Technical

Navigating government funding support

There are multiple packages of government support for those affected by COVID-19.

We can help navigate your way to the most appropriate package(s) of support available to your business.

In addition to the specific ways outlined below, we can assist across all support measures in ways including:

  • Cash flow forecasting – to help assess what funding is required at what timeframes
  • Scenario planning and business case preparation – to model options, inform decisions, and prepare business cases for funding applications
  • Sounding board – to ensure your interpretation of guidelines is correct, and to challenge how government support fits into your overall plan
  • Resource to complete applications – and to deal with the necessary administration or logistics
  • Employee engagement – helping to communicate the right messages within your organisation, including Employee Hotlines as an outsourced service

24 hour debt advisory helpdesk

For all companies, lenders, sponsors and other stakeholders who may have any questions or wish to speak with a debt advisory expert on any of the government guarantee/lending schemes announced, please email us and send a message to one of our experts. We endeavour to respond within 24 hours.

CBILS: for companies with revenue of up to £45 million: cbils-sme-enquiries@uk.gt.com

CLBILS: for companies with revenue over £45 million: clbils-medium-enquiries@uk.gt.com

CCFF: for companies rated investment grade or similar: ccff-enquiries@uk.gt.com

Support for all businesses
Coronavirus Job Retention Scheme

HMRC will reimburse 80% of wages for furloughed workers that are still on payroll, up to £2,500 a month. This will run until the end of October with some changes to the scheme will be introduced from August. Employees will be subject to income tax and NIC.

From 1 August, the Government will continue to pay 80% of wages up to £2,500, however employers will pay ER NICs and pension contributions.

From 1 September, the Government will pay 70% of wages up to £2,187.50, and employers will pay ER NICs and pension contributions, as well as 10% of the wages to make up 80% total to a cap of £2,500

From 1 October, the Government will pay 60% of wages up to £1,875, and employers will pay ER NICs and pension contributions, as well as 20% of the wages to make up 80% total to a cap of £2,500

The government have also introduced a Job retention bonus. This will be a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed to the end of January 2021.

How we can help

  • Provide you with up to date information taking account of ongoing development of the scheme as announced by the government and consider how this applies to you
  • Support your HR functions in considering the options available to you (including furlough) and we can offer additional support on cost, agility, employer brand, talent engagement and retention, benefits and pensions
  • Assist with preparation and maintenance of Coronavirus Job Retention Scheme records, which are subject to audit by HMRC
  • Run an “Employee Hotline” or “Keep In Touch” capability as an outsourced service to help you communicate with your furloughed employees, taking pressure off your HR departments

For more support with identifying the right options for you, as well as assistance with furloughing employees and supporting HR departments, contact David Francis or Justin Rix.

 

 

Time to Pay

All businesses and self-employed people in financial distress, with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay (TTP) service. Businesses may request a deferral of tax debts to be paid in instalments over a set period (typically 3-12 months).

How we can help

  • We can help you understand the factors that should be considered when contemplating a TTP, including how it fits into your wider business strategy, plans for addressing liquidity challenges and cashflow forecasting
  • We can provide an overview of the TTP service and what to expect when contacting HMRC, including whether TTP is the right step to take and how to approach discussions with HMRC
  • If TTP is appropriate, we can help with your preparation and submission of a proposal to HMRC

For support with identifying if TTP is right for your business, and help with proposals to HMRC contact David Gregory or David Francis.

VAT Deferral

The scheme allowing for businesses to defer Value Added Tax (VAT) payments for three months, has now closed.

If you have cancelled your Direct Debit to HMRC to take advantage of the deferral, you will need to set up a new Direct Debit arrangement in time for the first payment after 30 June.

Payments due after 30 June must be paid in full as normal and you must continue to file your VAT return on time.

How we can help

  • We can help with understanding the relevant periods covered by the deferral - including complexities relating to Payments on Account 
  • We can discuss broader VAT cashflow optimisation

For more support, including broader conversations on VAT cashflow optimisation, contact Alex Baulf or Kersten Muller.

Support for individuals
Income Tax Deferral for the Self-Employed

Income Tax payments due in July 2020 under the Self-Assessment system can be deferred to January 2021.

How we can help

  • We can help you to consider reducing payments on account due for the 2019/20 tax year where this could result in an immediate refund of tax paid in January 2020
  • If you will have cashflow problems by January 2021, we can assist with negotiating time to pay arrangements with HMRC in due course to agree a suitable repayment plan

For more support on self-assessments contact Dan Hartland.

Self-employed Income Support Scheme

Self-employed individuals and members of partnerships who have lost income due to COVID-19 can claim a taxable grant of 70% of trading profits up to a maximum of a total of 3 months’ worth of profit, capped at £6,570 in total.

Claims for the first must have been made on or before 13 July 2020.

For the second (final) grant, claims can be made from 17 August 2020.

For more information get in touch with Dan Hartland.

Support for larger organisations
Covid-19 Corporate Financing Facility

The Bank of England will buy short-term debt (commercial paper) from larger companies, with a duration of up to one year – in a facility that will last until the end of 2020 (NB – business must have issued by the end of the year).

The scheme will be funded by central bank reserves and operate for at least 12 months.

How we can help

  • If you have not issued commercial paper before, we can assist you by quickly setting up a commercial paper programme, including processes and administration
  • We can introduce you to participating banks who have been approved by the Bank of England (Corporates need to use at least one bank to access the scheme)
  • Companies are likely to require a credit rating in order to participate. We can assist you with obtaining a credit rating and preparing the necessary information required by the credit rating agencies in order to issue a rating

For more information and support on credit ratings, commercial paper, and participating banks, contact ccff-enquiries@uk.gt.com.

Coronavirus Large Business Interruption Loan Scheme

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) will provide a government guarantee of 80% to enable banks to make loans of up to £200 million to firms with an annual turnover of over £45 million.

The scheme will be delivered through commercial lenders, backed by the British Business Bank.

When the fund is launched we can help

  • We can provide guidance on whether you are likely to meet lending eligibility criteria and introduce you to accredited lenders
  • We can help you consider how much funding to apply for, the cost of financing, and which lending product would be suitable for your needs
  • We can assist you in making your application or review your borrowing proposal to consider whether it meets the necessary requirements or whether to approach new lenders

For support on how to identify if your business is eligible, or for help with applications, contact clbils-medium-enquiries@uk.gt.com.

Support for small and medium sized businesses
Bounce Back Loan Scheme

The Bounce Back Loan scheme is designed to help small and medium-sized businesses to borrow between £2,000 and £50,000. The government will guarantee 100% of the loan and loans will carry no fee or interest for the first 12 months (after this the interest rate with be 2.5% a year). Loan terms will be up to six years.

How we can help

Our dedicated growth finance team is experienced in advising companies in raising venture and growth finance, helping companies in preparing a funding strategy, business plan and other fundraising documents. We can identify and make introductions to new investors who may be relevant to the company, as well as liaising with existing investors in the business.

Cash Grant for Retail, Hospitality and Leisure

Businesses in retail, hospitality or leisure in England, with a rateable value of:

For more information get in touch with Justin Rix.

Coronavirus Business Interruption Loan Scheme

Businesses with a turnover of less than £45 million per annum can access lending facilities of up to £5 million, with an 80% government guarantee. Interest and fees arising in the first 12 months of any facility taken out under this scheme will be paid by the government (as a Business Interruption Payment).

The scheme is not borrowing from the government – rather it is a case of the government acting as guarantor-of-last-resort on loan applications made to the 50 accredited lenders who are part of the scheme.

How we can help

  • We can provide guidance on whether you are likely to meet lending eligibility criteria and we’ll introduce you to accredited lenders
  • We can help companies to consider how much funding to apply for, the cost of financing, and which lending product would be suitable for your needs (i.e. term loan or asset finance facilities of up to six years; invoice discounting or overdraft facilities of up to three years)  
  • We can assist you with your application, or review your borrowing proposal to consider whether it meets the necessary requirements or whether to approach new lenders

For support on how to identify if your business is eligible, or for help with applications, contact cbils-sme-enquiries@uk.gt.com.

Future Fund

The government through the British Business Bank will match private investments into UK companies through a convertible loan instrument, investing between £125,000-£5,000,000 per company.

The scheme is suitable for companies that are unable to access the Coronavirus Business Interruption Loan schemes (CBILs) and who are funded by external investors. To be eligible businesses must have already raised at least £250,000 in aggregate over the preceding five years from third party investors. The scheme will run from May - September and is at present capped at £250 million of government money. Companies must be UK based.

How we can help

Our dedicated growth finance team is experienced in advising companies in raising venture and growth finance (and can still assist companies who are not eligible for this scheme secure conventional finance).

We can help in preparing a funding strategy, business plan and other fundraising documents. We can identify and make introductions to new investors who may be relevant to the company, as well as liaising with existing investors in the business.

We can manage the investment process from distributing fundraising documents and facilitating meetings, through to negotiating terms with investors and any diligence processes they may require.

Once private investment is secured we can assist in making the application to the Future Fund to have funding matched by the British Business Bank.

We will manage the whole process through to completion and funds in the bank.

Small Business Grant Funding

The government will provide Local Authorities with £10,000 per business to support small businesses under the small business rate relief (SBRR), rural rate relief (RRR) and tapered relief.

For more information get in touch with Kersten Muller.

Statutory Sick Pay Rebate

The government will allow SMEs to reclaim Statutory Sick Pay (SSP) for staff sickness absence due to coronavirus. This will cover up to two weeks’ SSP per eligible employee.

Available for organisations with fewer than 250 employees who qualify as SMEs.

How we can help

  • We can provide you with up to date information taking account of the latest Government policies available to support employers and those self-employed understand the options in place during the coronavirus pandemic
  • We can help your HR functions in considering the impact of the SSP rebate and provide resource to access this, as well as reviewing from a tax and benefits perspective
  • We can support the review of workforce planning and skills mapping to allow internal mobility, providing resilience to areas with high sickness where they are business critical

For more information on SSP rebate and support for your business on dealing with a large percentage of your workforce off sick, contact Justin Rix or Monique Beaulieu.

Support for specific sectors
Cash Grant for Retail, Hospitality and Leisure

Businesses in retail, hospitality or leisure in England, with a rateable value of:

For more information get in touch with Justin Rix.

Business Rates Holiday for Retail, Hospitality and Leisure

All businesses in retail, hospitality and leisure in England will not have to pay business rates for the 2020-21 tax year.

The Publican Support Helpline provides information to licensed business owners looking to access the commercial measures announced by the government.

How we can help

  • We can advise on the scope and extent of relevant reliefs and help with the application to the local authority, but this relief should be automatic for most affected businesses

For support on how to identify and access the relevant reliefs, and your applications to local authorities, as well as finding out more about the Publican helpline contact Justin Rix.

Business Rates Holiday for Estate Agents, Lettings Agencies and Bingo Halls

Estate agents, lettings agencies and bingo halls that have closed as a result of COVID-19 measures to restrict the spread of the virus will now be exempted from business rates in 2020-21.

How we can help

  • We can advise on the scope and extent of relevant reliefs and help with the application to the local authority

For support on how to identify and access the relevant reliefs, and your applications to local authorities contact Kersten Muller. 

Business Rates Holiday for Nurseries

Nurseries in England do not have to pay business rates for the 2020-21 tax year.