Coronavirus Business Support Page

Coronavirus Job Retention Scheme (CJRS)

If you’re a UK employer with a PAYE scheme, the CJRS can support employees who would otherwise be made redundant.

Updated 5^th November 2020

November 2020 to March 2021 (v3)

Due to the national lockdown announced on 31^st October, the government has reinstated the CJRS support to levels seen in August – 80% of a furloughed employees’ salary (up to £2,500 per month), but you’ll pay the associated Employers’ National Insurance and pension contributions. Flexible working is allowed.

It is anticipated that this will be replaced by the (now postponed) Job Support Scheme, explained below, which was announced on 24^th September as part of the Winter Economy Plan.

Updated 29^th June 2020

March to October 2020 (v1 & v2)

For the period 1^st March to 31^st July, the government will pay 80% of a furloughed employees’ salary (up to £2,500 per month), as well as the associated National Insurance and pension costs.

Up to 30^th June, employees cannot work for you while they’re furloughed.

The March-June scheme (v1) will end on 30^th June. Claims under this scheme must be made on or before 31^st July.

From 1^st July onwards (v2), claims can only be made for employees that you have already furloughed for at least 3 consecutive weeks up to 30^th June.

You will have the flexibility to bring employees back part time and pay their wages and associated costs for the hours they work, while still being able to claim a grant for furloughed hours. Each claim made must be for a week or more.

The maximum number of employees that can be claimed for will be limited to the maximum number on any single claim up to 30^th June.

From 1^st August, a furloughed employee will still have 80% of their salary covered, but you’ll start to share the cost.

The July-October scheme (v2) will end on 31^st October. Claims must be made on or before 30^th November.

* For a fully-furloughed employee. For flexible furloughing the cap will be proportional to the hours not worked, and the employer will pay for any hours worked.

The CJRS covers all employees on your payroll between 28^th February and 19^th March. You could choose to fund the differences between CJRS payments and your employees’ salaries but this is up to you.

Meanwhile, any employee who was made redundant after 28^th February can be re-employed and furloughed. The minimum furlough period is 3 consecutive weeks.

Before you claim …

Please be aware that the CJRS has some conditions, notably:

• Furloughed Directors can only perform statutory duties and obligations like filing accounts. They cannot undertake work or generate income.
• The CJRS scheme does not extend to dividends.
• HMRC have powers to check grants made under this (and other) schemes enabling them to prosecute those guilty of fraud or over claiming, such as asking staff to continue working despite being furloughed or by claiming the grant for an employee without their knowledge. Employers must inform HMRC of any monies over claimed, either fraudulently or mistakenly.
• If you would like to go ahead and make a claim, click here to visit the government’s online portal.
• From 1^st August, employers will need to submit data on usual hours and actual hours worked as part of their claim. Hours furloughed will be the difference. No claim period can extend across a calendar month end.

Job Support Scheme

Updated 5^th November 2020

The Coronavirus Job Retention Scheme (CJRS) v2 will end on 31^st October 2020 as previously planned, which was to be replaced by the new Job Retention Scheme (JSS) from 1^st November. It was subsequently announced on 31^st October that there would be a CJRS v3, with the JSS (detailed below) postponed until April 2021.

Updated 24^th September 2020

Standard scheme

The new Job Support Scheme (JSS) is for all UK small and medium sized businesses to protect viable jobs in businesses who are facing lower demand due to COVID-19.

Neither the employer nor the employee needs to have previously used the CJRS. However the employee must be on an employer’s PAYE payroll on or before 23^rd September 2020.

Employers must agree the new short-time working arrangements with the employee, notifying them in writing which must be made available to HMRC on request. Employees will also be informed by HMRC directly of full details of the claim. Employees cannot be made redundant or put on notice during the period being claimed for.

Each short-time working arrangement must cover a minimum period of seven days. The employee must be working a minimum of 33% of their usual hours over the first three months (which is subject to change for the final three months), which the employer will pay at their contracted hourly rate.

For usual hours not worked, the cost will be split between the employer (1/3^rd), the Government through the JSS (up to 1/3^rd capped at £697.92 per month) and the balance by the employee (through a 1/3^rd wage reduction).

Additional employment costs, such as Employer’s NICs and pension contributions, will remain payable by the employer.

The Government’s contribution, which will be taxable, will be reimbursed to the employer monthly in arrears, with claims made online from December 2020.

Expansion Scheme for Closed Business Premises

For businesses who legally have to close their premises as a direct result of Coronavirus restrictions set by the UK Government, enhanced support will be made available under this scheme during the period they are affected by these restrictions. This does not include closures as a result of specific workplace outbreaks.

Under this temporary expansion of the JSS, if an employee has been instructed to and ceases to work at the premises for at least 7 consecutive days, the government grant will cover 2/3 of the employee’s normal pay, capped at £2,100 per month. The employer must use the whole of the grant to meet employee costs.

The remaining 1/3 will continue to be covered by the employee, although the employer can choose to cover this if they wish.

This grant is taxable and will be reimbursed to the employer monthly in arrears. As a measure to avoid fraud, HMRC intend to publish the name of employers who have used the scheme, and employees will be able to find out if their employer has claimed for them under the scheme.

Job Retention Bonus

Updated 24^th September 2020

The Job Retention Bonus is a one-off £1,000 taxable payment to the employer for each eligible employee that was furloughed and claimed for, and subsequently continuously employed until 31^st January 2021. There are some further criteria that need to be satisfied.

The employer does not have to pay this money to their employees, and will still be available to Employers who makes use of the JSS.

Claims can be made between 15^th February and 31^st March 2021.

Statutory Sick Pay (SSP) Rebate Scheme

Updated 29^th June 2020

If you’re an employer with fewer than 250 employees, and an employee was unable to work after 13^th March due to COVID-19, the SSP can help you.

The rebate scheme allows you to claim back up to two weeks statutory sick pay per employee if they have been unable to work due to having coronavirus symptoms, have been self-isolating because they live with or have been notified they’ve been in contact with coronavirus symptoms, or have been shielding and have a letter from the NHS or a GP.

It does not include employees unable to work solely due to the 14-day quarantine period on returning to the UK. 

Make sure you keep a record of staff absences and SSP payments. Thankfully you do not need GP notes from employees to make your claim, though you can ask them to provide you with an isolation note from NHS 111.

Business rates grants

Updated 5^th November 2020

Over the last few months, the government has announced a number of new discretionary grants available to businesses where local alert level restrictions require them to close or, if allowed to stay open, have resulted in a severe loss of business.

These grants are dependent on the type of alert levels restrictions and rateable value of the property. They are subject to eligibility conditions, and are administered by and at the discretion of the local authority.

For businesses who are not the ratepayer or not otherwise covered by the above schemes, the Additional Restrictions Grant may be available depending on the local authority’s criteria. Again, this is administered by and at the discretion of the local authority.

Updated 29^th June 2020

These helpful rates grants are organised by local authorities rather than HMRC. The person who (according to the authority’s records) was the ratepayer for the property on 11^th March 2020 will receive the funds.

You don’t need to apply if you’re eligible – your local authority will contact you automatically. However, they’ll contact you via mail so you’ll need to check your premises on a regular basis to avoid delays.

The scheme offers two main types of support:

• A taxable £25,000 grant is available for retail, hospitality and leisure businesses in England operating from smaller premises with rateable value between £15,000 and £51,000. Pubs and restaurants will also be granted fast-track planning permission to serve takeaway hot food and drinks.
• A taxable £10,000 Small Business Grant Fund (SBGF) will potentially be available to all businesses currently eligible for Small Business Rates Relief or Rural Rates Relief operating from premises with a rateable value of £15,000 or less. This is to help businesses in England meet on-going costs.

Additional support

A discretionary fund has also been created to help small businesses with ongoing property costs outside the scope of the business grant funds scheme. This includes market traders, small charities, those operating from shared office space where they’re not the rates payer, plus B&Bs paying council rather than business rates. 

These taxable grants are banded £25,000, £10,000, and under £10,000. However, it’s unlikely you will be contacted by your local authority if you qualify so please check the criteria on their website.

If you have claimed other COVID-19 grants, apart from the Job Retention Scheme (CJRS) and the Self Employment Income Support Scheme (SEISS), you will not be eligible for a top-up grant.

Click here for more information on business rates.

Self assessment

Updated 24^th September 2020

The payment deadline for the July 2020 payment on account has now been extended by a further 12 months to January 2022, though this is not automatic as a Time To Pay arrangement will need to be set up with HMRC. However this can also include the payment ordinarily due in January 2021, therefore both the July 2020 and January 2021 payments can be repaid over a 12 month period up to January 2022.

A point to note is that HMRC will start charging interest again on outstanding balances from 1^st February 2021.

For balances up to £30,000, the Time To Pay arrangement can be set up online via HMRC’s self-serve service. For balances above £30,000, or if you need longer than 12 months to repay the balance, you will need to call HMRC’s Self Assessment Payment Helpline.

Updated 7^th May 2020

If you’re worried about paying your tax bill in these troubling times then help is at hand. HMRC will let you defer your 31^st July 2020 self-assessment payment until 31^st January 2021 without penalty or interest.

You don’t need to inform HMRC if you wish to do this. And it’s available for everyone whether you’re self-employed or not. However, you may want to think carefully before you defer.

A deferment will result in a large payment in January next year. And this may put further cashflow pressures on you down the road.

Consequently, if you’re able to pay your second payment on account on 31^st July then it’s prudent to do so. Alternatively, just pay what you can before January.

Click here for more information on the Self Employment Income Support Scheme (SEISS).

VAT

Updated 24^th September 2020

The New Payment Scheme allows those businesses that had deferred their VAT payments due between 20^th March and 30^th June 2020 to opt to spread the remaining balance by making monthly interest-free payments over the year to 31^st March 2022. Details of how to opt in have not yet been confirmed.

The VAT rate reduction to 5% for businesses in the tourism and hospitality sectors has been extended from 12^th January to 31^st March 2021.

Updated 29^th June 2020

Deferring your VAT payments can ease the pressure on your businesses finances. Therefore it might be worth taking up HMRC’s offer to defer VAT payments due between 20^th March and 30^th June 2020. All liabilities accumulated during this period must be paid on or before 31^st March 2021 instead. This could include making additional payments with subsequent VAT Returns.

However, be aware that you must file your VAT return by the usual date – only the payment can be deferred. 

You don’t need to apply to take advantage of HMRC’s offer. It’s automatic. All you need to do is cancel your direct debit if you pay this way.

If you usually receive VAT refunds, you could also consider moving to monthly VAT returns to improve your cashflow – although you will need to apply to do this.

This scheme has not been extended, therefore any payments due after 30^th June 2020 – for VAT periods ending 31^st May 2020 and after – will be payable by the usual dates. You’ll need to reinstate any cancelled direct debit arrangements in enough time for HMRC to take payment.

Filing accounts at Companies House

Updated 29^th June 2020

Businesses will get more time to file their accounts at Companies House. You do not need to apply for an extension, if your company is eligible the filing deadline will update automatically – you can check on the Companies House website here.

In addition, Companies House will, for a temporary period:

• ease strike off activity – this includes suspending voluntary strike off applications in order to protect creditors and any other interested parties who may wish to object to the strike off;
• treat late filing penalty appeals sympathetically, if the late delivery of accounts was caused by the coronavirus outbreak. However, penalties will continue to be issued in the usual way;
• provide a break for companies to pay late filing penalties, as well as providing additional support with payment plans for late filing penalties.

Support for businesses paying tax liabilities

Updated 7^th May 2020

HMRC’s Time To Pay service may be able to help you with outstanding tax liabilities. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances.

Please call HMRC’s dedicated helpline on 0800 024 1222 for more information. 

Business rates

Updated 7^th May 2020

Local authorities are helping companies with their business rates during the COVID-19 crisis. Discounts will be applied automatically so you don’t need to do a thing.

A business rates retail holiday for retail, hospitality and leisure businesses in England is being introduced for the 2020 / 21 tax year.

HMRC are also introducing a business rates holiday for nurseries in England. Properties that will benefit include will be those:

• Occupied by providers on Ofsted’s Early Years Register, and
• Wholly or mainly used for the provision of the Early Years Foundation Stage

If your nursery is temporarily closed due to the government’s advice on COVID-19 then you will qualify. However, if your premises are occupied but not wholly or mainly used for the qualifying purpose, then you won’t be eligible.

Click here for more information on business rates grants.

Managing cashflow

Cash is vital to the health of your business so following the advice below could be key to surviving the COVID-19 crisis.

Work out where you are and what you might need. Taking out finance may temporarily boost your bank balance but it’s likely to be an unnecessary cost overall.

Ask yourself the following questions to make sure you’re managing cash sensibly:

• What income is due to come in?
• Is it guaranteed?
• What expenditure is essential at the moment?
• Can any large expenditure/projects be put off?
• Do you have cash reserves that can be diverted?
• Are you making the most of existing credit terms or can some payments be delayed to plug any immediate cashflow shortfalls (whilst ensuring you can still make the later payment)?

It’s also worth helping other businesses in these difficult times. Consider helping a struggling supplier by making an early payment to them if you’re able to.

Cashflow Forecasts

If you don’t have a cashflow forecast now is the time to create one. If you already have one, it should be frequently reassessed and adjusted.

It’s a good idea to stress test your forecast too. What if that receipt doesn’t come in? What if staff productivity falls? If you identify any problems ask yourself if they can be managed with existing facilities / resources or whether you’ll need to consider external financing.

Talk to us if you need help putting a forecast together or reassessing / testing an existing one. We’re here to help.

Overdrafts

An overdraft is often the quickest way to access short-term funds, especially if you have an existing facility. Speak to your bank because they may be willing to extend your limit. Some banks have earmarked funds specifically to help businesses affected by COVID-19.

However, don’t forget that any extension may be temporary and could be withdrawn later on.

Invoice Finance

It’s worth thinking about invoice financing if you have a large debt book. This can be arranged quickly and will likely provide you with more cash than an overdraft.

However, this solution is potentially expensive. What’s more, the value of the debts will be discounted because your finance company will take on the risk of slow and non-payment.

Alternative finance loans

Many products exist outside of banks. And some are more flexible, simpler and faster to access. Talk to us about these alternative options.