The impact of the Coronavirus or COVID‐19 has accelerated significantly, with the Prime Minister asking everyone to avoid non‐essential contact with others and unnecessary travel. We know that actions so far and the potential for a ‘lockdown’ are causing serious concern for everyone in construction. Click here for Build UK Statement.

Here is a summary of the latest measures announced by the Government this week aimed at providing financial assistance to business:

A new Coronavirus Business Interruption Loan Scheme 

Loans of up to £5 million, with the government covering up to 80% of any losses with no fees. This is replacing the Enterprise Finance Guarantee programme but on what are promised to be more attractive terms. The same lenders who previously offered EFG will be managing these funds, this includes most of the high street banks. Based on EFG, the form of loans may include  term debt, overdrafts, invoice finance and asset finance. The big question is how much risk appetite the lenders will have and what timescales for approval will look like.

The government have now also stated that they will meet the first six months interest payments for any facility taken under the above scheme.

The programme will launch next week. From a practical perspective, clients who are considering accessing this funding should ensure that they bring their financial statements and management accounts as up to date as possible. Statements of assets and liabilities of director/shareholders may also be requested so any progress which can be made on that would help accelerate any application.

• £10k cash grant to 700,000 small businesses delivered by local authorities. Businesses that benefit from small business rate relief or rural rate relief will be eligible. We are again advised that this will go live in the next week. There will be no need to apply – local authorities (councils not LEPs) will contact those who can benefit directly, presumably based on their internal database of rates payers.
• HMRC have been instructed to increase leniency with regards to the granting of time to pay arrangements, a dedicated helpline has been setup – 0800 0159 559.
• SSP – employers with under 250 employees will get a 100% refund on SSP for up to 14 days per employee – the size of an employer will be determined by the number of people they employed as of 28 February 2020.

With the SSP there isn’t a mechanism yet as to how to reclaim this back, you will have keep detailed records of what you do pay and reclaim it at a later date.

The guidance here says it is paid from day 1 (instead of day 4). Further guidance here states this will be backdated from 13th of March.

Finally, we are now aware that the proposed incoming changes to IR35 have now been delayed for a further year and will not now come into force until April 2021.

TICA-ACAD will continue to provide members with updated information as soon as it is made available.