COVID-19 Hub

Boris Johnson sets out timeline for retail to reopen in June

The UK Government's Recovery Strategy

Guidance for employers

Boris's speech 10th May

This sets out the package of measures announced by the Chancellor including details regarding;

• Statutory Sick Pay – Support for businesses who are paying sick pay to employees

Coronavirus Statutory Sick Pay Rebate Scheme opens 26 May

https://www.gov.uk/coronavirus/business-support

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19

Changes announced on 29 May

HMRC Helpline - New helpline number is 0800 024 1222

VAT

From 20 March 2020 until 30 June 2020 all VAT registered traders can defer VAT payments. This is an automatic offer from HMRC and no application is required.

HMRC has now confirmed that it will not automatically cancel collection of VAT payments by direct debit. Businesses that have a direct debit mandate in place to pay their VAT and wish to defer payment will need to contact their bank to cancel that mandate.

VAT refunds and reclaims will be paid by the government as normal.

Businesses should continue to file their VAT returns by the due date.

Time to Pay

PPE free from VAT for three months

CBILS provides cashflow support for up to 12 months (or possibly more) to cover disruption caused by Coronavirus.

The scheme provides for loans up to £5m for businesses with revenue up to £45m. No interest is payable for the first 12 months as this is settled by the government.

FAQs for SMEs.

The borrower remains liable for 100% of the debt.

New lenders announced

A government-backed loan scheme for large businesses affected by coronavirus has been expanded to cover all viable firms.

The Chancellor announced support for those who are self employed or in a partnership and have lost income as a result of coronavirus.

The Bank of England can finance working capital by purchasing commercial paper from larger business ‘making a material contribution to the UK economy’.

Businesses do not need to have previously issued commercial paper in order to participate in the scheme. The scheme will operate for at least 12 months and provides a minimum facility of £1m.

CCFF

Current insolvency rules stipulate that directors of limited liability companies can become personally liable for business debts if they continue to trade when uncertain about whether their businesses can continue to meet their debts.

The government has announced a temporarily suspension of the wrongful trading provisions from 1 March 2020 for three months to give company directors greater confidence to use their best endeavours to continue to trade during this pandemic emergency, without the threat of personal liability should the company ultimately fall into insolvency.

Existing laws for fraudulent trading and the threat of director disqualification will continue to act as an effective deterrent against director misconduct.

Under the plans, the UK’s Insolvency Framework will add new restructuring tools including:

• a moratorium for companies giving them breathing space for from creditors enforcing their debts for a period of time whilst they seek a rescue or restructure;
• protection of their supplies to enable them to continue trading during the moratorium; and;
• a new restructuring plan, binding creditors to that plan

The proposals will include key safeguards for creditors and suppliers to ensure they are paid while a solution is sought.

Further detail is expected in due course.

Companies can apply for a three month extension.

Most businesses are unlikely to be covered, as standard business interruption insurance policies will exclude pandemics but do check the terms and conditions of your policy.

No renter in either social or private accommodation will be forced out of their home during this difficult time.

Commercial tenants unable to pay rent because of coronavirus will be protected from eviction

New measures to protect UK high street from aggressive rent collection and closure

Mortgage Holiday

This is available to all sectors and buy-to-let landlords but is merely a deferral of the repayments and consequently interest still accumulates on the outstanding loan.

Rent Holiday

Tenants can apply for a rent holiday although it is noted that this is just a deferral and not a waiver of the amounts due.

£1.25 billion support package for UK businesses driving innovation and development

How to apply to the Future Fund

Supporting Innovation - Graeme Blair

Advice and guidance on how to protect yourself and your business from fraud and cyber crime.

This scheme will help small and medium-sized businesses affected by coronavirus (COVID-19) to apply for loans of up to £50,000.

This is an additional 5% uplift to the £12.33 billion funding previously announced for the Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF), so up to £617 million. 

This additional fund is aimed at small businesses with ongoing fixed property-related costs.  Local authorities are being asked to prioritise businesses in shared spaces, regular market traders, small charity properties that would meet the criteria for Small Business Rates Relief, and bed and breakfasts that pay council tax rather than business rates.

There will be three levels of grant payments. The maximum will be £25,000. There will also be grants of £10,000. local authorities will have discretion to make payments of any amount under £10,000. It will be for councils to adapt this approach to local circumstances.

A revaluation of business rates will no longer take place in 2021 to help reduce uncertainty for firms affected by the impacts of coronavirus.