We have compiled a list of the latest information to aid employers and businesses in their decision making.
The latest information provided in this document is dated from Friday 3 April. If you require the previous information dated from Tuesday 17 March to Friday 27 March, it can be found on our website under news articles. Please follow this link.
UPDATES IN GREEN
Tuesday 31 March 2020
- There has been an amendment to the Working Time Regulations, which has been brought in with immediate effect due to the effects of Coronavirus. Where annual leave has not been taken because of the Coronavirus pandemic, the restriction on carry-over has been relaxed so that annual leave can be carried over into the next leave year. The untaken leave can be carried over into the next 2 leave years. The new rule applies to the four weeks of annual leave but not the additional 1.6 weeks which are already subject to different rules on carry over.
The new regulations also introduce a restriction on an employer’s right to refuse leave on particular days. Under the new amendments to the regulations, an employer will only be able to require a worker not to take carried over leave on particular days where the employer has ‘good reason’ to. The term ‘good reason’ has not been defined. - One of the more frequent questions we are been asked by clients since the latest release on Furlough Workers, is how much they should be paying employees whilst they are on Furlough Leave. The Government have not yet released any specific details on this as of yet, our advice has been to use the same method for calculating the 80% that they would be able to claim from the HMRC reimbursement Job Retention Scheme. Once we have further guidance on this, we will be sure to update employers.
The Institute of Accountants for England and Wales have released an article on Furlough and how they think the grant can be applied. They have provided some helpful examples of how it may be calculated. Please follow this link.
IT IS NOT YET CLEAR IF THE CALCULATIONS SHOWN IN THE ABOVE ARTICLE ARE THE METHODS IN WHICH TO USE TO CALCULATE EMPLOYEE PAY WHILST FURLOUGHED, AS THE OFFICIAL GUIDANCE IS RELEASED, WE WILL UPDATE YOU ACCORDINGLY.
Wednesday 1 April 2020
- The Self-Employment Income Support Scheme allows you to claim a taxable grant worth 80% of trading profits up to a maximum of £2500 per month for the next 3 months. The Government has said that they will extend this if it becomes necessary.
THIS SCHEME IS NOT YET LIVE- HMRC WILL MAKE CONTACT WITH YOU AND INVITE YOU TO APPLY ONLINE IF YOU ARE ELIGIBLE.
PLEASE BE MINDFUL OF CALLS TEXTS AND EMAILS CLAIMING TO BE FROM HMRC ALWAYS CHECK THE SOURCE OF THE COMMUNICATION BEFORE FOLLOWING A LINK OR GIVING OUT INFORMATION. - The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cash flow disrupted, as a result of the COVID-19 outbreak.
British Business Banks operates CBILS via 40 of its accredited lenders, who are currently working to provide finance, they include:
- High street banks
- Challenger banks
- Asset-based lenders
- Smaller specialist local lenders
A lender can provide up to £5 million in the form of:
- Term loans
- Overdrafts
- Invoice finance
- Asset finance
Please follow this link for key features of the scheme and how SME’s can apply.
Thursday 2 April 2020
- Hull City Council has today released guidance about the information they will need to process applications for SBRR (Small Business Rates Relief) and the grants for small businesses mentioned by the Chancellor last week.
By the end of this week, it is expected that businesses will be able to apply for the grant via an online portal which Hull City Council is in the process of setting up. Hull City Council has said they will distribute £58m in funding to firms in the city – with 4,000 businesses expected to be eligible.
The online facility will allow business owners to enter their details, so allowing the grants to be paid directly into the applicant’s bank accounts.
The information the Council will ask for when completing the online claim form is:- Business Rates Account reference - This can be found on any business rates bill relating to your business
- Business Property Address (as on the rates bill) - This can be found on any business rates bill relating to your business
- Name of the ratepayer (as on the rates bill) - This can be found on any business rates bill relating to your business
- Details of the person completing the form - Required by the Department for Business, Energy and Industrial Strategy
- Bank account into which the Grant should be paid - Please provide the bank account into which the grant should be paid. This should be your business bank account.
- Business VAT Number - Required by the Department for Business, Energy and Industrial Strategy if business is registered for VAT
- Business Company House registration number - Required by the Department for Business, Energy and Industrial Strategy. Can be found on Companies House Website.
- Business Company House registered name if different to that shown on the bill - Required by the Department for Business, Energy and Industrial Strategy
For further details on the Covid-19 Grant funding schemes, please follow this link.
THIS INFORMATION IS FOR BUSINESSES OPERATING UNDER HULL CITY COUNCIL, IF YOU ARE OPERATING UNDER A DIFFERENT LOCAL AUTHORITY, PLEASE USE THIS LINK TO DETERMINE WHAT GUIDANCE YOU SHOULD FOLLOW.
Friday 3 April 2020
- Coronavirus Business Interruption Loan Scheme (CBILS)
Until now, the strict criteria of the British Business Bank scheme has meant that if a business had security and is able to borrow under “business as usual” then they are not eligible for the CBIL Scheme, with any lending to be provided on commercial terms. The British Business Bank have now amended this requirement, such that if a business has been adversely impacted by Covid-19, you are now able to access the CBIL scheme (subject to eligibility and viability requirements) without the bank being required to assess first the ability to lend on a business-as-usual basis. This has the following impacts:- Businesses that are impacted by Coronavirus and are eligible under the BBB criteria and are deemed viable, will now be able to access CBILS.
- For loans < £250k, there is no requirement to seek additional standard security beyond any security already in place today. However, banks will continue to seek a debenture as a condition subsequent to funds being advanced.
- For loans >£250k, standard business security including a debenture will be required – so no change.
The information required to apply for one of these loans has not changed, and is outlined below:
DETAILS OF THE LOAN - The amount you would like to borrow
- What the money is for — the lender will check that it’s a suitable business purpose and the right type of finance for your needs
- The period over which you will make the repayments — the lender will assess whether the loan is affordable for you
SUPPORTING DOCUMENTS
You will need to provide certain evidence to show that you can afford to repay the loan. This is likely to include: - Management accounts
- Cash flow forecast
- Business plan
- Historic accounts
- Details of assets
The lender who is supporting the business may also ask for actions that you have already taken to reduce the financial effect of Covid 19. The information that may be asked of you is:
- Furloughing of employees and how many
- Suspension of rent / lease for 3 months given the Governments support for Forfeiture Moratorium for Commercial Lease
- Deferment of VAT
- Time To Pay arrangements with HMRC
- Scheduling of creditor payments by agreement
- Directors / shareholders / key employees reducing salary / annual drawings
- 6m Capital Repayment Holiday on bank loans
- 3m Capital Repayment Holiday on asset finance loans with providers
- 3m personal mortgage suspension
THE INFORMATION ABOVE IS PROVIDED BY LLOYDS BANK FOLLOWING THE GOVERNMENT UPDATING THE EXPECTATIONS OF BANKS IN SUPPORTING SME’S. IT IS OF THE ASSUMPTION THAT OTHER HIGH STREET BANKS WILL ALSO PUT VERY SIMILAR PROCESSES IN PLACE.
We currently work with ex-bank manager David Catley, who is on hand to assist with assessing your financial needs, reviewing existing banking facilities and accessing Government loan schemes. He is currently helping us support clients with the financial and business impact of Covid-19.
If his knowledge and expertise would be of value to you, or you would like to call for a chat and some guidance then please contact David Catley on 01482 324591.
This advice is based upon the Governmental and ACAS guidance as at the time of this email.
