Covid 19 - Financial Support Measures
H. M. Government (“HMG”) initiated a range of measures to help relieve some of the damage caused to normal business operations by Covid-19, designed to assist small businesses (self-employed and personal service companies) and medium/large companies.
Some of these measures are listed below with links to relevant HMG webpage or other document so that you can go direct to the current relevant information on the particular topic.
There is also an online tool which you can find on an HMG webpage here which can help businesses to quickly see what financial support is available to them during the coronavirus pandemic.
We review the following list (and the links) periodically and seek to keep them up to date. We will retain this list for reference purposes until approximately 31 January 2022.
Employers/Employees/Self-Employed/PSCs
Claim back statutory sick pay (if you have staff): here . This can only be claimed for staff off work on days up to 30 September 2021.
Claim back wages paid to staff on furlough: here. Scheme no longer available.
Universal Credit if you are on low income or have no work: HMG pages here
Grants
Self-Employment Income Support Scheme : Simply Docs Info pages here. Scheme no longer avaiable to any claimants.
Small Business Grants Fund and Retail, Hospitality and Leisure Grant Fund. Scheme is closed.
Tax, VAT
Deferral of VAT: here. This facility is closed.
Deferral of self-assessment tax: here.
Business rates relief for certain types of business: here. This is no longer in operation.
Loans
Bounce Back Loan Scheme for small businesses to access finance more quickly. This Scheme is closed.
Coronavirus Business Interruption Loan Scheme. This Scheme is closed.
Coronavirus Large Business Interruption Loan Scheme. This Scheme is closed.
Convertible loans between £125,000 to £5 million to innovative companies. This Scheme is closed.
Covid Corporate Financing Facility to help large businesses by purchase of their short-term debt. This scheme is closed.
Commercial tenants
Since tenants were 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. The current position is set out in H M Government's Code of Practice which you can see here.
Mortgage Holidays for Landlords
Mortgage lenders agreed with HMG that they would 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. The current position is covered by H M Government's Guidance which you can see here.
Emergency Insolvency Measures
Measures to protect businesses were included in the Corporate Insolvency and Governance Act 2020 to give them additional breathing space and maximise their chances of survival. To see how these measures have been amended by the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 10) Regulations 2021, click here.
Debt recovery/debt relief
The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 came into effect on 4 May 2021. These new Regulations were designed to protect certain consumer or sole trader debtors with problem debt. You can find H M Government's Guidance on the subject here. You can see an outline of the subject at Appx B of our Guidance Notes on Debt Recovery and Legal Action by clicking here.