Quick links to take you to the information you need
Go to the Government’s Support Finder tool for business
Job Support Scheme
Launches Sunday 1 November 2020 and runs for 6 months until April 2021
Furloughed employees will return to work for at least a third (33%) of their normal hours. If they do this they are entitled to at least 77% of their normal wage. The employer will pay the employee for all the hours they work and for the remaining hours which they do not work, the employer pays and third and the government pays a third. The government’s contribution will be capped at £697.92 a month.
Employers using the Job Support Scheme will be able to claim the Job Retention Bonus (£1000 one-off taxable payment for employers for each employee that you furloughed and kept continuously employed until 31 Jan 2021) if they meet the eligibility criteria. Claim dates for the Job Retention Bonus are between Monday 15 February 2021 and Wednesday 31 March 2021.
All employers with a UK bank account and UK PAYE schemes can claim the grant.
The government has produced a factsheet that you can access here.
Employers will be paid on a monthly basis in arrears.
Trade Credit Insurance: a new £10 billion deal and information that insurance underwriters will need from your business
EDA Board Member and MD of LEW Electrical Distributors, Andy Johnson, is our representative on the Construction Leadership Council’s (CLC) subgroup helping to shape this TCI support. If your business uses Trade Credit Insurance you’ll be aware of the potential problems caused by the current crisis and the possible “domino effect” along our sector’s supply chain caused by insolvency.
This new government initiative will mitigate the impact on the insurance companies to ensure that business like yours can still access TCI cover.
You don’t access the scheme, the insurer does, but the CLC’s latest guidance gives advice on the information insurance brokers will be asking for. Click on the image below to download the latest guidance.
Coronavirus Job Retention Scheme (CJRS) – Furloughed Workers
Latest Furlough Timescales
You’ll also find further information from the Chancellor’s announcement on Friday 29 May 2020 here.
- 10 June: The final date for furloughing an employee for the first time is Wednesday 10 June. This means they can be furloughed for a full 3 week period prior to 30 June.
- 30 June: From this point on employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.
- 1 July:
- From this date furloughed employees can, with their agreement, be brought back for any amount of time or shift pattern, while still being able to claim CJRS for the hours not worked. This means that the 3 week furlough period will no longer apply.
- Businesses will only be able to furlough employees who have already been furloughed for a minimum of 3 weeks.
- June and July:
- The government will continue to pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and employer auto enrolment pension contributions.
- Employers are not required to pay anything.
- 31 July 2020: Employers will have until 31 July to make any claims in respect of the period to 30 June.
- The government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough.
- Employers will pay ER NICs (the employer National Insurance) and pension contributions for the hours the employee is on furlough.
- The government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough.
- Employers will top up wages by 10% to ensure employees receive 80% of their wages up to a cap of £2,500 for the time they are furloughed.
- Employers will pay ER NICs and pension contributions.
- The government will pay 60% of wages up to a cap of £1,875.
- Employers will top up wages by 20% to ensure employees receive 80% of their wages up to a cap of £2,500 for the time they are furloughed.
- Employers will pay ER NICs and pension contributions.
- 31 October: The Scheme will close for all employees at the end of October.
Local Grants Fund Scheme: announced Saturday 2 May 2020
- For businesses of fewer than 50 employees
- The grants will be at the discretion of local authorities
- There will be 3 levels of grant payments: £25,000 is the maximum, then £10,000; and local authorities will have the discretion to make payments of any amount under £10,000
You can read more about this Fund here, but we are awaiting further information about how businesses can apply.
Bounce Back Loan Scheme: announced Monday 27 April 2020
- 100 per cent government backed loan scheme for small businesses
- Between £2,000 – £50,000 can be borrowed
- Interest free for first 12 months
- No repayments will be due in first 12 months
- Loan should reach businesses within days
- Scheme applications will launch Monday 4 May 2020
Find out more here.
Deferring VAT payment
VAT can be deferred from 20 March 2020 until 30 June 2020.
- All UK businesses are eligible and it is automatic, you do not need to apply
- Businesses will not need to make a VAT payment during this period
- Taxpayers will be given until the end of the 2020 to 2021 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.
Direct Debits: Don’t forget that if you normally pay by DD you should cancel it in good time before HMRC attempts to collect.
Support for businesses paying tax: Time to Pay Service
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to support through HMRC’s Time to Pay Service.
If you have missed a tax payment due to COVID-19, or you might miss your next payment, please call the HMRC’s helpline on 0800 0159 559
Coronavirus Business Interruption Loan (CBIL) for SMEs – open for applications: updated Monday 6 April 2020
If your business needs short term cash flow support, you may be eligible for this loan scheme to help SMEs (with turnover of up to £45 million) with access to loans, overdrafts, invoice finance and asset finance up to £5 million and for up to 6 years.
- All viable small businesses affected by COVID-19, and not just those unable to secure regular commercial financing, are eligible
- The scheme will run for an initial period of 6 months
- Personal guarantees are not required to secure lending below £250,000
- For any borrowing above £250,000, personal guarantees will be capped at 20% of the outstanding value of the loan. The Government is providing the guarantee for the remaining 80% of the finance.
Before applying for a CBIL, please contact your bank/lender to discuss a load or extended overdraft. The CBIL is a secondary option, if other credit is unavailable.
If you decide to apply for a CBIL, please talk to your bank or one of the 40 accredited finance providers listed here on the British Business Bank’s (BBB) website – note the British Business Bank is not one of the providers.
If you have an existing loan with monthly repayments, you may also want to ask for a repayment holiday to help with cash flow.
You can find more details about the CBIL here on the UK Finance website.
£10,000 Small Business Grant Scheme
This scheme provides support for businesses that pay little or no business rates with a one-off grant of £10,000 to eligible businesses to help meet ongoing business costs.
You do not need to apply because your local authority will write to you if you meet the following eligibility criteria. Any enquiries regarding eligibility, or provision of the grant, should be directed to the local authority and you can find yours here:
- your business is based in England
- you are a business that occupies a property
- you are receiving small business rate relief or rural rate relief as of 11 March
Here’s a PDF of the Small Business Grant Fund guidance issued by the Department for Business, Energy & Industrial Strategy.
SMEs paying Statutory Sick Pay (SSP) – reclaim
- SME means small or medium sized and employs fewer than 250 people as at 28 February 2020
- SSP is currently £94.25 a week and goes up to £95.85 a week in April 2020
The Government is bringing forward legislation to allow SMEs and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19.
The eligibility criteria is:
- this refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19
- employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19
- employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note. If evidence is required by an employer, those with symptoms of coronavirus can get an isolation note from NHS 111 online and those who live with someone that has symptoms can get a note from the NHS website
- eligible period for the scheme will commence the day after the regulations on the extension of SSP to those staying at home comes into force.
The Government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible.
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