Coronavirus Job Retention Scheme – information to prepare now

There has been some recent movement on the Jobs Retention Scheme timescale with HMRC announcing they hope to have the portal up and running by the end of the month. They have asked businesses to get the following information ready now:

You’ll need to provide the following to make a claim:

• The bank account number and sort code you’d like HMRC to use when they pay your claim.
• The name and phone number of the person in your business for HMRC to call with any questions.
• Your Self-Assessment UTR (Unique Tax Reference), Company UTR or CRN (Company Registration Number).
• The name, employee number and National Insurance number for each of your furloughed employees.
• The total amount being claimed for all employees and the total furlough period.

If you use an agent who is authorised to act for you for PAYE purposes, they will be able to make a claim on your behalf, so please speak to them now.

For more detailed advice, please visit GOV.UK. This guidance is being regularly updated, so please review it frequently.

You may also find this recorded webinar helpful, ‘Coronavirus (COVID-19) Job Retention Scheme‘, available on HMRC’s YouTube channel.

MSP David Stewart has found widespread frustration and concern from Highlands and Islands firms over delays in accessing loans and a refusal to pay out on business interruption insurance.

Mr Stewart, who represents the region which includes Moray, wrote to business groups across his area asking if banks were making it harder to get business interruption loans and if insurers were refusing to pay out for claims on business interruption insurance policies.

So far, among those to respond to the MSP’s request, have been Chambers of Commerce in Caithness, Moray, Lochaber and Mid-Argyll.

Caithness, Lochaber and Mid-Argyll confirmed they had heard about problems and noted frustration over their members applying for bank and business interruption loans and confirmed some reported insurance claims were not being met. As a result, Mr Stewart is looking into one individual case and awaiting more details from the organisations.

Jane MacLeod, of Mid Argyll Chamber of Commerce, had also been made aware of many businesses unable to claim business interruption insurance.

She told Mr Stewart; “One local hotelier said ‘my policy, like many other businesses, states ‘Infectious Disease’ as a reason with the usual list. Plague is listed but it has to come from within the business and not outside in. If it came from inside I would have a personal liability in that I allowed it into the workforce.”  The hotelier went on to say ‘Blatant avoidance’ “.

Moray Chamber of Commerce’s Chief Executive, Sarah Medcraf, told the MSP: “I have not come across one business who has been able to claim on their insurance for this”.

She went on to give examples of responses from insurance companies including:

•  “Unfortunately, there is no cover in place which would allow you to claim for this particular pandemic, sorry to be the bearer of bad news.”
• “To clarify, COVID-19 is not covered under our standard Business Interruption policies and, as the chancellor said, you cannot retrospectively change insurance contracts at this time without threatening the future of the insurance industry.”
• “Unfortunately, there’s no cover for this type of loss on your policy. You’re right, we’ve been busy with queries, worrying times. The only cover, Liability &/or Business Interruption, for a specified disease would be if the disease originated at your premises or within a five-mile radius.”

Trudy Morris, Chief Executive of Caithness Chamber of Commerce said: “We are deeply concerned that even businesses who believed they had purchased appropriate insurance cover are not having success in making claims. We are finding that either businesses are being told they are not covered as COVID-19 was not named on their policy, or because it has not been confirmed on their premises.

“While we appreciate the pressures that the insurance industry will be facing at this time, it is disheartening that many businesses have paid a premium for this kind of cover only to discover that their claims are being denied. It is incumbent on the UK and Scottish Governments to work together to find a solution to this issue and ensure that businesses can survive this crisis.”

Mr Stewart commented: “I can understand that this is difficult for the insurance industry which is under great strain, but yet again businesses are being strangled by the small print.

“If companies can’t claim they are at risk of going under sooner and that puts the whole local economy at risk.”

Mr Stewart is writing to the Association of British Insurers with all the replies he has received asking for it to examine what it can do to relieve the strain on companies.

Moray Chamber of Commerce explained there was also a delay of up to 12 weeks for the UK Government’s Coronavirus Business Interruption Loan Scheme (CBILS)

Mr Stewart added: “Again a wait of three months could be the death knell for many of our businesses and I am writing to the Scottish Finance Secretary, Kate Forbes, with this information asking if pressure can be applied to speed up the process.”

Ms Medcraf added that the banks appeared to be pointing customers to every product in their offering before offering CBILS, and some were waiting in call lines for hours to talk about their problems.

She said: “This delay in accessing funding is simply not acceptable. Businesses need cash now. Many are already struggling with cashflow due to paying staff weekly and the Job Retention Scheme not being set up fully yet to claim back.

“I think about the short space of time the Governments have had to create these policies, overall they are good.

“But there are some huge flaws with businesses and people falling through the gaps, as well as accessibility to cash.

“I believe the banks have now been advised that they are not able to ask for personal guarantees if it is under £250k which is welcome. Many would not have to borrow additionally at all if the grant scheme threshold was released.”

Scotland’s leading business organisations have issued a joint-statement in response to the private sector’s role in tackling the Covid-19 crisis.

The statement reads as follows:

“As thirteen of Scotland’s leading business organisations, we speak as one in restating that protecting the lives and livelihoods of all Scottish citizens remains our primary concern during this public health and economic crisis. To date there has been unprecedented levels of engagement between the government, business and civic society, and we strongly believe that cooperation in the national interest provides the best means to get through the crisis.

“The message to ‘stay at home’ is one that business has heard, agrees with and is taking immediate measures to implement. However, for some firms, this isn’t as straightforward as it may seem. Essential business must continue to help the country to function, avoid significant job losses or furloughing of workers, and ensure we have a strong economy to return to once the crisis is over.

“For those companies that do remain open, adaption has been swift. They have been active in partnering with government and other stakeholders to do what they can to protect the health and safety of workers through implementing social distancing measures. A significant number have also put additional measures in place, such as installing protective screens or shifting production to focus only on increased demand for vital food and medical supplies.

“Recent confusion over which firms are required to close, and which are permitted to remain open, has resulted in different interpretations – with conflicting views and public debate as a consequence. Key to ensuring we strike the right balance are clear and consistent guidelines from government, as well as simple and structured systems to deliver them – without this, ambiguity is certain to emerge.

“So far, intervention from business and government has been rapid and effective. However only by extending assistance and ensuring it’s both up-to-date and correctly targeted can we be sure of doing everything in our power to protect jobs, the economy and people’s livelihoods.

“Make no mistake, this is a concurrent public health and economic crisis that demands a clear response. We will get through it, and we will do so by protecting people’s health, their immediate economic wellbeing and by safeguarding future prosperity for the country. With business committed to doing its part, we need to emphasise cooperation, consistency of policy and clarity of message across all parts of the UK to ensure we tackle the crisis effectively.”

We know the last thing you need to be doing at this time is sorting out your renewal for your chamber membership. As part of our commitment to supporting members through this crisis, we are extending your membership for 3 months.

This means that members will receive 15 months for your 12 months membership fee. If your membership is due for renewal then you have a further 3 months before you need to pay. If you have already paid your renewal, then you will get a further 3 months bolted on before your next renewal.

We are also deferring membership payments for 3 months for new members who join between now and the end of June. If you know of any business that you feel would benefit from Chamber membership during this difficult time, please let them know about this offer.

We want to give you peace of mind that during these difficult months you are still covered and can enjoy all the benefits of being a Chamber member at a time when you need us most.

I would also like to use this opportunity to ask that you feed back if you are having trouble accessing any of the government support schemes so that we in turn can make sure governments know the reality on the ground.

As before I wish you all the very best through these exceptional circumstances. Stay safe and well and know that we are here for you should you have any queries or concerns.

Kind Regards,

Trudy Morris

Caithness Chamber of Commerce Chief Executive.

Read our latest Coronavirus updates here

Find out more about exclusive membership benefits here

In these unprecedented times, with coronavirus continuing to impact on every aspect of life in the UK, we are all having to get used to a new reality and deal with changing advice and guidance on a daily and hourly basis. Throughout this period the Chamber team will be working hard to support local businesses, take their concerns to the Scottish and UK Governments, and do everything we can to ensure that we get through this together. 

Urgent as this crisis is, however, we need to remember that this too shall pass, and that, whatever changes happen in the coming months, businesses in the North Highlands will continue to face many of the same challenges and opportunities as before, in addition to new ones. As well as supporting our members through this immediate crisis, as a Chamber we will also be working hard to ensure that we don’t lose sight of the long-term priorities and hopes for the area.   

Getting the economy back up and running will need to be a major priority for governments. This will require investment in regions like the North Highlands, both to provide economic stimulus and to ensure that businesses have access to the  critical infrastructure and services they need to rebuild and grow. 

Most pressing is our continued requirement for strong transport connectivity. Prior to the impacts of coronavirus – and to Loganair announcing their withdrawal from the Wick-Edinburgh route – the Chamber presented to Transport Scotland a business case for a Public Service Obligation (PSO) from Wick to both Aberdeen and Edinburgh. 

This report lays out in clear terms the requirement for Scottish Government support for air services from the region and presents an innovative model for PSO with net zero carbon at its heart, which offers strong economic benefits to the region and which represents a sustainable return on investment for Scottish Government. 

While we recognise the challenges facing the aviation industry UK-wide, it is important to remember that the degradation of air services from Wick is not a new issue, nor are the challenges facing regional aviation across the UK. Securing a PSO which offers the connections businesses need to both Aberdeen and Edinburgh is a key priority for the Chamber, and we will continue to work with partners locally to ensure that Scottish Government invests in the future of air services from Wick. 

On a similar note, the recent impacts of coronavirus have shown just how crucial digital connectivity is to business in the region. Many businesses and their employees have been fortunate enough to have access to the connectivity they require to enable changes in working practices, but in a remote and rural area like the North Highlands there will also be many who struggle to adapt due to poor connectivity. 

This highlights clearly the concerns around the delays in delivery of superfast broadband and mobile coverage to all areas of Scotland. In addition to rolling out standard fibre connections, many areas will require innovative solutions like line-of-sight wireless networks, and it is important that the unique concerns of these areas are taken into account as the rollout continues. 

To try and end on a more positive note, there are many long-term opportunities for the North Highlands, from the upcoming ScotWind offshore wind leasing round to the exciting plans for a vertical launch spaceport in Sutherland. All of these will require long-term focus to ensure that the region sees the greatest benefit. 

The next few months are going to bring unprecedented challenges to businesses in the region. As a Chamber, we will be here not only to support our members through the immediate crisis but to continue to work for the long-term benefit of the region. These are exceptional times, but we are all in it together. 

Useful information for SME’s from the Institute of Directors. The link to the full article is here however, we’ve copied over the relevant information for Scottish Businesses below:

Statutory Sick Pay Relief

The Government has announced that it will bring forward legislation to allow SMEs to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. The eligibility criteria for the scheme will be as follows:

• this refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19
• employers with fewer than 250 employees will be eligible – the size of an employer will be determined by the number of people they employed as of 28 February 2020
• employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19
• employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note
• eligible period for the scheme will commence the day after the regulations on the extension of Statutory Sick Pay to those staying at home comes into force

The Government has stated it will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible

Coronavirus Business Interruption Loan Scheme

A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will support businesses to access bank lending and overdrafts. The Government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The Government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value. Businesses can access the first 6 months of that finance interest free, as Government will cover the first 6 months of interest payments. The British Business Bank is in the process of defining and agreeing the scheme’s details, specifications and eligibility. The scheme will be available from early w/c 23 March 2020. To be to be eligible for support via the scheme, the small business must:

• be UK based, with turnover of no more than £41 million per annum
• operate within an eligible industrial sector (a small number of industrial sectors are not eligible for support – see here)
• have a sound borrowing proposal, but insufficient security to meet a lender’s normal requirements
• be able to confirm that they have not received de minimis State Aid beyond €200,000 equivalent over the current and previous two fiscal years

Any small business interested in Scheme should, in the first instance, approach one of the 40+ accredited lenders with their borrowing proposal.

HMRC Time to Pay

All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

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

Dear Members,

These are unprecedented times and we are all having to get used to a new reality with things changing daily and even hourly right now.

As a chamber, we are following the new guidelines from Government and my team and I will be working from home by Monday 23 March.  Naver Business Centre will also be closed to the external public.  This will be reviewed on an ongoing basis and we will act in accordance with any guidelines.

However, for the Chamber, it is business as usual as much as possible, in as much as we are here on hand for all types of business support.  We have a critical role to play in supporting our members, ensuring you have the right information, being a listening ear and helping and supporting wherever we can.  As a business we too are vulnerable, and we are literally in it together with the thousands of businesses across Scotland and the wider UK.  We are however a business support organisation and my commitment to you all is that we will work through this together.

What we can do for you is lobby governments for support and inform them of key issues on the ground and ensure that you have the right information.  As you can imagine, there is a lot of misinformation out there.

Some initial things you can do if you haven’t already, is contact HMRC and get VAT, NI and PAYE deferred if you need to.  Helpline number is 0800 015 9559.  Also contact your bank and see what support is available.  In terms of government support the non-domestic rates reliefs and grant funding measures announced by the Chancellor in March 2020 apply in England.  They are not applicable in Scotland.  The Scottish Government has announced a £2.2 billion package of support for businesses as a result of COVID-19 to support businesses from 1 April 2020 for a year. Specifically:

• All properties across Scotland will receive a 1.6% rates relief, effectively reversing the planned uplift in the poundage for 2020-21.
• Retail, hospitality and leisure properties will be eligible for 100% rates relief.
• The ratepayers for small businesses in receipt of Small Business Bonus Scheme relief (SBBS) or in receipt of Rural Relief, or eligible for SBBS and in receipt of either Nursery Relief or Disabled relief, will be eligible for a one-off £10,000 grant.
• The ratepayers for retail, hospitality and leisure businesses with a rateable value between £18,000 and up to and including £51,000 will be eligible for a one-off grant of £25,000.

The reliefs will be in place for one year from 1 April 2020 to 31 March 2021 for eligible properties.

Grant funding will also be available from 1 April 2020 to 31 March 2021 for eligible properties.

These reliefs will be administered by local councils.  We are waiting to get further information from Scottish Government and will share as soon as we have.

In the meantime you can also access this website set up by Scottish Government findbusinesssupport.gov.scot

Please do not hesitate to contact me or my team.  We can be contacted as normal on our landline, mobiles and emails.  We will be constantly putting communications out, so forgive us if you get bombarded, but at this time we would much rather be giving you too much information, than too little.

These are exceptional times but we are #inittogether.  I wish you all the very best at this time for you, your staff, and personally for your families.  Stay safe.

With very best wishes
Kind regards,

Trudy

On the further package of support measures for businesses, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:

“We welcome the Scottish Government’s package of increased support for businesses facing difficulties because of the coronavirus outbreak. The value of the package is around £2.2 billion and includes grants to smaller firms. The Scottish Government has achieved its pledge of ensuring Scottish businesses are able to attain the same benefits as their counterparts south of the border after the Chancellor announced his £350billion support packages yesterday. Now we need both governments to ensure that this support gets to the businesses that will need it to survive the Covid-19 crisis.

“What we need now is to ensure Scottish businesses are able to access and receive the grants in their accounts as quickly as possible. We cannot wait days. For many businesses, the urgency of a decision being actioned can be the difference between staying in business, keeping our employees, and ensuring we are able to survive this horrendous situation.’’

On the imminent closure of all schools and nurseries in Scotland, Dr Liz Cameron said:

“This move brings Scotland in line with expert advice on managing the Covid-19 pandemic. Undoubtedly, it will provide significant issues for parents and employers alike. It is yet another aspect of how dramatically the coronavirus has impacted day to day life in Scotland.”