Statutory Sick Pay Rebates
If an employee has been off sick due to Covid-19 the businesses can claim back up to two weeks of Statutory Sick Pay (SSP) without having to provide any note from a GP. Employers must maintain records for staff absences and payments, and the scheme only applies to UK businesses with fewer than 250 employees as of 28 February 2020.
More information: https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19
Time to Pay Scheme (deferring VAT payments until 2021 or 2022)
For Businesses – at the start of the pandemic, businesses could apply to defer VAT payments until 31.03.21, although applications for that scheme ended on 30 June 2020. If your business has deferred any VAT payments which would have been made between 20 March and 30 June 2020, the government has now given an option to spread VAT payments over the financial year of 2021-22 in eleven equal instalments. Businesses will need to opt in and HMRC will give more details on that process shortly.
For Self-assessment – for those that deferred their tax payment ordinarily due in July 2020 to 31 January 2021, the government has now given an option to extend the due date. If you have up to £30,000 of self-assessment liabilities, the Time to Pay facility allows an individual to secure a plan to pay over an additional twelve months, meaning that self-assessment returns that were due in July 2020 will not need to be paid in full until January 2022. Individuals with self-assessment debts of over £30,000 can also use Time to Pay but will need to contact HMRC to agree a payment plan.
In both cases a Direct Debit will need to be set up so that VAT returns are filed regularly, over a twelve-month period.
More information https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19.
Discretionary Grant Fund
Grants of £10,000, £25,000 or any amount under £10,000 are available through local councils to small (and micro) businesses based in England with fixed property costs and a rateable value of less than £51,000 who do not qualify for other schemes (such as the Small Business Grant Fund). Grants are made at the discretion of the local council and you should check with your local council for details of their scheme. The grant does not have to be paid back but it is taxable.
This fund is particularly suitable for guest house and bed and breakfast businesses who pay council tax rather than business rates, small businesses in shared office spaces and charity properties getting charitable business rates relief.
More information on your local council’s website – please note applications in many areas (such as Ipswich) have now closed.
Small Business Grant Fund
One-off cash grants of £10,000 are available to small businesses (in England) who pay little or no business rates. As with the Discretionary Grant Fund, the payment is made through the local council, and is open to businesses who occupy property and were eligible for small business rate relief or rural rate relief on 11.03.2020. Some small businesses such as private stables and moorings are ineligible, and you cannot claim the Small Business Grant Fund and the Small Business Grant Fund and the Retail, on the same property. Grants are made through the local council, who should have already contacted you if you are eligible.
More information https://www.gov.uk/guidance/check-if-youre-eligible-for-the-coronavirus-small-business-grant-fund
Retail, Hospitality and Leisure Grant
This one-off cash grant is aimed at businesses in this sector. Smaller businesses with a rateable value of £15,000 or under can claim for a grant up to £10,000 and larger businesses with a rateable value of over £15,000 (but under £51,000) may be eligible for a grant of £25,000. The grant does not have to be paid back, but it is taxable. Eligible businesses can receive one grant per property, and you cannot claim this grant and the Small Business Grant on the same property. Grants are made through the local council who should have already contact you if you are eligible.
More information https://www.gov.uk/guidance/check-if-youre-eligible-for-the-coronavirus-retail-hospitality-and-leisure-grant-fund
Kickstart Scheme
The Kickstart Scheme aims to create new six-month job placements for young people who are currently on Universal Credit. Government funding is available for 100% of the relevant National Minimum Wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum automatic enrolment contributions. There is also £1,500 per job placement available for setup costs, support and training.
Applications must be for a minimum of 30 job placements. If your business is unable to offer this, you can partner with other organisations to reach the minimum number. Any organisation can apply for the scheme, but the job placements created must be new jobs. They must not replace existing or planned vacancies or cause existing employees or contractors to lose or reduce their employment. The roles funded through the Kickstart Scheme for must be:
- a minimum of 25 hours per week, for six months
- paid at least the National Minimum Wage for their age group
- should not require people to undertake extensive training before they begin the job placement
More information https://www.gov.uk/government/collections/kickstart-scheme
Scheme ends December 2021
Coronavirus Business Interruption Loan (CBIL)
Businesses can apply for a government backed temporary loan, overdraft, invoice finance and asset finance of up to £5 million for up to ten years. To apply you must have a borrowing proposal which would be viable, were it not for the Covid-19 situation. You must also self-certify that Covid-19 has adversely affected your business. SMEs may also be eligible for Business Interruption Payment to cover the initial 12 months of interest payments and any lender fees. The CBIL is also open to self-employed people.
More information https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme
Deadline to apply is 30 November 2020
Bounce Back Loan Scheme (BBLS)
Available to SMEs affected by coronavirus, who can apply to borrow between £2k and £50k. The government guarantees 100% of the loan and no fees or interest payments are due for twelve months. As with other government loan schemes, you must declare that your business has been adversely affected by Covid-19 and also that your business was not ‘undertaking in difficulty’ as of 31 December 2019. This loan is also available to the self-employed, but you cannot apply if you’re already claiming under the CBIL (above).
More information https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
Applications close 30 November
Pay as You Grow Scheme
Announced as part of the Winter Economy Plan, this latest scheme aims to provide flexibility for businesses who took out loans during the COVID-19 pandemic. Measures will include extensions to repayments of Bounce Back loans from six to ten years and allowing businesses who are in difficulty to make interest-only repayments or suspend payments entirely for up to six months.
Full details of the scheme have not yet been announced.
Extension of VAT reduction for hospitality, holiday accommodation and attractions
The previous reduction in VAT for business within the hospitality sector has been extended to 31 March 2021. This will allow VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies relating to hospitality (restaurants, cafes and pubs), holiday and hotel accommodation and admissions to some attractions such as cinemas, theatres, museums and exhibitions.
More information https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions
Local sources of funding include
Growth through Innovation Fund from New Anglia LEP which covers Norfolk and Suffolk. This has been designed to provide funding for local SMEs to help with research and development projects. Companies can apply for £1,000 – £25,000 grants to help towards 50% of the total cost of a project. The grant can be used to purchase of equipment, software and licences, specialist researchers and technicians, Intellectual Property costs, materials and consultancy. Grants are awarded on a discretionary basis and are subject to eligibility checks and approval.
More information https://newanglia.co.uk/grant/growth-through-innovation-fund/
Business Resilience and Recovery Scheme from New Anglia LEP which covers Norfolk and Suffolk. This scheme provides funding for business that have been affected by COVID-19 and are looking at ways to recover and strengthen their business performance through investment projects that will have a significant impact on their business. The scheme will pay for up to 50% of capital costs between £25k up to a maximum of 50k. To be awarded the minimum of £25,000, total capital project costs of at least £50,000 must be evidenced.
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