A breakdown of each of the UK Government Funding Schemes (COVID-19) that have been announced to date follows below. Click a link below to view a particular scheme or here to download a table of all available measures.

Coronavirus Business Interruption Loan Scheme (CBILS)

Summary
Under the scheme, small and medium-sized businesses (SMEs) with an annual turnover of up to GBP 45m that are experiencing cashflow disruptions due to coronavirus can access government-backed financing of up to GBP 5m through a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance.

Key features include:

• The maximum value of a facility provided under the scheme will be GBP 5m.
• Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
• Lender is provided with a government-backed guarantee against 80% of the outstanding facility balance, subject to an overall cap per lender.
• Lenders will pay a fee to access the scheme, with no guarantee fee being charged to the borrower.
• The government will pay the first 12 months of interest payments and any lender-levied fees (Business Interruption Payment).
• The scheme may be used at the lender’s discretion for unsecured facilities of less than GBP 250,000, while for facilities above GBP 250,000, the lender must establish a lack or absence of security prior to financing.

Eligibility
The scheme is open to UK-based SMEs with an annual turnover of no more than GBP 45m and with a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender and for which the lender believes the provision of finance will enable the business to trade out of any short-to-medium term difficulty.

Decision-making on eligibility for CBILS is fully delegated to the relevant accredited lenders.

Fishery, aquaculture and agriculture businesses may not qualify for the full Business Interruption Payment by the government.

The following trades and organisations are not eligible to apply: banks, building societies, insurers and reinsurers (but not insurance brokers); the public sector, including state-funded primary and secondary schools; employer, professional, religious or political membership organisation or trade unions.

How to access
CBILS is now open for applications via the British Business Bank’s 40+ accredited lenders, who will then apply to the scheme.

A list of accredited lenders has been published and all major banks are offering the scheme.

In the first instance, businesses are encouraged to approach their existing lenders through their websites, and to consider approaching other lenders on the list if they are unable to access the finance they need.

Additional details
If the lender can offer finance on normal commercial terms without the need to make use of the scheme, they must do so.

The borrower always remains 100% liable for the debt.

Business Rates Holiday for Retail, Hospitality and Leisure

Summary
Under the scheme, businesses operating in the retail, hospitality or leisure sector in England will not have to pay business rates for the 2020-21 tax year.

There will be no rateable value limit on the relief.

Eligibility
Properties based in England that that are wholly or mainly being used as: shops, restaurants, cafes, drinking establishments, cinemas and live music venues; for assembly and leisure; or as hotels, guest and boarding premises and self-catering accommodation, will be eligible for the relief.

The government has published detailed guidance on which types of businesses will be eligible for the relief.

How to access
Local authorities will apply the business rates holiday directly to eligible businesses’ rates bills for the 2020-21 tax year.

Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority as soon as possible.

Additional Details
The Brexit Withdrawal Agreement negotiated with the EU provides that during a transition period EU State aid rules would continue to apply.

We understand that the UK government has applied to the European Commission for an exemption from state aid rules for the scheme and is awaiting approval.

Guidance provided to Local Authorities states that they should prepare to award the relief ignoring current state aid rules and will be informed of the outcome of the application as soon as it is known.

Cash Grant for Retail, Hospitality and Leisure

Summary
Under the scheme, businesses operating in the retail, hospitality or leisure sector will receive a cash grant of up to GBP 25,000 per property.

Businesses in these sectors with a property that has a rateable value of under GBP 15,000 will receive a grant of GBP 10,000, while businesses with a property that has a rateable value of between GBP 15,001 and GBP 51,000 will receive a grant of GBP 25,000.

Eligibility
Businesses will be eligible if they are based in England, operating in the retail, hospitality and/or leisure sector and occupying properties that are wholly or mainly being used as: shops, restaurants, cafes, drinking establishments, cinemas and live music venues; for assembly and leisure; or as hotels, guest and boarding premises and self-catering accommodation.

Businesses with a property that has a rateable value of GBP 51,000 or over are not eligible for this scheme.

Businesses which are not ratepayers in the business rates system, or which were liquidated or dissolved as at 11 March are not included in this scheme.

How to access
Local Authorities will write to all eligible businesses with information on how to claim this grant.

Additional Details
Any enquiries on eligibility for, or provision of, the grant should be directed to the relevant Local Authority.

Coronavirus Job Retention Scheme (CJRS)

Summary
Under the scheme, all UK employers with a PAYE scheme will be able to access funding, in the form of a government grant, to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. This is to safeguard workers from being made redundant.

The grants will cover 80% of the salary (up to a cap of GBP 2,500 per month) of “furloughed” workers, i.e., employees who are kept on their employer’s payroll but not required to work. Employers can top up salaries further if they choose to, but this is not obligatory under the scheme.

The grants will also cover the associated National Insurance contributions and minimum employer pension contributions for the furloughed employee.

CJRS is intended to run for three months, backdated from 1 March 2020, and could be extended if necessary.

There is no limit to the amount of government funding available under the scheme.

The government is aiming to make the first payments under CJRS by the end of April.

Eligibility
All UK employers with a PAYE scheme will be eligible--this includes the public sector, Local Authorities and charities.

Employers must have created a PAYE payroll scheme on or before 28 February 2020 and have a UK bank account.

Employees will need to be officially designated as “furloughed,” i.e., employees who have been asked to stop working, but who are being kept on the pay roll.

How to access
Employers will first need to officially designate affected employees as “furloughed workers,” and notify employees of this change.

Employers will then be able to submit information to HMRC about furloughed employees and their earnings, through a new online portal currently being developed.

HMRC are working urgently to set up a system which facilitates payments to employers for reimbursement. Further details will be provided by HMRC once the portal has been finalised.

Additional details
Changing the status of employees to “furloughed workers” remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation.

Employees that have been furloughed have the same rights as they did previously. That includes Statutory Sick Pay entitlement, maternity rights, other parental rights, rights against unfair dismissal and to redundancy payments.

Furloughed employees can be on any type of employment contract, including agency contracts and flexible or zero-hour contracts.

The scheme also covers employees who were made redundant since 28 February 2020, if they are rehired by their employer.

To be eligible, a furloughed employee may not undertake any work on behalf of the organisation. An employee working reduced hours will not be eligible for the scheme.

Small Business Grant Funding

Summary
The scheme will provide a one-off grant of GBP 10,000 to small businesses that already pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief (TR), to help meet their ongoing business costs.

Scheme funding is expected to be available from 1 April 2020.

Eligibility
The grant will be available to businesses based in England that already receive SBRR, RRR and/or TR and which occupy property.

How to access
Local Authorities will write to all eligible businesses with information on how to claim the grant.

Additional details
Any enquiries on eligibility for, or provision of, the grant should be directed to the relevant Local Authority.

Statutory Sick Pay (SSP) Rebate

Summary
Under the scheme, SMEs will be able to reclaim SSP (currently set at GBP 94.25 per employee per week) paid for staff sickness absence due to coronavirus.

This refund will cover up to two weeks’ SSP per eligible employee who has been off work because of coronavirus.

The government is currently legislating for SSP to be paid from day 1 of absence from work and this will apply retrospectively from 13 March 2020.

Eligibility
All UK based businesses employing fewer than 250 employees as of 28 February 2020 will be able to reclaim expenditure for any employee who has claimed SSP as a result of COVID-19.

How to access
As existing systems are not designed to facilitate employer refunds for SSP, the government has committed to work with employers over the coming months to set up a suitable repayment mechanism as soon as possible.

Additional details
The government advises that employers should maintain records of staff absences and payments of SSP, but that employees will not need to provide a GP fit note.

If evidence is required by an employer, employees with symptoms of coronavirus can request an isolation note from NHS 111 online and those who live with someone that has symptoms can request a note from the NHS website.

Time to Pay (TTP)

Summary
HMRC is dedicating additional resources to its existing TTP scheme, which allows entities in financial distress to defer current tax liabilities into future instalments.

HMRC has announced that up to 2,000 call handlers are being made available to support businesses and individuals in need and has set up a dedicated helpline for dealing for coronavirus-related TTP enquiries.

Eligibility
All UK tax-paying businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible for TTP but arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

How to access
HMRC has set up a dedicated helpline for dealing with coronavirus-related TTP enquiries which can be accessed by calling 0800 0159 559 between 8am and 4pm on Monday to Friday.

Additional details
Applicants applying for TTP should be prepared to have a detailed conversation with HMRC regarding their specific circumstances, financial situation and what measures are being taken to get tax payments back in order.

If, following this discussion, HMRC believes that applicants can pay immediately they will be required to do so.

If HMRC offers extra time to pay, they will set up a plan to pay instalments by Direct Debits on mutually agreed dates.

COVID Corporate Financing Facility (CCFF)

Summary
Under the scheme, the Bank of England will assist larger companies to bridge coronavirus disruption to their cash flows through the purchase of short-term debt in the form of commercial paper.

The facility will offer financing on terms comparable to those prevailing in markets before the crisis.

The scheme will operate for a minimum of 12 months and for as long as required to relieve cash flow pressures on firms that make a material contribution to the UK economy.

Eligibility
The scheme is open to firms that can demonstrate that they were in sound financial health prior to the impact of coronavirus.

In practice, this means those companies that had a short or long-term rating of investment grade (e.g., a credit rating of A-3/P-3/F-3/R3 from at least one of Standard & Poor’s, Moody’s, Fitch and DBRS Morningstar), as at 1 March 2020, or equivalent.

Companies who wish to use the scheme do not need to have issued commercial paper before.

How to access
CCFF is now available for applications. In order to access the facility, companies should in the first instance liaise with their banks.

For those companies whose banks do not issue commercial paper, a list of banks that are able to assist has been published here.

Additional details
Companies that do not have an existing credit rating are advised to get in touch with one of the major credit rating agencies to seek an assessment of credit quality for the purpose of accessing the CCFF.

Business Rates Holiday for Nurseries

Summary
Under the scheme, nurseries in England will not have to pay business rates for the 2020-21 tax year.

Eligibility
Properties registered on Ofsted’s Early Years Register and which are wholly or mainly used for the provision of the Early Years Foundation Stage will be eligible for the relief.

How to access
Local authorities will apply the business rates holiday directly to eligible nurseries’ business rates bills for the 2020-21 tax year.

Value Added Tax (VAT) Deferral

Summary
Under the scheme, VAT payments will be deferred for a period of three months between 20 March 2020 and 30 June 2020.

VAT registered businesses will not need to make a VAT payment during this period and will be given until the end of the 2020-2021 tax year to pay any liabilities accumulated during the deferral period.

Eligibility
All UK businesses are eligible.

How to access
This is an automatic offer and no application is required.

The government advises that customers who normally pay VAT by direct debit should cancel their direct debit with their bank in sufficient time so that HMRC do not attempt to automatically collect on receipt of the customer’s VAT return.

Additional details
VAT refunds and reclaims will be paid by the government as normal during the deferral period.

Income Tax Deferral for the Self-Employed

Summary
Under the scheme, income tax payments due on 31 July 2020 under the Self-Assessment system will be deferred to 31 January 2021.

No penalties or interest for late payment will be charged in the deferral period.

Eligibility
All self-employed persons are eligible.

How to access
This is an automatic offer and no application is required.

Additional details
The deferral is optional and HMRC has recommended that taxpayers who are able to make their payment on account should do so.

Income Support Scheme for the Self-Employed

Summary
Self-employed people or members of a partnership will be able to claim a taxable grant worth 80% of the average monthly trading profits for the previous three tax years (up to a maximum of GBP 2,500 per month), for the next three months.

Eligibility
To be eligible for the scheme, applicants must:

• have submitted an Income Tax Self-Assessment tax return for the tax year 2018-19;
• have traded in the 2019-20 tax year;
• be trading at the time of application (or would have been trading if not for COVID-19);
• intend to continue to trade in the 2020-21 tax year; and
• have lost trading profits due to COVID-19.

Self-employed trading profits must be less than GBP 50,000, and self-employment must comprise more than half of income.

Eligibility
The scheme is not yet open for applications. Eligible individuals will be invited directly by HMRC to apply online in future.

Protection from Eviction for Commercial Tenants

Summary
Commercial tenants who cannot pay their rent because of COVID-19 will be protected from eviction.

These measures will mean no business will automatically forfeit their lease and be forced out of their premises if they miss a payment up until 30 June 2020.

There is the option for the government to extend this period if needed.

Eligibility
All commercial tenants in England, Wales and Northern Ireland are eligible.

How to access
The change will come into force now that the Coronavirus Bill has received Royal Assent. No action is required.

Additional details
This is not a rental holiday. All commercial tenants will still be liable for the rent.

The government is also considering the impact on commercial landlords and is due to build in support for them too.

Accounts Filing Extension

Summary
UK companies can now apply to Companies House for a three-month extension for filing their accounts if their business has been affected by COVID-19.

Eligibility
Companies are required to make an application for the extension but those citing an issue related to COVID-19 will be granted an automatic extension.

How to access
An application to extend the deadline for filing the accounts can be made here.

Changes to Insolvency Laws

Summary
On 28 March, the UK Government announced planned changes to the UK’s existing insolvency framework, including:

• a moratorium for companies giving them breathing space from creditors enforcing their debts for a period of time whilst they seek a rescue or restructure;
• protection of their ability to buy essential supplies while attempting a rescue or restructuring, to enable them to continue trading during the moratorium; and
• a new restructuring plan, binding creditors to that plan.

These proposals will include key safeguards for creditors and suppliers to ensure that they continue to be paid while a solution is sought.

In addition, ‘wrongful trading’ provisions included in the Insolvency Act (1986) will be temporarily relaxed, retrospectively from 1 March 2020.

Under the existing law, wrongful trading occurs when company directors continue to trade beyond the point where:

• they knew or ought to have known that there was no reasonable prospect that the company would avoid insolvency; and
• they fail to take every step with a view to minimising the potential loss to the company’s creditors as they ought to have taken.

In suspending these wrongful trading rules, the UK Government hopes to give directors confidence to continue to trade during the crisis, without the threat of personal liability should the company ultimately fall into insolvency.

How to access
Legislation to give effect to these announced changes will be brought forward at the “at the earliest opportunity.” As Parliament is currently in recess until 21 April, the exact timing and applicability of these changes remains uncertain.