Date: 23/03/2020 | Healthcare, Commercial Property, Corporate & Commercial, Employment & HR, Dispute Resolution, Energy & Natural Resources, Environment & Regulation, Planning, Residential Development, Infrastructure & Projects, Health & Safety, Construction, Business & Professional Services, Blogs
The situation is fast moving and constantly changing. This paper is a summary of the information currently available on the key measures. A number of links to HM Government and Scottish Government sites are given at the end of the paper and these sites should be checked for up to date information.
The support for individuals is:
Support for businesses:
From 23 March, business will be able to apply for emergency loan funding from the new Coronavirus Business Interruption Loan Scheme.
The Government will underwrite up to 80 per cent of the risk of the lender but the borrower remains liable for the full amount borrowed. The Government will cover the first 6 months of interest payments. Directors or business owners may be asked to provide a personal guarantee, which will mean the individual will be personally liable if the business cannot repay the debt. An application for a loan will still require to go through a credit process and the initial announcement said that a “sound borrowing proposal” would be required.
Funding will be provided by the British Business Bank through participating providers offering more attractive terms for both businesses applying for new facilities and lenders. All the major UK banks, as well as more than 30 smaller lenders, will participate in the Scheme.
The maximum value of a facility provided under the Scheme will be £5 million. The loan term will be from three months up to ten years for term loans and asset finance and up to three years for revolving facilities and invoice finance.
Full eligibility criteria are to be published but to be eligible for support via CBILS, the business must:
Business Rates and Grants
The reliefs which have been announced are different for Scotland and the rest of the UK.
Scotland – with effect from 1 April 2020
Rest of UK – with effect from 1 April 2020
VAT, Corporation Tax, PAYE and CIS
Time-to-pay arrangements can be agreed with HMRC on a case-by-case basis and will be tailored to individual circumstances and liabilities.
It has been announced that HMRC will consider deferring payments for VAT and PAYE. They will also discuss Time-to-pay arrangements for VAT, Corporation Tax, PAYE and/or CIS where the business is affected by the virus.
HMRC have stated they are willing to grant a deferral of VAT payments for up to two months. PAYE deferral can currently be granted for up to 30 days.
After an initial deferment period is agreed, the business can also apply for further assistance via a Time-to-pay arrangement. Typically, instalments of no longer than 12 months can be granted, however in the circumstances it is expected that special concessions will be made.
HMRC are prepared to discuss this situation where a business has a current Time to Pay arrangement in place that they now cannot or will struggle to meet due to the disruption caused by the virus.
HMRC have set up a helpline for businesses looking for assistance on payment of taxes or looking to discuss a Time-to-pay arrangement – 0800 0159 559.
HM Government Guidance for employers and employees on coronavirus
HM Government COVID-19: support for businesses
HM Government COVID-19: guidance for employees
ACAS Coronavirus (COVID-19): advice for employers and employees
Scottish Government Help with non-domestic rates in Scotland during coronavirus (COVID-19)
Scottish Government £2.2 billion for business
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