COVID-19: support for businesses

Employers in England reopening their business have a legal responsibility to protect their employees and people on site. Guidance is available to help employers carry out a risk assessment and make sensible adjustments to the site and workforce. If you do not carry out a risk assessment, the Health and Safety Executive (HSE) or your local council can issue an enforcement notice. View guidance. Please note, this guidance is only for businesses that are allowed to reopen in England.

Employee return-to-work tool 

The Government has developed a tool to help employees in England assess if they can return to work. The tool guides employees through questions that may influence their ability to go back to work safely. Employers can share this tool with employees to aid discussion on how employees can return to work safely. Find out more.

Access free support from experts and help your business recover from the impact of Coronavirus.

Recovery Advice for Business, supported by the government and hosted on the Enterprise Nation, gives small firms access to free, one-to-one advice with an expert professional or business services advisers until 31 December, to help them through the coronavirus pandemic and to prepare for long-term recovery. 

Advice will focus on key areas: accounting and finance, people and building a team, planning, strategy and pivoting, marketing, PR and social media, and technology and digital tools.

Get started today at enterprisenation.com/freesupport 

Research jobs and ground-breaking projects impacted by coronavirus are to be protected by two new government support packages: 

• A new research funding scheme opens this autumn to cover up to 80% of a university’s income losses from a decline in international students
• Around £280 million in government funding will be made available to enable universities to continue their cutting-edge work, such as research into antibiotics resistance and the effects of coronavirus on society

Find out more.

Announced on 27 June.

Government has announced a £200 million package to help innovative businesses bounce back.

The Sustainable Innovation Fund will help companies across the UK recovering from the impact of coronavirus keep their cutting-edge projects and ideas alive. The Fund will help power the UK’s economic recovery and develop new sustainable opportunities for businesses in any sector following the coronavirus pandemic while helping the UK meet its ambitions to cut carbon emissions to net-zero by 2050. Businesses can apply for support through the Sustainable Innovation Fund by visiting the Innovate UK website. Find out more.

Britain’s globally renowned arts, culture and heritage industries will receive £1.57 billion rescue package to help weather the impact of coronavirus.

Organisations across a range of sectors including the performing arts and theatres, heritage, historic palaces, museums, galleries, live music and independent cinema will be able to access emergency grants and loans.

The package announced on 5 July includes funding for national cultural institutions in England and investment in cultural and heritage sites to restart construction work paused as a result of the pandemic. This package includes:

• £1.15 billion support pot for cultural organisations in England delivered through a mix of grants and loans. This will be made up of £270 million of repayable finance and £880 million grants.
• £100 million of targeted support for the national cultural institutions in England and the English Heritage Trust.
• £120 million capital investment to restart construction on cultural infrastructure and for heritage construction projects in England which was paused due to the coronavirus pandemic.
• The new funding will also mean an extra £188 million for the devolved administrations in Northern Ireland (£33 million), Scotland (£97 million) and Wales (£59 million).

Decisions on awards will be made working alongside expert independent figures from the sector including the Arts Council England and other specialist bodies such as Historic England, National Lottery Heritage Fund and the British Film Institute.

Repayable finance will be issued on generous terms tailored for cultural institutions to ensure they are affordable. Further details will be set out when the scheme opens for applications in the coming weeks.

Find out more. 

A 'Plan for Jobs’, announced on 8 July 2020 outlines how the government will boost job creation in the UK. The plan includes:

• Job Retention Bonus: To help firms keep furloughed workers. UK Employers will receive a one-off bonus of £1,000 for each furloughed employee who is still employed as of 31 January 2021.
• Employment and support schemes: A total of £1.6 billion will be invested in scaling up employment support schemes, training and apprenticeships to help people looking for a job. 
• VAT: The rate of VAT applied on most tourism and hospitality-related activities will be cut from 20% to 5%. 

Find out more.

Applications opened on Wednesday 20 May 2020.

The Future Fund will provide government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.

These convertible loans may be a suitable option for businesses that rely on equity investment and are unable to access the Coronavirus Business Interruption Loan Scheme.

The scheme will be delivered in partnership with the British Business Bank.

Find out more.

Announced on 30 June, changes to the Future Fund’s eligibility criteria will mean that UK companies who have participated in highly selective accelerator programmes and were required, as part of that programme, to have parent companies outside of the UK will now be able to apply for investment. Read more.

The Discretionary Grant Fund supports small and micro businesses in England that are not eligible for the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund.

To be eligible, your business should have ongoing fixed property-related costs, and occupy the property (or part of a property) with a rateable value or annual mortgage/rent payments below £51,000. 

Find out more.

On 12 May, government announced that this scheme has extended from June to October.

The Coronavirus Job Retention Scheme is changing:

From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week.

The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.

This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.

Start your claim.

From 1 August, the level of the grant will be slowly reduced. No grant will be available for Class 1 employer NICs or pension contributions from 1 August although these contributions will remain payable by the employer.

From September 1, you will also be asked to contribute towards the cost of your furloughed employees’ wages to ensure they continue to receive at least 80% of their wages for the time they’re on furlough.

Find out more information on how the amount of grant available through the Coronavirus Job Retention Scheme is changing.

​Check if your employer can use the Coronavirus Job Retention Scheme​.

Watch a video on the coronavirus job retention scheme with information on flexible furloughing.

Pay Coronavirus Job Retention Scheme grants back if you have over-claimed. Find out more. 

This scheme is being extended. You’ll be able to make a claim for a second and final grant in August 2020. Find out more about the extension to the scheme.

The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. Money will be paid into bank accounts within six working days of completing a claim. This is a temporary scheme, but it may be extended.

If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist.

The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.

Find out more.

How different circumstances affect the Self-Employment Income Support Scheme

If you're self-employed or member of a partnership, find out how your circumstances can affect your eligibility for the scheme. The update includes examples added, to show when the ‘adversely affected’ criteria for the first and second grants will be met. Find out more.

The online service to claim back Statutory Sick Pay (SSP) is now available.

The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the current rate of SSP that they pay to current or former employees for periods of sickness starting on or after 13 March 2020.

If you’re an employer who pays more than the current rate of SSP you can only claim the current rate amount.

The repayment will cover up to 2 weeks starting from the first day of sickness if an employee is unable to work because they either have coronavirus or cannot work because they are self-isolating at home. Employees do not have to give you a doctor’s fit note for you to make a claim.

Find out more about this scheme.

Launched on 4 May 2020.

The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000.

The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.

Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

The scheme will be delivered through a network of accredited lenders.

Find out how to apply. 

The dairy response fund opened on 19 June 2020. Eligible farmers in England can apply for a single payment from the fund.

Eligible dairy farmers will be entitled to up to £10,000 each, to cover 70% of their lost income during April and May. 

The fund will help overcome the impact of the Coronavirus outbreak and ensure farmers can continue to operate and sustain production capacity without impacts on animal welfare.

Find out more. 

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) will support large businesses, with an annual turnover of between £45 million and £500 million, to access loans of up to £25 million.

We expect the scheme to be delivered through commercial lenders. The government will provide lenders with an 80% guarantee on individual loans for businesses that would be otherwise unable to access the finance they need.

This will give banks the confidence to lend to many more businesses which are impacted by coronavirus. Facilities backed by a guarantee under CLBILS will be offered at commercial rates of interest.

This scheme allows lenders to support businesses that were viable before the coronavirus outbreak but now face significant cash flow difficulties that would otherwise make their business unviable in the short term.

Find out if you’re eligible and how to apply.

The Government is providing additional funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief. This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.

You will not need to apply. Eligible businesses will be contacted by their local authority, though some local authorities have decided to operate an applications process.

Any enquiries on eligibility for, or provision of, the grants should be directed to the relevant local authority. To find your local authority, use this search tool.

Find out more about Small Business Grant Funding.

If your business is in the retail, hospitality or leisure sector, you will receive a cash grant of up to £25,000 per property.

Businesses in these sectors with a property that has a rateable value of £15,000 and under may be eligible for a grant of £10,000.

Businesses in these sectors with a property that has a rateable value of over £15,000 and less than £51,000 may be eligible for a grant of £25,000.

You will not need to apply. Eligible businesses will be contacted by their local authority, though some local authorities have decided to operate an applications process.

Any enquiries on eligibility for, or provision of, the grants should be directed to the relevant local authority. To find your local authority, use this search tool.

Find out more about the cash grant for retail, hospitality and leisure.

The Coronavirus Business Interruption Loan Scheme (CBILS) supports small and medium-sized businesses, with an annual turnover of up to £45 million, to access loans, overdrafts, invoice finance and asset finance of up to £5 million for up to 6 years.

The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. This means smaller businesses will benefit from no upfront costs and lower initial repayments.

The government will provide lenders with a guarantee of 80% on each loan (subject to a pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to small and medium-sized businesses.

The scheme is delivered through commercial lenders, backed by the government-owned British Business Bank. There are 40 accredited lenders able to offer the scheme, including all the major banks.

Find out if you’re eligible and how to apply.

Under the COVID-19 Corporate Financing Facility (CCFF), the Bank of England will buy short-term debt from large companies.

This scheme will support your company if it’s been affected by a short-term funding squeeze, and allow you to finance your short-term liabilities.

It will also support corporate finance markets overall and ease the supply of credit to all firms.

The scheme is delivered through commercial lenders, backed by the Bank of England. 

It will operate for at least 12 months, and for as long as steps are needed to relieve cash flow pressures on firms that make a material contribution to the UK economy.

Check your eligibility on the Bank of England website.

Businesses in the retail, hospitality and leisure sectors in England will not have to pay business rates for the 2020 to 2021 tax year.

You do not need to take any action. Your local council will apply the discount automatically.

The relief will apply to your business rates bills for the 2020 to 2021 tax year. Your local council may have to reissue your bill but will do this as soon as possible.

Find out if you’re eligible.

Nurseries in England do not have to pay business rates for the 2020 to 2021 tax year.

You do not need to take any action. Your local council will apply the discount automatically.

You can estimate the business rate relief using the business rates calculator.

The relief will apply to your business rates bills for the 2020 to 2021 tax year. Your local council may have to reissue your bill but will do this as soon as possible.

Find out if you’re eligible.

The Self- Assessment payment on account, that is ordinarily due to be paid to HMRC by 31 July 2020 may now be deferred until January 2021.

This is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment of your July 2020 payment on the account until January 2021.

Find out more.

If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to defer the payment until a later date. This does not cover payments for VAT MOSS or import VAT.

HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement. You will still need to submit your VAT returns to HMRC on time.

If you choose to defer your VAT payment as a result of coronavirus (COVID-19), you must pay the VAT due on or before 31 March 2021.

This is an automatic offer. You do not need to tell HMRC that you are deferring your VAT payment.

Find out more.

All business 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. Those concerned should contact HMRC via the helpline on 0800 024 1222 or via webchat. Arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities

Contact HMRC.

The UK government has extended measures to prevent struggling companies from eviction over the summer.

A new code of practice has been developed with leaders from the retail, hospitality and property sectors to provide clarity for businesses when discussing rental payments and to encourage best practice so that all parties are supported.

The Coronavirus Act will extend the time period for suspension of the forfeiture of evictions from June 30 to September 30, meaning no business will be forced out of their premises if they a miss a payment in the next three months.

Secondary legislation to prevent landlords using Commercial Rent Arrears Recovery unless they are owed 189 days of unpaid rent. The time period for which this measure is in force will be extended from June 30 to September 30.

Find out more.