Financial Scheme information
Updated at 4pm on 1 June 2020
Support for large businesses affected by Coronavirus is being reviewed daily and updated on a regular basis. You can find a list of the current information available below along with links to more details on each scheme and how to apply for it.
This is an unprecedented time for all large businesses across Somerset. To mitigate the financial hardships caused by Coronavirus (Covid 19), the government have created tailored financial support packages. Details of these can be found below. Please click on the links to find more details of each scheme.
Alternatively, the government has now launched a Business Coronavirus Support Finder to quickly help businesses determine what financial support is available for themselves or their business.
Coronavirus Large Business Interruption Loan Scheme
This scheme will help large businesses affected by coronavirus (COVID-19) to access loans of up to £25 million. It’s available for viable companies with a turnover of more than £45m, including those which take in more than £500m and will be open from Monday 20 April. Find out more about this scheme here
Covid (Coronavirus) Corporate Financing Facility
Large companies based in the UK, or that have their headquarters here, and employ or provide goods or services to people in the country, whose annual turnover is more than £45m, could be entitled to the Bank of England’s new Covid Corporate Financing Facility. The finance facility can be for any period between one week and 12 months. You can find out more about how the scheme will work and how to apply on the HM Government Business Support – Corporate Financing Facility page
VAT Deferral
The government are offering all businesses which are Valued Added Tax (VAT) registered the option to defer payments for 3 months. Find out more here HM Government Business Support – VAT Deferral
Coronavirus Job Retention Scheme
All UK employers with a PAYE scheme can access support to continue paying part of their employees’ salary for those that would have been laid off during this crisis. This applies to employees who have been asked to stop working, but who are being kept on the pay roll. HMRC will reimburse 80% of their wages, up to £2,500 per month. You can check if you can claim for your employees’ wages through the Coronavirus Job Retention Scheme here
From July, businesses can bring furloughed employees back part time and will be responsible for paying their wages while in work.
From August, the government grant will be slowly tapered as follows:
- August: The government pay 80% of wages up to £2,500. Employers pay ER NICs and pension contributions
- September: The government pay 70% of wages up to £2,187.50. Employers pay ER NICs and pension contributions and 10% of wages to make up 80% total up to £2,500
- October: The government pay 60% of wages up to a cap of £1,875. Employers pay ER NICs and pension contributions and 20% of wages to make up 80% total up to £2,500
Apprentices
Apprentices can be furloughed in the same way as other employees and continue to train. They must be paid at least the Apprenticeship Minimum Wage, National Living Wage or National Minimum Wage as appropriate, for all of the time spent training, even if this is more than 80% of normal wages. You can find out more here
Time to Pay
Businesses in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. Arrangements are agreed on a case-by-case basis and tailored to individual circumstances and liabilities. You can find out more here.
Business Rates Holiday for Retail, Hospitality and Leisure
Businesses in the retail, hospitality and leisure sectors in England do not have to pay business rates for the 2020 to 21 tax year. Any business that has received the retail discount in the 2019 to 20 tax year will be rebilled by their local authority as soon as possible. You can find out more on the HM Government Business Support – Business Rates Holiday for Retail, Hospitality and Leisure page.
If you do not hear from your District Council by 1 April please check their website for progress and contact details.
Contacts
Information and assistance
Free information, support and advice for those needing help during Coronavirus can be obtained from:
The Heart of the South West Growth Hub
You can also find free support, advice and information on sources of finance, along with assistance on working from home through your local Heart of the South West Growth Hub.
GOV.UK Business Support
Get coronavirus (COVID-19) support for your business or if you’re self-employed, and find out how to keep your business and your employees safe. GOV.UK Business Support
HMRC Covid Helpline
HMRC have additional helplines, including one set up to support businesses concerned about not being able to pay their tax due to coronavirus on 0800 0159 559. You can find more details about contacting HMRC online.
Mind
The charity Mind provide advice on how to support your mental wellbeing during this difficult period. The Mind website includes practical advice on coping with staying at home and updates on how the new coronavirus laws could affect your rights. There is also useful information for any young person who is currently struggling.
Step Change
Contact the debt charity Step Change to get expert debt advice and fee-free debt management to help you tackle your debts.
You can find out more on their website or phone 0800 138 1111