Support for Businesses - Financial Assistance

If your business is required to close by law or to significantly change its operations due to COVID-19 restrictions from 2 November 2020, you may be eligible to apply for grant funding.

There are 2 funds available:

• temporary closure grant
• business restrictions grant

The support funds will be administered by local authorities, providing one-off grants to hospitality and other businesses required to close by the brake restrictions regulations. 

The temporary closure fund will operate as a two-tiered scheme:

• a smaller grant of £2,000 for businesses with a Rateable Value (RV) of up to and including £51,000
• a larger grant of £3,000 for businesses with a RV of £51,001 or above, up to a maximum of £15,000 in total for any eligible business operating multiple premises

The business restrictions grant will support companies who can remain open but are required to modify its operations by law. It will also operate as a two-tiered scheme depending on Rateable Value:

• a smaller payment of £1,400 for businesses with a Rateable Value (RV) of up to and including £51,000
• a larger payment of £2,100 for businesses with a RV of £51,001 or above, up to a maximum of £10,500 in total for any eligible business operating multiple premises

Find out more information here.

The Scottish Government has announced that this fund has now been increased from £40 million to £48 million in funding for businesses and employees in Scotland affected by the temporary coronavirus (COVID-19) brake restrictions that came into effect on 9 October 2020. The one-off payments have increased accordingly. 

There are 2 funds available: 

• business closure fund
• business hardship fund - this will be decided on a case-by-case basis

The support funds will be administered by local authorities, providing one-off grants to hospitality and other businesses required to close by the brake restrictions regulations. 

The business closure fund will operate as a two-tiered scheme:

• a smaller grant of £2,875 for businesses with a Rateable Value (RV) of up to and including £51,000
• a larger grant of £4,310 for businesses with a RV of £51,001 or above, up to a maximum of £21,000 in total for any eligible business operating multiple premises

The discretionary business hardship fund will support some companies that can remain open but are directly impacted by the restrictions, including those that supply businesses that must close. It will also operate as a two-tiered scheme depending on Rateable Value: 

• a smaller payment of £1,440 for businesses with a Rateable Value (RV) of up to and including £51,000
• a larger payment of £2,155 for businesses with a RV of £51,001 or above, up to a maximum of £14,000 in total for any eligible business operating multiple premises

Applications have now closed.

From 1 November, the UK Government will pay 80% of wages up to a maximum cap of £2,500 for the hours the employee is on furlough. 

New staff can be furloughed, providing they were on payroll on by 30 October. You can read more about the changes here.

Make your claim here.

If you’re eligible and your business has been adversely affected on or after 1 November, you must make your claim for the third grant on or before 29 January 2021.

You can make a claim for the third grant if you’re eligible, even if you did not make a claim for the first or second grant.

If you’re eligible, the third grant will be a taxable grant worth 80% of your average monthly trading profits. The grant will be paid out in a single instalment covering a further 3 months’ worth of profits. The third grant is capped at £7,500 in total.

Grant Extension (announced 24 September)

The SEISS Grant Extension provides critical support to the self-employed. The grant will be limited to self-employed individuals who are currently eligible for the SEISS and are actively continuing to trade but are facing reduced demand due to COVID-19.

The extension will provide two grants and will last for six months from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.

Further update on 22 October 

On Thursday 22 October the Chancellor announced he was increasing the amount of profits covered by the two forthcoming self-employed grants from 20 per cent to 40 per cent, meaning the maximum grant will increase from £1,875 to £3,750.

It will be available to anyone who was previously eligible for the SEISS grant one and grant two, and meets the eligibility criteria.

If you're self-employed, read HMRC's frequently asked questions (FAQs) for self-employed people and businesses

Find further guidance on GOV.UK

Small and medium-sized businesses affected by coronavirus (COVID-19) can apply for a loan of up to £50,000 which will be guaranteed by the UK Government.

As part of the Winter Economy Plan the length of the loan has been increased from six years to ten years, which will cut monthly repayments by nearly half. Interest-only periods of up to six months and payment holidays will also be available to businesses.

Apply for a coronavirus Bounce Back Loan by 31 March.

Small businesses can now apply for the Coronavirus Business Interruption Loan Scheme (CBILS). They have changed eligibility criteria to make it easier for businesses to access funds. 

The British Business Bank offers the Coronavirus Business Interruption Loan Scheme (CBILS) which started accepting applications on 23 March. 

Loans for companies with turnover of between £45m and £500m Update: max loan size under the scheme will be increased from £50m to £200m from 26 May 2020.

Applications open until 31 March.

For more details and to apply go here.

The Future Fund provides loans ranging from £125,000 to £5 million.

These convertible loans may be an option for businesses that rely on equity investment and are unable to access other government business support programmes because they are either pre-revenue or pre-profit.

Find out more and apply by 31 January. 

This refund will cover up to 2 weeks’ SSP from the first day of employees off sick due to COVID-19.

Online service is open. Go here to claim back SSP.   

All businesses and self-employed people in financial distress may be eligible to receive support with their tax affairs. On 24 September, the Chancellor annnounced a 12-month extension from HMRC on the “Time to Pay” self-service facility, meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.

If you are concerned about being able to pay your tax due to Covid-19, call HMRC’s dedicated helpline on 0800 0159 559.

All non-domestic properties in Scotland will get a 1.6% rates relief.

You do not need to apply for this relief. It will be applied to your bill by your local council.

Click here for more information.

As part of the package announced on 24 September, the government announced it will extend the temporary 15% VAT cut for the tourism and hospitality sectors to the end of March.

In addition, up to half a million business who deferred their VAT bills will be given more breathing space through the New Payment Scheme, which gives them the option to pay back in smaller instalments. Rather than paying a lump sum in full at the end March, they will be able to make 11 smaller interest-free payments during the 2021-22 financial year.