What COVID-19 support is available for you and your business

Since the coronavirus outbreak began in March, the Government has regularly announced a series of measures to help businesses across many sectors.

To help you navigate the COVID-19 support available, we have rounded up those schemes that may benefit you and your business.

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For a list of key dates for your diary click here

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Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme (CJRS) was introduced in April and it meant you could ‘furlough staff’ if eligible. This term simply means you can keep your employees on your payroll without you having to pay them, although they cannot do any work for your business.

Initially, the Government would contribute 80% of their wages up to a maximum of £2,500 per month.

Since the start of July, this has now changed to a flexible furlough scheme. Which means you can bring back previously furloughed workers on a part time basis. You now must pay for the time they work for you while the Government will continue to contribute 80% for the time they are still furloughed.

However, from 1st of August, as an employer, if you have any furlough staff you will no longer be able to claim for employer’s National Insurance contributions (NIC) and employer’s pension contributions.

The 80% contribution drops to 70% in September and 60% in October.

The total claimed under this scheme up to the end of June equalled £26.5 billion.

Statutory Sick Pay

Employers to claim up to two weeks of Statutory Sick Pay (SSP) from HMRC if their employee is off work due to coronavirus subject to eligibility criteria.

Self-employment Income Support Scheme

The Self-employment Income Support Scheme (SEISS) was introduced in March and allowed all eligible self-employed individuals to claim 80% of average monthly profits up to a cap of £7,500 over the three months ending in May.

The scheme was extended until 31st August but now it only covers 70% of average monthly profits, with a cap of £6,570 for the three-month period.

The deadline for the first grant was 13th July and the deadline for the second grant is 18th October.

Up to the end of June, 2.6 million individuals had claimed this out of a possible 3.4 million.

VAT

Deferment of VAT payments

Any VAT registered business was able to defer VAT payments between 20th March 2020 and 30th June 2020. From 1st of July you must ensure you are ready to pay VAT going forwards, so if you cancelled your direct debit this should be reinstated. Any VAT payments that were deferred in this period, you have until March 2021 to repay.

VAT rate for Hospitality and Tourism Sectors reduced

The VAT rate has been reduced from 20% to 5% to help the hospitality and tourism industries. The cut to VAT will began on 15th July but will not include the purchase of alcohol. 

Income Tax

If you are due to pay your second payment on account on 31st July, this can be deferred. HMRC will not charge any interest or penalties if you choose not to pay it now, providing it is paid by 31st January 2021.

Coronavirus Business Interruption Loan Scheme

The Coronavirus Business Interruption Loan Scheme (CBILS) allows small and medium-sized businesses to access loans and other kinds of finance up to £5 million. These are 80% guaranteed by the Government to the lenders and the government will pay any interest and fees for the first 12 months.

Coronavirus Bounce Back Loan

The Bounce Back Loan scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.

The Government guarantees 100% of the loan and there will not be any fees or interest to pay for the first 12 months. After 12 months, the interest rate will be 2.5% a year.

Eat Out To Help Out Scheme

The Eat Out To Help Out scheme is for any business selling food for immediate consumption on their premises in their own dining area. If your business is eligible you can use the scheme:

• all day, every Monday, Tuesday, and Wednesday from 3rd to 31st August 2020
• to offer a 50% discount, up to a maximum of £10 per person, to diners for food or non-alcoholic drinks to eat or drink in
• to claim the discount back from the Government

You have register your business to use this scheme by 31st August and all claims to HMRC must be made by 30th September

Stamp Duty threshold raised

England and Northern Ireland only

On 8th July, the Chancellor Rishi Sunak increased the Stamp Duty Land Tax threshold to £500,000 until 31st March 2021, taking effect immediately. Prior to the increase, all property transactions above £125,000 incurred at least 2% stamp duty.

Scotland increased its Land and Buildings Transaction Tax threshold from £145,000 to £250,000 from 15th July until 31st March 2021.

From 27th July until 31ist March 2021, Wales will increase its Land Transaction Tax threshold from £180,000 to £250,000.

Business Rates Relief

To support businesses in the UK, the Governments of England, Scotland, Wales and Northern Ireland have announced a series of Business Rate and Cash Grant packages to help them through the coronavirus outbreak, some of the main reliefs are below:

England

• £25,000 funding for smaller businesses occupying retail, leisure, and hospitality premises. These will be businesses with a rateable value between £15,000 and £51,000
• £10,000 for all businesses, whatever their sector, who already receive small business or rural rate relief

Scotland  

• A full year’s 100% non-domestic rates relief for retail, hospitality, and tourism, which has been extended to the aviation industry including organisations providing handling services in Scotland
• £10,000 grants for small businesses in receipt of the Small Business Bonus Scheme or Rural Relief
• £25,000 grants for hospitality, leisure, and retail properties with a rateable value between £18,000 and £51,000
• From 5th May 2020, businesses with more than one property may be able to claim an additional £7,500 if they have already received a £10,000 grant, or £18,500 if they have already received a £25,000 grant

Northern Ireland  

• A grant of £10,000 to be provided to all small businesses eligible for the Small Business Rate Relief Scheme and Industrial Derating where the Net Annual Value is £15,000 or below and a grant of £25,000 to be provided to companies in the retail, hospitality, tourism and retail sectors with a Net Annual Value from £15,001 up to £51,000
• Rates holiday for businesses for three3 months until June 2020

Wales  

• Shops, leisure, and hospitality businesses with a rateable value of £500,000 or less will receive 100% business rates relief
• Expanding on this support a new package providing in 2020/21, retail, leisure, and hospitality businesses in Wales with one-year business rates relief and a grant of £25,000 for retail, leisure, and hospitality businesses with a rateable value of between £12,001 and £51,000
• a £10,000 grant to all businesses eligible for Small Business Rates Relief with a rateable value of £12,000 or less

Important dates for coronavirus support

July 2020

1st July 2020 – CJRS changes to allow for flexible furlough

8th July 2020 – Stamp duty threshold increased

13th July 2020 – Deadline to claim first SEISS grant

14th July 2020 – SEISS changes where you must confirm to HMRC you are eligible for second grant

15th July 2020 – VAT rate cut to 5% for the Hospitality and Tourism sectors

15th July 2020 – Scottish Land and Buildings Transaction Tax threshold increased

27th July 2020 – Welsh Land Transaction Tax threshold increased

31st July 2020 – Second payments on account for income tax can be deferred

August 2020

1st August 2020 – CJRS changes so employers now must contribute employer’s national insurance and employers pension contributions

3rd August 2020 – Eat Out to Help Out scheme commences

7th August 2020 – Claims to HMRC under the Eat Out to Help Out scheme opens

17th August 2020 – SEISS changes you must apply for second grant

31st August 2020 – Registrations and use of the Eat Out to Help Out Scheme closes

September 2020

30th September 2020 – Eat Out to Help Out scheme claims to HMRC closes

October 2020

19th October 2020 – Deadline to claim second SEISS grant

January 2021

13th January 2020 – VAT rate reintroduced at 20% for the Hospitality and Tourism sector

31st January 2020 – Income tax second payments on account that were deferred are due for payment

March 2021

31st March 2020 – VAT payment deadline for all deferred payment to be paid

31st March 2020 – Stamp Duty threshold decreased

31st March 2020 – Land and Buildings Transaction Tax threshold decreased

31st March 2020 – Land Transaction threshold decreased

We can help

There are a number of ways in which we may be able to help. It is always important to get good advice and that’s particularly true in turbulent times. If you need help please talk to us on 01322 553597 or use our online enquiry form. We can offer initial consultations, advice and support over the phone if you have any concerns about face-to-face meetings.

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For our latest COVID-19 news and guidance for your business, visit our dedicated Coronavirus Hub.
We will be updating it regularly as we continue to monitor and digest all the latest information

Date published 17 Jul 2020 | Last updated 20 Jul 2020

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.