The Chancellor has set out a package of temporary, timely and
targeted measures to support public services, people and businesses
through this period of disruption caused by COVID-19.
This includes a package of measures to support businesses including:
- a Statutory Sick Pay relief package for SMEs
- a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
- small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- grant funding of £25,000 for retail, hospitality and leisure
businesses with property with a rateable value between £15,000 and
£51,000
- the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
- a new lending facility from the Bank of England to help support
liquidity among larger firms, helping them bridge coronavirus disruption
to their cash flows through loans
- the HMRC Time To Pay Scheme
Support for businesses who are paying sick pay to employees
We will bring forward legislation to allow 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 with fewer than 250 employees will be eligible - the
size of an employer will be determined by the number of people they
employed as of 28 February 2020
- 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
- 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 coronavirus 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
Eligibility
You are eligible for the scheme if:
- Your business is UK based.
- Your business is a small or medium-sized and employs fewer than 250 employees as of 28 February 2020.
How to access the scheme
A rebate scheme is being developed. Further details will be provided in due course once the legalisation has passed.
Support for businesses that pay business rates
Business rates holiday for retail, hospitality and leisure businesses
We will introduce a business rates holiday for retail, hospitality
and leisure businesses in England for the 2020 to 2021 tax year.
Businesses that received the retail discount in the 2019 to 2020 tax
year will be rebilled by their local authority as soon as possible.
Eligibility
You are eligible for the business rates holiday if:
- Your business is based in England.
- Your business is in the retail, hospitality and/or leisure sector.
Properties that will benefit from the relief will be occupied hereditaments 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 & boarding premises and self-catering accommodation
How to access the scheme
There is no action for you. This will apply to your next council tax
bill in April 2020. However, local authorities may have to reissue your
bill automatically to exclude the business rate charge. They will do
this as soon as possible.
You can estimate the business rate charge you will no longer have to pay this year using the
business rates calculator.
Further guidance for local authorities is available in the
expanded retail discount guidance.
Cash grants for retail, hospitality and leisure businesses
A £25,000 grant will be provided to retail, hospitality and leisure
businesses operating from smaller premises, with a rateable value
between £15,000 and £51,000.
Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.
Support for businesses that pay little or no business rates
The government will provide additional funding for local authorities
to support small businesses that already pay little or no business rates
because of small business rate relief (
SBBR).
This will provide a one-off grant of £10,000 to businesses currently
eligible for SBRR or rural rate relief, to help meet their ongoing
business costs.
Eligibility
If your business is eligible for SBRR or rural rate relief, you will
be contacted by your local authority. You do not need to apply.
How to access the scheme
Funding for the scheme will be provided to local authorities by government in early April.
Guidance for local authorities on the scheme will be provided shortly.
Support for businesses through the Coronavirus Business Interruption Loan Scheme
A new temporary Coronavirus Business Interruption Loan Scheme,
delivered by the British Business Bank, will launch early next week to
support primarily small and medium-sized businesses to access bank
lending and overdrafts.
The government will provide lenders with a guarantee of 80% on each
loan (subject to a per-lender cap on claims) to give lenders further
confidence in continuing to provide finance to
SMEs.
The government will not charge businesses or banks for this guarantee,
and the Scheme will support loans of up to £5 million in value.
Businesses can access the first 6 months of that finance interest
free, as government will cover the first 6 months of interest payments.
Eligibility
You are eligible for the scheme if:
- Your business is UK based, with turnover of no more than £41 million per annum.
- Your business meets the other British Business Bank eligibility criteria.
How to access the scheme
The full rules of the Scheme and the list of accredited lenders is available on the
British Business Bank website. All the major banks will offer the Scheme once it has launched. There are 40 accredited providers in all.
You should talk to your bank or finance provider (not the British
Business Bank) as soon as possible and discuss your business plan with
them. This will help your finance provider to act quickly once the
Scheme has launched. If you have an existing loan with monthly
repayments you may want to ask for a repayment holiday to help with cash
flow.
The scheme will be available from early next week commencing 23 March.
Support for larger firms through the COVID-19 Corporate Financing Facility
Under the new Covid-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies.
This will support your company if it has 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.
Eligibility
All UK businesses are eligible.
How to access the scheme
The scheme will be available early in week beginning 23 March 2020.
We will provide information on how to access the scheme here shortly.
More information is available from the
Bank of England.
Support for businesses paying tax: Time to Pay service
All businesses and self-employed people in financial distress, and
with outstanding tax liabilities, may be eligible to receive support
with their tax affairs through HMRC’s Time To Pay service.
These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
Eligibility
You are eligible if your business:
- pays tax to the UK government
- has outstanding tax liabilities
How to access the scheme
If you have missed a tax payment or you might miss your next payment
due to COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559.
If you’re worried about a future payment, please call us nearer the time.
Insurance
Businesses that have cover for both pandemics and government-ordered
closure should be covered, as the government and insurance industry
confirmed on 17 March 2020 that advice to avoid pubs, theatres etc is
sufficient to make a claim as long as all other terms and conditions are
met.
Insurance policies differ significantly, so businesses are encouraged
to check the terms and conditions of their specific policy and contact
their providers. Most businesses are unlikely to be covered, as standard
business interruption insurance policies are dependent on damage to
property and will exclude pandemics.