COVID-19 Financial Support for Estates in England Updated May 14th 2020
1
Contents All Businesses .............................................................................................................................1 Retail, Hospitality and Leisure Businesses ....................................................................................3 Heritage Emergency Fund ............................................................................................................4 Staff and the Self Employed .........................................................................................................5 Deferral of Deadlines ....................................................................................................................8 Tenant Protection ........................................................................................................................9 Other Information .........................................................................................................................9
Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.
COVID-19 Financial Support for Estates in England All Businesses Coronavirus Business Interruption Loan Scheme Summary
The temporary loan scheme supports small and medium-sized enterprises (SMEs) with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years. The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments. The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank. There are 40 accredited lenders able to offer the scheme, including all the major banks.
Eligibility
UK businesses with turnover of no more than £45 million per year, and meets the other British Business Bank eligibility criteria.
Next Steps
The scheme is now open for applications. All major banks are offering this scheme. To apply, you should talk to your bank or one of the 40 accredited finance providers (not the British Business Bank) as soon as possible, to discuss your business plan. You can find out the latest on the best ways to contact them via their websites. The full rules of the scheme and the list of accredited lenders are available on the British Business Bank website. If you have an existing loan with monthly repayments, you may want to ask for a repayment holiday to help with cash flow.
Summary
The temporary loan scheme supports small and medium-sized enterprises (SMEs) with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years. The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments. The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank. There are 40 accredited lenders able to offer the scheme, including all the major banks.
Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.
Coronavirus Large Business Interruption Loan Scheme Summary
The new Coronavirus Large Business Interruption Loan Scheme (CLBILS) will provide a government guarantee of 80% to enable banks to make loans of up to £25m to firms with an annual turnover of between £45m and £500m. This will give banks the confidence to lend to many more businesses which are impacted by coronavirus. The scheme will be delivered through commercial lenders, backed by the British Business Bank. The Government will provide lenders with an 80% guarantee on individual loans for businesses that would be otherwise unable to access the finance they need. Lenders are still expected to conduct their usual credit risk checks, but this scheme allows them to specifically support business that were viable before the COVID-19 outbreak but are facing significant cash flow difficulties, that would otherwise make their business unviable in the short term. The new scheme will launch later this month and will support a wide range of businesses to access finance products including short term loans, overdrafts, invoice finance and assets finances. Facilities backed by a guarantee under CLBILS will be offered at commercial rates of interest. Businesses remain responsible for repaying any facility they may takeout.
Eligibility
This scheme will provide government guarantees of 80% to enable banks to make loans of up to £25m, offered to firms with a turnover of between £45m and £500m per annum that have been impacted by Covid-19 who are unable to secure regular commercial financing. Your business must: Be UK-based in its business activity Have an annual turnover between £45 million and £500 million Be unable to secure regular commercial financing Have a borrowing proposal which the lender: a) would consider viable, were it not for the COVID-19 pandemic b) believes will enable you to trade out of any short-term to medium-term difficulty Businesses from any sector can apply, except the following: Banks and building societies Insurers and reinsurers (but not insurance brokers) Public-sector organisations, including state-funded primary and secondary schools Employer, professional, religious or political membership organisations Trade unions Facilities supported by the guarantee will be provided by participating commercial lenders. Once the scheme has launched, businesses should check the British Business Bank website to find out which lenders are able to provide the type of finance they are looking for. They should then approach a lender or lenders as they would normally.
Next Steps
The scheme is available through a range of accredited lenders listed on the British Business Bank website. Businesses should consider applying via the lender’s website in the first instance.
https://www.businesssupport.gov.uk/coronavirus-large-business-interruption-loan-scheme/
Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.
Support for businesses that pay little or no business rates Summary
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 (SBRR), 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
UK businesses, that occupies property and are in receipt of SBRR or RRR as of 11 March.
Next Steps
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.
Bounce Back Loan Scheme Summary
Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the Chancellor has announced. The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days. This new scheme allows businesses to borrow between £2,000 and £50,000 and access the cash within days. Loans will be interest free for the first 12 months. The new scheme will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.
Next Steps
Businesses can apply online through a short and simple form. The loans will be easy to apply for through a short, standardised online application. Loans should reach businesses within days – providing immediate support to those that need it as easily as possible. Firms will be able to access these loans through a network of accredited lenders. The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.
Retail, Hospitality and Leisure Businesses Cash Grants Summary
Provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.
Eligibility
Properties that will benefit from the relief will be occupied properties that are wholly or mainly being used: as shops, restaurants, cafes, drinking establishments, cinemas and live music venues for assembly and leisure Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.
as hotels, guest and boarding premises and self-catering accommodation Businesses in these sectors with a property that has a rateable value of up to £15,000 may be eligible for a grant of £10,000. Businesses in these sectors with a property that has a rateable value of over £15,000 and less than £51,000 may be eligible for a grant of £25,000. Next Steps
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.
Business Rate Holiday Summary
Business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.
Eligibility
Properties that will benefit from the relief will be occupied properties 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
Next Steps
There is no action for you. However, local authorities may have to reissue your bill to provide this support. They will do this as soon as possible.
Heritage Emergency Fund The National Lottery Heritage Fund has put together a £50million fund to support the heritage sector as an immediate response to the coronavirus (COVID-19) outbreak.
The £50m fund available for grants of between £3,000 and £50,000. The fund is available to organisations across the full breadth of heritage, including historic sites, industrial and maritime heritage, museums, libraries and archives, parks and gardens, landscapes and nature. Organisations which have received funding in the past or are either a current grantee, or still under contract following a previous grant, can apply. Priority within the Fund will be given to organisations: ▪ ▪
▪ ▪
Managing or caring for at-risk heritage or those working to meet our priority outcomes around economic regeneration, inclusion and wellbeing – as defined within our Strategic Funding Framework. Working within one or more of the 13 Areas of Focus identified in the National Lottery Heritage Fund Strategic Funding Framework. These are communities experiencing social deprivation which are central to place-making within these neighbourhoods. Which are not eligible for or in receipt of other emergency funding either from Government and/or other National Lottery distributors. Which have limited alternative options of emergency support and are already mitigating risks through other measures eg putting projects on hold, rephasing milestones, repurposing other funding to support day-today operations. Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.
▪ ▪
Which are at greatest financial risk from coronavirus (COVID-19) due to a reliance on trading or community fundraising income streams. Are at greatest financial risk due to having limited reserves i.e. less than three months and limited access to the short-term liquidity needed for essential activity.
The Heritage Emergency Fund is accepting applications for funding from £3,000 to £50,000. The application form is now available and you will be able to apply until 30 June 2020.
Pausing new grants In order to address the crisis, the National Lottery Fund has taken the decision to halt all new grant applications with immediate effect. The Heritage Emergency Fund will consist of money diverted from new grants.
Staff and the Self Employed Job Retention Scheme Summary
If you cannot maintain your current workforce because your operations have been severely affected by COVID-19, you can furlough employees and apply for a grant that covers 80% of their usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution) on that subsidised furlough pay. The scheme will now continue until end of October. New flexibility will be introduced from August to get employees back to work and boost the economy, at this time employers will be asked to pay a percentage towards the salaries of their furloughed staff. It is designed to help employers whose operations have been severely affected by coronavirus (COVID-19) to retain their employees and protect the UK economy. However, all employers are eligible to claim under the scheme and the government recognises different businesses will face different impacts from coronavirus.
Eligibility ▪ ▪ ▪
You must have: created and started a PAYE payroll scheme on or before 19 March 2020 enrolled for PAYE online a UK bank account
Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities. You can only claim for furloughed employees that were on your PAYE payroll on or before 19 March 2020 and which were notified to HMRC on an RTI submission on or before 19 March 2020.This means an RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 19 March 2020. Employees that were employed as of 28 February 2020 and on payroll (i.e. notified to HMRC on an RTI submission on or before 28 February) and were made redundant or stopped working for the employer after that and prior to 19 March 2020, can also qualify for the scheme if the employer re-employs them and puts them on furlough. Employees can be on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts. Foreign nationals are eligible to be furloughed. To be eligible for the grant, when on furlough, an employee cannot undertake work for, or on behalf, of the organisation or any linked or associated organisation. This includes providing services or generating revenue. Employers are free to consider allocating any critical business tasks to staff that are not furloughed. While on furlough, the employee’s wage will be subject to usual income tax and other deductions.
Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.
Next Steps
Employers should discuss with their staff and make any changes to the employment contract by agreement. When employers are making decisions in relation to the process, including deciding who to offer furlough to, equality and discrimination laws will apply in the usual way. To be eligible for the grant employers must confirm in writing to their employee that they have been furloughed. A record of this communication must be kept for five years. You do not need to place all your employees on furlough. However, those employees who you do place on furlough cannot undertake work for you. You’ll need to claim for: • • •
Note
80% of your employees’ wages (even for employee’s on National Minimum Wage) - up to a maximum of £2,500 per month. Do not claim for the worker’s previous salary. Employer National Insurance contributions that are paid on the subsidised furlough pay. Employer pension contributions that are paid on the subsidised furlough pay, up to the level of the minimum automatic enrolment employer contribution. The maximum level of grant for employer pension contributions on subsidised furlough pay is set in line with the minimum automatic enrolment employer contribution of 3% on qualifying earnings. Grants for pension contributions can be claimed up to this cap provided the employer will pay the whole amount claimed to a pension scheme for the employee as an employer contribution.
You can choose to top up your employee’s salary, but you do not have to. Employees must not work or provide any services for the business while furloughed, even if they receive a top-up salary. Grants will be prorated if your employee is only furloughed for part of a pay period. A furloughed employee can take part in volunteer work, if they do not provide services to or generate revenue for, or on behalf of your organisation or a linked or associated organisation. Your organisation can agree to find furloughed employees new work or volunteering opportunities whilst on furlough if this is in line with public health guidance. Furloughed employees can engage in training, as long as in undertaking the training the employee does not provide services to, or generate revenue for, or on behalf of their organisation or a linked or associated organisation. Furloughed employees should be encouraged to undertake training. Where training is undertaken by furloughed employees, at the request of their employer, they are entitled to be paid at least their appropriate national minimum wage for this time.
Self Employed Income Support Scheme Summary
This scheme supports self-employed individuals (including members of partnerships) who have lost income due to COVID-19. This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.
Eligibility
You can apply if you’re a self-employed individual or a member of a partnership and you: have submitted your Income Tax Self-Assessment tax return for the tax year 18-19 traded in the tax year 19-20 are trading when you apply, or would be except for COVID-19 intend to continue to trade in the tax year 20-21 have lost trading/partnership trading profits due to COVID-19 Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment..
Next Steps
HMRC will contact you if you are eligible for the scheme and invite you to apply online.
Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.
Note
Self-employed people who have set themselves up as a Limited Company are not eligible for this relief. It is thought that people in this situation are eligible for the Job Retention Scheme in relation to their salary if they stop working. However, many self-employed people who set themselves up as an incorporated business only pay themselves a wage set at the National Insurance earnings threshold (currently £166 per week) and take the rest of their income in dividends. This means that the Job Retention Scheme will cover only a very small part of their actual income.
Financial assistance for employers unable to pay statutory redundancy payments Summary
If an employer cannot afford to pay their employees redundancy pay, they can apply to the Redundancy Payments Service (RPS) (part of a government agency called the Insolvency Service) for financial assistance. If approved, the RPS will make statutory redundancy payments directly to the redundant employees on the employer’s behalf. RPS payments are subject to statutory limits. These include a maximum of 20 years redundancy can be paid and there is a cap on weekly rate of pay. The RPS cannot make any other types of payments such as arrears of pay, holiday pay, or notice pay unless the employer enters into formal insolvency proceedings.
Eligibility
Any employer who is not subject to formal insolvency proceedings can apply. This includes businesses that, are still trading, have stopped trading but have not gone formally insolvent, will soon stop trading but are not going formally insolvent. To be eligible for financial assistance from the RPS, an employer must provide evidence that they cannot afford to pay their employees statutory redundancy pay. The RPS must also be satisfied that the former employees are eligible for statutory redundancy pay.
Next Steps
If you think your business qualifies for assistance, please email the RPS. In your email please confirm: your name, whether you are the employer, whether you should be the main point of contact, business name, business address, number of redundancies The RPS will provide you with further details on the minimum requirements for proving that you meet the qualifying criteria.
Statutory Sick Pay Summary
Allows small-and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. The eligibility criteria for the scheme will be as follows: this refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19 employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19
Eligibility
UK based small or medium-sized businesses that employ fewer than 250 employees as of 28 February 2020.
Next Steps
Employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note. If evidence is required by an employer, those with symptoms of COVID19 can get an isolation note from NHS 111 online and those who live with someone that has symptoms can get a note from the NHS website Eligible period for the scheme will commence the day after the regulations on the extension of SSP to those staying at home comes into force The government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.
Deferral of Deadlines VAT Payment Deferral Summary
If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to: defer the payment until a later date pay the VAT due as normal
You will still need to submit your VAT returns to HMRC on time. Next Steps
If you choose to defer your VAT payment as a result of COVID-19, you must pay the VAT due on or before 31 March 2021. You do not need to tell HMRC that you are deferring your VAT payment. If you normally pay by Direct Debit you should contact your bank to cancel your Direct Debit as soon as you can, or you can cancel online if you’re registered for online banking. VAT payments due following the end of the deferral period will have to be paid as normal. Further information about how to repay the VAT you’ve deferred will be available soon.
3 month extension period to file accounts Summary
If your accounts will be late because your company is affected by COVID-19, and your filing deadline has not yet passed, you can apply for an automatic and immediate 3 month extension to file your accounts.
Next Steps
Apply online - https://www.gov.uk/guidance/apply-for-more-time-to-file-your-companys-accounts
Self-Assessment Payment Deferral Summary
If you’re due to pay a self-assessment payment on account by 31 July 2020 but the impact of the COVID-19 causes you difficulty in making payment by that date, then you may defer payment until January 2021.
Eligibility
You are eligible if you are due to pay your second self-assessment payment on account on 31 July. You do not need to be self-employed to be eligible for the deferment. The deferment is optional. If you are still able to pay your second payment on account on 31 July, you should do so.
Next Steps
This is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment until 31 January 2021. During the deferral period you can set up a budget payment plan to help you pay the deferred payment on account when it comes due.
HMRC’s Time to Pay Service Summary
If you’re in temporary financial distress because of COVID-19, contact HMRC as soon as possible if you have missed your payment. You must pay interest if you pay late. You may avoid penalties by contacting HMRC as soon as possible. You can defer any VAT payments due between 20 March 2020 and 30 June 2020. If you choose to defer a VAT payment, you will have until 31 March 2021 to pay it.
Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.
Tenant Protection Commercial Tenants Commercial tenants in England, Wales and Northern Ireland who cannot pay their rent because of COVID-19 will be protected from eviction. These measures will mean no business will automatically forfeit their lease and be forced out of their premises if they miss a payment up until 30 June. There is the option for the government to extend this period if needed. This is not a rental holiday. All commercial tenants will still be liable for the rent. Commercial tenants are protected from eviction if they are unable to pay rent.
Residential Tenants From 26 March 2020 landlords will have to give all renters 3 months’ notice if they intend to seek possession – this means the landlord can’t apply to start the court process until after this period. This extended buffer period will apply in law until 30 September 2020 and both the end point, and the three-month notice period can be extended if needed. This protection covers most tenants in the private and social rented sectors in England and Wales, and all grounds of evictions. This includes possession of tenancies in the Rent Act 1977, the Housing Act 1985, the
Housing Act 1996 and the Housing Act 1988. After three months if the tenant has not moved a landlord needs to apply to court in order to proceed.
From 27 March 2020 the court service will suspend all ongoing housing possession action. This suspension will initially last for 90 days, but this can be extended if needed. This measure will protect all private and social renters, as well as those with mortgages and those with licenses covered by the Protection from Eviction Act 1977. This will apply to both England and Wales. Tenants are still liable for their rent and should pay this as usual. If they face financial hardship and struggle to pay this, support is available. In the first instance they should speak to their landlord if they think they will have difficulty meeting a rental payment, and the government encourage tenants and landlords to work together to put in place a rent payment scheme.
Other Information Commercial Insurance Most commercial insurance policies are unlikely to cover pandemics or unspecified notifiable diseases, such as COVID-19. However, those businesses which have an insurance policy that covers government ordered closure and pandemics or government ordered closure and unspecified notifiable disease should be able to make a claim (subject to the terms and conditions of their policy). Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. Mortgage Holidays The government has encouraged mortgage lenders to offer three month mortgage holidays to their customers. This scheme is being operated by banks themselves, so get in touch with mortgage lenders directly to find out their terms.
Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.
Coronavirus Information Service on WhatsApp The new free to use service aims to provide official, trustworthy and timely information and advice about coronavirus (COVID-19), and will further reduce the burden on NHS services. To use the free GOV.UK Coronavirus Information Service on WhatsApp, simply add 07860 064422 in your phone contacts and then message the word ‘hi’ in a WhatsApp message to get started. A set of menu options is then presented which the user can choose from and then be sent relevant guidance from GOV.UK pages as well as links to GOV.UK for further information.
Sources ▪ ▪
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19support-for-businesses https://www.gov.uk/guidance/government-support-available-for-landlords-and-renters-reflecting-the-currentcoronavirus-covid-19-outbreak
This information has been produced by Fisher German LLP in good faith and we have tried to ensure accuracy based on information known at the time of writing. We cannot accept liability for errors, fact or opinion. This information should not be relied upon as your only source and advice may vary depending on individual circumstance.
Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.