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We understand there has been a lot of information to digest at the moment and that guidance is being updated constantly – below, we've pulled together a list of the key Government Support Measures and key risks, issues and opportunities with links to further details and information.
For our working thoughts on life post-Coronavirus lockdown, please click here.
The summaries below apply to England only, there is specific support being made available in Wales, Scotland and Northern Ireland.
The Government have now made available a useful support finder to quickly identify which support measures your business might be eligible for, which can be accessed here.
We have also summarised the support available below, split into four main areas of non-repayable grants & funding, tax, loans and property issues.
Available to any employer in the country – for employees who are not working and would otherwise be laid off, the Government grant covers 80% of that employee’s salary, up to a maximum amount of £2,500 per month, from 1 March. The scheme will close to new entrants from 30 June meaning the final date an employer can furlough an employee for the first time will be 10 June.
The scheme will operate until the end of October 2020, but employers will need to start ‘sharing’ the cost of the scheme from 1 August 2020, as follows – 1st August: government will pay 80% of wages up to a cap of £2,500, but employers will start to pay national insurance and pension contributions; 1st September: government will pay 70% of wages up to a cap of £2,190, with employers paying 10% of wages as well as contributions; and 1st October: government will pay 60% of wages up to a cap of £1,875, with employers paying 20% of wages plus contributions.
From 1 July 2020 the minimum furlough period has been reduced from 3 weeks to 1 week, and furloughed employees can return to work part-time (for any amount of time and on any shift pattern) – employers can claim JRS for the remaining normal hours not being worked.
Read more: Job Retention Scheme – What employers need to know
For employers with less than 250 employees (as at 28 February 2020) – the Government will reimburse up to 2 weeks’ statutory sick pay for each employee absent due to self-isolation or Coronavirus from 13 March 2020. Claims will be made via an online service run by HMRC in a similar way to the Job Retention Scheme – the website isn’t yet available.
Applicable to all occupied properties used as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, for assembly and leisure, as hotels, guests, boarding premises and self-catering and nursery businesses (Early Years Foundation Stage). The relief is available from 1 April 2020 for 12 months.
One-off grants of £25,000 to retail, hospitality and leisure businesses with premises with a rateable value of £15,000 – £51,000 as at 11 March 2020.
One-off grant of £10,000 per property for to retail, hospitality and leisure businesses where premises have a rateable value of less than £15,000 and any business eligible for small business rate relief, or rural rate relief, as at 11 March 2020.
Contact your Local Authority for more information on how to access these grants.
A fisheries support scheme to help cover fixed business costs for up to 3 months has also been made available for under-24 metre vessel owners with fishing licences who recorded sales of £10,000 or more in 2019. The Marine Management Organisation are contacting eligible owners directly.
Direct cash grant of 80% of profits up to a maximum amount of £2,500 per month for 3 months – available for the self-employed whose annual trading profits are less than £50,000. Claims will be made via an online service run by HMRC which is now available here
Payments should be made within 6 working days. The Government have also prepared a helpful video which runs through the claim process step-by-step, available here. They contactied eligible people during May and are making payments in early June.
An extension to the scheme was announced on 29 May – people can apply for a second and final grant in August for 70% of a further 3 months of average monthly trading profits, paid in a single instalment and capped at £6,570 in total.
The minimum income floor for those impacted by Coronavirus has been suspended, so self-employed can access universal credit at a rate equivalent to statutory sick pay for employees.
Available to any employer in the country – for employees who are not working and would otherwise be laid off, the Government grant covers 80% of that employee’s salary, up to a maximum amount of £2,500 per month, from 1 March. The scheme will close to new entrants from 30 June meaning the final date an employer can furlough an employee for the first time will be 10 June.
The scheme will operate until the end of October 2020, but employers will need to start ‘sharing’ the cost of the scheme from 1 August 2020, as follows – 1st August: government will pay 80% of wages up to a cap of £2,500, but employers will start to pay national insurance and pension contributions; 1st September: government will pay 70% of wages up to a cap of £2,190, with employers paying 10% of wages as well as contributions; and 1st October: government will pay 60% of wages up to a cap of £1,875, with employers paying 20% of wages plus contributions.
From 1 July 2020 the minimum furlough period has been reduced from 3 weeks to 1 week, and furloughed employees can return to work part-time (for any amount of time and on any shift pattern) – employers can claim JRS for the remaining normal hours not being worked.
Read more: Job Retention Scheme – What employers need to know
For employers with less than 250 employees (as at 28 February 2020) – the Government will reimburse up to 2 weeks’ statutory sick pay for each employee absent due to self-isolation or Coronavirus from 13 March 2020. Claims will be made via an online service run by HMRC in a similar way to the Job Retention Scheme – the website isn’t yet available.
Applicable to all occupied properties used as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, for assembly and leisure, as hotels, guests, boarding premises and self-catering and nursery businesses (Early Years Foundation Stage). The relief is available from 1 April 2020 for 12 months.
One-off grants of £25,000 to retail, hospitality and leisure businesses with premises with a rateable value of £15,000 – £51,000 as at 11 March 2020.
One-off grant of £10,000 per property for to retail, hospitality and leisure businesses where premises have a rateable value of less than £15,000 and any business eligible for small business rate relief, or rural rate relief, as at 11 March 2020.
Contact your Local Authority for more information on how to access these grants.
A fisheries support scheme to help cover fixed business costs for up to 3 months has also been made available for under-24 metre vessel owners with fishing licences who recorded sales of £10,000 or more in 2019. The Marine Management Organisation are contacting eligible owners directly.
Direct cash grant of 80% of profits up to a maximum amount of £2,500 per month for 3 months – available for the self-employed whose annual trading profits are less than £50,000. Claims will be made via an online service run by HMRC which is now available here
Payments should be made within 6 working days. The Government have also prepared a helpful video which runs through the claim process step-by-step, available here. They contactied eligible people during May and are making payments in early June.
An extension to the scheme was announced on 29 May – people can apply for a second and final grant in August for 70% of a further 3 months of average monthly trading profits, paid in a single instalment and capped at £6,570 in total.
The minimum income floor for those impacted by Coronavirus has been suspended, so self-employed can access universal credit at a rate equivalent to statutory sick pay for employees.
UK VAT registered businesses with VAT payments due between 20 March 2020 and 30 June 2020 can defer the payment to a later date on or before 31 March 2021. You don’t need to notify HMRC but make sure direct debits are cancelled and your VAT returns are still filed with HMRC on time.
Businesses in financial distress can speak to HMRC about negotiating extended and period payment terms for any existing HMRC debt. Their dedicated helpline is open 8am – 4pm, Monday-Friday – 0800 0159 559).
Self-assessment income tax payments are deferred until January 2021.
Companies can apply for an automatic 3-month extension to file their accounts with Companies House if they are struggling to meet the normal filing deadline due to the Coronavirus.
UK VAT registered businesses with VAT payments due between 20 March 2020 and 30 June 2020 can defer the payment to a later date on or before 31 March 2021. You don’t need to notify HMRC but make sure direct debits are cancelled and your VAT returns are still filed with HMRC on time.
Businesses in financial distress can speak to HMRC about negotiating extended and period payment terms for any existing HMRC debt. Their dedicated helpline is open 8am – 4pm, Monday-Friday – 0800 0159 559).
Self-assessment income tax payments are deferred until January 2021.
Companies can apply for an automatic 3-month extension to file their accounts with Companies House if they are struggling to meet the normal filing deadline due to the Coronavirus.
Government-backed (100%) loans of between £2,000 and £50,000 for SMEs.
Note that the Government have stated that any existing CBILS lending (up to £50,000) should be transferable to a Bounce Back Loan product if the other eligibility requirements are met.
Government-backed (80%) loans of up to £5m for businesses with a turnover of up to £45m.
Government-backed (80%) loans of up to:
Large businesses who make a material contribution to the UK’s economic activity and with a minimum short-term credit rating of A-3 / P-3 / F-3 from at least one of Standard & Poor’s, Moody’s and Fitch as at 1 March 2020 can apply to sell short term debt to the Bank of England.
Convertible Government loan from £125k to £5m for businesses who can obtain at least equal match funding from other private investors and who have previously raised at least £250,000 from private investors in the last 5 years.
Further details can be found here – applications can be made from Wednesday 20th May, on a first-come first-served basis
Government-backed (100%) loans of between £2,000 and £50,000 for SMEs.
Note that the Government have stated that any existing CBILS lending (up to £50,000) should be transferable to a Bounce Back Loan product if the other eligibility requirements are met.
Government-backed (80%) loans of up to £5m for businesses with a turnover of up to £45m.
Government-backed (80%) loans of up to:
Large businesses who make a material contribution to the UK’s economic activity and with a minimum short-term credit rating of A-3 / P-3 / F-3 from at least one of Standard & Poor’s, Moody’s and Fitch as at 1 March 2020 can apply to sell short term debt to the Bank of England.
Convertible Government loan from £125k to £5m for businesses who can obtain at least equal match funding from other private investors and who have previously raised at least £250,000 from private investors in the last 5 years.
Further details can be found here – applications can be made from Wednesday 20th May, on a first-come first-served basis
Landlords will not be entitled to exercise rights of forfeiture or re-entry until after 30 June 2020 where they would otherwise be entitled to do so due to non-payment of rent (note there is a right for the Government to extend this period).
Homeowners can access a 3 month mortgage repayment holiday (note that interest is likely to continue accruing). Contact your Bank directly for more information on this.
Eligible renters can access the Local Housing Allowance which has been increased to cover 30% of market rents.
Landlords will not be entitled to exercise rights of forfeiture or re-entry until after 30 June 2020 where they would otherwise be entitled to do so due to non-payment of rent (note there is a right for the Government to extend this period).
Homeowners can access a 3 month mortgage repayment holiday (note that interest is likely to continue accruing). Contact your Bank directly for more information on this.
Eligible renters can access the Local Housing Allowance which has been increased to cover 30% of market rents.
In addition to being aware of the above support measures that are now in place, there are many key risks, issues and opportunities that you need to be aware of. In this section we provide a brief outline of each one and link to dedicated content we have produced, covering each area in detail.
The COVID-19 outbreak has created issues for employers on multiple issues to do with their employees. We have collated all our employment-related content at the link below with details on issues such as furlough, CJRS, employee motivation and more.
Although the Government has announced proposals to relax wrongful trading rules to reflect the realities of trading in current times (see below) all other director duties to a company's various stakeholders remain unchanged.
The Government has announced a proposed suspension of the wrongful trading provisions that provide a director can be made personally liable for the losses of a company where it continues trading with no realistic prospect of avoiding insolvency.
Most businesses have been forced to adapt at pace to their workforce working from home, which amplifies existing information security risks as well as new and increasingly sophisticated cybersecurity risks – these aren't insurmountable by any means but need to be handled carefully
Never before has health and safety been so critical to business operations and success – guidance is being updated almost daily, and meeting the new 'Covid-19 Secure' standard is vital.
Public emotions are heightened like never before and how your business is perceived to be responding to the risks presented by the Coronavirus is almost as important as how you are actually responding.
Not all parts of the world feel like they're in the 21st Century – how do you manage the risk of missing critical deadlines for notices and important documents?
The Government has put in place a number of schemes and incentives to support businesses financially, and there are other practical steps that can be taken to give your business the best chance of survival until trading returns to some sort of normality.
The Coronavirus has presented the greatest challenge to supply chains in a lifetime, proactively managing the legal framework around those supply chains presents opportunities as well as the best way to mitigate supply chain risks.
With wide-ranging issues including the impact on landlord and tenants to legacy implications and construction site risks, we have collated all our employment-related content on our main hub page, all of which can be found using the link below.
