BOSS has written a current summary of the main and relevant government coronavirus support schemes – including those specific to England, Scotland, Wales and Northern Ireland
UK
Coronavirus Job Retention Scheme
If you are an employer with a PAYE scheme, you should be able to access support to continue paying part of your employees’ salary instead of laying them off.
This applies to employees who have been asked to stop working because of coronavirus, but are being kept on the payroll. They are known as ‘furloughed workers’. HMRC will pay 80% of their wages, up to £2,500 per month.
Click here for further information.
Coronavirus Bounce Back Loan
The Bounce Back Loan scheme, scheduled to launch on Monday 4 May, will help small and medium-sized businesses to borrow between £2,000 and £50,000. The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.
Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.
The scheme will be delivered through a network of accredited lenders.
You can apply for a loan if your business:
•is based in the UK
•has been negatively affected by coronavirus
•was not an ‘undertaking in difficulty’ on 31 December 2019
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS). However, if you’ve already received a loan of up to £50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020.
This is intended to be a simple application with money becoming available within 24 hrs. It is available to self-employed people.
Click here for further information.
Coronavirus Business Interruption Loan Scheme
If you are a small to medium-sized business (SME) you may be able to apply for a temporary loan, overdraft, invoice finance and asset finance of up to £5 million, for up to 6 years.
You may also be eligible for Business Interruption Payment to cover the first 12 months of interest payments and any lender fees. The government will give lenders 80% guarantee on each loan (subject to pre-lender cap on claims).
You may be eligible for this scheme if you meet all of the following criteria:
•your business is UK-based, with a turnover of no more than £45 million per year you have a borrowing proposal which would be considered viable by the lender, if not for the current pandemic
•you can self-certify that coronavirus (COVID-19) has adversely impacted your business.
Click here for further information.
Coronavirus Large Business Interruption Loan Scheme
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) provides a government guarantee of 80% on each loan, to give banks further confidence in financing businesses impacted by coronavirus.
•It allows banks to make loans of:
•up to £25 million to businesses with an annual turnover of £45 million to £250 million
•up to £50 million to businesses with an annual turnover of over £250 million.
You can apply for this loan if your business:
•is UK based
•has an annual turnover of at least £45 million
•meets the other British Business Bank eligibility requirements.
The scheme is delivered through commercial lenders, supported by the Government-backed British Business Bank. Facilities backed by a guarantee under CLBILS are offered at commercial rates of interest.
Click here for further information.
COVID-19 Corporate Financing Facility
Under the COVID-19 Corporate Financing 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.
Companies – and their finance subsidiaries – that make a material contribution to the UK economy are able to participate.
Click here for further information.
Coronavirus Future Fund
The Future Fund will provide government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.
These convertible loans may be a suitable option for businesses that rely on equity investment and are unable to access the Coronavirus Business Interruption Loan Scheme.
The scheme will be delivered in partnership with the British Business Bank.
The headline terms setting out the main features expected to apply to the loans are attached at the bottom of this page.
You’re eligible if your business:
•is based in the UK
•can attract the equivalent match funding from third-party private investors and institutions
•has previously raised at least £250,000 in equity investment from third-party investors in the last 5 years.
This scheme is not available yet. It will launch in May 2020.
Click here for further information.
Statutory Sick Pay rebate
Employers can reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. This scheme will cover up to 2 weeks of SSP for every eligible employee.
Employers must maintain records of staff absences and payments for SSP. Employees will not have to provide a GP fit note.
You are eligible if your business meets both of the following requirements. Your business is:
•UK based
•small or medium-sized and employs fewer than 250 employees as of 28 Feb 2020.
Click here for further information.
Deferring VAT
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 payment until 31 March 2021.
Click here for further information.
Support for businesses paying tax: Time To Pay Service
If you cannot pay your tax bill on time because of coronavirus, you may be able to delay it without penalty using HMRC’s Time to Pay service.
You may be eligible if you are a UK business that:
•pays tax to the UK government
•has outstanding tax liabilities.
Click here for further information.
Self-Employment Income Support Scheme
Use this scheme if you’re self-employed or a member of a partnership in the UK and have lost income due to coronavirus (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 a month. It will be available for 3 months, but may be extended. The grant will be subject to Income Tax and National Insurance contributions.
If you receive the grant you can continue to work or take on other employment including voluntary work.
The online service you’ll use to claim is not available yet. HMRC will aim to contact you by mid May 2020, and will make payments by early June 2020.
Click here for further information.
To read those specific to England, Scotland, Wales and Northern Ireland click here.
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