COVID-19 – support grants and loans update

This week has seen a flurry of changes to the various government support schemes. We have summarised a few in this article.

Coronavirus Job Retention Scheme (CJRS)

The HMRC portal – where you formally register your claim – should be live as from 20 April 2020. HMRC have published a “user” guide to the claims process. In the general information about the scheme the guide says:

• To be eligible for CJRS an employer must agree with the employee that they are a ‘furloughed worker’.
• Employees must be notified that they have been furloughed.
• Employees must be furloughed for a minimum of three weeks.
• The employee cannot do any work for the employer that has furloughed them.
• You can claim 80% of wages up to a maximum of £2,500 per month per furloughed employee.
• A separate claim is needed for each PAYE scheme.
• You can only claim for furloughed employees that were on your PAYE payroll on or before 19 March 2020.
• An RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 19 March 2020.
• You must have a UK bank account.

The Chancellor has also confirmed that due to the extension of the lock-down period for a further three weeks, claims can be extended to 30 June 2020.

Coronavirus Business Interruption Loan Schemes (CBILS)

A reminder that banks cannot ask for a personal guarantee if the loan is below £250,000.

For loans over £250,000, personal guarantees will be limited to 20% of any amount outstanding on the CBILS loan after any recoveries from business assets have been considered.

Having problems securing a loan from your bank?

Please call if you would like our help progressing loans with your bank.