UPDATED: Government support

On the 5 January 2021, one day after Boris Johnson announced a third national lockdown, Rishi Sunak announced £4.6 billion in new lockdown grants, with businesses in the retail, hospitality and leisure sectors set to receive a one-off grant worth up to £9,000 per property. Find out more here
On the 24 Sept 2020 the government announced job protection plans for the winter, with employers able to claim both the Job Support Scheme and the Job Retention Bonus. Find out more here
On the same date, chancellor Rishi Sunak announced four steps intended to help businesses with their cash flow. Find out more here
The government is extending the Coronavirus Business Interruption Loan Scheme to cover more small travel businesses. Find out more here
The government has confirmed a 5% VAT cut to boost domestic tourism and employers’ furlough grant. The full story can be read here
The Coronavirus Job Retention Scheme will close on 31 October 2020. From 1 July, employers can bring furloughed employees back part-time while still being able to claim CJRS grant for hours not worked. From 1 Aug, the level of grant will be reduced each month. Find out more here
Chancellor Rishi Sunak also announced the Self-Employment Income Support Scheme (SEISS) would be extended for another three months with a payment of up to £6,570 to paid to self-employed workers in August 2020. Find out more here
A new 100% government-backed loan scheme has been announced for small businesses, allowing firms to borrow between £2,000 and £50,000. Find out more about the Bounce Back Loan here
The government is looking into injecting £4 billion into the travel industry to help it survive the coronavirus crisis. Find out more here
For a banking expert’s insight into the Coronavirus Business Interruption Loan Scheme, click here
The Coronavirus Job Retention Scheme was announced to allow companies to furlough staff rather than making redundancies. Find out more about the scheme here. The government recently extended the eligibility date for furlough by another two weeks so that anyone who was employed by their company on or before 19 March 2020 can now be furloughed. The subsidy will be available until the end of June. Find out more here and claim for wages through the Coronavirus Job Retention Scheme here
Find out more about what furlough means for employees and employers here
For information about the impact of Covid-19 on staff annual leave, click here
Advice on what to do if you’ve lost your job due to coronavirus can be found here
Changes to UK insolvency rules have been announced to protect businesses from struggling financially due to the coronavirus. Find out more here
The government has unveiled measures to support the self employed. Find out more here
It has also promised to roll out a £22 billion high street support package. Find out more here
If you’re concerned about your business’ future, now’s the time to speak to your local MP. Find out more here
You can also show your support to TTG’s #SaveTravel campaign, which is asking the government for sector specific financial support. Click here to sign TTG’s letter to Rishi Sunak and Grant Shapps.

More information on the Coronavirus Business Interruption Loan Scheme

The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers for at least 3 months starting from 1 March 2020. It is designed to support employers whose operations have been severely affected by coronavirus (COVID-19).

Employers can claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage. Employers can use this scheme anytime during this period.

The scheme is open to all UK employers that had created and started a PAYE payroll scheme on 28 February 2020.

According to TTC ,the following requirements are likely to be needed to be considered for a loan:

your latest financial accounts
your management accounts showing the last 12 months’ trading
Forward looking financial forecasts, including profilt and loss accounts, balance sheets and cashflow, covering the next nine to 12 months and illustratiing the amount you need to borrow
a written summary of key assumptions that support your financial forecast, illustrating a broad overview of your business model, management team and training results, an estimate of the impact of coronavirus on your business including losses of income and a summary of mitigarting actions already taken together with their expected impact

It’s important to note that the decision to lend sits solely with the Accredited Lenders. You can check whether your bank is an Accredited Lender here

Details of government support for businesses paying employees sick pay

Legislation is being brought forward 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 two weeks’ SSP per eligible employee who has been off work because of Covid-19
• employers with fewer than 250 employees will be eligible, with the size of an employer 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
• the eligible period for the scheme will commence the day after the regulations on the extension of Statutory Sick Pay to those staying at home comes into force
• the government will work with employers over the coming months to set up a repayment mechanism for employers as soon as possible

Support for businesses that pay business rates

The government has ntroduced a business rates retail holiday for retail, hospitality and leisure businesses in England the 2020-21 tax year.

Businesses that received the retail discount in the 2019-20 tax year will be rebilled by their local authority as soon as possible.

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 should be directed to the relevant local authority. Guidance for local authorities on the business rates holiday will be published by 20 March.

Support for businesses that pay little to no business rates

The government will provide additional funding for local authorities to support small businesses that already pay little to 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.

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.

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 paying tax

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.

If you are concerned about being able to pay your tax due to Covid-19, call HMRC’s dedicated helpline on 0800 0159 559. For more information, visit gov.uk/business-support-helpline