Coronavirus (COVID-19)

Johnson Reed is open and working with lenders to provide financial support and solutions to businesses. 

Johnson Reed will update businesses on any ongoing developments that may affect operations, finances, cashflow, employers or employees.

 

How to manage your cash flow effectively

Managing cash flow is essential for any business, small or large, and more so now than ever, as it allows a company to keep trading and making money, without managing cash flow, companies could find themselves in debt rather quickly. By definition, cash flow is the...

How to prepare for v-shaped recovery

According to recent reports, such as those from Bank of England economist Andy Haldane, the UK could recover quicker than expected, with a v-shaped economic recovery. In a v-shaped economic recovery, the economy suffers a sharp, but short-lived period of economic...

How to maximise your return on a Government Bounce Back or CBILS Loan

If you have received a Government Bounce Back loan or Coronavirus Business Interruption Loan Scheme (CBILS) loan, schemes that were introduced to help smaller businesses impacted by Coronavirus (COVID-19), then there are important steps to follow in order to ensure...

5 tips to secure a CBILS Loan

The Coronavirus Business Interruption Loan Scheme (CBILS) was designed by the government to help support businesses who have suffered adversely as a result of the Coronavirus pandemic. Businesses can use the facility as a loan to support the business, for asset...

Government Fund Future Launched For Innovative Companies

The Government, alongside the British Business Bank, have launched the Future Fund for innovative companies with good potential, that typically rely on equity investment and are currently affected to receive loans equalling investments from private investors. This may...

What is the process for a CBILS Loan application?

In support of helping businesses that have been adversely effected during the pandemic, the Coronavirus Business Interruption Loan Scheme is available through Johnson Reed to for small businesses. Our team have been working with businesses to ensure the process is...

Don’t get pushed away business interruption insurance policies

The Coronavirus pandemic has caused economic uncertainty and strain on many businesses across various sectors, especially those who require customers to physically visit sites and healthy environments. The pandemic has prevented this from being possible and led to...

What is the criteria for a CBILS Loan?

The Coronavirus Business Interruption Loan Scheme is available through Johnson Reed to support small businesses through the pandemic. Our team have been working with businesses to ensure the process is smooth, helping businesses to secure essential funding to continue...

What information do you need for a CBILS Loan?

Johnson Reed now has access to the Coronavirus Business Interruption Loan Scheme (CBILS), enabling businesses that fit the criteria to apply for a government-backed loan to help support them through a difficult economic period. the loan is a available for an unknown...

Johnson Reed approved as CBILS Lending Partner

Johnson Reed has been accepted and approved by Accredited Coronavirus Business Interruption Loan Scheme (CBILS) Lenders as an Accredited Lending Partner, allowing businesses and suppliers the opportunity to apply for vital business finance. As an approved...

 

COVID-19: support for businesses

The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.

This includes a package of measures to support businesses including:

 

For more information visit: https://www.businesssupport.gov.uk/coronavirus-business-support/

Business Rates Holiday for Retail, Hospitality and Leisure

What is it?

  • Businesses in the retail, hospitality and leisure sectors in England will not have to pay business rates for the 2020-21 tax year
  • Businesses that received the retail discount in the 2019-20 tax year will be rebilled by their local authority as soon as possible

 

Am I eligible?

You will be eligible if:

1. Your business is based in England, AND

2. Your business is in the retail, hospitality and/or leisure sector

 

Properties that will benefit from the relief will be those that are wholly or mainly being used:

a. as shops, restaurants, cafes, drinking establishments, cinemas and live music venues,
b. for assembly and leisure; or
c. as hotels, guest and boarding premises and self-catering accommodation

 

How do I access it?

1. There is no action for you. Local authorities will apply the business rates holiday to your bills. For more information please check the guidance on gov.uk

2. You can estimate the business rate charge you will no longer have to pay this year using the business rates calculator

3. You can find your local authority on gov.uk

 

When can I access it?

This will apply to your business rates bills for the 2020/2021 tax year.

 However, local authorities may have to reissue your bill. They will do this as soon as possible.

Cash Grant for Retail, Hospitality and Leisure

What is it?

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 with a rateable value of between £15,001 and £51,000 will receive a grant of £25,000.

 

Am I eligible?

You will be eligible if:

1. Your business is based in England

2. Your business is in the retail, hospitality and/or leisure sector

3. Properties that will benefit from the relief will be occupied properties that are wholly or mainly being used:

 

  • as shops, restaurants, cafes, drinking establishments, cinemas and live music venues for assembly and leisure 
  • as hotels, guest and boarding premises and self-catering accommodation

 

How do I access it?

1. You do not need to do anything

2. Your Local Authority will write to you if you are eligible for this grant

 

When can I access it?

Local Authorities will write to all eligible businesses with information on how to claim this grant.

Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant Local Authority.

 

Small Business Grant Funding

What is it?

  • 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

 

Am I eligible?

You will be eligible if

1. Your business is based in England AND

2. You are a small business and already receive SBRR and/or RRR AND

3. You are a business that occupies property

 

How do I access it?

You do not need to do anything. Your Local Authority will write to you if you are eligible for this grant.

 

When can I access it?

Local Authorities will write to all eligible businesses with information on how to claim this grant.

Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant Local Authority.

Statutory Sick Pay Rebate

What is it?

The Government will bring forward legislation to allow small and medium-sized businesses to reclaim Statutory Sick Pay (SSP) paid for staff sickness absence due to coronavirus.

This refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of coronavirus.

 

Am I eligible?

You will be eligible if:

1. Your business is UK based AND

2. Your business is a small or medium sized and employs fewer than 250 employees as of 28 February 2020

 

How do I access it?

A rebate scheme is being developed, further details will be provided in due course.

 

When can I access it?

  • The Government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible
  • Existing systems are not designed to facilitate employer refunds for SSP
Time to Pay

What is it?

  • 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

 

Am I eligible?

You will be eligible if:

1. Your business pays tax to the UK Government

2. Your business has outstanding tax liabilities

 

How do I access it?

  • If you’ve missed, or are worried about missing, your next tax payment due to coronavirus, please contact HMRC
  • You can also call the HMRC helpline for advice on
0800 0159 559
  • For more information on late payments, check with HMRC
  • If you’re worried about a future payment, please call HMRC nearer the time

 

When can I access it?

You can access this support now.

 

VAT Deferral

What is it?

Deferred Valued Added Tax (VAT) payments for 3 months.

 

Am I eligible?

All VAT-registered UK businesses are eligible.

 

How do I access it?

  • This is an automatic offer with no applications required
  • 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

 

When can I access it?

The deferral will apply from 20 March 2020 until 30 June 2020.

CBILS SUPPORTS A WIDE RANGE OF BUSINESS FINANCE PRODUCTS, INCLUDING:

  • Term facilities/ term loans
  • Overdrafts
  • Invoice finance facilities
  • Asset finance facilities

TO BE ELIGIBLE FOR SUPPORT VIA CBILS, THE SMALL BUSINESS MUST:

  • Be UK based, with turnover of no more than £45 million per annum
  • Operate within an eligible industrial sector
  • Have a sound borrowing proposal, but insufficient security to meet a lender’s normal requirements
  • Be able to confirm that they have not received de minimis  State aid beyond  €200,000 equivalent over the current and previous two fiscal years

An accredited lender can use CBILS to help a borrower access from £1,000 to £1.2 million. Finance terms are from three months up to ten years for term loans and asset finance and up to three years for revolving facilities and invoice finance.

To apply for an CBILS-backed facility, businesses may wish to consider approaching one or more participating lenders to discuss their borrowing needs.

HOW DOES A SMALL BUSINESS APPLY FOR AN CBILS-BACKED FACILITY?

It’s simple to apply and should take no longer than a standard application.

Any small business interested in CBILS should, in the first instance, approach one of the 40+ accredited lenders with their borrowing proposal.

If the accredited lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.

Where the small business has a sound borrowing proposal but insufficient security, the lender will consider the business for support via the scheme.

HOW TO ACCESS THE SCHEME

In the first instance, businesses should approach their own provider – ideally via the lender’s website.

They may also consider approaching other lenders if they are unable to access the finance they need.

Decision-making on whether you are eligible for CBILS is fully delegated to the 40+ accredited CBILS lenders. These lenders range from high-street banks, to challenger banks, asset-based lenders and smaller specialist local lenders.

 

  • Up to £5m facility: The maximum value of a facility provided under the scheme will be £5m, available on repayment terms of up to six years.
  • 80% guarantee: The scheme provides the lender with a government-backed, partial guarantee (80%) against the outstanding facility balance, subject to an overall cap per lender.
  • No guarantee fee for SMEs to access the scheme: No fee for smaller businesses. Lenders will pay a fee to access the scheme.
  • Interest and fees paid by Government for 12 months: The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.
  • Finance terms: Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
  • Security: At the discretion of the lender, the scheme may be used for unsecured lending for facilities of £250,000 and under. For facilities above £250,000, the lender must establish a lack or absence of security prior to businesses using CBILS. If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they will do so.
  • The borrower always remains 100% liable for the debt.

CORONAVIRUS JOB RETENTION SCHEME

Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.

All UK businesses are eligible.

 

 

You will need to:

  • designate affected employees as ‘furloughed workers,’ and notify your employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
  • submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)
  • HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.

Self-employment Income Support Scheme (SEISS)

The Self-employment Income Support Scheme (SEISS) will support self-employed individuals (including members of partnerships) whose income has been negatively impacted by COVID-19. 

The scheme will provide a grant to self-employed individuals or partnerships, worth 80% of their profits up to a cap of £2,500 per month.

HMRC will use the average profits from tax returns in 2016-17, 2017-18 and 2018-19 to calculate the size of the grant. The scheme will be open to those where the majority of their income comes from self-employment and who have profits of less than £50,000.

The scheme will be open for an initial three months with people able to make their first claim by the beginning of June.

To be eligible for the scheme you must meet all the criteria below:

  • Be self-employed or a member of partnership;
  • Have lost trading/partnership trading profits due to COVID-19;
  • File a tax return for 2018-19 as self-employed or a member of a trading partnership. Those who have not yet filed for 2018-19 will have an additional 4 weeks from this announcement to do so;
  • Have traded in 2019-20; be currently trading at the point of application (or would be except for COVID 19) and intend to continue to trade in the tax year 2020 to 2021
  • Have trading profits of less than £50,000 and more than half of your total income come from self-employment. This can be with reference to at least one of the following conditions:
    • Your trading profits and total income in 2018/19
    • Your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19.

 

 

HMRC is urgently working to deliver the scheme; grants are expected to start to be paid by the beginning of June 2020.

This time is necessary to ensure that the scheme is both deliverable and fair.

In the interim the self-employed will still able eligible for other government support including more generous universal credit and business continuity loans.

Further information on how to access these schemes can be found here.

HMRC is urgently working to deliver the scheme; grants are expected to start to be paid by the beginning of June 2020.

This time is necessary to ensure that the scheme is both deliverable and fair. In the interim the self-employed will still able eligible for other government support including more generous universal credit and business continuity loans.

Further information on how to access these schemes can be found here.

Financial Support:

HMRC has a set up a phone helpline to support businesses and self-employed people concerned about not being able to pay their tax due to coronavirus (COVID-19).

The helpline allows any business or self-employed individual who is concerned about paying their tax due to coronavirus to get practical help and advice. Up to 2,000 experienced call handlers are available to support businesses and individuals when needed.

If you run a business or are self-employed and are concerned about paying your tax due to coronavirus, you can call HMRC’s helpline for help and advice: 

0800 0159 559

For those who are unable to pay due to coronavirus, HMRC will discuss your specific circumstances to explore:

  • agreeing an instalment arrangement
  • suspending debt collection proceedings
  • cancelling penalties and interest where you have administrative difficulties contacting or paying HMRC immediately

The helpline number is 

0800 0159 559

 – and is an addition to other HMRC phone contact numbers.

Opening hours are Monday to Friday 8am to 8pm, and Saturday 8am to 4pm. The helpline will not be available on Bank Holidays.

Business Support Fact Sheet

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