Covid 19 - Financial Support Measures
In response to the severe impact of Covid-19 on businesses, H. M.
Government (“HMG”) has initiated a range of measures designed to help
relieve some of the damage caused to normal business operations. These are
designed to assist both small businesses (self-employed and personal
service companies) and medium/large companies.
We have listed a number of these measures below (grouped by topic). In each
case we have added a link to the relevant HMG webpage or other document so
that you can go direct to the current relevant information on the
particular topic. We will review the list (and the links) periodically and
seek to keep them up to date.
Delay in introduction of new IR35 measures from April 2020 to April 2021:
Claim back statutory sick pay (if you have staff):
Claim back wages paid to staff on furlough:
Universal Credit if you are on low income or have no work: HMG pages here
Self-Employment Income Support Scheme : Simply Docs Info pages
Small Business Grants Fund and Retail, Hospitality and Leisure Grant Fund:
Deferral of VAT:
Deferral of self-assessment tax: here
Business rates relief for certain types of business:
Bounce Back Loan Scheme for small businesses to access finance more
Coronavirus Business Interruption Loan Scheme:
Coronavirus Large Business Interruption Loan Scheme:
Convertible loans between £125,000 to £5 million to innovative companies: here
Covid Corporate Financing Facility to help large businesses by purchase of
their short-term debt:
Since tenants are under pressure from some landlords using aggressive debt recovery tactics, HMG legislated to restrict landlords' rights to recover unpaid rent from commercial tenants and from eviction for unpaid rent. These restrictions have been extended until 31 December 2020. The details are here but may not refer to that extension period.
Mortgage Holidays for Landlords
Mortgage lenders have agreed with HMG that they will offer repayment
holidays of 3 months to landlords with mortgages on their properties
(typically buy to let) whose tenants, due to COVID-19, have difficulty
paying their rent:
here. You will need to check to see if and how any lenders are extending repayment holidays any further.
Emergency Insolvency Measures
New measures to protect companies have been included in the Corporate
Insolvency and Governance Act 2020 (passed into law on 25 June 2020) to give them additional breathing space and
maximise their chances of survival. They:
a) extend existing moratorium provisions, so that, firstly, the threat of
winding-up petitions against a company is removed where they have unpaid
debts resulting from the pandemic, and, secondly, statutory demands issued
against companies are voided;
b) prohibit suppliers from terminating their supply agreements (but with
the ability for a supplier facing undue financial hardship to apply to the
court for permission to terminate its supply) so that companies continue to
access supplies and materials;
c) require dissenting creditors to accept a restructuring plan;
d) remove the threat to directors of being held personally liable for
wrongful trading if a company is unable to avoid insolvency as a result of
the coronavirus pandemic.
If you wish to see HMG's webpages about the Act, click here. For an update click on this link.