The UK Government and coronavirus
As you know the UK is in the early stages of the coronavirus outbreak and many small and medium-sized businesses are already feeling its effects.
We have recently been in discussion with some of our clients looking for guidance on this issue.
We encourage all business owners to read HMRC’s guidance for employers and business owners, which can found on the gov.uk website here.
This gives helpful advice on minimising the spread of infection and what to do if one of your staff presents symptoms.
Financial Opportunities and Support Available
Tax (HMRC)
Some ActionCOACH clients have already contacted HMRC, who have been very understanding and have offered to defer all tax payments (including VAT) for 2 months. In effect this is free credit to help with potential cash flow issues. Many of our clients are following suit and we’d encourage you to do the same.
The simple principle here is – once you’ve paid it, you won’t get it back! HMRC are likely to have to give further concessions if the effect of coronavirus is as severe as expected.
More information is set to be announced in the coming weeks and further details on how to apply. In the meantime, businesses with immediate concerns are advised to contact HMRC’s Business Support Helpline
A helpline has also been set up to help businesses and self-employed individuals with outstanding tax liabilities receive support with their tax affairs. Through this, businesses may be able to agree a bespoke ‘time to pay’ arrangement. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s helpline on 0800 0159 559. You may want to talk to your accountant before making that call.
Banks and Loans
Banks are also said to be increasing credit lines and overdrafts and in some cases they may even offer repayment holidays on loans. Many of our clients are contacting ALL of their credit suppliers to ask about relaxing payments.
Suppliers
We are also seeing some improved terms in cases of businesses renegotiating supplier payments and even improved pricing.
Government Support
In addition to this, to assist business owners the government has announced that it will provide support to ensure the impact of COVID-19 is minimised.
Loan
A Coronavirus Business Interruption Loan Scheme has been introduced. Businesses with a turnover of less than £41 million can apply for a loan of up to £1.2 million, with the government covering up to 80% of any losses with no fees. The Coronavirus Business Interruption Loan Scheme (CBILS) temporarily replaces the Enterprise Finance Guarantee Scheme and will be provided by the British Business Bank through accredited lenders. To apply visit this website and follow the information provided.
Please note that there is no certainty that this funding will be available and in the case of previous loan guarantee schemes the turn around time for applications was significant.
Covering Sick Pay
For businesses with fewer than 250 employees, the cost of providing 14 days of statutory sick pay per employee will be refunded by the government in full. This will provide 2 million businesses with up to £2 billion to cover the costs of large-scale sick leave. Coronavirus statutory sick pay is expected to be in the form of a refund. The Treasury says that it is “working with employers over the coming months to set up a repayment mechanism as soon as possible for employers reclaiming statutory sick pay”.
Coronavirus help for self-employed
For the self-employed not eligible for SSP, contributory Employment and Support Allowance will be payable, at a rate of £73.10 a week if you are over 25, for eligible people affected by coronavirus or self-isolating in line with advice from day one of sickness, rather than day eight.
For more information about coronavirus government statutory sick pay, go to the Department for Work & Pensions website here.
For further advice regarding sick pay and how best to support your employee’s should they self-isolate, the ACAS website has issued the following information – https://www.acas.org.uk/coronavirus
Do you get Small Business Rates Relief?
There is also a £3,000 cash grant being made available to 700,000 of our smallest businesses, which will be delivered by Local Authorities, and worth a total of £2 billion. Your local council will have further information on this as the scheme is rolled out.
The government is also temporarily increasing the business rates retail discount in England to 100% for 2020-21 for properties below £51,000 rateable value. Nearly half of all business properties will not pay a penny of business rates. This will also be implemented through your local council. If you already receive the current business rates retail discount, you will receive notification of the changes in due course. If you currently don’t receive any relief, you can check with your Local Authority for your eligibility. You can find your local authority here
Please note that if you do not currently pay business rates because of the terms of your lease, it is possible your landlord may be getting the benefit and therefore you should approach them as you would expect the benefit to be passed on (the cost is effectively included in your lease costs).
Scottish Resources for businesses
COVID-19 Business Support helpline
A helpline providing businesses across Scotland with advice and guidance on COVID-19 has been announced. The helpline, which is now live, will be open Monday to Friday, between 8.30am to 5.30pm. The business helpline number is 0300 303 0660 – callers should select option one to speak to the COVID-19 team.
Based at Scottish Enterprise’s existing call centre in Clydebank, advisers across Scotland will answer questions from businesses related to COVID-19. The helpline will also help the Scottish Government identify the current challenges facing businesses.
Scottish Government | up to date information on the situation in Scotland is being published by Scottish Government.
£320 million package of support for businesses
New measures to limit the impact of COVID-19 on the business community in Scotland have been announced by Finance Secretary Kate Forbes. Steps will be put in place to support businesses during the 2020-21 financial year. New measures to limit the impact of COVID-19 on the business community in Scotland have been announced by Finance Secretary Kate Forbes.
The following steps will be put in place to support businesses during the 2020-21 financial year:
• a 75% rates relief for retail, hospitality and leisure sectors with a rateable value of less than £69,000 from 1 April 2020
• an £80 million fund to provide grants of at least £3,000 to small businesses in sectors facing the worst economic impact of COVID-19
• 1.6% rates relief for all properties across Scotland, effectively reversing the planned below inflation uplift in the poundage from 1 April 2020
• a fixed rates relief of up to £5,000 for all pubs with a rateable value of less than £100,000 from 1 April 2020
For more information, to find out if your business qualifies for this help and how to apply, call the helpline number 0300 303 0660
The Finance Secretary will also write to all local authorities urging them to respond positively to requests from rate payers for payment deferrals for a fixed period, so remember if you don’t ask you don’t get – ask for a deferral.
Find business support in Scotland
Information on how to prepare and manage your business for the impact of the coronavirus – including business rates and funding, HMRC, employee advice and business continuity.
It has useful links to organisations such as Scottish Enterprise with a checklist explaining the steps you should be taking to prepare for potential disruption and Business Gateway who has information on business insurance and business continuity planning.
Health Protection Scotland has information on guidance, data and surveillance, publications and incident and outbreaks.
It has also added new guidance on coronavirus that includes workplace advice such as hotels and hospitality settings where a guest may need to self-isolate in a hotel or holiday accommodation. Read the guidance.
We at ActionCOACH are ready to coach and consult with you through these difficult times, please do drop a message to myself brendahector@actioncoach.com if you need any additional resources or support.
