Factsheet: financial support for businesses impacted by coronavirus

What is it?

All UK employers with a PAYE scheme will be able to access support to continue paying 80% of the salary - up to £2,500 per month - of employees who have been furloughed. The scheme will run until the end of June in its current format, and then from July, the government will introduce an employer contribution towards the cost of unworked hours of 10% in July, 20% in August and 20% in September.

Who is it for?

All UK-based employers with a PAYE scheme will be eligible – this includes the public sector, Local Authorities and charities.

How do you apply?

Designate affected employees as ‘furloughed,’ notify these employees of this change (subject to employment law). Once the new online portal is live, submit information about these employees and their earnings to HMRC.

When will it be available?

The HMRC claims portal is available now. Businesses have until the 14th or 15th of the month to claim for the previous month.
CLOSING DATE: 30 SEPTEMBER 2021

Where can I find out more?

Visit the government's coronavirus business support site.

What is it?

All businesses and self-employed people in financial distress with outstanding tax liabilities may be eligible to receive tax support through HMRC’s Time To Pay service. This is agreed on a case-by-case basis, tailored to individual circumstances.

Who is it for?

Any business that pays tax to the UK Government and has outstanding tax liabilities.

How do you apply?

If you’ve missed, or are worried about missing, your next tax payment due to coronavirus, contact HMRC. You can also call the HMRC helpline for advice on 0800 0159 559.

When will it be available?

Available now.

Where can I find out more?

Visit the government's coronavirus business support site.

What is it?

Supporting businesses by deferring Value Added Tax (VAT) payments for 3 months.

How does it work?

In September 2020, the Chancellor confirmed that businesses that deferred VAT due from 20 March to 30 June 2020 had the option to pay in smaller instalments over a longer period. Businesses can make smaller payments up to the end of March 2022 interest free, rather than paying the full amount by 31 March 2021.

This is an ‘opt-in’ scheme for those requiring more flexibility. Businesses can now sign up to the scheme.

Who is it for?

All VAT-registered UK businesses are eligible.

How do you apply?

UK Registered businesses can either pay liabilities that have accumulated during the deferral period in one sum at the end of the 2020/21 tax year or via the New Payment Scheme. If you normally pay by direct debit, cancel it if you are unable to pay.

The 'New Payment Scheme' service opened on
23 February 2021 and will close on 21 June 2021. You can join the scheme now.

When will it be available?

The deferral will apply from 20 March 2020 until 30 June 2020. Businesses can now opt into the longer repayment scheme. The 'New Payment Scheme' service opened on 23 February 2021 and will close on 21 June 2021.

Where can I find out more?

Visit the government's coronavirus business support site.

What is it?

New legislation will 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.

Who is it for?

Any small or medium sized business that is UK-based and employs fewer than 250 employees as of 28 February 2020.

How do you apply?

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

When will it be available?

The online service is now available. The government will set out steps for closing the scheme in due course.

Where can I find out more?

Visit the government's coronavirus business support site.

What is it?

A grant for self-employed individuals or partnerships.

How does it work?

The government has confirmed that the fourth SEISS grant will be worth 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500 in total. The grant will cover the period February to April 2021, and can be claimed from late April.

The government announces that there will be a fifth and final SEISS grant covering May to September. The value of the grant will be determined by a turnover test, to ensure that support is targeted at those who need it the most as the economy reopens.

People whose turnover has fallen by 30% or more will continue to receive the full grant worth 80% of three months’ average trading profits, capped at £7,500. People whose turnover has fallen by less than 30% will receive a 30% grant, capped at £2,850. The final grant can be claimed from late July. Further details will be published in due course.

Who is it for?

Any self-employed person (or partnership member) who has filed a 2018/19 tax return; has traded in 2019/20; is currently trading or intends to continue trading in 2020-21 (if it weren't for COVID-19); generates more than half their total income from self-employment; and has average trading profits for 2018/19 (or the past 3 years) under £50,000.

How do you apply?

The online claims service for the fourth grant will be available from late April 2021 until 31 May 2021.

If you are eligible, HMRC will contact you in mid-April to give you your personal claim date. This will be the date that you can make your claim from.

The fifth and final grant can be claimed from late July. Further details will be published in due course.

When will it be available?

HMRC is working to deliver the scheme; with grants expected to be paid by early June 2020. In the interim the self-employed will still able eligible for other government support including universal credit and business continuity loans.

Where can I find out more?

Visit the government's coronavirus business support site

What is it?

The government has launched the new Recovery Loan Scheme, open to all UK businesses to access loans of between £25,000 and £10 million.

How does it work?

The Recovery Loan Scheme provides lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million to give them confidence in continuing to provide finance to UK businesses. The scheme is open to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes.

Who is it for?

The scheme is open to all businesses in England, Scotland, Wales and Northern Ireland.
You will be able to apply for a loan if your business is trading in the UK.
You will need to show that your business:

• Is viable or would be viable were it not for the pandemic
• Has been impacted by the coronavirus pandemic
• Is not in collective insolvency proceedings - further details will be provided in due course
  Business that have received support under the existing COVID-19 guaranteed loan schemes will still be eligible to access finance under this scheme, if they meet all other eligibility criteria.

How do you apply?

Further details on how to apply and details of accredited lenders are available here.

Key points of small print

The new scheme aims to help businesses affected by Covid-19 and can be used for any legitimate business purpose, including managing cashflow, investment and growth. It is designed to appeal to businesses that can afford to take out additional debt finance for these purposes. It can be taken alongside an existing covid loan. Features of the scheme include:

• Up to £10m facility per business: The maximum value of a facility provided under the scheme will be £10m per business. Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
• Turnover limit: There will be no turnover restriction for businesses accessing the scheme.
• Wide range of products: Businesses will be able to choose from a variety of products: term loans, overdrafts, asset finance and invoice finance facilities.
• Term length: Term loans and asset finance facilities are available for up to six years, with overdrafts and invoice finance available for up to three years.
• Interest and fees to be paid by the business from the outset: Businesses will be required to meet the costs of interest payments and any fees associated with the facility.
• Access to multiple schemes: Businesses who have taken out a CBILS, CLBILS or BBLS facility will be able to access the new scheme, although the maximum they are allowed to borrow will depend on their lender’s assessment and scheme requirements.
• Credit checks for all applicants: Lenders will be required to undertake credit and fraud checks for all applicants. When making their assessment, lenders may overlook concerns over short-to-medium term performance owing to the pandemic. The checks and approach may vary between lenders.

When will it be available?

The scheme opened on 6 April and will run until 31 December 2021, subject to review.

More information

Visit the government's coronavirus business support site

These schemes closed on 31 March 2021. For further details on support to repay these loans, please see information on Pay As You Grow below for Bounce Back Loans. For CBILS please speak with your lender.

These loans closed for new applications on 31 March 2021. The government has launched a new repayment framework for Bounce Back Loans that enables businesses to: Pay As You Grow

• Request an extension of their loan term to 10 years from six years, at the same fixed interest rate of 2.5%
• Reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan
• Take a repayment holiday for up to six months. This option is available once during the term of their Bounce Back Loan.

Borrowers can use these options individually or in combination with each other and remain responsible for repaying their Bounce Back Loan and fully liable for the debt. Lenders will be in contact with businesses directly setting out the options available to them.

More information: Read more about the scheme at the British Business Bank.