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To ensure businesses have up to date access to COVID-19 business support, the Government has set up a new website which hosts all the details of the schemes the Chancellor has announced.
The Council has summarised below the types of assistance being offered and the timescale for accessing the Government assistance.
Business Rates
BUSINESS RATES HOLIDAY FOR RETAIL, HOSPITALITY AND LEISURE
Businesses in the retail, hospitality and leisure sectors, irrespective of Rateable Value, will receive 100% retail relief for 2020/21. So every shop, pub, theatre, music venue, restaurant and any other business in the retail, hospitality and leisure sectors will pay no business rates for a year.
This has been extended to cover all premises, regardless of their Rateable Value.
Properties that will benefit from the relief will be those that are wholly or mainly being used as shops, restaurants, cafes, drinking establishments, cinemas and live music venues, for assembly and leisure, or as hotels, guest and boarding premises and self-catering accommodation.
TIMESCALE
We are working hard to rebill all eligible businesses to show this 100% discount for 2020/21 as soon as possible. Eligible businesses will receive a new bill showing that there is nothing to pay for 2020/21.
CASH GRANTS FOR RETAIL, HOSPITALITY AND LEISURE
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 rateable value of under £15,000 will receive a grant of £10,000.
Businesses in these sectors with a rateable value of between £15,001 and £51,000 will receive a grant of £25,000.
Properties that will benefit from the relief will be those that are wholly or mainly being used as shops, restaurants, cafes, drinking establishments, cinemas and live music venues, for assembly and leisure, or as hotels, guest and boarding premises and self-catering accommodation.
TIMESCALE
The Council will receive the Government funding on 1 April. In the next day or so, we will send a letter by post to the business rates contact address of businesses who might be eligible for the cash grants. Please look out for this letter at your business rates contact address as it will contain a unique reference number to enable you to apply online.
Eligible businesses will be asked to apply online on the Council’s
website in order for a payment to be made direct into their business bank
account. The payment should be received in early April.
SMALL BUSINESSES GRANT FUNDING
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.
Please note that properties which are occupied for personal use, e.g. private stables, beach huts, moorings etc. will not qualify for these grants.
TIMESCALE
The Council will receive the Government funding on 1 April. In the next day or so, we will send a letter by post to the business rates contact address of businesses who might be eligible for the cash grants. Please look out for this letter at your business rates contact address as it will contain a unique reference number to enable you to apply online.
Eligible businesses will be asked to apply online on the Council’s
website in order for a payment to be made direct into their business bank
account. The payment should be received in early April.
BUSINESS RATES HOLIDAY FOR NURSERIES
Nurseries in England do not have to pay business rates for the 2020-21 tax year. Properties that will benefit from the relief will be those occupied by providers on Ofsted’s Early Year Register and are wholly or mainly used for the provision of Early Years Foundation Stage.
TIMESCALE
Eligible businesses will receive a new bill showing that there is nothing to pay for 2020/21 as soon as possible.
CORONAVIRUS JOB RETENTION SCHEME
Under the coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis. This applies to employees who have been asked to stop working, but who are being kept on the payroll, otherwise described as ‘furloughed workers’.
HMRC will reimburse 80% of their wages, up to £2,500 per month. This is to safeguard workers from being made redundant. The scheme will cover the cost of wages backdated to 1st March and is initially open for 3 months, but will be extended if necessary. All UK wide employers with a PAYE scheme will be eligible – this includes the public sector, Local Authorities and charities.
UK employers will need to designate affected employees as ‘furloughed workers’ and notify their employees of this change.
Once the new online portal is live, employers need to submit information to HMRC about the employees that have been furloughed and their earnings.
HOW DO I ACCESS IT?
HMRC are working urgently to set up a system for reimbursement. HMRC expect the first grants to be paid within weeks and they are aiming to get this done before the end of April. If your business needs short term cashflow support, you maybe eligible for a Coronavirus Business Interruption Loan.
CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME
A new temporary Coronavirus Business Interruption Scheme, delivered by the British Business Bank, will launch to support businesses to access bank lending and overdrafts. For loans up to £5 million, the Government is providing a guarantee of 80% for each loan. This will give lenders the confidence to continue to provide finance to businesses. The Government will not charge businesses or banks for this guarantee.
You will be eligible if your business is UK based with a turnover of no more than £45m per annum and your business meets the other British Business Bank eligibility criteria.
HOW DO I ACCESS IT?
Talk to your bank or finance provider as soon as possible and discuss your business plan with them. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cashflow.
COVID-19 CORPORATE FINANCING FACILITY
The new Covid-10 Corporate Financing Facility (CCFF) means that the Bank of England will buy short-term debt from larger companies. This will support companies which are fundamentally strong, but have been affected by a short term funding squeeze. It will operate for at least 12 months.
FIND OUT MORE
More information on eligibility can be found on the Bank of England website.
TIME TO PAY (HMRC)
All businesses 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. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
FIND OUT MORE
Call the HMRC Helpline for advice on 0800 0159 559
VAT DEFERRAL
The Government will support businesses by deferring Value Added Tax (VAT) payments for 3 months. UK Registered businesses will not need to make VAT payments normally due with VAT returns during this period. Taxpayers will be given until the end of the 2020-21 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the Government as normal.
The deferral will apply from 20 March 2020 until 30 June 2020.
FIND OUT MORE
This is an automatic offer with no applications required.
SELF-EMPLOYED
If you are self-employed and your trade is affected by COVID-19 we are working with the measures outlined by the Government, Department of Work and Pensions (DWP) and our own local powers to provide support where we can.
INCOME TAX DEFERRAL FOR THE SELF-EMPLOYED
If you are self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to 31 January 2021. If you are self-employed, you are eligible.
TIMESCALE
This is an automatic offer with no applications required. No penalties or interest for late payment will be charged in the deferral period.
UNIVERSAL CREDIT AND CLAIMING BENEFITS
If you are not working because of Coronavirus, you might be able to claim benefits (the Universal Credit scheme) if you’ve lost your job or you’re self-employed and can’t get work. What you can claim will depend on your situation.
Business owners and their employees who cannot work or find their income streams significantly reduced due to coronavirus maybe eligible to claim Council Tax Reduction or apply for support from our Exceptional Hardship Fund.
Universal Credit is claimed online with the DWP and help with Council Tax is available from Council Tax Reduction and also an Exceptional Hardship Scheme. If you already receive help towards your housing costs and require further assistance you can make an application to our Discretionary Housing Payment Fund.
  CLAIMING BENEFITS
For those with queries about benefit claims – new and existing, in relation to Coronavirus.
If you are self-employed and claiming Universal Credit and are required to stay at home or are ill as a result of Coronavirus, the Minimum Income Floor (an assumed level of income) will not be applied for a period of time whilst you are affected. From 6 April the requirements of the Minimum Income Floor will be temporarily relaxed. This change will apply to all Universal Credit claimants and will last for the duration of the outbreak.
FIND OUT MORE
Apply below for Universal Credit.
COUNCIL TAX REDUCTION SCHEME
Council Tax Reduction (CTR) is a scheme to help people on a low income pay their Council Tax Bill by reducing the amount they have to pay.
COUNCIL TAX - HARDSHIP FUND
The Government has also announced a new £500million Hardship Fund so we can support economically vulnerable people and households, to be administered by the Council. The Government expects most of this funding to be used to provide more council tax relief, either through existing Local Council Tax Support Schemes, or through similar measures.
TIMESCALE
The Council has today received the Government guidance on the Hardship Fund and we will send out further update bulletins as soon as possible.
IF YOU ARE HAVING DIFFICULTY PAYING YOUR BILLS
CITIZENS ADVICE
There are things you can do if you are struggling to pay bills like your rent, mortgage or energy bills because of Coronavirus. Speak to the organisation that you owe money to. They might be able to help you by letting you pay smaller amounts or take a payment holiday. It is also worth checking with your bank or building society – they might be able to help you with your debts or let you delay loan or credit card repayments or have a payment holiday.
If you are not working because of Coronavirus, you might be able to claim benefits (the scheme is called Universal Credit) if you’ve lost your job or you’re self employed and can’t get work. What you can claim will depend on your situation.
FIND OUT MORE
The Citizens Advice website has lots of information and advice.
HELP AND SUPPORT
FREQUENTLY ASKED QUESTIONS
Below is a link to the Government’s website page on Frequently Asked Questions.
THE HEART OF THE SOUTH WEST GROWTH HUB
Business support and advice is available over the phone, 03456 047 047 or by email info@heartofswgrowthhub.co.uk or accessing, The Heart of the South West Growth Hub website on the link below.
BUSINESS SUPPORT
You can contact the Government’s Business Support Helpline for free advice. 0300 456 3565 Monday to Friday 9am to 6pm
HMRC – COVID-19 HELPLINE
All businesses 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. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. These businesses can contact HMRC’s new dedicated COVID-19 helpline for advice and support.
FIND OUT MORE
Call HMRC’s dedicated helpline on 0800 0159 559
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