The Creative Industries Federation recognizes that there are challenges for the creative industries in accessing government support. The Fed team is in ongoing conversation with the government to ensure that this support better fits the needs of the creative industries. They are offering a breakdown of governmental support which has been announced. However, they caveat this information by particularly pointing to difficulties around accessing the loan scheme and delayed support for freelancers and self-employed.
Read their information summary below:
Coronavirus Job Retention Scheme
What is the scheme?
Employers can use the scheme to pay 80% of salaries for employees that would otherwise have been laid off during this crisis. HMRC will reimburse 80% of wages, up to £2,500 a month. The scheme covers the cost of wages backdated to 1 March. It is initially open for three months, but will be extended if necessary
Who can use the scheme?
All UK employers with a PAYE scheme can access this – including public sector, local authorities and charities
When can I access the scheme?
The scheme is not yet live. The government expects the first grants to be paid within weeks, and are aiming for before the end of April.
How do I access the scheme?
You must ask your employees to stop working – designate them as “furloughed workers” and notify your employees of this change. Re-negotiation of employee status could be subject to employment law or individual contracts.
Using the online portal, submit information to HMRC about furloughed employees and their earnings.
Self-Employment Income Support Scheme
What is the scheme?
The scheme will support self-employed people (including sole traders, freelancers, members of partnerships) whose income has been negatively impacted by COVID-19. The scheme provides a grant to self-employed individuals, worth 80% of their profits up to £2,500 a month. HMRC will use the average profits from tax returns in 2016-17, 2017-18 and 2018-19 to calculate the size of the grant. If individuals have fewer than three years of returns the average of these will be taken. Open for at least three months, but payments will be available from the start of June at the earliest. Individuals will be able to claim these grants and still do business.
Who can use the scheme?
You must have lost trading profits due to COVID-19. You are eligible if more than half of your income comes from self-employment and you have profits of less than £50,000. To evidence this, you can reference your trading profits and total income in 2018/19 or your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19. You must have filed a tax return for 2018-19 as self-employed or a member of a trading partnership. For those who have not yet filed for 2018-19, you will have an additional 4 weeks from the announcement to do so. You must have traded in 2019-20, be currently trading at the point of application (or would be except for COVID 19), and intend to continue to trade in the tax year 2020 to 2021.
When can I access the scheme?
Grants are expected to start to be paid at the start of June 2020 (at the earliest). The scheme is anticipated to run for three months initially. Money will be paid straight into individuals’ bank accounts via HMRC in a single lump sum. In the meantime, self-employed individuals have options to defer income tax payments, access universal credit and some will be able to access CBILS loans from the BBB.
How do I access the scheme?
HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
HMRC will then pay the grant directly to eligible claimants’ bank account.
For eligible individuals who have not submitted returns for 2018-19, you have 4 weeks’ notice from the date of the announcement to file your returns and therefore become eligible for this scheme.
Further details will be made available from the Government here in due course.
Protection from Eviction for Commercial Tenants
What is this?
Commercial tenants who cannot pay their rent because of COVID-19 will be protected from eviction. No business will automatically forfeit their lease and be forced out of their premises if they miss a payment up until 30 June. This is not a rental holiday – all commercial tenants will still be liable for the rent down the line.
Who can access this?
All commercial tenants in England, Wale and Northern Ireland are eligible.
How do I access this?
The change will come into force when the Coronavirus Bill receives Royal Assent. No action on behalf of tenants is required.There is the option for the government to extend this period if needed.
Updated information on all Government support packages can be found here.
Coronavirus Business Interruption Loan Scheme
What is the scheme?
The scheme will help small and medium sized businesses access loans, overdrafts, finance and asset finance of up to £5m and for up to six years. The government is providing an 80% guarantee for each loan, with no charge for this guarantee. The government will cover the first 12 months of interest payments and lender-levied fees, so you will benefit from no upfront costs and lower initial repayments. The scheme will be delivered through commercial lenders (i.e. major banks) backed by the government-owned British Business Bank.
Who can use the scheme?
UK-based businesses with a turnover under £45m a year and a viable borrowing proposal, which explains how the finance will enable your business to trade out of short to medium term difficulty. You must generate 50% of your turnover through trading activity. This is implemented by local authorities, contact your local authority for advice on if you can apply as a charity.
When can I access the scheme?
The scheme is open.
How do I access the scheme?
Speak to your usual provider (full list of lenders here). Go via their website. Because of social distancing, phone lines will be busy and branches may be closed.
Updated information on all Government support packages can be found here.
Business Rates Holiday for Retail, Hospitality and Leisure
England
What is the scheme?
Businesses in the retail, hospitality and leisure sectors will not have to pay business rates for the 2020-21 tax year. If your business received a retail discount in the 2019-20 year, you will be rebilled by your local authority as soon as possible.
Who can use the scheme?
You are eligible if your business is based in England and if it is in the retail, hospitality and/or leisure sectors. This includes businesses wholly or mainly used as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, for assembly or leisure, as hotels, boarding accommodation or self-catering accommodation, museums and art galleries, nightclubs, sport and leisure facilities, stately homes and historic houses, theatres, tourist attractions, Gyms, wellness centres, spas, massage parlours, casinos, gambling clubs and bingo halls.
When can I access the scheme?
This will apply to your business rates bill 2020-21. Local authorities may have to reissue your bill and are doing this as soon as possible.
How do I access the scheme?
No action required – local authorities will apply this to your bill.
This will apply to business rates bills for the 2020/2021 tax year. However, local authorities may have to reissue bills. We understand they will do this as soon as possible.
To understand the value of the benefit to your business, visit the government’s business rates calculator.
Cash Grant for Retail, Hospitality and Leisure
England
What is the scheme?
Businesses in the retail, hospitality and leisure industry can access a one-off cash grant from their local authority of up to £25,000 per property. If your rateable value is under £15,000, you are eligible for £10,000. If your rateable value is between £15,000 and £51,000, you are eligible to £25,000.
Who can use the scheme?
You are eligible if your business is based in England and if it is in the retail, hospitality and/or leisure sectors. This includes businesses wholly or mainly used as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, for assembly or leisure, as hotels, boarding accommodation or self-catering accommodation. Your rateable value must be under £51,000. You must be a business rate payer. Freelancers could access the scheme if you are a sole trader with premises. Charities cannot access this. Updated information on all Government support packages can be found here.
When can I access the scheme?
Your local authority will be in touch if you are eligible.
How can I access the scheme?
No action required – your local authority will be in touch.
Small Business Grant Funding
England
What is the scheme?
Government is providing additional funding for small businesses which pay little or no business rates because of ongoing small business rate relief, rural rate relief and tapered relief. This will be a one-off grant of £10,000 to meet ongoing business costs.
Who can use the scheme?
You are eligible if your small business is based in England and already receives small business rate relief or rural rate relief. You must occupy property. Freelancers could access the scheme if you are a sole trader with premises. Charities cannot access this.
When can I access the scheme?
Your local authority will be in touch if you are eligible.
How can I access the scheme?
No action required – your local authority will be in touch.
Statutory Sick Pay Rebate
What is the scheme?
Small and medium sized businesses can reclaim statutory sick pay for staff sickness due to coronavirus. This refund will cover up to two weeks per eligible employee who has been off work due to coronavirus. Eligible period for the scheme commenced on the 17th March
Who can use the scheme?
Business based in the UK who are small and medium sized and employ fewer than 250 employees as of 28 February 2020. This scheme does not apply for freelancers. This applies to illnesses of up to 14 days each employee who is sick or self-isolates from day one.
When can I access the scheme?
To be announced.
How can I access the scheme?
Payments will be made through HMRC, most likely through rebates to employees. Further government guidance on this is awaited. The government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible, although it’s possible that it could be several months until payments reach businesses. Employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note. If evidence is required by an employer, those with symptoms of coronavirus can get an isolation note from NHS 111 online and those who live with someone that has symptoms can get a note from the NHS website.
Time to Pay
What is the scheme?
All businesses and self-employed people in financial distress, with outstanding tax liabilities, may be eligible for support with tax. This will be agreed on a case by case basis, tailored to individual circumstances and liabilities.
Who can access the scheme?
You are eligible if you pay tax to UK government and if you have outstanding tax liabilities.
When can I access the scheme?
Now.
How can I access the scheme?
If you’ve missed, or are worried you will miss, a tax payment due to coronavirus, you should contact HMRC. You can call the helpline on 0800 0159 559. For more information on late payments, check with HMRC.
VAT Deferral
What is the scheme?
Businesses will have VAT payments deferred for 3 months.
Who can access the scheme?
All VAT-registered UK businesses, including freelancers, can access the scheme.
When can I access the scheme?
The deferral applies from 20 March – 30 June 2020
How can I access the scheme?
This is an automatic offer with no application required
You do not need to make VAT payments normally due with VAT returns in this period
Customers who pay by direct debit should cancel their direct debit in good time
Deferral of Self-Assessment Payment
What is the scheme?
The Self-Assessment payment for your tax bill (usually due to HMRC by 31 July 2020) is deferred until January 2021.
Who can access the scheme?
If you are due to pay a Self-Assessment payment by 31 July 2020 you are eligible. This is optional.
When can I access the scheme?
On 31 July 2020, when it will be deferred.
How can I access the scheme?
Automatic offer, no action required
COVID-19 Corporate Financing Facility
What is the scheme?
Large businesses facing severe disruption to cash flow can purchase short term debt – commercial paper to quickly and cost-effectively raise working capital to page wages and suppliers. The scheme is funded by central bank reserves and will run for a minimum of 12 months, or as long as needed.
Who can access the scheme?
Large businesses who are fundamentally strong but are facing severe disruptions to cash flow. Firms must be able to demonstrate they were in strong financial health before but do not need to have issued commercial paper. Eligible businesses should have a short or long term rating of investment grade as of 1 March 2020, or similar. If you do not have a credit rating, you can ask your bank to make an assessment and then contact CCFFeligibleissuers@bankofengland.co.uk to discuss your potential eligibility. Another potential route to evidencing credit status is for your firm or your bank to get in touch with one of the major credit rating agencies to seek an assessment of credit quality in a form that can be shared with the Bank of England and HM Treasury, noting that you are doing so because you wish to use the CCFF. Firms should be UK incorporated companies, including those with foreign-incorporated parents and with a genuine business in the UK; companies with significant employment in the UK; firms with their headquarters in the UK. Considerations apply if the business generates significant revenues in the UK, serves a large number of customers in the UK or has a number of operating sites in the UK.
When can I access the scheme?
Now
How can I access the scheme?
Contact your bank
Applications must be made through the Bank of England’s website.
Link Summary
You can access this info via these links:
Coronavirus Job Retention Scheme
Self-Employment Income Support Scheme
Protection from Eviction for Commercial Tenants
Coronavirus Business Interruption Loan Scheme
Cash Grant for Retail, Hospitality and Leisure
Small Business Grant Funding
Statutory Sick Pay Rebate
Time to Pay
VAT Deferral
Deferral of Self-Assessment Payment
COVID-19 Corporate Financing Facility
Source: www.creativeindustriesfederation.com
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