@kuits.com.

New Legislation re Annual General Meetings (AGMs)

Key Features

  • The government will introduce legislation to ensure that if your company is required by law to hold AGMs, it will be able to do so safely, consistent with the restrictions on movement, and gatherings introduced to address the spread of coronavirus.
  • Your company will temporarily be extended greater flexibilities, including holding AGMs online or postponing the meetings.

Eligibility Criteria

Companies required by law to hold AGMs.

How to Access Support

  • The Corporate Governance and Insolvency Act grants temporary flexibility to companies relating to how and when they hold their AGM’s regardless of what is required by the Articles of Association.
  • Companies are permitted to hold fully or partially virtual meetings and quorums can be filled via virtual attendance.
  • Votes may be cast electronically.
  • The new flexibilities were due to last until 30 September 2020 but the period within which companies must hold their AGM has now been extended further to 30 December 2020.
  • For AGM’s that were due to be held between 26 March 2020 and 30 December 2020 the deadline for holding the AGM will automatically be extended to 30 December 2020.

IR35 Tax Reforms Suspended

Key Features

Off Payroll Working Rules (IR35) which were to be implemented in the private sector from 6 April 2020 will be delayed by 12 months.

Eligibility Criteria

If your organisations is in the private sector.

How to Access Support

  • Reforms will now come into force on 6 April 2021 as part of response to Covid-19.
  • The new introduction date will be legislated in the upcoming Finance Bill.

Coronavirus Future Fund

Key Features

  • The Future Fund will provide government loans to UK-based companies.
  • The minimum amount of the loan shall be £125,000 and the maximum, £5 million.
  • The Future Fund is an unsecured bridge funding from the Government which will match private third party investors. The loan shall constitute no more than 50% of the bridge funding being provided to the company, with the remaining amount being provided by matched investors.
  • The bridge funding shall be used solely for working capital purposes and shall not be used by the company to repay any borrowings, make any dividends or bonus payments to staff, management, shareholders or consultants, or, pay any advisory or placement fees or bonuses to external advisors.
  • The loan shall mature after 36 months and cannot be repaid early unless the investors agree.
  • Loans will convert into shares in the company in certain circumstances, including an exit or a new funding round.
  • The Government shall receive a minimum of 8% per annum (non-compounding) interest to be paid on maturity of the loan. The interest rate shall be higher if a higher rate is agreed between the company and the matched investors. Interest will not be payable monthly but, instead, will accrue until the loan converts, at which point, the interest must either be repaid or converted to equity.
  • The government has made £250 million available for the Future Fund and this amount will be kept under review.
  • The investment terms for both the government and third party investors will be standard terms which cannot be negotiated.
  • Applications for funding will be open until the end of September 2020.

Eligibility Criteria

  • If your business is based in the UK, incorporated on or prior to 31 December 2019 and an unlisted limited company. Sole traders, partnerships, LLPs and other unincorporated associations are not eligible;
  • If you can attract the equivalent match funding from third-party private investors and institutions, which fall within one of the following categories:
    • an “investment professional” within the meaning given to that term in article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“FPO”);
    • a high net worth company, unincorporated associated or high value trust falling within article 49(2) of the FPO;
    • a “certified sophisticated investor” or a “self-certified sophisticated investor” within the meaning given in articles 50 and 50A respectively of the FPO;
    • a “certified high net worth individual” within the meaning of article 48 of the FPO;
    • an equivalent professional, high-net worth, institutional or sophisticated investor in accordance with applicable law and regulation in such investor’s home jurisdiction;
    • an association of high net-worth or sophisticated investors within the meaning of article 51 of the FPO; or
    • capable of being classified as a “professional client” within the meaning given in the glossary to the FCA Rules.
  • You have previously raised at least £250,000 in equity investment from third-party investors in the period from 1 April 2015 to 19 April 2020.
  • If your business is a member of a corporate group, it must be the ultimate parent company
  • Your business must be able to satisfy one or both of the following criteria:
    • Half or more employees are UK based;
    • Half or more revenues are from UK sales.

How to Access Support

  • The deadline for applications has been extended until 30 November 2020
  • Third party investors will need to certify that they meet the scheme eligibility criteria and provide key details about the investment via the Future Fund website (https://www.uk-futurefund.co.uk/).
  • The business will need to confirm the accuracy of the information submitted by the investor(s) before the full application is submitted.
  • Distribution of funds will need to be handled by a nominated company solicitor.

Small Business Grant Fund

Key Features

Support for small businesses, and businesses in the retail, hospitality and leisure sectors.

  • Two forms of the grant:

1. Small Business Grant Fund (SBGF); and

2. The Retail, Hospitality and Leisure Grant Fund (RHLG)

  • Businesses who are eligible for Small Business Rates Relief or Rural Rates Relief will be eligible for a payment of £10,000 under the SBGF.
  • Businesses who are eligible for the Expanded Retail Discount with a rateable value of less than £51,000 will be eligible for cash grants of £10,000 or £25,000 per property under the RHLG.
  • Eligible businesses with a property that has a rateable value of up to and including £15,000 will receive a grant of £10,000.
  • Eligible businesses with a property that has a rateable value of over £15,000 and less than £51,000 will receive a grant of £25,000.
  • Businesses with a rateable value of £51,000 or over are not eligible for this scheme. Businesses which are not ratepayers in the business rates scheme are not included in this scheme.

Eligibility Criteria

Those eligible for SBGF are as follows, and eligible recipients will receive one grant per property:

  • Businesses with a property that on 11 March 2020 were eligible for Small Business Rate Relief Scheme (incl. those with a rateable value between £12,000 and £15,000)
  • Businesses which on 11 March 2020 were eligible for relief under the Rural Rate Relief Scheme.
  • You cannot get SBGF for:

1. Properties occupied for personal uses, such as private stables and loose boxes, beach huts and moorings; and

2. Car parks and parking spaces.

Those eligible for RHLG and whom will receive one grant per property are as follows:

  • Properties which on 11 March 2020 had a rateable value of less than £51,000 and would have been eligible for a discount under the business rates Expanded Retail Discount Scheme.
  • Charities which would otherwise meet this criteria but whose bill for 11 March had been reduced to nil by a local discretionary award should still be considered to be eligible.
  • You cannot get RHLG for:

1. Properties occupied for personal uses, such as private stables, loose boxes, beach huts and moorings;

2. Car parks and parking spaces; and

3. Properties with a rateable value of £51,000 or over.

How to Access Support

  • Applications for the scheme closed on 10 June 2020.
  • The Government has given Manchester City Council £5.4m of fixed grant funding which means that Manchester will not be able to award grants to every eligible small business or charity that applies.
  • Grants are not issued on a first come, first served basis, so there’s no urgency to apply so long as your application is submitted prior to 10pm on 10th

Trade Credit Insurance Guarantee

Key Features

  • In order to prevent having credit insurance withdrawn, or premiums increasing to unaffordable levels, the government will temporarily guarantee B2B transactions currently supported by Trade Credit insurance, ensuring the majority of insurance coverage will be maintained across the market.
  • This will support supply chains and help businesses to trade with confidence as they can trust that they will be protected if a customer defaults on payment.
  • The guarantee will be temporary and targeted to cover COVID-19 economic challenges, and will provisionally last until the end of the year.

Eligibility Criteria

  • The guarantees will cover trading by domestic firms and exporting firms.

How to Access Support

  • The guarantee will be delivered through a temporary reinsurance agreement with insurers currently operating in the market.
  • The government will work with businesses and the industry on the full details of the scheme to ensure firms are supported and risk is appropriately shared between the government and insurers.
  • The intent is for agreements to be in place with insurers by the end of this month.
  • Further details will be announced in due course.

Local Authority Discretionary Grants Fund

Key Features

Grants will be made of any amount up to and including £10,000, or £25,000. The grants do not have to be repaid but are classed as taxable income.

Eligibility Criteria

To be eligible, businesses must:

  1. Be based in England;
  2. Have fewer than 50 employees;
  3. Have fixed building costs such as rent;
  4. Have been trading on 11th March 2020;
  5. Have been adversely impacted by the coronavirus

How to Access Support

Councils have been asked to prioritise:

  • small businesses in shared offices or other flexible workspaces such as units in industrial parks or incubators
  • regular market traders
  • bed and breakfasts paying council tax instead of business rates
  • charity properties getting charitable business rates relief which are not eligible for small business rates relief or rural rate relief

A business cannot apply if it:

  • pays business rates
  • is in administration, insolvent or has received a striking-off notice
  • is already receiving support under another government grant scheme (such as Small Business Grant Fund or Retail, Hospitality and Leisure Grant).

Applications should be made to the local council who will run the process and decide if a grant is to be offered.  As the grants are considered state aid, applicants will need to confirm they have not exceeded the relevant threshold.

Growth Hub Funding as supported by the England European Regional Development Fund (as part of the European Structural and Investment Funds Growth Programme 2014-2020)

Key Features

On 30 July 2020, the Minister for Regional Growth and Local Government announced £20million of new government funding to help small and medium sized businesses recover from the effects of the coronavirus pandemic.

Small and medium sized business in England can access grants between £1,000 – £5,000 for new equipment and technology and specialist advice (such as legal, financial or other advice) to help them get back on track.

Eligibility Criteria

More information to be published in due course.

How to Access Support

More information to be published in due course.

VAT Reduction Rate

Key Features

If you are a VAT registered business, you can apply for a temporary 5% reduced rate of VAT to certain supplies relating to:

  • Hospitality
  • Hotel and holiday accommodation
  • Admissions to certain attractions
  • The temporary rate cut was due to end on 12 January 2021 but now it will continue to apply to supplies made until 31 March 2021.

Also note that if you are a small business and use the Flat Rate Scheme to simplify your VAT calculations, certain percentages have been reduced in line with the introduction of the temporary reduced rate of VAT – https://www.gov.uk/vat-flat-rate-scheme.

Eligibility Criteria

Hospitality:

If you supply food and non-alcoholic beverages for consumption on your premises, you will only need to charge 5% VAT (rather than the standard rate of 20%). You will also be able to charge the reduced rate of VAT on your supplies of hot takeaway food and hot takeaway non-alcoholic drinks.

Hotel and holiday accommodation:

You will also benefit from the temporary reduced rate if you:

  • Supply sleeping accommodation in a hotel or similar establishment
  • Make certain supplies of holiday accommodation
  • Charge fees for caravan pitches and associated facilities
  • Charge fees for tent pitches or camping facilities.

Admission to certain attractions:

You will also benefit from the temporary reduced rate if you charge a fee for admission to certain attractions.

Tour Operations Margin Scheme:

If you are a business that buys in and resells travel, accommodation and certain other services, and you act in your own name, you may operate the Tour Operators Margin Scheme to simplify your calculations – https://www.gov.uk/guidance/tour-operators-margin-scheme-for-vat-notice-7095.

How to Access Support

Visit https://www.gov.uk/coronavirus/business-support to apply.

Kickstart Scheme

Key Features

  • The scheme provides funding to employers to create job placements of up to 6 months for 16-24 year olds.
  • The fund will cover 100% of the National Minimum Wage for 25 hours a week, NI contributions and employer minimum automatic enrolment pension contributions.
  • Employers can also apply for £1,500 per job to cover setup costs, training and support.

Eligibility Criteria

  • Placements are aimed at 16-24 year olds who are on Universal Credit and are at risk of long-term unemployment.
  • Any size organisation can apply.
  • Employers must be able to offer a minimum of 30 placements. Those who cannot offer this number can partner with other organisations to reach the minimum number. Organisations applying as part of a group can receive £300 to cover the associated administrative costs.
  • Groups of employers must nominate a representative for the group.
  • The fund is to create new jobs, not to replace existing roles or planned vacancies or cause existing employees or contractors to lose or reduce their employment

How to Access Support

  • Placements will be available from November 2020
  • Employers who want to partner with other organisations to reach the minimum of 30 placements can find out how to contact their local Kickstart Scheme employer for more information here.

Manchester Employment Support Partnership

Key Features

  • The Partnership will provide support to residents and businesses whose employment has been affected by COVID-19.
  • The Partnership includes Manchester City Council. The Growth Company, Jobcentre Plus and others.

Key Eligibility

The Partnership is aimed at businesses based within Greater Manchester.

How to Access Support

  • Businesses who want to access support should submit a request using this link below and a member of the team will contact them. You should receive a response within a week of submitting your request.

Local Lockdown Business Grants

Key Features

  • Businesses can receive a non-repayment grant if they are required to shut because of local lockdowns.
  • Payments of between £1,000 – £1,500 per property will be made to businesses for every three weeks that they are required to be closed.
  • Businesses occupying premises with a rateable value of less than £51,000 or with annual rent or mortgage payments of less than £51,000 will receive payments in instalments of £1,000.
  • Businesses occupying premises with a rateable value of £51,000 or more or with annual rent or mortgage payments of £51,000 or more will receive payments in instalments of £1,500.
  • The grant will be treated as taxable income.
  • Local authorities will receive additional business support funding to enable them to make discretionary top up payments of up to £1,500.

Key Eligibility

  • Businesses in England that are required to close because of local lockdowns will be eligible.
  • Businesses that are required to remain closed at a national level (for example nightclubs) will not be eligible.

How to Access Support

  • Grants will be distributed by local authorities.
  • Local authorities may determine their own additional eligibility criteria.

Local Lockdown Business Grants

Key Features

  • Businesses can receive a non-repayment grant if they are required to shut because of local lockdowns.
  • Payments of between £1,000 – £1,500 per property will be made to businesses for every three weeks that they are required to be closed.
  • Businesses occupying premises with a rateable value of less than £51,000 or with annual rent or mortgage payments of less than £51,000 will receive payments in instalments of £1,000.
  • Businesses occupying premises with a rateable value of £51,000 or more or with annual rent or mortgage payments of £51,000 or more will receive payments in instalments of £1,500.
  • The grant will be treated as taxable income.
  • Local authorities will receive  additional business support funding to enable them to make discretionary top up payments of up to £1,500.

Key Eligibility

  • Businesses in England that are required to close because of local lockdowns will be eligible.
  • Businesses that are required to remain closed at a national level (for example nightclubs) will not be eligible.

How to Access Support

  • Grants will be distributed by local authorities.
  • Local authorities may determine their own additional eligibility criteria.

National Insurance Exemption for COVID-19 Test and Trace Support Payments

Key Features

  • Employees who are on a low income and have been advised to self-isolate by the NHS Test and Trace Service are eligible to receive a support payment of £500.
  • Payments under the scheme are currently classed as earnings and subject to deduction of Class 1 and Class 1A NI contributions at a cost to employers.
  • Following a trial scheme employers will no longer need to report and deduction Class 1 and Class 1A NI contributions from these support payments.

Key Eligibility

All businesses who have employees who are in receipt of a NHS Test and Trace Support payment

How to Access Support

  • The exemption will become effective on 22 October 2020.
  • The exemption comes into force automatically and there is no need for employer’s to make an application.

Subscribe to our mailing list