Financial Support for Businesses – COVID-19 / Coronavirus

With everything that is going on at the moment and the various struggles that businesses are going through, we thought it may be helpful for us to group together all of the available support options that the government have put forward to help businesses through the coronavirus pandemic.

Help with Paying Your Staff Through Covid-19

If you cannot maintain your current workforce because your operations have been severely affected by coronavirus (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 and pension contributions (up to the level of theminimum automatic enrolment employer pension contribution) on that subsidised furlough pay.

This is a temporary scheme in place for 3 months starting from 1 March 2020, but it may be extended if necessary and employers can use this scheme anytime during this period. 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.

In order to claim, you must have:

- Created and started a PAYE payroll scheme on or before 19th March 2020

- Enrolled for PAYE online

- A UK bank account

For more information or to make a claim, please visit https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Claim Back Statutory Sick Pay

The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the currentrate of SSP that they pay to current or former employees for periods of sickness starting on or after 13 March 2020.

If you’re an employer who pays more than the current rate of SSP you can only claim the current rate amount.

The repayment will cover up to 2 weeks starting from the first day of sickness, if an employee is unable to work because they either:

- Have coronavirus

- Cannot work because they are self-isolating at home

Employees do not have to give you a doctor’s fit note for you to make a claim.

For more information on the types of employment contracts that are covered, or to make a claim please visit https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19

Deferring Tax Payments

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

It does not cover payments for VAT MOSS or import VAT.

HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement.

For more information on the process please visit https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

Business Support Grant Funds

There are currently two support grants available to assist businesses through the coronavirus pandemic: The Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grant Fund (RHLGF).

To check the eligibility criteria and apply, please visit https://www.gov.uk/government/publications/coronavirus-covid-19-business-support-grant-funding-guidance-for-businesses

Support for Small & Medium-Sized Businesses

The Coronavirus Business Interruption Loan Scheme (CBILS) supports small and medium-sized businesses, with an annual turnover of up to £45 million, to access loans, overdrafts, invoice finance and asset finance of up to £5 million 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. This means 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 small and medium-sized businesses.

To find out more about the scheme, to check if you’re eligible and to apply, please visit https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme

Support for Large Businesses

The Coronavirus Large Business Interruption Loan Scheme (CLBILS)will support large businesses, with an annual turnover of over £45 million.

All viable businesses with turnover of more than £45 million per year will be able to apply for up to £25 million of finance. Firms with a turnover of more than £250 million will be able to apply for up to £50 million of finance.

The Scheme will be available through a series of accredited lenders, which will be listed on the British Business Bank website. The government will provide lenders with an 80% guarantee on individual loans. This will give banks the confidence to lend to many more businesses which are impacted by coronavirus. Facilities backed by a guarantee under CLBILS willbe offered at commercial rates of interest.

This scheme allows lenders to support businesses that were viable before the coronavirus outbreak but now face significant cash flow difficulties that would otherwise make their business unviable in the short term.

To find out more about the scheme, to check if you’re eligible and to apply, please visit https://www.gov.uk/guidance/apply-for-the-coronavirus-large-business-interruption-loan-scheme

Corporate Financing Facility

This scheme helps large businesses affected by coronavirus (COVID-19) through the purchase of their short-term debt.

Under the COVID-19 CorporateFinancing Facility (CCFF), the Bank of England will buy short-term debt from large companies.

This scheme will support your company if it’s 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.

The scheme is delivered through commercial lenders, backed by the Bank of England. 

It will operate for at least 12 months, and for as long as steps are needed to relieve cash flow pressures on firms that make a material contribution to the UK economy.

To find out more about the scheme, to check if you’re eligible and to apply, please visit https://www.gov.uk/guidance/apply-for-the-covid-19-corporate-financing-facility