Coronavirus (COVID-19) – Businesses and Employers Bulletin

20/23 March 2020

This bulletin provides information for employers and businesses on Coronavirus (COVID-19). All guidance, information and announcements can be found at GOV.UK. Organisations should pay particular attention to the guidance for employees, employers and businesses which is being updated regularly with the latest advice.

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Contents

  • Economic Response
  • Business closures to reduce social gathering
  • New Updates and Guidance
  • Request for Business Intelligence
  • Coronavirus Business Support
  • Coronavirus Business Interruption Loan Scheme – Now open for applications
  • New Updates and Guidance
Economic Response

The Chancellor of the Exchequer has announced a package of support to help workers, in addition to the package set out for business:

 

Coronavirus Job Retention Scheme

Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. 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; and

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.

HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers. If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan.

Deferring Valued Added Tax (VAT) payments for 3 months.

The deferral will apply from today until the end of June. This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020-21 tax year to pay any liabilities that have accumulated during the deferral period. 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.

Income Tax Self-Assessment payments due on the 31 July 2020 will be deferred until the 31 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.

 

HMRC Time to Pay

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. You can contact HMRC’s dedicated Covid-19 helpline to get practical help and advice. This can be reached by calling 0800 0159 559

 

Coronavirus Business Interruption Loan Scheme

A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch early next week to support primarily small and medium-sized businesses to access bank lending and overdrafts. The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) 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. Businesses can access the first 12 months of that finance interest free.

Business closures to reduce social gathering

Government has asked that all cafes, pubs, bars and restaurants are to close on Friday 20 March. They can continue to provide take-out services. Nightclubs, theatres, cinemas, gyms and leisure centres should also close on Friday 20 March. This situation will be reviewed each month.

New Updates and Guidance

Closure of schools and care for the children of critical workers

Information for parents and carers about the closure of schools and other educational settings has been published. Children of workers who form a central part of effort to respond to the virus - such as NHS workers, police and delivery drivers - will continue to attend school, college or childcare provider. A full list of critical workers and further information is available.

 

Further details on exams and grades announced

Further details on arrangements for exams which have been cancelled to fight spread of coronavirus has been produced by the Department for Education.

 

Providing proof of coronavirus absence from work

People unable to work for more than seven days because of coronavirus (COVID-19) can obtain an isolation note through a new online service.

 

Guidance posters for staff, employers and businesses

Public Health England have produced guidance posters that should be downloaded, printed and displayed in the workplace:

 

Notices to exporters

The Department for International Trade’s Export Control Joint Unit (ECJU) has issued two Notices to Exporters concerning the impact on training and licensing activities. For general export control queries please contact ECJU’s Helpline on 020 7215 4594 or exportcontrol.help@trade.gov.uk.

 

Coronavirus (COVID-19) guidance for the charity sector

The Charity Commission have produced guidance to help running your charity during the outbreak.

 

Coronavirus (COVID-19): scientific evidence supporting the UK government response

The Government Office for Science has published new information on the national and global response to the spread of COVID-19 continues to develop quickly and our collective knowledge of the virus is growing by the second. You can find that information here.

Request for Business Intelligence

The Government is closely monitoring developments in relation to potential economic impacts on the UK economy and individual businesses and supply chain. We welcome information from businesses on:

 

  • The impacts across supply, demand and labour markets 
  • Actions being taken by firms to address these impacts 
  • Any gaps in the Government response from your perspective 

Please send your intelligence to intel@beis.gov.uk.  We are aware that individual company information may be commercially sensitive, and it will be treated accordingly.  Please note that this inbox is only for receiving intelligence only and does not provide business advice.

Coronavirus Business Support

The Government is supporting businesses and their employees through a package of measures during this period of unprecedented disruption. The Business Support website helps you find the right support, advice and information to help with the impact of coronavirus (COVID-19) on your business. This website will continue to be updated as information becomes available.

A full range of business support measures have been made available to UK businesses and employees. Find out how to access the support that has been made available, who is eligible, when the schemes open and how to apply here.

If you are able to help promote the business support measures to your stakeholders and networks, key information and content is available here.

 

Information for Businesses & Employers in Northern Ireland, Scotland and Wales

Specific information for businesses and employers in Northern Ireland, Scotland, and Wales is also available.

Coronavirus Business Interruption Loan Scheme – Now open for applications

The new Coronavirus Business Interruption Loan Scheme supports SMEs with access to working capital (including loans, overdrafts, invoice finance and asset finance) of up to £5 million in value and for up to 6 years. The scheme is now open for applications. To apply, you should talk to your bank or one of the 40 accredited finance providers (not the British Business Bank) as soon as possible, to discuss your business plan. You can find out the latest on the best ways to contact them via their websites. The full rules of the scheme and the list of accredited lenders are available on the British Business Bank website

New Updates and Guidance

Guidance for businesses and other venues subject to further social distancing measures

The Government has published guidance for businesses subject to further social distancing measures, including the list of businesses and other venues that must close and those now required not to sell food or drink for consuming on the premises. Closures are now enforceable by law. These measures will be reviewed every 28 days to consider their necessity and effectiveness, in light of changing circumstances.  

 

Critical workers – guidance for parents on school closures

Employers are responsible for identifying key workers within their business. Please think carefully before identifying staff as key workers and please encourage them to keep their children home where possible. Please share the following guidance with your critical workers:

  • If your work is critical to the COVID-19 response, or you work in a critical sector and you cannot keep your child safe at home, then your children will be prioritised for education provision. If it is at all possible for children to be at home, then they should be. Many parents working in these sectors may be able to ensure their child is kept at home. Every child who can be safely cared for at home should be. You can find more information here.
  • You can also share the following social media posts: Twitter: https://bit.ly/CVSchoolClosureTW LinkedIn: https://bit.ly/CVSchoolClosureLI Facebook: https://bit.ly/CVSchoolClosureFB

COVID-19 essential travel guidance

New guidance and advice has been published to avoid all non-essential travel in the UK. Following on from the government’s guidance on social distancing in relation to COVID-19, people should avoid travelling unless essential.

 

Driving tests and MOTs for heavy vehicles suspended

The DVLA are suspending driving tests for up to 3 months except for critical workers, and MOTs for lorries, buses and trailers are also suspended for 3 months. Further details can be found here. Guidance on drivers’ hours relaxations has also been published.

Requests for Business Intelligence and Assistance

New technology challenge to support people who are isolating

£500,000 of funding is available for technology companies who come up with digital support solutions for people who need to stay at home because of coronavirus. Funding of up to £25,000 per company is available. For more information on the programme and how to apply, visit techforce19.uk.

 

Ventilator supply specification

The government is looking for businesses who can support the supply of ventilators and ventilator components across the UK as part of our response to coronavirus (COVID-19). Specification of the minimally clinically acceptable ventilator is now available. If you think your business can help, please register your details.

 

Business Intelligence: share the impact Coronavirus is having on your organisation

We welcome information from businesses on impacts across supply, demand and labour markets, actions to address these impacts, and any gaps in the Government response from your perspective. Please send your intelligence to intel@beis.gov.uk. We are aware that individual company information may be commercially sensitive, and it will be treated accordingly.  Please note that this inbox is only for receiving intelligence and does not provide business advice.

Department for Business, Energy and Industrial Strategy 

Business Intelligence and Readiness Directorate       

sed@beis.gov.uk 

20 March 2020  

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