Information Update: 6 April

Please find below our latest update (April 6) which is based on GOV.UK updates, questions and conversations we have had over the past week. This is quite long, so please use the summary below to jump to the sections relevant to you.

Our conversations have covered a wide variety of issues and it is clear that individual circumstances vary, meaning that some of the advice below may need to be checked further with professionals who understand your specific circumstances.

If you do not have access to this support, please get in touch. Over the past few weeks we have arranged professional HR, Legal and Financial advice at no cost to the business, and are in the process of arranging support for those who need help with negotiations.

To summarise, this April 6th update includes:

1. The BID Business Survey (Please complete if you haven’t already)
2. Grants News – incl VAT & Corporation Tax advice
3. Commercial Tenant Protection – withholding rent and eviction
4. Empty Properties – Security and Insurance
5. The Job Retention Scheme (80% wage relief)
6. Bank Loans – SME Update
7. BID Lobbying – We Need You!
8. Pubs / Restaurants – HMRC Guidance on Disposing beer
9. Love Leamington / Leamington Delivers – What Do You Think?
10. Additional Business Support

1.  Business Survey (please complete)

Below is a link to a survey that I would be very grateful if you could complete. We are working with a number of partner organisations to understand business concerns and lobby for additional support, which we know is needed if this lockdown continues. We also know there are a number of issues and gaps in existing support measures. This week we will be contacting and / or speaking to political and business leaders including the Minister for Business and Industry, so it is very important we understand the details of your unique challenges as this helps us all find practical and timely solutions.

The questions within were formulated at a regional level and we have adapted them. Your answers will only be seen by myself (Stephanie Kerr), and then they will be anonymised. The outcome will help us to direct our support to you and the fully anonymised and collated data will be shared with regional and national policy makers, politicians and local authorities. All personal data will be destroyed once it has been collated.

There are 10 survey questions (7 min is the average time): https://www.surveymonkey.co.uk/r/RXTNWVF

Thank you very much in advance.

 2.  Grant News – Including VAT and Corporation Tax

Warwick District Council have begun the process of distributing grant funds. At the time of writing (Sunday 2pm) we are advised that 450 grants had been processed but there is still some way to go. We have passed on our sincere appreciation to the WDC team who have worked through the weekend. For those still wondering if they are eligible, please click here or get in touch.

For those that have not registered yet, don’t worry – here is the link: https://www.warwickdc.gov.uk/info/20827/coronavirus/1553/coronavirus_information_for_businesses/2.

Grants – VAT and Corporation Tax:

We sought advice from our accountants on the question of if grants are subject to VAT. The answer we received is: “As we currently understand it, there will be no conditions attached to this grant and therefore it should be classed as outside of the scope of VAT. Based on this there would be no VAT to pay on the grant income. However, our current understanding (as of the 31 March) is that the grant will be classed as income in the accounts and therefore will be subject to corporation tax”

If you are at all unsure about this, we would recommend you flag this with your accountants, or direct any other questions back to us and we will try to help. With many of these things, business specific advice is required.

3.  Commercial Tenant Protection – Including withholding rent

On the 23 March 2020, the government announced tenants would be protected from eviction for three months, in the event of non-payment of rent. This is now law, contained within the Coronavirus Act 2020, Section 82.

In summary this says:

Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction. Many landlords and tenants are already having conversations and reaching voluntary arrangements about rental payments due shortly, but the government recognises businesses struggling with their cashflow due to coronavirus remain worried about eviction. These measures mean no business will be forced out of their premises if they miss a payment in the next 3 months.

However, a closer look reveals that this approach needs careful attention, so the following points highlight potential considerations. Please note, these are generic observations and may or may not be relevant to your business so are offered without prejudice. Please get in touch if you would like further professional advice or support in this area of decision making.

The Issues:

1. Whilst the tenant cannot be evicted for 3 months if rent is unpaid, the tenant is still obligated to pay rent for this period.
2. The policy is silent on the time period over which the outstanding sum must be paid, meaning it could be due once the emergency measures end (June 30th – but this could be extended).
3. The policy is silent on what happens after the 3 months period ends, so in effect, the tenant could be evicted after this time.
4. The policy does not suspend interest owed on the unpaid sum, which is significant as some leases have punitive interest rates for unpaid sums (e.g. 5% above base rate).
5. The policy does not protect the tenant from other forms of legal action.
6. Depending on the lease, there may be consequences for the deposit (if relevant).

Here is some generic legal advice on the topic from the perspective of landlords.

• Wright Hassall: Coronavirus: Impact on commercial rents – Advice for landlords
• Burges Salmon: Commercial rent income: issues for landlords

Possible Considerations: 

If you are considering withholding rent during this period, please consider:

1. Carrying out cashflow analysis, including assumptions to clearly understand your circumstances over the coming months and decide accordingly. Please let us know if you would like support with this.
2. Speak to your landlord. You may be able to discuss payment options such as a rent reduction for a limited time, monthly payments or another arrangement suited to your needs.
3. If you are considering withholding rent:
   1. Ensure you have an agreement with the landlord (in writing) that covers the subsequent repayment terms and period.
   2. Please check your lease to ensure you know if you will be charged interest and how much.
   3. Please ensure that your deposit (if relevant) is considered.

Importantly, any changes to the lease or agreements should be in writing and we strongly suggest you take legal advice on this.

As explained further below, lobbying further on some of the issues highlighted above is a priority for us so we welcome your feedback. Over the past two weeks we have heard a mixture of heart-warmingly good and concerning feedback, and we have also spoken to some landlords, so we know it is important to support all interests.

4.  Empty Properties  – Insurance

As set out in the Burgis and Bullock (available here) fact sheet, if a property is vacant for an extended period of time, as well as security, there are a number of insurance considerations for tenants, freeholders who lease properties and owner-occupiers.

Here are a few things for tenant to check:

1. Are there any requirements to maintain a particular level of security if the premises are empty?
2. Is there a requirement to notify the landlord if the property will be empty for an extended period of time?
3. Check your general insurance policy and any notification requirements

Please click here for:

• Other relevant insurance considerations
• Advice from the National Business Crime Centre 

 5.  The Job Retention Scheme – (Wage relief and holiday entitlement)

For many the word ‘furlough’ is quite new and don’t be worried if you are still not 100% sure how to say it. For both employers and employees this is a term and a process that we know many of you have very quickly become familiar with. The details of the UK GOV Coronavirus Job Retention Scheme in respect to ‘furloughed staff’ raises important questions the details of the scheme, and who it applies to, have become clearer.

By far the best and most up to date guidance can be found on the GOV.UK site by clicking here.

We also found that the CIPD Q&A which can be found here, very helpful. This addresses key questions and areas to be mindful of.

Some key areas of interest we noted were:

• Where impacted by COVID-19, you can furlough employees and apply for a grant that covers 80% of their usual monthly wage costs, up to £2,500 a month plus employers NI and pension contributions.
• Employers should have consulted and notified staff in writing and have their agreement to furlough them. Changing the status of employees always is subject to existing employment law. Please get in touch if you would like a template letter.
• The scheme applies to staff on flexible zero-hour contracts, as well as agency staff and full and part time employees, who were on the employer’s PAYE payroll on 28 February 2020.
• Directors can be furloughed and still carry out their ‘Statutory Duties’ even sole directors, but they cannot ‘sell’ or provide services on behalf of the company. Please note, this needs to be appropriately recorded in the company records.
• The scheme will run for three months from March 1st (but may be extended as necessary).
• The subsequent funding is a grant which employers do not have to pay back.
• Three weeks is the minimum length of time an employee can be furloughed for.
• To claim the reimbursement employees must not undertake work for the employer at all while furloughed. Staff can be brought back to work after the three week period.
• Employees with two or more employers can be furloughed for each job separately.
• Claims will be made via an online portal, which will be operational from the end of April and monies paid by BACs into a UK bank account.
• Employers can make a collective claim for the group of furloughed employees, but it is anticipated that employers may need to make more than one claim throughout the period, and that employers will submit one claim at least every three weeks.
• Employers cannot backdate (to the 1st March) the furlough period for all employees. The scheme is only backdated to cover employees who have already been made redundant as a result of the coronavirus restrictions.
• Furloughed employees’ wages are subject to Income Tax and National Insurance as usual, and employers also pay employers’ NI and automatic enrolment contributions unless the employee has opted out.
• Employers can make up the additional pay (20%), but they are not required to do so. Please also note Tax, NI and pension implications of this.
• Payments received by a business under the scheme must be included as income in the business’s calculation of its taxable profits for Income Tax and Corporation Tax purposes, in accordance with normal principles.
• HMRC will retain the right to retrospectively investigate and audit employers’ claims.

Holiday Leave Entitlement:

• Employees remain employed during furlough leave so statutory holiday will accrue during the furlough period.
• We note new legislation relating to holidays: Workers who have not taken all of their statutory annual leave entitlement by the end of 2020 due to COVID-19 have a legal right be able to carry it over into the next two leave years. Please click here for details.

Here is some generic advice on the topic:

• Absolute Works HR Specialists:
  • General Q & A – 27 March 
• CIPD Q&A: Coronavirus Job Retention scheme and furlough
• Burgis & Bullock Advice (this is very user friendly)
  • General Q & A – 27 March 
  • Employers Beware – Things to be cautious about (this is very good!)
  • Advice for Charities
• Wright Hassall: Coronavirus: furloughed workers and what it means for business

Please note, advice is being updated regularly so make sure to check back on the GOV.UK website.

6.  Bank Loans – SME Update

A number of members have fed back issues in respect to accessing bank loans – including the government backed Coronavirus Business Interruption Loan Scheme (CBILS). These loans are promoted as a possible option for businesses to relieve short and medium term cash flow challenges. Feedback was that banks were asking for personal security (even though the loans are 80% backed by government), the process was taking too long or in some cases denied, as banks steered their clients to other options, that had higher interest.

Late last week the government introduced measures to rectify some of these challenges including: 

1. Banks are no longer allowed to take personal guarantees of any form for loans (facilities) below £250,000.
2. The requirement that banks consider other lending options has been removed, which will likely help speed up the process.
3. The minimum size CBILS loan sum of £25,000 remains, however different lenders are offering a range of options for sums below this (please see below).

Specific eligibility criteria and guidance for SME’s has been updated on the British Bank website, which you can view here.

In summary, now that access has been opened up to smaller businesses, who previously would not have been eligible for CBILS, it may be worthwhile re-contacting your lender if you have previously been unsuccessful in securing suitable funding.

Interest rates: We have been asked about interest rates in year two of the CBILS scheme (after the interest free period ends) and we can advise that this would be at the discretion of the banks. We spoke to one bank who advised that (for them) interest rates would be in line with standard secured policy and client risk rating, typically from 2% – 5%, but it would be best to speak to your own bank directly.

Here are links to the updated CBILS scheme terms of the major banks. You will see a minimum of £25,000 can be loaned and lesser amounts are directed to other lending facilities.

• Barclays – £25,001 minimum
• Lloyds – £25,000 minimum
• HSBC – £25,000 minimum for sole traders and partnerships and £10,000 for incorporated entities
• Nat West – a range of options from £1000 upwards
• Santander – £25,000 minimum

I also note that a number of banks such as Lloyds are offering their commercial clients a repayment holiday on property, which we hope may create opportunities for the benefits to be passed onto their tenants.

 7.  BID Lobbying – We Need You!

As mentioned above we would be very grateful if you complete our survey. We are in direct contact with our MP and through The BID Foundation and other organisations such as the FSB, Growth Hub and Chamber of Commerce, have direct contact with the UK Government, so we are also looking for your feedback to ensure the right kind of additional support is made available going forwards. If this is relevant to you, please feedback your experiences.

Key issues that are currently lobbying for additional support on are:

1. Support for businesses with a rateable value greater than £51,000, who did not receive any grant funding.
2. Greater protection for commercial tenants as we feel the existing ‘protection from eviction’ needs to go further.
3. Guidance for landlords who are in receipt of grant funding (as the registered rate payer), but are not the current tenant (e.g it is leased, subleased or not sole occupancy).
4. Further protection for businesses if the current emergency measures are extended.

We are also aware of a petition for Small Ltd Company Directors to get Government support like the Employed and Self Employed. We note the recent update to Job retention Scheme, does now include salaried company directors (as noted above). We would be interested to understand how many of our business owners this now applies to, so please get in touch if this is still an issue relevant to you?  

8.  Pubs and Restaurants – HMRC Guidance on Disposing of Beer

If you are a brewer or publican, please note that temporary changes to the destruction of spoilt beer. The recent guidance covers who can destroy spoilt beer, how long the change applies, what you need to do as a brewer, and the evidence that HMRC needs. Please click here for more information.

9.  Love Leamington and Leam Delivers!

The www.loveleamington.com website is now live. We are constantly updating it so please let us know if you are not there and want to be. For now we are listing essential information on the homepage, but all town centre businesses who are trading online, via a website, facebook or other are listed within the site. We will be supporting this with social media promotion.

Please feel free to share it and send us your updated content such as:

• Your store hours (where relevant)
• Your current activities (online, delivery etc)
• Online events you are hosting

As well as #LoveLeam, we are also using (hashtag) #LeamDelivers and I have attached a logo (in various formats) that you are welcome to use on or within your own material if you are delivering from Leam!

For those businesses still trading, COVID-19 Safe Distancing Floor Stickers are sure to be delivered this week, so we will be in touch shortly.

Member Questions: We are actively exploring options on the following and would value a conversation if you are interested in these ideas:

1. Supporting local deliveries with a car and driver who you can contact (note, we have had someone volunteer so need to establish the details)
2. Offering ‘click and collect’ from multiple local stores from a centralised location
3. Joining / promoting a local scheme that would enable you to sell certain products online (if you don’t already and /or wish to focus on certain products in a collective way). Examples include ShopAppy(Video) and Your Local Delivery. All of these have their pros and cons so we are interested to gauge interest if you have time.

10.  Further Business Support 

Other advice and support from previous emails can be found on our website by clicking these links:

• GOV.UK and Business Update: March 23
• GOV.UK Information Update: March 20
• Common Questions and Information: March 19^th
• Business Update: March 18^th

Specific Information relating to Grants:

• Criteria and Eligibility and Registration Link: March 28

Alternatively, please join our Leamington Town Centre Facebook Group if you haven’t already. We will also post updates on the BID Leamington Facebook Page – and the Royal Leamington Spa Town Centre Facebook page is where we will showcase what you are now doing.

Please keep in touch and share your ideas with us, as we are stronger together.

Best wishes and stay safe,
Steph and Alison.

This note includes information on:

1. New Shop Opening Requirements
2. Home Delivery Advice
3. Commercial Rent Protection Update
4. Business Grants and Loans
5. Insurance Reminder
6. Crime and Fraud Notice
7. VAT Deferral Information
8. Additional Help

1.  New Shop Opening Requirements

To summarise, the March 23rd announcements included:

• The closure of all non-essential businesses and premises;
• Takeaway and delivery services may remain open and operational in line with guidance on Friday 20 March;
• Online retail is still open and encouraged and postal and delivery service will run as normal.

Retail and public premises which we expect to remain open must:

• Ensure a distance of two metres between customers and shop assistants; and
• Let people enter the shop only in small groups, to ensure that spaces are not crowded.
• Queue control is required outside of shops and other essential premises that remain open.

Details of who is permitted to be open and the associated exceptions. Please click here to access this.

2.  Home Delivery Guidance

The ACS (Association of Convenience Stores) has provided some helpful guidance for retail and convenience businesses who are offering home delivery. This guidance is designed to provide reassurance to convenience store retailers who want to carry out local grocery deliveries to support people self-isolating. Pease click here to access this.

Please let us know if you are doing deliveries, take away or selling online?

We are putting relevant information about anyone who is trading online, delivering or take-away on www.loveleamington.com and www.tasteleamington.com . We aim to be promoting these websites from Wednesday. Please email us any images (landscape) or updates.  

We also want to let people know what you are doing via our social media accounts – so please send us your content. Also, please see our previous update (March 20) about our ideas to stay connected and supported and let us know if you are interested.

3.  Commercial Rent Protection Update

Numerous organisations and bodies have been lobbying the government for further protection to protect tenants and to relieve the burden of rental payments. Please click here for the latest government announcement on this.

In summary this says:

Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction. Many landlords and tenants are already having conversations and reaching voluntary arrangements about rental payments due shortly but the government recognises businesses struggling with their cashflow due to coronavirus remain worried about eviction.

These measures, included in the emergency Coronavirus Bill currently going through Parliament, will mean no business will be forced out of their premises if they miss a payment in the next 3 months. However, please note this does not remove the obligation to pay the rent at a later date and the guidance does not elaborate on how long you may take to pay outstanding rent. Also, please check your lease agreement to ensure you will not be charged punitive interest on the unpaid amount.

In the short term, we urge business owners to discuss their circumstances with their landlords. We welcome your feedback on these discussions as we appreciate that some landlords may be more forthcoming than others and we wish to ensure your experiences can be anonymously fed back to policy makers and the government.

4.  Business Grants and Loans

We are in daily contact with Warwick District Council about this as we know businesses are eager to understand how they can access their grant funding. At this stage we understand funds will be available to Councils early April and a process of making contact will follow.

In the meantime, we understand that the Coronavirus Loan Scheme is now open.  For more information please contact your bank or please click here.

These loans can be used as a short-term fix, until the grant subsidies come through. Businesses can consider how much they need with the knowledge that interest is paid by government for 12 months. After this time, we don’t know what the interest rates will be, but would expect lenders to be reasonable as for many, loans will be essential, particularly with rental payments, and staff costs, even where 80% will be paid by HMG furlough scheme.

We welcome any relevant feedback on your experiences with this.

5.  Insurance Reminder

This is just a reminder that if you are now working from home or undertaking a delivery service where previously this was not the case you should notify your insurance company of changed circumstances.

6.  Crime and Fraud Notice

We are advised that local CCTV is fully operational. Security in the Royal Priors Shopping Centre will also be maintained. The National Business Crime Centre advice for businesses who are both open and temporarily closed, can be viewed by clicking here. 

We are aware that new types of scams are circulating via email and online. Please be cautious about clicking links or opening attachments from unknown sources and do not give over personal data unless you are sure of and trust the source / recipient.

Please note, we are in the process of rolling out a new ‘Littoralis DISC’ crime prevention system as a part of the Warwickshire Retail Crime Initiative (WRCI). If you are a part of this scheme you will have recently received new registration information. If you are not a member but wish to find out more please contact: Jared Seal – Kenilworth, Leamington Spa, Stratford Upon Avon and Warwick. Email: wrcisouth@wrci.org.uk

7.  VAT Deferral Information

The following information has been provided by Burgis and Bullock, chartered accountants and business advisors.

The COVID-19 deferral of VAT payments in the period 20th March to 30th June gives an immediate boost to cash flow as taxpayers will not need to make a VAT payment during this period. However, in the absence of anything explicitly to the contrary, everything else is “business as usual” and VAT returns must still be submitted on time.

Key points:

• No need to make the VAT payments due between 20th March and 30th. Payments due before and after that period still payable on due date.
• Affects VAT returns for periods ending February (due 7th April), March (due 7th May) and April  (due 7th June) and payments on account due at the end of March, April, May and June.
• Refunds and reclaims will continue to be paid to taxpayers as normal.
• Payments deferred need to be paid at the end of the 2021 “tax year”. It isn’t clear whether this is the VAT tax year (31st March, 30th April or 31th May depending on your VAT return period ends) or the direct tax year 5th.
• Businesses should contact their banks if they pay by direct debit to make sure there is nothing specific for them to do to take advantage of this offer as HMRC may request payment automatically.
• All UK businesses, including VAT registered charities, Trusts and sole proprietors are eligible but this may not apply to UK VAT registered foreign businesses unless they trade through a UK entity.
• No specific application required.

More generally, any business experiencing difficulty in making its VAT payments should contact HMRC to discuss time to pay proposals as soon as possible rather than letting liabilities build up. HMRC will be open to all sensible offers in these difficult times.

The HMRC helpline number is 0800 0159 559 and lines are open Monday to Friday, 8am to 8pm and on Saturday, 8am to 4pm.

8.  Additional Help

The government have set up a business helpline: https://www.gov.uk/business-support-helpline 

Business Support Helpline (England)
Telephone: 0300 456 3565
Monday to Friday, 9am to 6pm

Previous BID Leamington Updates on this Website:

• Business Update: March 18
• Common Questions and Information: March 19
• GOV.UK Information Update: March 20 

Other helpful sources of information:

• Coventry and Warwickshire Growth Hub: https://www.cwgrowthhub.co.uk/service/coronavirus-outbreak-information-and-updates
• FSB: https://www.fsb.org.uk/campaign/covid19.html
• CBI: https://www.cbi.org.uk/coronavirus-hub/support-for-business/
• ACAS: https://www.acas.org.uk/coronavirus 

Of course, please do not hesitate to reach out to us. We are happy to research any questions you have as we understand this is an incredibly busy and stressful time. We are also very keen to get your feedback, so that we can continue to work with our partners to lobby for additional support.

Information Update: 20 March

To summarise, the March 20th announcements included: 

• The closure of cafes, pubs and restaurants and the eminent closure of nightclubs, theatres, cinemas, gyms and leisure centres.
• Restaurants are able to provide a ‘take-out’ option (Please let us know if this applies and we will add you to tasteleamington.com).
• The Job Retention Scheme, meaning companies will be able to apply for 80% of wages paid for employees unable to work, up to £2,500 a month. This can be claimed from March 1st and will cover 3 months of wages and will be delivered via HMRC (see details below).
• Differed VAT Payments in the next quarter meaning, VAT bill’s will not be due until the end of June and you will have till the end of the financial year to pay it.
• The Coronavirus Loan scheme will be interest-free for 12 months (extended from 6 months). Please see our March 19 Update for application details. They are expected to open this coming week so please contact your bank.
• The Universal Credit standard limit has been increased by £1000 and the Working Tax Credit will be extended by £1000 per year.
• People who are self-employed can now access statutory sick pay and the next self-assessment for self-employed people has been deferred until 2021.

No doubt there are mixed feelings about these announcements and a range of new questions come to mind, which we will endeavour to understand over the coming week.

Latest Business Support Details – Eligibility & How to Access

The ‘UK GOV Support for Businesses – Updated March 20’ document, provides helpful details, including ‘eligibility’ and ‘how to access’ information on the ‘Support for Businesses’ package. It can also be viewed by clicking here.

This document includes the latest information on:

• the Coronavirus Job Retention Scheme (employee wage relief)
• deferring VAT and Income Tax payments
• Statutory Sick Pay relief package for SMEs
• the 12-month business rates holiday for all retail, hospitality and leisure businesses in England (you may have recently received your bills?)
• small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief (rateable Value under £15,000)
• grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
• the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
• a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
• the HMRC Time To Pay Scheme

As we find out more about these things we will be in touch.

Emerging Ideas

We are not sure what is around the corner, but we are still exploring / developing ideas and we welcome your thoughts. This includes:

1. Love Leamington Online – Showcasing local businesses who are trading online or adopting new trading practices via loveleamington.com (Please note, this is ‘live’ but work in progress. We will promote this when it is ready. Please get touch if you would like your profile amended or added? (we have not quite got everyone yet).
2. Taste Leamington – We are updating the tasteleamington.com to feature businesses who are now offering ‘Take-away’ and / or delivery. This includes identifying business who are using Deliveroo, Uber Eats and Just Eat. Please let us know if your details need to be added / amended?
3. Supporting Those Who are not Online – We are exploring a localised online platform that you could post your products on, sell them and arrange collection or delivery etc. Please get in touch if this interests you?
4. Leam Delivers! – We are exploring the idea of offering a home delivery service to support local businesses. Please get in touch if this interests you? We are looking to understand the logistics of this asap.
5. What’s App You Say? – Would you like to be part of a Leam retailers ‘Whats-App’ Group? This could be focused on sharing ideas, support and information with each other. Please let us know if this interests you? If there is enough interest, we will get it organised.
6. Join the Conversation – Alternatively, please join our Leamington Town Centre Facebook Group if you haven’t already. We will also post updates on the BID Leamington Facebook Page – and the Royal Leamington Spa Town Centre Facebook page is where we will showcase what you are now doing.

Please let us know if any of these things interest you and we will be in touch to discuss further. Please also note, we are conscious that government guidance on working in town / at home may change, so bear with us as we try to work around any future changes that may impact us all.

Local Community Support Group

Some local Leamington and Warwick people have set up a support group here: https://warwickleamingtoncovidhelp.wordpress.com/. This also links to a Facebook page where people are looking for support finding products etc. There may be opportunities for you to help if your business stocks certain products people are looking for or is doing deliveries.

And Finally

We will continue to keep you updated on grant funding, employee support and business critical matters are soon as the information becomes available. You can also find previous updates on our website:

• Business Update: March 18
• Common Questions and Information: March 19

Please keep us updated with how things are going for you and we will be in touch again soon. Stay safe, look after each other, and enjoy your Sunday / Mother’s Day.

Common Questions and Information: 19 March

We will update some of the answers as the relevant information comes available. Please note, this is generic advice and we recognise your individual circumstances may vary. Please reach out to us if you need more detailed advice and we will help you find additional support.

The following questions are covered below:

1. What support is being offered to businesses by the UK government?
2. When will the grants and loans be available?
3. How do I find out the rateable value of my property?
4. What does it mean by ‘business rates holiday’ e.g. do we have to pay this back?
5. What is the difference between a grant and a loan?
6. Where can I find details of the Coronavirus Business Interruption Loan Scheme?
7. How can I manage my upcoming VAT and HMRC payments?
8. Can I have advice on staff HR issues such as adjusting hours?
9. Where can I find more information?

1.  What support is being offered to businesses by the UK government?

Recent government guidance can be found here:

• COVID-19: support for businesses

In summary, this covers (as per the website above):

• a 12-month business rates holiday for all retail, hospitality and leisure businesses in England. Please see eligibility criteria here.
• a statutory sick pay relief package for SMEs
• the Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance
• the HMRC Time To Pay Scheme

Plus – ‘Business Cash Grants’ for businesses – as per the following criteria. 

Rateable Value less than £15,000

• small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief.

Rateable Value between £15,001 and £51,000

• grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000.

More detailed eligibility criteria can now be found here (updated March 20).

2.  When will the grants and loans be available?

Business Cash Grants: We are still unclear as to when these will be available, though the government website says that funding will be given to Local Authorities in early April. We are also unsure as to what information you will need to provide. We will update you as soon as we know.

Loans: It is expected that the new Coronavirus Business Interruption Loan Scheme will become available in week commencing 23 March 2020 (see below for details).

3.  How do I find out the rateable value of my property?

Please visit the VOA website at the link below and follow the instructions.

• VOA – Find Your Rateable Value

4.  What does it mean by ‘business rates holiday’ e.g. do we have to pay this back

The ‘business rates holiday’ means that should you qualify; you will not have to pay business rates for the 2020 to 2021 tax year (starting April). This will not have to be paid back. This should be applied automatically by the Local Authority (Warwick District Council).

5.  What is the difference between a grant and a loan?

The grant funding (as outlined above) does not have to be paid back, while the loan funding is borrowed so will need to be paid back.

6.  Where can I find details of the Coronavirus Business Interruption Loan Scheme?

The Coronavirus Business Interruption Loan Scheme is being delivered by the British Business Bank via local lenders. Details are here:

• Coronavirus Business Loan Scheme Details – including CRITERIA

It is due to become available the week commencing 23rd of March and will offer more attractive terms than typically available.

• The lenders can be found here. (your own bank is likely to be in this list, so please contact your bank).

The scheme provides the lender with a government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’. NB – the borrower always remains 100% liable for the debt. The Government will also cover the first 6 (now 12 months – updated March 20) of interest payments, so businesses will benefit from lower initial repayments. The business remains liable for repayments of the capital. The maximum value of a facility provided under the scheme will be £5 million pounds (the original announcement suggested a maximum value of £1.2 million.)

7.  How can I manage my upcoming VAT and HMRC payments?

We urge you to call HMRC and discuss this. We understand you may need to wait on the line for a little while, but it is worth it.

The helpline number is 0800 0159 559 and lines are open Monday to Friday, 8am to 8pm and on Saturday, 8am to 4pm.

Businesses are being offered a time-limited deferral period on HMRC liabilities (e.g. VAT, PAYE and corporation tax) owed and a pre-agreed time period to pay these back. HMRC will also waive late payment penalties and interest where a business experiences administrative difficulty contacting HMRC or paying taxes due to COVID-19.

8.  Can I have advice on staff HR issues such as adjusting hours

Some business owners may be having discussions with staff in respect to how to manage HR resources during this period. This may be if a staff member is not sick or presenting symptoms, and not eligible for statutory sick pay, but the business is on reduced hours/services or closed. We are arranging the services of a professional HR consultant to support you with this. We will cover the cost of the initial advice and support. Please contact us if you would like this help? Please note, we are expecting the government to announce a support package for employees eminently so this may offer some relief (see March 20 Update).

9.  Where can I find more information? 

The FSB is a very helpful source of information and they have a FREE webinar available to members and non-members this Friday 20 March.

• FSB Website
• Resister for the FSB Webinar – Friday 20 March, 11am

If you have any further queries, please do not hesitate to pick up the phone. Alison and I are here and will do our very best to signpost you to the information you need as it becomes available. You can phone us on 01926 470634 or please email: info@bidleamington2022.mystagingwebsite.com.

Business Update: 18 March

Firstly, we wish to reassure you that we are refocusing our resources and energy entirely on how we can support you. This includes providing information to address any immediate concerns you may have around access to financial support as well as practical advice and strategies we can employ to support one another going forwards.

We know we need to think creatively and act in a decisive way, and we welcome your feedback. This will help us direct our activity and enable us to feedback to our MP and policy makers at a national level, to ensure the right kind of additional support is made available going forwards.

Emerging government advice can also be found below and is summarised alongside a number of other helpful sources.

In the meantime, we would very much like to hear about any new ways you are looking to serve your customers so that we can help you disseminate this information? This may be by offering online or phone purchases, deliveries or incentives, that we can compile and make accessible to a wider audience.

Business Support

Recent government guidance can be found here:

• COVID-19: support for businesses

In summary, this covers:

• a statutory sick pay relief package for SMEs
• a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
• small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
• grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
• the Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance
• the HMRC Time To Pay Scheme

Please note, we are awaiting advice from the Local Authority about how businesses can access this funding. We will update this page and email businesses as soon as we know. 

A number of other organisations also provide some very helpful advice:

• Government Advice: This provides general advice about the virus, symptoms, protection and isolations measures for individuals and employees.
• FSB Advice: This provides an excellent summary of common questions and concerns relating to running a small business.
• Night Time Economy blog: This provides a summary of relevant information and guidance on health and safety, government support, insurance etc.
• Coventry and Warwickshire Growth Hub: Updates, advice and support for all businesses.

Banks

We recommend that you contact your bank as soon as possible to discuss overdraft and lending options. We are however aware that some of you have already done this with mixed results. We will be making contact with local banks over the coming days and post relevant updates on this.

HMRC – Time to Pay Helpline

Businesses are being offered a time-limited deferral period on HMRC liabilities (e.g. VAT, PAYE and corporation tax ) owed and a pre-agreed time period to pay these back. HMRC will also waive late payment penalties and interest where a business experiences administrative difficulty contacting HMRC or paying taxes due to COVID-19.

The helpline number is 0800 0159 559 and lines are open Monday to Friday, 8am to 8pm and on Saturday, 8am to 4pm.

Insurance 

We also recommend contacting your insurance provider to discuss your policy. We are however aware that this may be deemed to fall outside your cover. We welcome any feedback on your experiences with this so we can understand the scale of the issue.

Local Support Group / Community Cooperation  

A fantastic local support group has been established. This is a helpful way to stay connected to the wider community, swap ideas and get support and inspiration.

•  Leamington and Warwick COVID-19 Help Group.

Going Forwards – BID Leamington Planning 

We are exploring a range of short and longer-term activities aimed at supporting our members during these challenging times. We will be circulating a survey in the coming days to understand what you will find most helpful and help us focus our resources. Actions that we are developing include:

Short Term actions:

• Provide advice on what members can do to immediately and in the coming weeks.
• Highlight measures businesses are using to engage with their customers on our website and social media channels e.g. ‘video-shopping’ and delivery etc. Please let us know.
• Showcase the online offer on www.loveleamington.com and www.tasteleamington.com. These specifically highlight businesses with an online offer. Please let us know if you need to be added.
• Move our Easter Egg hunt online – so eggs and clues will be hidden on the relevant profile pages of each business (as well as on the high street).
• Exploring how we can support home delivery and click and collect services.
• Collating best practice, providing inspiration and generally helping to foster the local community spirit.

Long Term actions:

• A plan to welcome visitors back to the high street, recognising that we may be operating in a slightly changed environment.
• Delivering competitions with prizes that can be redeemed in local businesses at a later date to showcase stores and maintain loyalty and engagement.