WHC is the trading name of Derede UK Limited, company number 06133298. Derede UK Limited is registered to carry out audit work in the UK and is regulated by the ICAEW. Details of the audit registration can be viewed at www.auditregister.org.uk under reference number C003509394

WHC

Chartered Accountants

Registered Auditors.

138 Quay Road

Bridlington

East Yorkshire

YO16 4JB


Telephone: 01262 400611

Email: info@whcbrid.com

As of Tuesday 17/3/2020


Government assistance in the current emergency


The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.

This includes a package of measures to support businesses including:

  • a statutory sick pay relief package for SMEs
  • a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
  • small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
  • grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
  • the Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance
  • the HMRC Time To Pay Scheme

 
 
1 Support for businesses who are paying sick pay to employees

The government will bring forward legislation to allow small- and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. The eligibility criteria for the scheme will be as follows:

  • this refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19
  • employers with fewer than 250 employees will be eligible - the size of an employer will be determined by the number of people they employed as of 28 February 2020
  • employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19
  • employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note
  • eligible period for the scheme will commence the day after the regulations on the extension of Statutory Sick Pay to those staying at home comes into force
  • the government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible


2 Support for businesses that pay business rates


The government will introduce a business rates retail holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.

Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority as soon as possible.

A £25,000 grant will be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.

Any enquiries on eligibility for, or provision of, the reliefs should be directed to the relevant local authority. Guidance for local authorities on the business rates holiday will be published by 20 March.
 
3 Support for businesses that pay little or no business rates

The government will provide additional funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR). This will provide a one-off grant of £10,000 to businesses currently eligible for SBRR or rural rate relief, to help meet their ongoing business costs.

If your business is eligible for SBRR or rural rate relief, you will be contacted by your local authority – you do not need to apply.

Funding for the scheme will be provided to local authorities by government in early April. Guidance for local authorities on the scheme will be provided shortly.
 
4 Support for businesses through the Coronavirus Business Interruption Loan Scheme 


​A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch during the week commencing 23 March 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 £5 million in value. Businesses can access the first 6 months of that finance interest free, as government will cover the first 6 months of interest payments.

  
 
5 Support for businesses paying tax

All businesses and self-employed people 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. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
 
6 Insurance

Businesses that have cover for both pandemics and government-ordered closure should be covered, as the government and insurance industry confirmed on 17 March 2020 that advice to avoid pubs, theatres etc. is sufficient to make a claim.

Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. Most businesses are unlikely to be covered, as standard business interruption insurance policies are dependent on damage to property and will exclude pandemics.
 
7 Our commitment to you

We are here to help you through this difficult time. If you have any questions on the above, or would like to discuss anything related to your business or tax affairs please contact us via the switchboard on 01262 400611. 

Please bear in mind that many of the measures announced above have not yet been formalised or legislated for, so we may not be able to provide full details when you call. We will keep you updated on any developments


Update 1 Friday 20/03/2020

East Council have started contacting relevant businesses with a request to provide your bank details at                                        . As ever be careful of cyber security when entering bank details, the form can be posted or emailed if you have any concerns.

For Hull City Council




Update 2 Friday 20/03/2020

HMRC will pay 80% of retained workers salaries up to £2500 per month each if they are not in fact working 

Clearly the system of refunds to employers will take some time to set up so in meantime to help fund payments employers :-

  • Can defer VAT payments until end June 
  • Can defer self-assessment payments due 31/7/20


Update 3 Friday 20/03/2020

Hull BID and the LEP have produce this fact sheet, which you must look at – their press release is below

IMPORTANT INFORMATION
 
Following a meeting this morning with business support organisations, the Humber LEP has put together a comprehensive information sheet regarding help available to businesses, covering business rates, cash grants, loans for SMEs, and more. 

Please take the time to follow this link.... undoubtedly, you will find the information helpful. 

The support organisations will be convening on a weekly basis and any up-to-date information will be communicated, but do keep checking the                      website.
 
Hull City Council has also announced they are setting up a dedicated business support team. Please email any enquiries to business.support@hullcc.gov.uk or telephone 01482 300301 during office hours. 
 
We are in unprecedented times and I want to assure our members that Hull BID will offer as much support as we possibly can. Please don’t hesitate to contact us.
 
Kathryn Shillito
Executive Director - HullBID


Update 24th March 2020


website Gov.UK makes these comments firstly to employers and secondly to Furlough workers

1. To employers

Support for businesses through the Coronavirus Job Retention Scheme


Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.


Eligibility

All UK businesses are eligible.


How to access the scheme

You will need to:

  • designate affected employees as ‘furloughed workers,’ and notify your employees of this change - changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
  • submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)


HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.


2. The website makes this statement for Furloughed workers: -

Furloughed workers

If your employer cannot cover staff costs due to COVID-19, they may be able to access support to continue paying part of your wage, to avoid redundancies.
If your employer intends to access the Coronavirus Job Retention Scheme, they will discuss with you becoming classified as a furloughed worker. This would mean that you are kept on your employer’s payroll, rather than being laid off.


To qualify for this scheme, you should not undertake work for them while you are furloughed. This will allow your employer to claim a grant of up to 80% of your wage for all employment costs, up to a cap of £2,500 per month.


You will remain employed while furloughed. Your employer could choose to fund the differences between this payment and your salary, but does not have to.
If your salary is reduced as a result of these changes, you may be eligible for support through the welfare system, including Universal Credit.


We intend for the Coronavirus Job Retention Scheme to run for at least 3 months from 1 March 2020, but will extend if necessary.


3. Summary

  • You classify an employee as a Furlough worker – you are mothballing their employment – you tell the worker and you tell HMRC on a web portal.
  • You pay the wages through the PAYE system as normal.
  • You pay PAYE/NI
  • The Government reimburses you (how is not determined yet) up to 80% of the gross pay (we think based on their average payroll pay for the previous three months)
  • If you pay them 80% of what you paid them prior to being Furloughed you will get all the wage costs back.
  • The employee must not do any work for you whilst Furloughed (but also they are not free to work for anyone else)
  • Further information is now available


Update Wednesday 25.03.2020

​The Humber LEP, the four Humber Local Authorities and membership and business support organisations from across the Humber have formed a  new region-wide economic resilience group to pool information.


To access support email  growth.hub@humberlep.org


​Their website is 









.