Northern Ireland Travel News have complied some helpful advice for travel agents including an extension of statutory sick pay (SSP), a Coronavirus Business Interruption Loan Scheme, business rates support and a dedicated coronavirus helpline for businesses seeking a deferral on tax liabilities.
Some of the most important measures include:
- Confirmation of a three month holiday on business rates for all businesses
- Increase in grant available through the Small Business Rate Relief to £10K – all businesses with a NAV up to £15K are eligible
- An immediate grant of £25K will be available to Tourism, Retail and Hospitality business with NAV from £15K to £51K
Full details on how this will be assessed and administered have yet to be released, however keep your eyes on our trade news section and social media for any updates.
NI Direct has created a Coronavirus Portal which includes links to some excellent information for businesses and the different schemes and support available.
Business support for those affected by COVID-19
In the Budget (11 March) and on 17 March, the Chancellor announced a plan to provide support for businesses affected by Covid-19.
The measures include an extension of statutory sick pay (SSP), a Coronavirus Business Interruption Loan Scheme, business rates support and a dedicated coronavirus helpline for businesses seeking a deferral on tax liabilities.
Statutory Sick Pay Rebate for SMEs
The Government will also bring forward legislation to allow small and medium-sized businesses and employers 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, 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 self-isolators comes into force
- the government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible. Existing systems are not designed to facilitate employer refunds for SSP.
- The government will work with employers over the coming months to set up a repayment mechanism as soon as possible for employers reclaiming SSP. Existing systems are not designed to facilitate employer refunds for SSP.
Coronavirus Business Interruption Loan Scheme
A new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will enable businesses to apply for a loan of up to £5 million, with the government covering up to 80% of any losses with no fees. Businesses can access the first six months of that finance interest-free. The government will cover the first six months of interest payments.
Full details, including the exact eligibility criteria, will be announced shortly – and we will update our website and social media with the most current advise when available.
RATES RELIEF
On 17 March, the NI Finance Minister announced an emergency £100 million rates package to assist Northern Ireland businesses impacted by COVID-19.
This includes a delay in rates bills and a three-month rates holiday for business ratepayers.
The Small Business Rate Relief scheme will be continued in 2020-21. The rates of relief and thresholds for eligibility have not changed.
Delay in rate bills
Rate bills for 2020-21 were due to be issued in April 2020. To avoid placing financial pressure on ratepayers affected by COVID-19, rate bills will not be issued until June 2020.
This will happen automatically. Ratepayers do not need to request to have their rate bill deferred until June 2020.
When rate bills issue in June 2020, ratepayers can still choose to pay their bill in monthly instalments between June 2020 and March 2021.
Monthly Direct Debit payment plans will be automatically updated to collect payments between June 2020 and March 2021.
Rates holiday for businesses
There will be a three month rates holiday for all business ratepayers, excluding public sector and utilities.
This means that no rates will be charged for April, May and June 2020. This automatically reduces the 2020-21 annual rate bill for business ratepayers by 25 per cent. This amount does not need to be paid back.
Small Business Rate Relief – The Small Business Rate Relief scheme will be continued in 2020-21. The rates of relief and thresholds for eligibility have not changed.
Hardship Rate Relief – The Hardship Rate Relief scheme is available for non-domestic ratepayers who have been affected by exceptional circumstances.
However, at any time a ratepayer is experiencing any difficulty in paying a business rate bill, they are encouraged to contact LPS at the earliest possible opportunity, as in most cases payment arrangements can be put in place to assist.
Hardship Rate relief is only available on rates that are due – therefore, it will not be possible to claim it for April May and June 2020. However, if your business has been affected during February and March 2020, you can apply.
Estimating your rate bill for 2020-21
It is not yet possible to estimate your rate bill for 2020-21. This is because the regional rate for 2020-21 has not been set by the Northern Ireland Executive.
The Finance Minister has announced that he will bring proposals to Ministerial colleagues for a reduction in the regional business rate that will benefit all businesses. The regional rate for 2020-21 will be announced as part of the NI Budget package on 30 March 2020.
Reval2020
Land & Property Service (LPS) recently revalued all business properties in Northern Ireland and the new values will be used to calculate rates bills for businesses and organisations from April 2020. View the Reval2020 draft schedule of values.
It is not possible to estimate your rate bill for 2020-21 until the regional rate is set.
What additional rates support is available for businesses?
In addition to the COVID-19 measures announced, there are other existing reliefs available to help business ratepayers. These rate support schemes include:
- Charitable Exemption for rates – offers charitable bodies 100 per cent relief.
- Sports and Recreation Rate Relief – provides sport and recreation bodies 80 per cent relief on the parts of their premises that are used for sporting purposes. Community amateur sports clubs receive 100 per cent relief.
- Industrial Derating – provides manufacturing businesses with a 70 per cent reduction in rates.
- Non-Domestic Vacant Rating – rates are payable on vacant non-domestic properties at 50 per cent of the normal level.
In addition to the COVID-19 measures announced through the NI emergency rates package, there are other existing reliefs available to help business ratepayers – see help available for business rates.
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.
These businesses can contact HMRC’s new dedicated COVID-19 helpline for advice and support.
If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s coronavirus helpline on 0800 0159 559.
