See the full range of Government support for businesses here, including financial support available, support for businesses trading internationally and guidance about looking after your workers.
The latest information over which businesses must close can be found here.
The latest guidance on cleaning your business premises can be found here.
Employers should take every step to avoid losing staff. To help employers retain their staff, the Government has introduced the Coronavirus Job Retention Scheme.
The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers for at least 3 months starting from 1 March 2020, and was extended on 17 April. It is designed to support employers whose operations have been severely affected by coronavirus (COVID-19).
Employers can claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage. Employers can use this scheme anytime during this period.
The scheme is open to all UK employers that had created and started a PAYE payroll scheme on 19 March 2020. This is a change from the previously announced cut-off date of February 28th. More information can be found here.
If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan.
The scheme was initially open to all UK employers that had a PAYE scheme in place on February 28th. To be eligible, the employee must have been on the payroll by this date, but the scheme has since been updated to support those on the payroll on March 19th.
This means an employee who was on their employer's payroll on or before 19 March 2020 is eligible, if this has been notified to HMRC on an RTI submission by this date. This is likely to have been the case if you were going to have your pay processed in the March payroll, but of course double check with your employer. This update has ensured that the scheme is more generous to those who recently started new employment.
An employee will be eligible whether they work full-time, part-time, are on an agency contract or a flexible or zero-hours contract.
If an employee was laid off or made redundant because of the impact of Coronavirus, that member of staff can be re-hired and furloughed. An employer can furlough staff "by reason of circumstances arising as a result of Coronavirus". This is more generous than the previous guidance and encompasses employees who refuse to work because they have legitimate fears for their health (so long as their employer agrees).
To take advantage of the scheme the employer must ‘furlough’ their employee for a minimum period of three weeks. This means that the employee is put on a temporary leave of absence where they are sent home, and the Government will instead support their wages.
Any furlough arrangement "must be agreed in writing (which can be in electronic form)". This is more stringent than the previous guidance which simply said that the employee must "confirm" that they agree. The new requirement is for writing.
If an employee is furloughed the Government will pay 80% of their wages up to a maximum of £2,500 per month. The employer has an option (but not an obligation) to make this up to 100% of wages by paying the remaining 20%.
Further support for businesses can be found here.
The scheme is likely to be up and running by the end of April, and employers are expected to pay these wages up until the point the scheme is live when they will receive a grant of reimbursement from the Government to cover the lower of 80% of the employee’s wage or £2,500 per month plus the associated Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions on that subsidised wage. Fees, commissions and bonuses will not be included.
The decision whether to put some or all of the workforce into furlough is taken by the employer. However because it entails a potential reduction in an employee’s pay it must be discussed with them in advance and agreed by written consent.
If an employee is furloughed they cannot work at all for that specific employer. Even one hour of work for that employer during the three-week furlough period will make the employee ineligible for the Scheme. However they are permitted to undertake training and voluntary work during this time, but they cannot provide services to, or make money for, their employer.
That being said, you are entitled to work for a separate employer, if it is permitted by your furloughed contract. So if you have been furloughed, you can apply for a separate job, if your furloughed employer has given permission for you to do so.
If you’re put on furlough by more than one employer, you’ll receive separate payments from each employer. The 80% of your normal wage up to a £2500 monthly cap applies to each job.
If you have been employed (or engaged by an employment business in the case of an agency worker) for a full year, employers will claim for the higher of either:
- The amount you earned in the same month the previous year; or
- The average of your monthly earnings from the last year.
If you’ve been employed for less than a year, employer will claim for an average of your monthly earnings since you started work. The same arrangements will apply if your monthly pay varies such as if you are on a zero-hour contract.
If you started work in February or March 2020 your employer will pro-rata your earnings from that month.
Bonuses, commissions and fees are not included as part of your monthly earnings.
Your other employment rights remain unaffected and will continue as if you had been in work for the duration of the period. Three points to note:
- Holiday Pay – will continue to accrue as if you had been at work. If it is not reasonably practicable to take all your leave this year you will be able to roll it over for another two years.
- Maternity Pay – There is no change to your entitlement to Maternity Leave and if you qualify, you will be entitled to Statutory Maternity Pay up to 39 weeks. More details below.
- Sick Pay – if you are currently on sick leave or self-isolating you should receive statutory sick pay (available from Day 1) but can be furloughed after this.
If you qualify for SMP you will still be eligible to 90% of your average weekly earnings or the statutory flat rate (whichever is lower) which is currently £148.68 per week, rising to £151.20 per week from April 2020.
If you are entitled for enhanced maternity pay under your contract of employment this is included within the wage costs that your employer can claim through the scheme. The same principles apply if you qualify for contractual adoption, paternity or shared parental leave.
If you are about to take maternity leave and your earnings have already reduced due to furlough or statutory sick pay this may affect your maternity pay.
Employees who are shielding in line with public health advice can be placed on furlough.
If your employer chooses to place you on furlough, you will need to remain for a minimum of three weeks. After this your employer can ask you to return to work or place you a further period of furlough which can either follow straight away or after a return to work. At present the guidance suggests that an employee can be brought in and out of furlough (although this may be updated).
The scheme will be open for at least 3 months. The Government guidance for the Coronavirus Job Retention Scheme is here.
Yes. You can claim for an average of their monthly earnings since they started work.
Once you’ve worked out how much of an employee’s salary you can claim for, you must then work out the amount of Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions you are entitled to claim.
More information is available here.
Furloughed employees must have been on your PAYE payroll on 19 March 2020, and can be on any type of contract, including:
- full-time employees
- part-time employees
- employees on agency contracts
- employees on flexible or zero-hour contracts
The scheme also covers employees who were made redundant since 19 March 2020, if they are rehired by their employer.This is a change from the original date of February 28. More information is available here.
If you run a small- or medium-sized business, you may be entitled to reclaim the costs of Statutory Sick Pay (SSP) for sickness absence due to COVID-19.
This refund will cover up to two weeks’ SSP per eligible employee who are either ill or have been told to self-isolate because of COVID-19. This is in line with the recommended isolation period. Guidance on self-isolation can be found here.
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 should maintain records of staff absences, but employees will not need to provide a GP fit note.
The government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible. Existing systems are not designed to facilitate employer refunds for SSP.
Further support for businesses can be found here.
By law, medical evidence is not required for the first 7 days of sickness. After 7 days, employers may use their discretion around the need for medical evidence, if an employee is staying at home.
The government strongly suggests that employers use their discretion around the need for medical evidence for a period of absence where an employee is advised to stay at home either as they are unwell themselves, or live with someone who is unwell, in accordance with the public health advice to stay home.Remote working should be encouraged.
If evidence is required to cover self-isolation or household isolation beyond the first 7 days of absence then employees can get an isolation note from NHS 111 online or from the NHS website.
17. Who is eligible for the Coronavirus Business Interruption Loan Scheme?
All viable businesses that have been impacted by Covid-19 can now access the CBIL, rather than just those that could not access commercial finance.
- No personal guarantees are required for loans below the sum of £250,000
- Personal guarantees for loans above the sum of £250,000 are limited to 20% of the loan – the portion which isn’t guaranteed by the Government.
- Operational changes are being put in place to speed up the processing of applications particularly those for smaller loans.
- If a lender turns a business down for the scheme they can still approach other lenders within the scheme (and because of this loosening of the rules you are encouraged to consider re-approaching your lender if they have previously turned you down for a loan).
You are eligible if:
- Your business activity is based in the UK.
- You have an annual turnover of no more than £45m.
- Have a borrowing proposal which the lender would consider viable were it not for the current pandemic.
- Self-certify that it has been adversely affected by Covid-19.
The link to the updated information is here.
To check if you are eligible for further government support, click here.
18. What is the Coronavirus Bounce Back Loan Scheme and who is eligible for it?
The Coronavirus Bounce Back Loan Scheme (BBLS) is designed to provide financial support to businesses whose operations and cash flow have been affected by COVID-19. The Treasury has created the scheme to support small and medium sized businesses across the UK and has the following features:
- Borrow between £2,000 and 25% of revenue (up to £50,000) on a fixed interest rate of 2.5% per annum;
- The Government will pay the first 12 months of interest payments;
- The borrower does not need to make any repayments for the first 12 months;
- 100% government-backed and fewer viability restrictions;
- No personal guarantees needed from borrowers.
Find more information here.
Eligibility:
- Has been impacted by the coronavirus (COVID-19) pandemic
- Was not a business in difficulty at 31 December 2019 (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules)
- Is engaged in trading or commercial activity in the UK and was established by 1 March 2020
- Is not using the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England’s Covid Corporate Financing Facility Scheme (CCFF), unless the Bounce Back Loan will refinance the whole of the CBILS, CLBILS or CCFF facility;
- Is not in bankruptcy or liquidation or undergoing debt restructuring at the time it submits its application for finance'
- Derives more than 50% of its income from its trading activity (this requirement does not apply to charities or further-education colleges)
Find out more information here.
