Business support package update

The UK Chancellor has unveiled a support package to help business during the Coronavirus pandemic with the potential to increase the package if required in the weeks ahead.

Business Interruption Loan Scheme

Any business that needs access to cash will be able to apply for government-backed and guaranteed loans. The Business interruption loans announced in the budget of £1.2m has been increased to £5m, with no interest due for the first six months, and will now be made available to all small and medium sized businesses.

The business loan scheme will be delivered by the British Business Bank. It is anticipated that these will be available by the start of next week. Businesses will access the loans via their high street bank requesting a government backed business interruption loan.

To be eligible for a business interruption loan you must:

  • Be UK based, with a 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)
  • Have a sound borrowing proposal but have inadequate security to meet a lender’s normal requirements
  • Be up to date in respect of any accounts and tax filings due (even if tax is not necessarily fully paid)
  • Be able to confirm that you have not received other public support of de minimis state aid beyond €200,000 equivalent over the previous three years

The Covid Corporate Financing Facility (“CCFF”)

Support is available for companies that are too large for the business interruption loan scheme. The facility will offer financing on terms comparable to what was prevailing in the markets before the impact of Covid-19. To be eligible for the scheme firms must have a suitable short term credit rating from an approved source on 1st March 2020. The 1st March date has been chosen as this is before any Covid -19 issues could have had an impact. Further details of this facility will be published on the Bank of England’s website on Monday 23rd March 2020.

Business Rates Support

A cash grant from the government of £25,000 will be made available to businesses in the retail, hospitality and leisure sectors who have a rateable value of less than £51,000,  the business rates holidays will be extended to all firms in these sectors. Guidance on the business rates holiday will be published to local authorities on 20th March. Eligibility for the £25,000 grant should be directed to your local authority.

The £3,000 grant announced in the budget for businesses that qualify for small business rate reliefs or rural rates relief has been increased to £10,000. This will be administered by the local authority and eligible companies will be contacted directly and do not need to apply for this. This funding will be available from early April.

Help with paying tax liabilities

A dedicated helpline has been set up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities to receive support with their tax affairs.

HMRC is offering a three month payment holiday for VAT, PAYE, Duty and Corporation tax where cash flow is being impacted by Covid-19. Any deferral over and above this 3 month period will require a more formal time to pay agreement with HMRC.

The number to call is 0800 0159 559. It is expected that this line will be busy at all times so it is recommended that any calls are made well in advance of the normal due date of payment. Our experience is that the same HMRC Officer is not able to deal with all taxes and as such callers are being passed between departments to defer the payment of each tax. Calls can, therefore, take longer than anticipated.

Statutory Sick Pay

HMRC is bringing forward legislation to allow small and medium sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to Coronavirus. You will be able to claim 2 weeks SSP for each employee what has been off work because of the Coronavirus.  In order to be eligible for the changes to statutory sick pay, you must employ less than 250 people (as at 28th February 2020), keep records of the employees’ absence and payments of SSP but the employee will not need to provide a doctor’s note.

Additional Support

In addition to the loan schemes and grants, the Chancellor also announced government backing to help firms pay their employees’ wages, similar to measures recently introduced by other countries. Due to the speed with which this measure needs to be introduced, it is accepted that this cannot be a scheme that is ‘invented from scratch’ but must be based on a system already introduced by other countries. Full details of how this scheme will operate are expected in the coming days.

One further measure announced to support the self-employed and sub-contractor community was a delay to the introduction of the IR35 legislation for the private sector. This was due to come in to force from April 2020 but this has now been delayed until April 2021. It is hoped that the delay to the introduction of this legislation will provide much needed assistance to sub-contractors at this time.

Insurance cover for business losses

As Covid-19 has been designated a ‘notifiable disease’ this could now trigger certain insurance policies. Everyone’s policy will be different and each policyholder will need to check their policy wording carefully to see if they are eligible for a claim as the Association of British Insurers has said that insurance for business interruption resulting from COVID-19 is likely to be rare.

New announcements are being made daily so it is likely that additional support will become available in the days and weeks ahead.

What our clients say

The majority of my time has been spent running a business and concentrating on making the correct day-to-day decisions; it was essential for me to gain advice and guidance. Phill and his team at RPG have been able to guide me and provide a balanced portfolio. Without turning to RPG, I would have been unable to arrange my long-term financial future. They have a vast amount of knowledge and have produced the results essential for when I decide to retire.

John S, Shropshire


Because our business was growing every year, we didn't really look at how the money we were making was put to best use. We needed some expert advice to lead us in the right direction. Anthony O'Connor has always been very helpful and approachable whilst dealing with our affairs. We are left to do what we do best: run a business. We would highly recommend anybody who is seeking financial advice to look at the services Anthony and his team can provide.”

John and Carole, Cheshire

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We decided to use Phill Owen to help us with our financial planning as our savings, mortgage and life policies did not seem coordinated. Phill provided a clear plan for the future. He helped us organise our wills, inheritance matters and our future retirement. With our face-to-face catchups and regular emails or phone calls, Phill has always given us sound advice. This, in turn, has given us the peace of mind that our financial matters, now and in the future, are in good hands and in good order.

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I started using RPG on the advice of my bank when I started my own limited company. They have guided me through potential pitfalls in such a friendly manner that, even though our relationship has always been professional, I still consider them as friends. This journey has gone through setting up my company, tax, VAT, insurance advice, setting up wills, buying a different house and ensuring my wife and sons are provided for, both now and in the future. It has been such an easy journey. I would have no hesitation in recommending them to anyone.

John M, Manchester

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My wife and I have been clients of Phill's for 25 years; 20 of which were with RPG Chartered Financial Planners. 17 years were prior to retirement and nine years have been post-retirement. Their involvement has been crucial to dissipate our financial and estate management concerns. RPG’s staff have been exemplary; always approachable and quick to respond. We have no reason to believe that this tremendous working relationship will not be as successful in the future as it has been in the past. We have no hesitation in recommending them.

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I am a Chartered Structural Engineer and have very little knowledge, experience or understanding of financial affairs and investments. Approximately six years ago I started to think about early retirement. For the past six years RPG have provided excellent financial planning and tax-efficient advice in the form of a combination of pension and cash ISA investments, which have grown significantly to such an extent that early retirement is imminent.

Pete, Manchester

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Early in 2000, we decided we needed financial advice. We contacted Phillip Owen, who created a financial planning strategy that addressed all our needs. We were impressed with his advice, and so a partnership began that has lasted. Original goals are still being met and often exceeded, and investments are successful. There is long-term financial planning in place, even for the youngest family members. I highly recommend Phill and his team.

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We were in need of an adviser who could provide a wide spectrum of advice for managing our portfolio. We met Anthony on several occasions to understand his breadth of experience, and we were very impressed. Anthony's team took the reins in consolidating and rationalising our portfolio. We are very pleased with Anthony's service and we look forward to a long-lasting relationship with him.

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Anthony O’Connor has advised me over several years about pensions and general financial planning.  I have found him knowledgeable, supportive and a person who provides good solutions . He has a “can do “ approach and makes things happen.  I have recommended him to a number of friends and they are all happy with his support and advice  He is always good humoured which is a good quality when planning ones financial affairs.

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