Coronavirus Help for employees, employers, self employed & businesses - Samantha Mitcham - 17.03.20

We all have our own reasons to be anxious about the current situation, for our own health and for that of the people around us. Nobody likes to be focusing on financial worries when there are people fearing for life, however the reality is that the current turmoil is causing a lot of stress especially in relation to ‘what if’ scenarios such as potential forced closures of businesses and / or schools.

We do not know the government’s plans in terms of extra financial help available if they force closures however help has been promised, so far, as follows:

Statutory sick pay – For businesses with less than 250 employees the cost of providing 2 weeks of Coronavirus related sick pay (for those infected or self isolating) will be refunded by the government in full. Sick pay will be payable to employees who would usually qualify, from day one, rather than day four. There is no requirement for employees to provide a sick note. It is not yet clear how this will be reimbursed to the employer.

Benefits for self employed – Employment and support allowance will be paid from day one, rather than day eight. Those affected by coronavirus will be able to apply for Universal Credit and can receive up to a month’s advance up front without physically attending a jobcentre interview.

Business rates holiday for retail, hospitality and leisure – For properties with a rateable value of less than ￡51k, business rates will be discounted by 100% for 2020-2021. Local authorities will send out revised rates bills with the discount applied as soon as possible.

Cash grants – Cash grants of ￡3,000 will be available for any business who receives small business rate relief or rural rate relief. The local authorities will make contact to facilitate this, you do not need to apply. The funding will be given to local authorities during April 2020.

Business interruption loans -  A new temporary Coronavirus Business Interruption Loan Scheme will launch in a matter of weeks to support businesses to access bank lending and overdrafts. The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) 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 ￡1.2 million in value.

Time to pay – HMRC have set up a dedicated helpline for businesses and self employed people with outstanding tax liabilities who are in financial distress as a result of the virus - 0800 0159 559.

Insurance Policies - Businesses should check with their insurance provider if they are covered. Many businesses are unlikely to be covered as most business interruption insurance policies are dependent on damage to property, which will exclude pandemics. Some businesses may have purchased a specific add on relating to notifiable diseases, but some of these will still specify damage to the building. Some businesses may have purchased supply chain or denial of access cover which may meet their needs in this case.

Mortgage holiday – Check with your provider, many will be offering 3 month breaks in mortgage payments with a fast track system for approval but not everyone will be granted with the holiday in payments. If granted, the unpaid interest will still be recovered later, but individual credit ratings will not be affected.

At the time of writing, this information is true and correct to the best of my knowledge, I have checked every element per official government guidance however, as we are now well aware, the situation is changing on a daily basis therefore care needs to be taken to ensure up to date guidance is followed. No reliance should be placed on the above article.

Samantha Mitcham - 17.03.20