Government advice on financial services and support


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Support for larger firms through the Covid-19 corporate financing facility



Who is this applicable to?
UK businesses.
What is this about?
Short term debt relief for larger companies.
Overview
Under the new Covid-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies to help organisations who have been affected by a short-term funding squeeze, and allow you to finance your short-term liabilities. This scheme will also support corporate finance markets overall and ease the supply of credit to all firms. All businesses in the UK are eligible.

Businesses can now borrow up to a maximum of £200 million
.

What can you do now?
At present you do not need to do anything.
What next?
You can apply for this scheme on the Bank of England website here.
We will monitor guidance in this area and update this page with any changes (date reviewed: 28/5/2020).

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Support for businesses paying tax: time to pay service


Who is this applicable to?
UK businesses.

What is this about?
Support for businesses and self-employed individuals in financial distress and with outstanding tax liabilities.

Overview
This service, which is open to businesses who pay tax to the UK government and has outstanding tax liabilities, allows applications for support from HMRC with their tax affairs through the Time To Pay Service.

Arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

What can you do now?
If you have missed a tax payment or you think you may miss your next payment due to COVID-19, you should call the dedicated HMRC helpline on 08000 241 222.

What next?
If you’re worried about a future payment, you should call HMRC closer to the time on 08000 241 222.

We will monitor guidance in this area and update this page with any changes (date reviewed: 06/04/2020).

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Insurance claims


What is this about?
Insurance claims due to the government issued mandatory closure.

Overview
Businesses that have insurance cover for pandemics and government ordered closure should be covered for claims based on the current government guidance, as long as all other terms and conditions are met.

The government declared the coronavirus as a ‘notifiable disease’ which is a classification required by many insurance policies. Some businesses may have cover that includes local closures due to an infectious disease, which may enable them to potentially claim on their insurance.

What can you do now?
As all insurance policies are slightly different it is advised that you check the specific terms and conditions of your policy and contact your provider.

What next?
Contact your insurance company or your broker to clarify the type of cover that is in place and your eligibility for a claim.

Visit the Association of Business Insurance for any further clarity.

We will monitor guidance in this area and update this page with any changes (date reviewed: 24/03/2020).

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Support for business through the coronavirus business interruption loan scheme


Who is this applicable to?
UK businesses.
What is this about?
The Coronavirus Business Interruption Loan Scheme helps small and medium-sized businesses affected by coronavirus (COVID-19) to access finance of up to £5 million.
Overview
The Coronavirus Business Interruption Loan Scheme (CBILS) supports small and medium-sized businesses, with an annual turnover of up to £45 million, to access loans, overdrafts, invoice finance and asset finance of up to £5 million for up to 6 years.

The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. This means smaller businesses will benefit from no upfront costs and lower initial repayments.

The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to small and medium-sized businesses. ` The scheme is delivered through commercial lenders, backed by the government-owned British Business Bank.

There are 40 accredited lenders able to offer the scheme, including all the major banks.

What next?If one lender turns you down, you can apply to other lenders in the scheme.

You may want to consider using a broker to find the right type of finance for your needs, or do your own research using the British Business Bank’s finance guide.

Small businesses boosted by bounce back loans:
  • New 100% government backed loan scheme for small business
  • Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days
  • Loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form.

Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the Chancellor announced today (Monday 27 April). Back Loans scheme, will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.

The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days, and comes alongside the £6 billion awarded in business grants, supporting 4 million jobs through the job retention scheme and generous tax deferrals supporting hundreds of thousands of firms.

The government, which has been consulting extensively with business representatives about the design of the new scheme, will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.

The loans will be easy to apply for through a short, standardised online application. The loan should reach businesses within days- providing immediate support to those that need it as easily as possible (updated 5 May 2020).

Who is eligible?
You’re eligible if:

  • Your business is based in the UK
  • Your business has an annual turnover of up to £45 million
  • Your business has a borrowing proposal which the lender would consider viable, if not for the coronavirus pandemic
  • You can self-certify that your business has been adversely impacted by coronavirus

Exceptions
The following businesses are not eligible to apply:

  • banks, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies

How to apply?
VISIT:


A welsh translation of the government advice pages can be found by visiting the respective link.

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We will monitor guidance in this area and update this page with any changes (date reviewed: 24/04/2020).



Support for businesses through temporary deferral of VAT payments


Who is this applicable to?
UK Businesses.

What is this about?
Support for all UK businesses with the deferral of Value Added Tax (VAT) payments.

Overview
There will be deferral of VAT payments for 3 months under the new legislation. The deferral will apply from 20/3/2020 until 30/06/2020, with taxpayers having until the end of the 2020-2021 tax year to make payment on any liabilities accumulated during the deferral period.

What can you do now?
You do not need to take any action. This is automatically applied to businesses, with no applications required.

What next?
VAT refunds and reclaims will be paid by the government as normal. We will monitor guidance in this area and update this page with any changes (date reviewed: 24/03/2020).
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Incorporated by Royal Charter Charity registration number 1144545

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