COVID- 19 Update 20 March – Business Relief, CBILS and more…

We are mindful that these are times of worry to everyone. In addition to concerns for the health of you and your family, there is also a concern for the effects on your company and your team’s well-being. 

Here we provide an overview of the support outlined by the government.  

As of 19th March  

The Government has increased the original £12bn contribution to business relief to up to £350bn. They have also promised there will be more assistance if this amount is not enough.  

With the Government advising the public to stay away from establishments, retail, hospitality and leisure sectors are likely to affected quicker that others. Here’s a few facts to note:  

• A twelve-month business rate holiday has been implemented for the 2020/21 tax year for these sectors 
• Those receiving the retail discount in the 2019/20 year will be rebilled as soon as possible. 

• There is a small business grant available of £10,000 to all businesses in receipt of small or rural business rate relief. 
• Grant funding of up to £25,000 for businesses in retail, hospitality and leisure with property with a rateable value between £15,000 and £51,000. 
• The Coronavirus Business Interruption Loan Scheme (CBILS) will help previously long-term viable businesses with cash flow pressures. 
• HMRC will provide support with its Time to Pay scheme if tax bills cannot be paid when they fall due. 

The Bank of England has also stated a new commercial paper facility, Covid Corporate Financing Facility (CCFF), means unlimited funds could be injected into the British economy. This will establish funding to businesses across a range of sectors to pay wages and suppliers, even while experiencing severe disruption to cash flow. 

Coronavirus Business Interruption Loan Scheme (CBILS) 

As of week commencing 23 March this scheme, delivered by the British Business Bank, will offer loans of up to £5m. For the first 6 months loans and overdrafts can be interest-free, with the Government covering these costs. 

You can apply for a loan/overdraft via your bank, but to be eligible the following must apply: 

• You are UK based business with T/O less than £41m P.A. 
• Work within an eligible sector  

• 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 
• Have a sensible borrowing proposal, but insufficient collateral to meet the lender’s requirements 
• Full eligibility criteria will be published shortly 

Insurance Concerns 

The Government has confirmed that the advice to avoid pubs, theatres etc. is adequate to make a claim if you have cover for both pandemics and Government-ordered closure.  

Late filing with Companies House 

The Government has made an online application available to file accounts late with companies’ house. If you would like to discuss this option further, please speak with your usual Wright Vigar contact. The application can be found here: beta.companieshouse.gov.uk/extensions. 

Self-Assessment customers will no longer receive automatic paper returns  

HMRC has announced that Self-Assessment customers will no longer receive automatic paper returns. This means that from April 2020, taxpayers who filed on paper in the past will now receive a short notice to file. If you still wish to file on paper you can download a blank version of the return or call HMRC to request one.  

Support for charities

Grants of £5,000 to £20,000 to small registered charities related to specific UK coronavirus poverty relief charities. Examples are local food-banks, community aid charities, financial advice. Find out more: https://lnkd.in/d3KnbrU

Claiming for support packages  

• Retail, hospitality & leisure Rate Relief – Enquires should go directly to your local authority who will be given guidance on 20 March.  
• Statutory Sick Pay (SSP) – Awaiting guidance from the Government on how to reclaim. Please maintain records in the meantime. 
• Small business or Rural Rate Relief – You do not need to worry about applying. Local authorities will receive funding to distribute early April.  

• COVID-19 Interruption Loan – Applied for via your bank from w/c 23 March.  

Client Support

We are doing live refresher sessions for Xero every Monday at 11am and for Excel every Friday at 11am, with Nick one of our WV Solutions team. We’ll be covering the basics, some advanced stuff and a Q&A sessions.  

Join our Xero session: https://zoom.us/webinar/register/WN_LaDgx8zCRFGiy3-4EiWfaQ  

Join our Excel session: https://zoom.us/webinar/register/WN_ah8ez9JPQg-eyTE1SJmjWQ