08 June 2020
There’s no doubt that Government support for workers and businesses during the Coronavirus crisis has been extensive, but there are still examples of certain workers and businesses missing out on support, with only Statutory Sick Pay, Universal Credit or Employment and Support Allowance to fall back on. Further cracks for businesses to fall through are also about to appear.
In contrast to the extended deadlines that are being allowed for the filing of company accounts and various other returns, there are a couple of deadlines in the near future that could result in some businesses, which have been supported so far, missing out on further support. Action will be needed urgently if these deadlines are to be met.
The first of these results from the changes to the Coronavirus Job Retention Scheme (CJRS) that were announced at the end of May. Effectively a new scheme will be in place from 1 July, with claims limited:
- by the number of employees an employer can claim for in a claim period not exceeding the maximum number claimed for in an earlier claim period, and
- to employees in respect of whom claims have been made prior to 30 June.
This means that employers who think they may need to furlough employees after 30 June who have not yet been furloughed, will need to consider furloughing those employees ahead of 30 June. As a furlough period cannot be less than 3 weeks, the last day an employee can start a furlough period and still qualify is 10 June.
Similarly, if employers feel that conditions may get worse after 30 June and it may be necessary to put more employees on furlough than has been the case so far, they should maintain their claim flexibility by maximising the number of employees in respect of whom claims are being made in June. This can be achieved by churning employees on furlough, but again noting that new furlough periods should be for a minimum of 3 weeks before 30 June, bringing into play the 10 June deadline.
On a rather different tack, those small businesses, which did not qualify for rates relief or the small business grants that were given out to micro businesses and small retailers, can apply for a discretionary grant from the local government area in the they are based. The time limit for applications is 19 June.
Local councils have been provided with funding by the Treasury and are administering these funds. Application processes may vary from area to area, so it is best to look on your local council’s website for precise details. However, there are common criteria that must be fulfilled and applicants must be:
- small or micro businesses
- businesses with relatively high ongoing fixed property-related costs
- businesses which can demonstrate that they have suffered a significant fall in income due to the COVID-19 crisis, and
- businesses which occupy property, or part of a property, with a rateable value or annual rent or annual mortgage payments below £51,000.
Priority will be given to:
- small businesses in shared offices or other flexible workspaces, typically those who do not have their own business rates assessment
- regular market traders with fixed building costs, such as rent
- Bed & Breakfasts which pay council tax instead of business rates, and
- charity properties in receipt of charitable business rates relief which would otherwise have been eligible for Small Business Rates Relief or Rural Rate Relief.
Missing a deadline can cost your business money. If you want help in understanding how your business may be affected by the above, please contact your usual UHY adviser, contact me directly or contact one of our specialists in your nearest office using our Contact Us form.
