Industrials & Covid -19

At Industrials we are aware that we are living through unprecedented times and know that Covid-19 is impacting all businesses. We have pulled together helpful information that we hope will help guide you through this uncertain period for your business and in particular SME.

Last updated 28/04/2020

The Government is putting together a wide ranging business assistance programme to help businesses navigate this turbulent time, a summary of all these measures can be found here, it is updated regularly. The Government is attempting to mitigate the long-term impact the Covid-19 outbreak is having on businesses across the UK. We have included a summary of some of the schemes which we believe will be of most interest to our customers.

 

 

England

  • 100% business rates holiday for the next 12 months to cover all retail, hospitality and leisure businesses irrespective of RV.
  • £10,000 cash grant for those that are in receipt of Small Business Rates Relief or Rural Rates Relief.
  • £10,000 cash grant for those occupying retail, leisure or hospitality properties, with an RV up to £15,000.
  • £25,000 cash grant for those occupying retail, leisure or hospitality properties, with an RV of £15,000 to £51,000.
  • In most instances you will be contacted by your local authority, but some are running an application process only.
  • You can also make an application for empty rates relief if your unit is currently empty. This is 6 months for industrial premises or 3 months for other occupier types.

 

Scotland

  • 100% business rates holiday for the next 12 months to cover all retail, hospitality and leisure businesses irrespective of RV.
  • £10,000 cash grant for those that are in receipt of Small Business Rates Relief or Rural Rates Relief.
  • £25,000 cash grant for those occupying retail, leisure or hospitality properties, with an RV of £15,000 to £51,000.
  • You can also make an application for empty rates relief if your unit is currently empty. This is 100% for 6 months for industrial premises or 50% for all other occupier types for 3 months, after these period have expired there will be an ongoing 10% reduction whilst the property remains vacant.
  • You can find additional detail on the Scottish Government’s package of reliefs and grants here

 

Wales

  • All retail, leisure and hospitality businesses with a rateable value of £500,000 or below will receive 100% non-domestic rates relief in 2020-21.
  • Eligible business premises with a rateable value of up to £6,000 will receive 100% relief and those with a rateable value between £6,001 and £12,000 will receive relief on a tapered basis from 100% to zero.
  • A grant of £25,000 is being made available for retail, leisure and hospitality businesses occupying properties with a rateable value of between £12,001 and £51,000.
  • A £10,000 grant to all businesses eligible for small business rates relief (SBRR) in Wales with a rateable value of £12,000 or less.
  • You can also make an application for empty rates relief if your unit is currently empty. This is 6 months for industrial premises or 3 months for other occupier types.
  • You can find additional details on the Business Wales website

Business rates need to be done through local authorities, if you are not sure of your local authority, you can find it here. The Government guidance on business rates can be found here

 

 

The temporary Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.

Eligibility Requirements:

  • Be UK-based in its business activity
  • Have an annual turnover of no more than £45 million
  • Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
  • Self-certify that it has been adversely impacted by the coronavirus (COVID-19)

Full details can be found here, along with a useful eligibility checklist.

 

Find a list of local council grant schemes for our Industrial Estates

 

UK Government Future Fund

This scheme will issue convertible loans between £125,000 to £5 million to innovative companies which are facing financing difficulties due to the coronavirus outbreak. It will launch sometime in May 2020, full details can be found here.

These convertible loans may be a suitable option for businesses that rely on equity investment and are unable to access the Coronavirus Business Interruption Loan Scheme.

 

Bounce Back Loans

Businesses will be able to borrow between £2,000 and £50,000 and the intention is that this cash will be released quickly to allow small businesses to keep operating. Loans will be interest free for the first 12 months, and businesses can apply online.

Full details and eligibility criteria are yet to be published.

 

Your local MP may be able to assist, to find your local MP click here.

 

 

Your insurance may offer some protection should you have to close. Check your policy wording or confer with your broker to see if you have Business Interruption cover in your commercial insurance policy. Business Interruption insurance covers the income that you lose after a disaster, and often comes up when discussing terrorism cover (for example, after the London Bridge attack, local businesses that were forced to close for a period of time would have been able to claim for revenue lost under this clause).

Once you have confirmed that you have Business Interruption cover, you will need to check whether you have an extension for “notifiable diseases”. If you have this in your policy wording, you will need to reach out to your broker/insurer to confirm whether coronavirus is covered. The UK Government has declared COVID-19 a notifiable disease. Holyrood has declared Covid-19 a notifiable disease in Scotland. If it isn’t, you may be able to ask for it to be added by your insurer, but they are within their rights to refuse, or to ask for an increased premium.

The government’s medical advice of 16 March is sufficient to enable those businesses which have an insurance policy that covers both pandemics and government ordered closure to make a claim – provided all other terms and conditions in their policy are met.

 

Building Insurance:

Under the building insurance policy which we put in place we can confirm that you remain covered throughout this crisis and do not need to do anything to ensure this remains the case. However, if the unit you occupy is temporarily closed please consider making the following arrangements.

  1. Turn the water off if possible
  2. Ensure all doors are secure, including fire exits
  3. Make any other reasonable security precautions including periodic inspections if possible

If you have a separate building contents insurance policy please review the policy documentation you have to ensure there are no specific requirements in order to ensure it is not invalidated.

 

 

HMRC has a set up a phone helpline to support businesses and self-employed people concerned about not being able to pay their tax due to coronavirus. The helpline allows any business or self-employed individual who is concerned about paying their tax due to Covid-19 to get practical help and advice.

For those who are unable to pay due to Covid-19, HMRC will discuss your specific circumstances to explore:

  1. Agreeing an instalment arrangement
  2. Suspending debt collection proceedings
  3. Cancelling penalties and interest where you have administrative difficulties contacting or paying HMRC immediately

The helpline number is 0800 0159 559 and is an addition to other HMRC phone contact numbers.

 

 

The Self-employment Income Support Scheme (SEISS) will support self-employed individuals (including members of partnerships) who have lost income due to Covid-19. This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next three months. This may be extended if needed.

The link to claim this is here.

Goverment Business Support

Offers advice on the Coronavirus Intrruption Loan Scheme, business rates holiday, cash grants and more. More information can be found on the website.

 

Association of Independent Professionals and the Self Employed (IPSE)

Provides tools, resources and support to help freelancers, contractors and the self-employed.
Website: ipse.co.uk
Call: 0208 897 9970

 

Federation of Small Businesses (FSB)

Provides a range of services for small firms and self-employed including advice and financial expertise.
Website: fsb.org.uk 
Call: 0808 202 0888

 

British Chamber of Commerce

Offers business support and official guidance on Covid-19 from the UK government.
Website: britishchambers.org.uk 

 

 

Covid-19 Job Retention Scheme

  • All UK businesses are eligible, you will need to designate employees as ‘furloughed’, HMRC will then cover 80% of their wages
  • HMRC are having to design a new system for this, due to the complexity of this it is anticipated it will be several weeks until it is fully operational. The full suite of Government information can be found here

 

VAT and Income Tax payments

  • VAT is suspended for three months, applying from 20th March to 30th June
  • If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021. There is no need to apply, refunds and reclaims will be paid as normal
  • HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities

 

——————————————————————————————————————

If you are an Industrials customer, we are aware that you will be impacted differently, and we ask you to please get in touch with your Customer Engagement Manager to discuss your particular circumstances. Please pick up the phone to us on 0800 122 3690, open a chat to leave your details or drop us an email us at enquires@industrials.co.uk .

 

——————————————————————————————————————

This page contains information from third parties and links to other internet sites. Whilst we believe the information to be accurate at the time of writing, Government advice is frequently changing in this fast-moving situation. Industrials accepts no responsibility or liability for the accuracy, currency or reliability of the information included in this page and in any information sources (including third-party Internet Sites) included in this page.