Business rate holidays
Some businesses, including nurseries, in England will be eligible for a Business Rates holiday for 1 year from 1 April 2020:
- if you are currently receiving the retail discount for your Business Rates bill, you will receive a revised bill with 100% relief shortly
- if your business occupies a property in the retail sector with a rateable value of £51,000 or more, or if your business occupies a property in the leisure or hospitality sectors you may also be eligible for the 100% discount on your business rates bill
- you will shortly hear from your Local Authority. If you have any questions, you should contact your Local Authority
- if you are a nursery, you will be entitled to the 100% relief for the next year. You should contact your Local Authority for more information.
- guidance for Local Authorities will be published by MHCLG by 20 March.
If your business is eligible for small business rate relief or rural rate relief in England, you are entitled to a one-off cash grant of £10,000:
If your business is in the retail, hospitality or leisure sector in England, then you may also be entitled to a cash grant. If you have a property with a rateable value of less than £15,000 then you will be entitled to a grant of £10,000, whether or not you are entitled to small business rate relief or rural rate relief. If you have a property with a rateable value of between £14,999 and £51,000 then you will be entitled to a cash grant of £25,000.
The Department for Business, Energy and Industrial Strategy (BEIS) will provide guidance for Local Authorities on how to administer these grants shortly
If you are an eligible business, your Local Authority will then be in touch in the coming weeks to provide details of how to claim this money.
Dealing with cashflow problems
If your small-or medium-sized business in England is facing cashflow issues as a result of COVID-19, please read the following information:
- a new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch at the start of next week to support businesses to access bank lending and overdrafts
- the government will provide lenders with a partial guarantee of 80% on each loan to give lenders further confidence in continuing to provide finance to SMEs
- the government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value. The first 6 months of these loans will be interest-free, as the Government will cover these payments
- businesses will be able to get finance under the scheme from a large number of providers, including the main high street banks, as of next week
- businesses will remain responsible for repaying any facility they take out
- for further information, please visit: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/
If you are a large business facing cash flow issues as a result of COIVD-19, this may help:
- companies commonly sell short term debt (‘commercial paper’) to the market. This is a quick and cost effective to raise working capital
- the new COVID-19 Corporate Financing Facility means that the Bank of England will buy short term debt from companies
- this will support companies which are fundamentally strong, but have been affected by a short-term funding squeeze, enabling them to continue financing their short-term liabilities. It will also support corporate finance markets overall and ease the supply of credit to all firms.
- further details can be found here in the exchange of letters between the Governor of the Bank of England and the Chancellor, found here: https://www.gov.uk/government/publications/launch-of-covid-19-corporate-financing-facility-ccff.
If you are self-employed or own a business and you are concerned about not being able to pay your tax bills because of COVID-19, you may be eligible for support through HMRC’s Time to Pay service:
- if you think you or your business is eligible for support through Time to Pay, you can call the following helpline number to get practical help and advice: 0800 0159 559
- these arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
- for more information, please check the HMRC site https://www.gov.uk/government/news/tax-helpline-to-support-businesses-affected-by-coronavirus-covid-19.
If you own a pub that serves food or a restaurant in England, you are able to operate a hot food takeaway to serve people staying at home, without going through the usual planning process:
- the Ministry for Housing, Communities and Local Government will bring forward a temporary Permitted Development Right to allow for change of use from A3 (Restaurant) and A4 (Pub) to A5 (Hot Food Takeaway)
- the intention is that once the legislation has come into force a pub or restaurant will be able to notify their Local Authority that they are now operating as a takeaway without any prior approval
Takeaways, pubs and restaurants
If you contract your services to large- or medium-sized organisations outside of the public sector you should read the following information:
- the government announced on 17 March that the reform to the off-payroll working rules (commonly known as IR35) - that would have applied for people contracting their services to large or medium-sized organisations outside the public sector - will be delayed for one year from 6 April 2020 until 6 April 2021
- business and individuals do not need to take any action
If the only barrier to your business making an insurance claim was a lack of clarity on whether the government advising people to stay away from businesses, rather than ordering businesses to shut down, was sufficient to make a claim on business interruption insurance:
- the government’s medical advice of 16 March is sufficient to enable those businesses which have an insurance policy that covers both pandemics and government ordered closure to make a claim - provided all other terms and conditions in their policy are met. Businesses should check the terms and conditions of their specific policy and contact their providers if in doubt.
- however, most businesses have not purchased insurance that covers pandemic related losses. As such, any affected businesses should note the government’s full package of support, including the Coronavirus Business Interruption Loan Scheme and business rates holiday.