The latest grants available for UK businesses during CV-19

This week, Andrew James from The Catering Accounting Company joined us for a webinar with a focus on all things financial.

As parts of the UK go in to and come out of national lockdowns and into tiers and levels of restrictions again, we have put advice and guidance together for you, the most recent being the our latest webinar.

In the webinar, we discussed grants, loans, VAT deferrals, forecasting and everything in between when it comes to Covid-19 & financial support measures.

Please get in touch with us via [email protected] and let us know if you have been successful with a grant application or if you have not been successful with the reasons given by your Local Authority. All this information is key to us continuing to get our sector’s voice heard in Government.

This article goes gives you more detail about the key elements of support covered in the webinar.

Local Restriction Grants

These grants are available for businesses who have a premises and who are required to close under nationalised lockdown measures, currently in force across England. The grant is reflective of the rateable value of your premises.

• For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks.
• For properties with a rateable value of between £15k to £51k, grants to be £2,000 per month, or £1k per two weeks.
• For properties with a rateable value of £51k or over, grants to be £3k per month, or £1.5k per two weeks.

Since receiving guidance from Government, Local Authorities are or have set up their grant application processes, and many are open for applications now.

Please check your Local Authority website – the information will, in most cases, be found within the Coronavirus section of their website.

If a Local Authority had been in tier three for some time before a lockdown then this should have been in place since then.

You may have to sign up to your council’s business network newsletter and check their social media accounts as they often post grant openings via social media as well as on their websites. Some Local Authority websites are difficult to navigate but they should clearly signpost Coronavirus support on their homepage and should all have a search bar function.

You can also contact your local LEP (local enterprise partnership for information as they will work with your Local Authority  – There is a useful map to help you locate your LEP here: https://www.lepnetwork.net/about-leps/location-map/

Here are some examples for you:

http://www.hull.gov.uk/coronavirus/coronavirus-business-advice-and-support/local-restrictions-support-grant

https://forms.leeds.gov.uk/BusinessGrants/

https://www.gov.scot/publications/coronavirus-covid-19-restrictions-fund/

https://www.nibusinessinfo.co.uk/content/coronavirus-localised-restrictions-support-scheme

• Additional Restriction Grants

The objective of these grants is to provide funding to businesses that do not directly pay business rates.  Eligible businesses include those which supply the retail, hospitality and leisure sectors as well as businesses in the events sector and businesses required to close which do not pay business rates.

Exclusions include businesses in administration, insolvent or have been struck off the Companies House register as well as businesses who have exceeded the permitted state aid threshold (200,000 euros over the past 3 years).

 The amount of grant money is left at the discretion of each local authority (LA).

To apply, you should visit the relevant LA’s website to find out how to apply, You will be asked to complete a declaration confirming that you have not exceeded the relevant state aid threshold and was not an undertaking in difficulty on 31st December 2019.

Here is an example for you:

http://www.hull.gov.uk/business/business-grants-and-funding/additional-restrictions-grant

The Additional Restrictions Grant is a discretionary funding pot, but the events sector, including suppliers, are specifically mentioned in how Local Authorities can administer these support grants in para 23:

“Local Authorities can determine how much funding to provide to businesses from the ARG funding provided, and exactly which businesses to target. However, we encourage Local Authorities to develop discretionary grant schemes to help those businesses which – while not legally forced to close – are nonetheless severely impacted by the restrictions put in place to control the spread of Covid-19. This could include – for example – businesses which supply the retail, hospitality, and leisure sectors, or businesses in the events sector”.  

You can find more information on both these grants here:

https://www.gov.uk/government/publications/local-restrictions-support-grants-lrsg-and-additional-restrictions-grant-arg-guidance-for-local-authorities

• The Job Retention Scheme (furlough) UK wide

The furlough scheme has been extended again now at 80% until March

Pre-November CJRS claims deadline:

• All CJRS furlough claims for the period 1st July 2020 to 31st October 2020 must be submitted no later than 30th November 2020.

November onwards CJRS claims deadline:

 • CJRS claims must be submitted before midnight on 14th of the month following the month you are claiming for (e.g. November claim – 14th December 2020).

 • If the 14th falls on a weekend then it will be the end of the next working day.

 • A reasonable excuse maybe accepted if the deadline is missed. 

• If a claim has been understated you will have 28 days from the end of that month to correct it.

Company directors

 • Office holders and salaried company directors are still eligible to be furloughed

. • Directors, whilst furloughed, should only carry out statutory duties which they are legally obliged to do. For example, the daily upkeep of the business, including legal filings, record keeping, payroll, preparing annual accounts and updating general records.

CJRS – Employees not on the payroll on 19th March 2020 

Furloughed employees on a fixed wage • The pay reference period as regards CJRS claims is the last pay period ending on or before 30th October 2020.

• Example 3.3 on the link below shows how to calculate the CJRS claim.

https://www.gov.uk/government/publications /find-examples-to-help-you-work-out-80-ofyour-employees-wages/examples-of-how-towork-out-80-of-your-employees-wagesnational-insurance-contributions-and-pensioncontributions

Furloughed employees on variable pay/hours

 • The relevant pay for CJRS purposes is their average wage between 6th April 2020 (or if later the date the employment started) and the day before they are furloughed on or after 1st November 2020.  

• Example 3.9 on the link below shows how to calculate the average earnings.

https://www.gov.uk/government/publications /find-examples-to-help-you-work-out-80-ofyour-employees-wages/examples-of-how-towork-out-80-of-your-employees-wagesnational-insurance-contributions-and-pensioncontributions

• When working out the CJRS claim, where an employee works variable hours you will need to calculate the ‘average’ hours per day and then apply that to pay reference period (in part or in full) for which the CJRS claim is for.

• Example 2.9 on the link below shows how to calculate the ‘average’ hours worked per day and how to apply it to the relevant furlough period.

 https://www.gov.uk/government/publications /find-examples-to-help-you-work-out-80-ofyour-employees-wages/examples-of-how-towork-out-80-of-your-employees-wagesnational-insurance-contributions-and-pensioncontributions

• The Self-Employed Income Support Scheme  – UK wide

The government announced on 2^nd November that the Self-Employment Income Support Scheme will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.

Grants are set to be paid faster than previously, with the window for claims being brought forward from 14th December to 30th November.

The changes will ensure that self-employed individuals who temporarily cannot carry out their business or have suffered reduced demand due to the outbreak are supported over winter.

To be eligible for the grant extension self-employed individuals, including members of partnerships, must:

• have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
• declare that they intend to continue to trade and either:
  • are currently actively trading but are impacted by reduced demand due to coronavirus
  • were previously trading but are temporarily unable to do so due to coronavirus

The extension will last for 6 months, from November 2020 to April 2021. Grants will be paid in 2 lump sum instalments each covering a 3-month period.

The third grant will cover a 3-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant calculated at 80% of 3 months average monthly trading profits, paid out in a single instalment and capped at £7,500 in total. This is an increase from the previously announced amount of 55%.

The online service for the next grant will be available from 30 November 2020. HMRC will provide full details about claiming and applications in guidance on GOV.UK so please keep checking both the HMRC and Gov.uk websites.

• Bounce Back loans  – UK Wide

The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.

• It has been extended to Jan 31^st 2021 and payment periods can now be increased to 10 years from 6.
• You do not have to apply through your bank for the initial loan as some are not part of the scheme.
• You can apply for your loan to be topped up (with the bank you have the loan with) if you did not take the full amount out in the first instance.

The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.

• VAT deferral payment periods  – UK Wide

On 24 September 2020, the Chancellor announced that businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period. Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest free.

You will need to opt-in to the scheme, and for those who do, this means that your VAT liabilities due between 20 March and 30 June 2020 do not need to be paid in full until the end of March 2022.

Those that can pay their deferred VAT can still do so by 31 March 2021.

If you are still unable to pay the VAT due and need more time, see the guidance about what to do if you cannot pay your tax bill on time you can also contact us by phoning: 0300 200 3835.

More information on the scheme will be available on GOV.UK in the coming months.

For advice and information on other support available use the get help and support for your business guide.

• Possible relief from corporation tax losses

Please contact [email protected] for more information

• Extension to mortgage payment holidays.

You can apply for an extension to a mortgage payment holiday by speaking to your mortgage company.

Get in touch

If you would like to get in touch with Andrew to discuss support with a grant application, VAT deferral, furlough or would like to discuss how The Catering Accounting Company could help your business then please email [email protected]

The Catering Accounting Company are happy to send out copies of both books that Andrew mentioned if you email them on the above address.

The books are: –

The E-Myth Revisited by Michael Gerber £12.30 + £2.80 P & P

Great Ideas for Business Success by Andrew James– List price £21 – reduced price for NCASS members is £15 including P & P