It’s been another very difficult week, lots going
on personally, individually, socially and collectively. I just
wanted to get in touch with you all to update you on some of the measures
brought into place by Government that will in the first case help you to manage
your finances during this difficult time. I’ve also got more useful handy
resources to help you think through service implications and how to stay ahead
of the curve if possible. This is a lengthy piece but it does cover
everything that is available currently – and I’ll send round extra
bulletins as and when more information becomes available.
FINANCE
At the moment there is financial help to businesses
and the third sector as well as individuals. My thinking is a lot of
these will still be early stages and we may get further updates, daily and
possibly weekly – very fluid.
For businesses https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Grants – these are sadly only
available to retail, hospitality and leisure businesses. See above link
for guidance.
However there does appear to be support for
businesses that pay little or no business rates. Small Business Grant
Scheme funding through Local Authorities and can be up to £10,000 to meet
ongoing costs. You need to occupy property and contact your local
authority about this. (So, I’d wait a while for them to sort themselves out!).
Apparently, they will contact you if you are eligible.
Loans
Corona Virus Business Interruption Loan Scheme
You apply through an approved bank lender: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/accredited-lenders/
More information is here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/for-businesses-and-advisors/
Eligibility checklist here: Your
business must generate more than 50% of its turnover from trading activity: https://www.british-business-bank.co.uk/wp-content/uploads/2020/03/CBILS-SME-Eligibility-Check-FINAL.pdf
This loan facility is available for 12 months
interest free and is useful for cash flow. There is still little
information about the specific requirements from each lender and the
information you need to submit – likely cash projections to show the loan is repayable.
VAT Have been deferred for
the end March Quarter and will not be repayable till the end of
the 2020/21 financial year. This is automatic and doesn’t require any
contact with HMRC.
Business Rates
Have been
deferred and will not be payable for 12 months
Statutory Sick Pay relief package
for SME’s the govt will cover up to 2 weeks SSP per eligible employee. Keep
notes of dates of sick leave, they are setting up an appropriate system for
this. You can still choose to pay staff at full sick pay if you
wish. But you will get SSP levels covered. This is only relevant to
businesses with under 250 employees.
HMRC Time to pay scheme –
for any outstanding tax payments from business to HMRC (e.g. VAT/PAYE) an
interest free payment plan. 0800 0159 559
For Charities and Businesses
Coronavirus Jobs Retention Scheme
This support scheme will provide a grant to employers
(including third sector organisations) to keep workers rather
than make them redundant. Salaries will be paid at 80% of their current level
up to a maximum of £2,500. These grants will be available by the end of
April. You can apply for grants and loans in the meantime to help manage
cash flow. However, you must make staff ‘furloughed’ so they can no
longer work for you during the furlough period and this will affect their
contracts.
Insurances: Double check
if your insurance covers you for pandemics…
For employees: The
following link is very useful to send round your staff team and explains what
is available.
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-guidance-for-employees
Also note
that employees can ask for a 3month mortgage holiday.
Tenants –
the Government has introduced legislation that means landlords cannot evict
tenants for up to 3 months. However, you can ask your landlord to also give
you a holiday (if they can afford via their mortgage lender if they are paying
a mortgage on your property).
For self-employed people – the government is not bringing out enough measures for people who are self-employed and many think the Corona Virus Jobs Retention Scheme should apply to them too. You can email them TODAY before 5pm to tell them this at tsc@parliament.uk whilst they consider their policy around this.
Further service support around mental health, anxiety and supporting families (especially those with high needs family members)
There are useful resources here:
Empower Educate Enlighten
Stay Safe
