Government support available to businesses

Government support available to businesses

ARTICLE · By Timber Trade Federation · 23 March 2020

Since the Covid-19 pandemic has entered the UK, the Government has made some significant steps to support businesses including loans, deferrals on tax, and payments for employees.

Build UK has been issuing further advice for the construction industry, and today issued the below statements showing both what you can do, the support available, and how to apply for it.

At this point there is no advice to close construction sites and where possible they should continue to operate. Build UK have announced they will issue Standard Operating Procedures to help protect the site workforce this week.

Build UK are also calling for businesses to act in a responsible manner in relation to the financial support being offered, and to do your best to keep paying your supply chain and staff.

Procurement policy notices issued to public bodies this week allows for payment as normal even if service delivery is disrupted or temporarily suspended, although there can also be some modification of contracts.

You can view the full statement from Build UK, including the below table showing the schemes available to businesses, as well as eligibility, on their statement dated 23 March 2020:

Government support available to businesses

Last updated: 23 March 2020
SCHEME ELIGIBILITY SUMMARY
Statutory Sick Pay (SSP) reclaim Employers with fewer than 250 employees on 28 February 2020 Claim back up to two weeks SSP per employee who is absent due to Covid-19. Maintain records of absence. No GP fit note required. Repayment mechanism not yet in place. Commences as soon as the legislation is in place.
VAT deferral for three months All UK businesses VAT payments will not need to be made between 20 March and 30 June 2020. Continue to account for VAT on eligible goods & services. Deferred VAT will be due by April 2021. No penalites or interest will be charged. Vat refunds will paid as normal. No application required to benefit from deferral.
Time to Pay – Tax Service Businesses that pay tax to the UK government and cannot pay a current tax bill Arranged on a case by case basis for current or imminent tax payments. Call HMRC on 0800 0159 559
Income Tax deferral Self-employed workers Income Tax self-assessment payments due on 31 July 2020 will be deferred until 31 January 2021
Business rates holiday Retail, hospitality and leisure sector businesses in England No action required. Will be applied to Council Tax bill in April 2020 (your bill may have to be reissued). Calculate the value of this benefit
Cash grant Retail, hospitality and leisure sector businesses in England No action required. Local authorities will notify businesses. Available for each different property dependant on rateable value: • Rateable value under £15,000 eligible for £10,000 • Rateable value between £15,001- £51,000 eligible for £25,000
Small Business Grant Scheme Small businesses that occupy property and receive Small Business Rate Relief (SBBR), Rural Rate Relieve (RRR), or Tapered Relief in England No action required. Local authorities will contact businesses. One-off grant of £10,000. Scheme not yet in place
Coronavirus Business Interruption Loan (CBIL) UK businesses with a turnover of less than £45 million per year which meet British Business Bank eligibility criteria Available from 23 March. Loans of up to £5 million, 12 months interest free. Apply through your current bank or an accredited lender.
Covid-19 Corporate Financing Facility All UK businesses Available from 23 March. Purchase Commercial Paper (CP) during a defined period each business day. Businesses do not have to have previously issued CP. Available from the Bank of England