Coronavirus – COVID-19.
What support is available from the government?
The Coronavirus (COVID-19) pandemic has had an enormous impact on everybody in the UK. Whether you’re self-employed, a business owner or an employee, you’ll be facing a whole range of personal and business challenges.
The government has announced significant support to protect the UK economy as well as everyone’s health. We’ve put together this COVID-19 Hub to try to make it easier to navigate the constantly changing support available.

Coronavirus – COVID-19.
What support is available from the government?
The Coronavirus (COVID-19) pandemic has had an enormous impact on everybody in the UK. Whether you’re self-employed, a business owner or an employee, you’ll be facing a whole range of personal and business challenges.
The government has announced significant support to protect the UK economy as well as everyone’s health. We’ve put together this COVID-19 Hub to try to make it easier to navigate the constantly changing support available.

Employee
The government has published advice on staying at home and which workers should continue to travel for ‘essential’ roles. Enhanced Statutory Sick Pay has been announced for those who are ill or self-isolating. It’s hoped that the announced Coronavirus Job Retention Scheme (CJRS) will mean that job losses are minimised as the government will cover 80% of employees wages up to £2,500 per month if employees are ‘furloughed’ to preserve jobs. The CJRS may be available to limited company directors who are paid a salary through their limited company. There has also been support announced for homeowners and renters.

Business
There are a range of measures intended to support businesses including: Deferring VAT payments due between 20th March and 30th June 2020 until the end of the tax year, Business Rates relief, a three-month extension on filing Company Accounts, Business Interruption Loans, as well as grant funding for many smaller businesses.

Self-employed
The Chancellor announced a package of measures to support the self-employed on 26th March, and details are still emerging, but include a taxable grant of up to £2,500 per month for many sole traders and partnerships. The previously announced support includes deferral of Income Tax payments on account and VAT, changes in the eligibility criteria for Universal Credit and Employment Support Allowance, as well as support for renters and delays to mortgage payments.
Useful explainers
Under the new Coronavirus Job Retention scheme, government grants will cover 80% of the salary of PAYE employees who would otherwise have been laid off during this crisis. The scheme, open to any employer in the country, will cover the cost of wages backdated to 1 March 2020 and will be open before the end of April. It will continue for at least three months and can include workers who were in employment on 28 February.
To claim under the scheme employers will need to
- designate affected employees as ‘furloughed’ workers and notify 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. Remember that employees that are ‘furloughed’ cannot work for the business during this period.
- 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. I understand the cap will include ‘on costs’ such as Employers’ NI and auto enrolment contributions.
While HMRC is working urgently to set up a system for reimbursement, I understand existing systems are not set up to facilitate payments to employers.
Businesses that need short-term cash flow support, may benefit from the VAT deferral or be eligible to apply for a Coronavirus Business Interruption Loan.
The next quarter of VAT payments will be deferred, meaning businesses will not need to make VAT payments until the end of June 2020. Businesses will then have until the end of the 2020-21 tax year to settle any liabilities that have accumulated during the deferral period.
Businesses will need to submit their returns in the normal way, and will need to cancel their Direct Debit instruction if they wish to avail of the deferral. Otherwise payments will be taken as normal. VAT refunds and reclaims will be paid by the government as normal.
Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021. This is an automatic offer with no applications required. No penalties or interest for late payment will be charged in the deferral period.
Self-employed people can now access full universal credit at a rate equivalent to statutory sick pay.
HMRC’s Time to Pay scheme can enable firms and individuals in temporary financial distress as a result of Covid-19 to delay payment of outstanding tax liabilities. HMRC’s dedicated Covid-19 helpline provides practical help and advice on 0800 0159 559.
- The scheme will pay 80% of individuals average monthly profits up to a maximum of £2,500 per month.
- This will be calculated on the last 3 years of trading profits and you must have submitted a 2019 Tax Return. Those who have only submitted one, or two, years may still apply.
- We do not yet have details of how to process applications, HMRC are currently designing a system to do this.
- The money should be available by the beginning of June.
- Those in partnerships are also eligible.
You are NOT eligible if
- The majority of your income does not come from a Partnership/Self-Employment.
- You have not submitted a 2018/19 Self-Assessment return, though I believe there is a small window of opportunity to file late or did not start trading until after 5th April 2019.
- Your trading profits are above £50,000 per-year
- No rates payable for the 2020-2021 tax year for any business in the retail, hospitality or leisure sectors.
- In those sectors, if your rateable value is between £15K and £51k, you’ll also receive a cash grant of up to £25,000 per property.
- Any business which gets small business rates relief, including those in the retail, hospitality or leisure sectors, will receive a cash grant of £10,000 (increased from £3,000 announced in the 11 March Budget).
- The rates holiday and cash grants will be administered by Local Authorities and should be delivered automatically, without businesses needing to claim.
- For small and medium-sized businesses, a new Coronavirus Business Interruption Loan Scheme (CBILS), delivered by the British Business Bank, will provide support for businesses to access a wide range of funding facilities including overdrafts, loans, asset finance and invoice finance.
- The government will provide lenders with a partial guarantee of 80% on each loan 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. The first 12 months of these loans will be interest and fee free, as the Government will cover these payments.
- Businesses will be able to get finance under the scheme from many providers including the main high street banks.
- To be eligible for the scheme the business must be based in the UK, with turnover of no more than £45 million per year.
- There is a quick eligibility checklist on the British Business Bank website to help businesses understand if they are eligible to apply for a CBILS-backed facility,
- More information on the scheme can be found on the website of the British Business Bank
Mortgage borrowers can apply for a three-month payment holiday from their lender. Both residential and buy-to-let mortgages are eligible for the holiday. It is important to remember that borrowers still owe the amounts that they don’t pay as a result of the payment holiday. Interest will continue to be charged on the amount they owe. You will pay more interest and maybe fees and the life of your mortgage may well be extended.
- If you’re a director of a limited company with less than 250 employees, you can pay yourself two weeks of SSP if you need to self-isolate subject to meeting the minimum payroll requirement for SSP.
- The government will refund £94 per week, maximum £188, to your company.
- It will also refund SSP for staff of businesses with less than 250 employees for up to two weeks.
Information about COVID-19
Everyone must stay at home to help stop the spread of coronavirus.
This includes people of all ages – even if you do not have any symptoms or other health conditions.
You can only leave your home:
- to shop for basic essentials – only when you really need to
- to do one form of exercise a day – such as a run, walk or cycle, alone or with other people you live with
- for any medical need – for example, to visit a pharmacy or deliver essential supplies to a vulnerable person
- to travel to and from work – but only where this is absolutely necessary
You must not leave your home for any other reason.
If you do not follow the rules, THE POLICE WILL ENFORCE THEM with fines and dispersing gatherings.
Coronaviruses are a ‘type’ of virus. The coronavirus we are all hearing about is called COVID-19, but you may also hear it called – coronavirus.
The evidence shows us that the vast majority of people who get this virus have relatively mild symptoms and make a full recovery. But in a small percentage of cases, the virus can cause more severe symptoms. This is particularly true for people with a weakened immune system, for older people and for those with long term conditions like diabetes, cancer and chronic lung disease.
If you are infected you may have very minor symptoms, minor symptoms or more severe symptoms, but the NHS cites two symptoms to look out for as:
- A new continuous cough
- A fever or high temperature
For more information check https://www.nhs.uk/conditions/coronavirus-covid-19/
- Protect others – don’t call NHS 111
- Protect others – don’t call, or go to your GP
- Protect others – don’t go to your local hospital
If you live alone – isolate yourself at home immediately for 7 days
If you live with others – you should all isolate yourselves at home for 14 days – this 14-day period starts from the day the first person in the home noticed the symptoms
For further information read this government advice on staying at home and isolating.
- You can’t manage with your symptoms at home
- Your conditions get worse
- Your symptoms do not get better after 7 days
You should use the online 111 service or if you can’t use the online service call 111
Useful Links
The Suffolk Chamber of Commerce
The Suffolk Chamber of Commerce is happy to offer help and advice to any Suffolk business that has questions or concerns in these challenging times. It doesn’t matter if your business is a Chamber member or not.
- Visit the Suffolk Chamber of Commerce website to find lots of information for businesses
- Email info@suffolkchamber.co.uk if you can’t find what you’re looking for on their website
- Follow Suffolk Chamber of Commerce on Twitter at: twitter.com/suffolkchamber
New Anglia Growth Hub
Get free business support and advice during the coronavirus (COVID-19) crisis from qualified advisers. It’s a challenging time and information is changing very quickly.
- Find latest business-related guidance or visit newangliagrowthhub.co.uk
- Call 0300 333 6536 to speak to a qualified adviser
- Follow New Anglia LEP Forum on Twitter: twitter.com/AngliaHub
Federation of Small Business (FSB)
The FSB has created a hub to support businesses during the coronavirus (COVID-19) pandemic. The hub aims to answer many questions for small business owners and the self-employed.
Information is available to you regardless of whether you are a member of the FSB or not.
- Visit the Federation of Small Business website
- Email andrew.mower@fsb.org.uk
- Follow Federation for Small Business, East Anglia on Twitter: twitter.com/FSBEastAnglia
HMRC
HMRC now have a helpline for any businesses concerned about paying their tax due to coronavirus (COVID19).
- Find information online from HMRC on GOV.UK
- Call 0800 0159 559
- Follow HMRC on Twitter: twitter.com/HMRCpressoffice