Government Support

Picture of the British parliament governmental building over London Bridge

 

Support available from UK government

A full range of business support measures have been made available to UK businesses and employees. All information can be found here on the government’s website.

To find out what support is available to you including loans, tax relief and cash grants, use the business support finder.

The government’s Business Support Helpline number is freephone 0800 998 1098. The helpline provides free, impartial business support and signposting services to businesses in England – which currently includes advice on the Coronavirus outbreak.

Speak to us about your experiences, thoughts, worries or ideas:
marketing@lincs-chamber.co.uk
01522 523333

Key Measures

Announced on 24th September 2020

Job Support Scheme

The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce. The scheme will open on 1 November 2020 and run for 6 months.

Employers will continue to pay the wages of staff for the hours they work – but for the hours not worked, the government and the employer will each pay one third of their equivalent salary. This means employees who can only go back to work on shorter time will still be paid two thirds of the hours for those hours they can’t work.

In order to support only viable jobs, employees must be working at least 33% of their usual hours. The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month. The Job Support Scheme will be open to businesses across the UK even if they have not previously used the furlough scheme, with further guidance being published in due course.

Click here to read more.

Pay as You Grow

More than one million businesses which have borrowed under the Bounce Back Loan Scheme will be offered the choice of more time and greater flexibility for their repayments. Lenders have been enabled to offer Coronavirus Business Interruption Loan Scheme borrowers more time to make their repayments where needed.

This includes extending the length of the loan from six years to ten, which will cut monthly repayments by nearly half. Interest-only periods of up to six months and payment holidays will also be available to businesses. These measures will further protect jobs by helping businesses recover from the pandemic.

Loan Schemes extended

Extension of applications for the government’s Coronavirus loan schemes until the end of November – Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, the Bounce Back Loan Scheme and the Future Fund.

This change aligns all the end dates of these schemes, ensuring that there is further support in place for those firms who need it.

Self-employment Income Support Scheme (SEISS) 

An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to actively trade but face reduced demand due to coronavirus. The initial lump sum will cover three months’ worth of profits for the period from November to the end of January next year. This is worth 20% of average monthly profits, up to a total of £1,875.

An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from February 2021 to the end of April – ensuring our support continues right through to next year.

Click here to read more about the SEISS grant extension.

More Time to Pay for Self-assessed Income Tax Payers

A 12-month extension from HMRC, meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.

5% VAT

The rate of VAT applied on most tourism and hospitality-related activities will be cut from 20% to 5% until 31st March 2021. Read more about this here.

VAT Deferral

Businesses who deferred their VAT bills will be given more breathing space through the New Payment Scheme, which gives them the option to pay back in smaller instalments.

Rather than paying a lump sum in full at the end March next year, they will be able to make 11 smaller interest-free payments during the 2021-22 financial year.

More details will be announced soon and this page will be updated as we receive this.

Announced earlier this year and ongoing

A Plan for Jobs 2020 – Delivering his Summer Economic Update in Parliament on 8th July 2020, the Chancellor announced a package of measures to support jobs. Read more about A Plan for Jobs here.

The Chancellor’s Summer Statement – Support measures announced on 8th July included measures such as the Kickstart Scheme along with other employment and support schemes, a reduction on VAT to 5% for tourism and hospitality, the Eat Out to Help Out campaign and more. Click here to read more.

Coronavirus Job Retention Scheme  – The scheme will continue until the end of October.

Review the updated employer guidance in line with phased changes. This includes information on how to treat furloughed workers who are returning to work part-time and what to do if an employer is struggling to pay contributions.

The following information is available on gov.uk:
– Claim portal
– Updated guidance on the CJRS
– CJRS Calculator
– And a step-by-step guide

£1000 Job Retention Scheme Bonus – If you are an employer and you bring some back who was furloughed and you continue to employ them to January the government will pay you this bonus. More information will be announced regarding this soon.

Self-employment Income Support Scheme (SEISS) – The SEISS extension will support viable traders who are facing reduced demand over the winter months, covering 20 per cent of average monthly trading profits via a government grant.

Click here to check if you are eligible for SEISS and to apply.

Coronavirus Loan Schemes

Pay as You Grow: More than one million businesses which have borrowed under the Bounce Back Loan Scheme will be offered the choice of more time and greater flexibility for their repayments. Lenders have been enabled to offer Coronavirus Business Interruption Loan Scheme borrowers more time to make their repayments where needed.

Future Fund – UK businesses driving innovation and development will be helped through the coronavirus outbreak with a £1.25 billion government support package. The Future Fund is open for applications until 30th November and can be found here.

Bounce Back Loans – Small businesses can benefit from a finance scheme providing loans with a 100% guarantee for lenders. The Bounce Back Loans scheme provides loans between £2,000 – £50,000, and are open for applications until 30th November. Click here to read more and here to apply.

Coronavirus Business Interruption Loan Scheme (CBILS) – Smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak. can receive up to £5 million. Click here for more information and how to apply (open for applications until 30th November).

Coronavirus Large Business Interruption Loan Scheme (CLBILS) –The maximum loan size available under Coronavirus Large Business Interruption Loan Scheme (CLBILS) is £200 million, with applications now open until 30th November. Read more here

 

Sickness and holidays

Statutory Sick Pay (SSP) – The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the Statutory Sick Pay (SSP) paid to current or former employees.

The repayment will cover up to 2 weeks starting from the first qualifying day of sickness. The online service is open for applications.

Annual leave –Workers who have not taken all of their statutory annual leave entitlement due to COVID-19 will now be able to carry it over into the next 2 leave years. Click here for more information.

Click here for the latest UK government guidance on these measures

Get more advice and business support

Visit our Coronavirus Advice Hub

Coronavirus Advice Hub