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July 10, 2020

We have added information on the new Eat Out to Help Out Scheme as well as the reduced rates for hospitality, holiday accommodations, and attractions.

June 29, 2020

We have added information on the new Sustainable Innovation Fund and the Research & Innovation Fund.

June 15, 2020

We have added information on the changes made to the Job Retention Scheme.

June 11, 2020

Information on the NI Micro-Business Fund has been added to our section on Northern Ireland's support schemes.

June 4, 2020

We have added additional information on claiming for Statutory Sick Pay, the Self-Employment Income Support Scheme, the Coronavirus Future Fund, and the Coronavirus Large Business Interruption Loan Scheme. We have also added information on a new scheme, the Bounce Back Loan Scheme as well as England's Local Authority Discretionary Grants Fund.

April 23, 2020

The online service that must be used to claim for the Job Retention Scheme is now live and we have added the link to our article. We have also added information on two new relief packages, the Coronavirus Future Fund and the Coronavirus Large Business Interruption Loan Scheme, as well as information on additional funding offered by the Scottish and Welsh governments.

Schemes That Will Be Available Across the UK:

The UK government has pledged £330 billion in government-backed loans and guarantees to assist UK-based businesses to combat the economic shock from the COVID-19 pandemic.

Coronavirus Job Retention Scheme:

Under this scheme, all UK employers are eligible to access support to pay part of their employees' salaries for those who are not working currently and would otherwise have been laid off during this time of crisis. Affected employees must be designated as furloughed workers and must be made aware of this change as this change is still subject to employment laws and may be subject to negotiation.

The information about furloughed employees must be submitted to HMRC through a new online portal (portal link can be found under "How to claim."). HMRC will then reimburse 80% of furloughed workers' wage costs up to £2,500 per month for the next 3 months.

The Job Retention Scheme will officially end on October 31, 2020, but the government grant will decrease each month until then. For June, July, and August, the government will pay 80% of wages with a cap of £2,500 as well as Employer National Insurance (ER NICS) and pension contributions.

For September, the government will pay 70% of wages with a cap of £2,187.50 and employers will be responsible for the ER NICS and pension contributions as well as ensuring the employee's pay is topped up to the 80% mark with a cap of £2,500.

For October, the government will pay 60% of wages with a cap of £1,875 and employers will be responsible for the ER NICS and pension contributions as well as ensuring the employee's pay is topped up to the 80% mark with a cap of £2,500.

Deferring VAT and Income Tax Payments:

The UK government will defer Valued Added Tax (VAT) payments for 3 months. This deferral is valid from March 20, 2020, to June 30, 2020. All UK businesses are eligible for the VAT deferral, which is an automatic offer with no applications required. Taxpayers will then have until the end of the 2020-2021 tax year to pay any liabilities that have accumulated during the deferral period. Any VAT refunds and reclaims will be paid by the government, as normal.

For the self-employed, the Income Tax payments that are generally due by July 31, 2020, will be deferred to January 31, 2021. This deferral is an automatic offer to all self-employed individuals and no applications are required. There will be no penalties or interest for late payment.

HMRC has scaled their Time to Pay service to offer support to all businesses and self-employed individuals that are in financial distress and have outstanding tax liabilities. The arrangements for the Time to Pay service are based on individual needs and circumstances on a case-by-case basis. Eligible businesses are those that pay taxes to the UK government and have outstanding tax liabilities.

Businesses and self-employed individuals who have missed a tax payment, or who may miss one, due to COVID-19 should call HMRC's helpline on 0800 0159 559.

Reduced Rates for Hospitality, Holiday Accommodations, and Attractions:

VAT registered businesses in the hospitality, holiday accommodation, and attractions industries may apply for a temporary 5% reduced VAT rate on supplies. If you supply food and non-alcoholic beverages, sleeping accommodations, or admissions to attractions on your premises, you can apply for the reduced VAT rate on those supplies.

This temporarily reduced rate will apply to supplies that will be made between July 15, 2020, and January 12, 2021. For more information on the VAT notices related to these businesses, read the UK Government's guide.

Eat Out to Help Out Scheme:

The Eat Out to Help Out Scheme is designed to help restaurants and other dining establishments to attract diners with discounts to encourage them to eat at your restaurant. The Eat Out to Help Out Scheme may be used every Monday, Tuesday, and Wednesday from August 3, 2020, to August 31, 2020, and will allow restaurants to offer 50% discounts (up to £10 per person) for eat-in meals and non-alcoholic drinks. The restaurant owners can then claim this amount back from the government.

The discount will only apply to customers who are eating in the restaurant and can be used as many times as the customer wishes during the scheme period.

Registrations will open on July 13, 2020, and be open until August 31, 2020. To register, click on the green "Register Now" block under "Register" on the UK government's information page. Once you've registered, you will receive a registration reference number that you must use when claiming for reimbursements.

Businesses eligible for registration must:

  • Sell food for immediate consumption on the premises.
  • Provide its own dining area or share a dining area with another eat-in establishment.
  • Have registered as a food business on or before July 7, 2020.

Businesses will not be eligible if they:

  • only offer takeaway food.
  • are a catering service for private functions.
  • are a hotel that provides room service only.
  • are a dining service, such as a packaged dinner cruise.
  • are a mobile food van or trailer.

In order to register, businesses must have:

  • Government Gateway ID and password.
  • name and address of each establishment to be registered, up to a maximum of 25 establishments.
  • UK bank account number and sort code for the business.
  • address of the bank account for the business.
  • VAT registration number (if applicable).
  • employer PAYE scheme registration number (if applicable).
  • Corporation Tax or Self Assessment unique taxpayer reference.

The discount may only be offered between August 3 and Agust 31 and business owners must keep a record of the total number of people who use the scheme, the total value of the transactions under the scheme, and the total amount of discounts you have given. The service that must be used to make claims will be available from August 7 to September 30.

The UK government's website provides downloadable promotional material to help businesses promote their participation in the scheme. The names, addresses, and URLs of all participating establishments will also be added to a list that will be made available to the public shortly.

Statutory Sick Pay Relief Package for SMEs:

Small and medium-sized businesses and employers can reclaim Statutory Sick Pay (SSP) for sickness absences due to COVID-19. The refund will cover up to 2 weeks, starting from the first day of sickness, of the current SSP rate ($95.85 per week) per eligible employee who has been off work due to COVID-19, starting on or after March 13, 2020.

If you pay more than the current rate for SSP ($95.85 per week), you will only be able to claim the current rate amount.

Eligibility for SSP relief will require UK-based businesses to have less than 250 employees as of February 28, 2020. Employers will need to keep records of staff absences and payments of SSP but employees will not need to provide a GP fit note. However, if the employer requires evidence, the employees can get an isolation note from NHS 111 Online.

You will need to keep the following records for at least three years following your SSP claim:

  • The reason why the employee could not work.
  • Details of each period that an employee could not work, including start and end dates.
  • Details of the SSP qualifying days when the employee could not work.
  • The National Insurance numbers of all employees that you have paid SSP to.

You can now claim for Statutory Sick Pay through PAYE Online. All the details you will need to claim, as well as the link, is available on the UK government's website.

Support for Self-Employed Workers:

The UK government is temporarily relaxing the Universal Credit Minimum Income Floor for self-employed individuals and those who earn below the Lower Earnings Limit of £118 a week. This support will be available to those individuals who have COVID-19 or who are self-isolating and include the following:

  • Universal Credit for advance payments with no Jobcentre requirements if you've been advised to self-isolate.
  • Employment and Support Allowance of £73.10 per week from day 1 of your sickness for eligible individuals over the age of 25.
  • A £500 million Hardship Fund to support economically vulnerable people and households, accessed through the Ministry of Housing, Communities, and Local Government.

Any self-employed individual or partnership with an income tax return for the tax year 2018-2019 who has been affected by the COVID-19 pandemic can also apply for the Self-Employment Income Support Scheme. This scheme includes a cash grant of up to 80% of the average monthly profits from the last three tax years, with a maximum of £7,500 in total for the next 3 months.

This scheme is only available to those with a trading profit of less than £50,000 a year that constitutes more than half of your total taxable income. The HMRC will contact you if you are eligible to apply. This scheme is only available through GOV.UK, so do not click on any other links.

Claims must be made on or before July 13, 2020, by using your Government Gateway user ID and password and your UK bank details. If you are not eligible but think you should be, you can ask HMRC to review your eligibility.

This scheme has been extended and a second and final grant claim can be made in August 2020. This final grant will be worth 70% of your average monthly profits for a period of 3 months and will be capped at £6,570 in total.

Coronavirus Business Interruption Loan Scheme:

This week (starting on March 23, 2020), the British Business Bank will deliver a temporary Coronavirus Business Interruption Loan Scheme to support small and medium-sized businesses with access to bank lending and overdrafts. Lenders will receive a guarantee of 80% on each loan from the government and the government will further not charge businesses or banks for this guarantee.

The Scheme will support loans of up to £5 million for UK based businesses with a turnover of less than £45 million per year. Your business must meet British Business Bank's eligibility criteria. You can view the eligibility criteria as well as British Business Bank's list of accredited lenders and partners, on their website.

Bounce Back Loan Scheme:

The Bounce Back Loan Scheme (BBLS) will deliver government-backed loans of between £2,000 and up to 25% of the business turnover for small to medium-sized businesses. These businesses may borrow up to £50,000 with no fees or interest for the first 12 months, whereafter the interest fee will be 2.5% per year.

Eligible businesses must be UK-based, established before March 1, 2020, and have been adversely affected by the COVID-19 pandemic.

Businesses will not be eligible if already claiming from the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, or the COVID-19 Corporate Financing Facility. However, if your business has received a loan of up to £50,000 from one of these schemes, you can transfer it to the BBLS until November 4, 2020.

This loan has a 6-year term, but early repayments will not be charged a fee. However, no repayments will be required within the first 12 months.

To apply for this scheme, you will need to approach one of the 11 lenders on the British Business Bank website and fill in an online application that the lender will supply. If the lender denies your application, you can approach another lender within the scheme.

Coronavirus Future Fund:

The Corovonavirus Future Fund, in partnership with the British Business Bank, will deliver convertible, government-backed loans ranging from between £125,000 to £5 million to UK-based companies. This option is available to those businesses that rely on equity investment and that are unable to access the Coronavirus Business Interruption Loan Scheme.

Eligible businesses must be a UK-incorporated business, be able to attract the equivalent match funding from third-party private investors and institutions, and must have previously raised at least £250,000 in equity investment from third-party investors in the last 5 years.

This fund is available through the British Business Bank and is open for applications until the end of September 2020.

COVID-19 Corporate Financing Facility:

The Bank of England will buy short-term debt from larger companies to support larger firms that have been affected by short-term funding limitations. This will support corporate finance markets and ease credit supply to larger firms.

This scheme will come into effect this week of March 23 - 27, 2020 and is available to all UK businesses. More information is available on the Bank of England's website.

Coronavirus Large Business Interruption Loan Scheme:

The British Business Bank will help large businesses that have been affected by COVID-19 with the introduction of the Coronavirus Large Business Interruption Loan Scheme (CLBILS). This scheme will be available through a series of accredited lenders, with an 80% guarantee from the government, to support large businesses that were viable for loans before the COVID-19 outbreak but that are now struggling with significant cash flow difficulties.

Viable businesses with a turnover of more than £45 million per year will be eligible for financing of up to £25 million while viable businesses with a turnover of more than £250 million a year can apply for financing of up to £200 million. Financing through these schemes is available for 3 months to 3-year terms.

Eligible businesses must be based in the UK, have an annual turnover of at least £45 million, be able to self-certify that the business has been adversely impacted by COVID-19, and must not have received support under the Bank of England's COVID-19 Corporate Financing Facility.

Businesses should also provide borrowing proposals that would be viable were it not for COVID-19 and that would enable the business to trade out of any short or long-term difficulty.

There are 12 lenders who are taking part in this scheme. To apply, you can visit the British Business Bank's website, choose a lender, and tell them how much you would like to borrow, what the money is for, and how long you'd like to pay it back. Your business will be responsible for repaying up to 100% of the loan.

If a lender does not approve your loan, you can approach another lender in the scheme.

Sustainable Innovation Fund:

The Sustainable Innovation Fund, together with a research funding scheme, is aimed at supporting UK-based R&D businesses that are on the cutting edge of new technologies, ranging from AI systems that manage traffic flow to reusable packing materials.

The fund will total nearly £200 million and will be accessible to companies that focus on developing new energy-saving technologies, ground-breaking medical technologies, reducing carbon footprint, and developing sustainability-focused projects.

The fund is offered alongside the Future Fund, and can be accessed on the UK Government's Innovation Funding Service website from June 29, 2020.

Additionally, research-active universities that have been negatively impacted by COVID-19 can access long-term, low-interest loans that will cover up to 80% of their income losses caused by a decline in international students. This Research & Innovation funding will total around £200 million and will be available to support researchers' salaries as well as other costs of research.

Research supported by this funding includes innovative medical technologies, technologies designed to tackle climate change, sustainability projects, and research on the growing impact and effect of COVID-19 on wider society.

Relaxed Insolvency Laws:

The wrongful trading provisions will be temporarily suspended so that struggling business owners can accept government grants without exposing themselves to personal liability if their business should go under. These new rules will apply from 1 March 2020, but business owners should still carefully evaluate the viability of their businesses during the enforced lockdown. Not all insolvency laws will be relaxed, so you should consider asking for professional advice to make the right decision for the future of your business.

In addition to the relaxed wrongful trading provision, the new insolvency framework will include:

  • A temporary moratorium from creditors enforcing their debts while the business attempts to restructure or save itself.
  • Protection for supplies so that businesses can continue to trade during the moratorium.
  • A new restructuring plan with creditors bound to that plan.
  • Key safeguards for creditors and suppliers to ensure they are paid while the business finds a solution.

Support for UK Businesses Trading Internationally:

For those UK-based businesses that export or deliver goods and services to other countries and that have been affected by the COVID-19 pandemic, the UK government will offer DIT and financial support. The DIT support will provide assistance with customs authorities and offer advice on intellectual property and business continuity.

DIT will help businesses whose supply chains have been affected to find other suppliers from within DIT's global network. If your business is operating in other countries, contact your local UK embassy or consulate for local guidance or read the UK government's Overseas Business Risk advice.

Financial Support:

UK businesses trading internationally may also make use of any of the schemes and grants put into place by the UK government and detailed in this article. This includes:

Financial Support for Exporters:

The UK Export Finance (UKEF), together with banks and insurance brokers, will help businesses of all sizes to fulfill and get paid for export contracts. It will provide loans, guarantees, and insurance on behalf of the government to protect against delayed payments or transit restrictions.

If your business is facing late payments, the UKEF will guarantee bank loans through the Export Working Capital Scheme. This scheme provides partial guarantees covering up to 80% of the risk to lenders and helps UK exporters to access working capital finance for export-related contracts. This will help your business to fulfill more overseas contracts than you typically can.

The UKEF's Export Insurance Policy will ensure that export businesses can get paid if a contract is terminated by events outside of the business's control. The business will receive up to 95% cover against loss suffered due to specified risks.

For overseas businesses that buy your goods and services, the UKEF can provide financial support through their Direct Lending Facility scheme. This scheme includes a loan of up to £3 billion to overseas buyers. Loans for individual transactions can also be made in 8 currencies with a value limit of £200 million.

The UKEF also has a £4 billion support capacity for UK businesses that export to China. It also has a high capacity of support for other markets affected by COVID-19. For support information across other regions, email customer.service@ukexportfinance.gov.uk.

International Business Travel:

The UK government has advised against all but the most necessary international business travel. Many airlines have also suspended flights and many airports have closed altogether. You can visit gov.uk to view the FCO's travel advice for each country.

Loan Schemes:

There are many High Street Banks that are providing support to small businesses affected by COVID-19, including:

  • Halifax.
  • Barclays.
  • HSBC UK.
  • Lloyd's Banking Group.
  • NatWest.

However, businesses thinking about applying for funding through the Covid Corporate Financing Facility and the Coronavirus Business Interruption Loan Scheme should carefully consider their long-term cash flow situation, as both these loans will need to be repaid at a future date.

Schemes That Will Be Available in England:

12-Month Business Rates Holiday:

A business rates holiday will be introduced for all retail, hospitality, and leisure businesses in England for the 2020 - 2021 tax year and businesses that received the retail discount in the 2019 - 2020 tax year will be rebilled by their local authority.

Eligible businesses will be based in England and be in the retail, hospitality, and leisure sector. The properties that will benefit from this holiday will be occupied hereditaments (items of property that can be inherited) that are mainly or wholly being used as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, hotels, guest and boarding premises, self-catering accommodation, and for assembly and leisure.

This scheme requires no action from employers and will apply to April 2020 council tax bills.

The UK government will also introduce a Retail and Hospitality Grant Scheme to provide England-based businesses in the retail, hospitality, and leisure sector with cash grants of up to £10,000 to £25,000 per property, depending on the rateable value of the property. Your local authority will write to you if you are eligible for this grant.

Support for Nurseries in England:

A business rates holiday will be introduced for nurseries in England for the 2020 - 2021 tax year for hereditaments that are occupied by providers on Ofsted's Early Years Register and that are mainly or wholly used for the provision of the Early Years Foundation Stage. This scheme requires no action and will apply to April 2020 council tax bills.

Small Business Grant Scheme:

The Small Business Grant Scheme will support small businesses that pay little or no business rates due to small business rate relief (SBBR), rural rate relief (RRR), and tapered relief. A one-off grant of £10,000 will be awarded to eligible businesses to help them meet their ongoing business costs.

Eligible businesses will be based in England, receive SBBR and/or RRR, and occupy a property. Your local authority will write to you if you are eligible for this grant.

Local Authority Discretionary Grants Fund:

The Discretionary Grant Fund supports small and micro-businesses that are not eligible for other grant schemes with a grant of £25,000, £10,000, or an amount under £10,000.

Eligible businesses must be:

  • based in England,
  • have fewer than 50 employees,
  • have fixed building costs (e.g. rent),
  • have been trading on March 11, 2020, and
  • have been adversely affected by the COVID-19 pandemic.

Businesses will not be eligible if they have applied for:

  • Small Business Grant Fund
  • Retail, Hospitality, and Leisure Grant
  • Fisheries Response Fund
  • Domestic Seafood Supply Scheme
  • Zoos Support Fund
  • Dairy Hardship Fund

However, you can apply for the Discretionary Grant Fund if you've already applied for the Coronavirus Job Retention Scheme or the Self-Employed Income Support Scheme.

The Discretionary Fund counts toward state aid and you will not receive funding that exceeds the relevant state aid threshold.

Visit your local authority for instructions on how to apply for this grant. Businesses will not have to pay back the grant but will be subject to taxes if they have made an overall profit once the grant has been applied.

International Travel Restrictions:

To try and prevent the spread of COVID-19, employees with international roles should have returned home and should now be working from their home base. However, this could have unexpected tax liabilities with a potential impact on the tax status of the employer. Some countries will introduce concessions to their usual rules but it is vital for employers to have a strategy to deal with international employees.

As yet, the UK government has not made any concessions for corporate residence issues or related tax issues.

Schemes That Will Be Available in Scotland:

Small Business Grants:

The Scottish Government has pledged £2.2 billion to provide funds to small businesses in those sectors that are facing the worst economic impact due to COVID-19. This package will include:

  • 100% non-domestic rates relief for businesses in the retail, hospitality, and leisure sectors.
  • £10,000 grants for small businesses that receive the Small Business Bonus Scheme or Rural Relief.
  • £25,000 grants for retail, hospitality, and leisure properties with a rateable value of between £18,000 and £51,000.
  • 1.6% rates relief for all properties across Scotland.
  • The urging of local authorities to relax planning rules so that pubs and restaurants can temporarily act as takeaways.

Learn more about Scotland's Business Support Fund.

FindBusinessSupport.gov.scot is a great resource for information on support for Scottish-based businesses that are being impacted by COVID-19.

Lifeline Support:

Scotland's government has made £100 million available to support SMEs and the newly self-employed who are suffering due to the COVID-19 pandemic. The fund will be paid out early in May and will include:

  • £34 million to the Newly Self-Employed Hardship Fund which will allocate £2,000 grants to the newly self-employed that are suffering hardships.
  • £20 million to the Creative, Tourism, & Hospitality Enterprises Hardship Fund which will allocate £3,000 - £25,000 grants to those companies not in receipt of the business rates relief.
  • £45 million to the Pivotal Enterprise Resilience Fund to be allocated to vulnerable SME firms that are vital to the local or national economic foundation of Scotland.
  • £1 million to Creative Scotland's Bridging Bursaries for the not-for-profit sector.

These funds will be open for applications by the end of April and will be available by early May.

Schemes That Will Be Available in Northern Ireland:

Small Business Grant Scheme:

A £370 million fund is being made available to small and medium-sized businesses that have been impacted the most by COVID-19. Grant schemes of £10,000 each will be awarded to approximately 27,000 small businesses and payments of £25,000 each will be awarded to around 4,000 businesses in the retail, tourism, and hospitality sectors.

This money is being made available to the most vulnerable businesses first while other measures are being explored. Your local authority will write to you if you are eligible for this grant.

Learn more about NI's Small Business Support Grant Scheme.

gov.uk is a useful resource for information on support for Northern Irish-based businesses that are being impacted by COVID-19.

NI Micro-Business Fund:

A £40 billion fund is being made available for micro-businesses and social enterprises in Northern Ireland that cannot access other COVID-19 support funds. This fund will be administered by Invest Northern Ireland on the Department for the Economy's behalf and will offer emergency funding to micro-businesses facing immediate cash flow problems due to COVID-19.

The grant amount delivered to each business will depend on the final number of successful applicants, in order to ensure that the £40 billion budget is not exceeded. Eligible businesses must:

  • be based in Northern Ireland,
  • have employed 1 to 9 employees that are paid through PAYE as of February 29, 2020, and
  • have experienced a more than 40% reduction in turnover since March 1, 2020, as a direct result of COVID-19 or government restrictions.

Businesses, where the sole employee is also the business owner, will not be able to apply for this grant. Other businesses that will not be eligible for this grant include:

  • Primary agricultural producers.
  • Businesses eligible for the Small Business Support Grant Scheme, the Small Business Grant for rental properties, the Retail, Hospitality, Tourism, and Leisure Grant, or the Childcare Support Scheme.
  • Charities or social enterprises with charitable status.
  • Social enterprises that receive less than 60% of their revenue from the trade of goods and/or services.

To apply for this scheme, you will need to check if you are eligible and the eligibility checker will then direct you to the application link if you are eligible. The business owner themself must apply for this grant.

This scheme will close to applications at 6 pm on Friday, June 12, 2020.

Schemes That Will Be Available in Wales:

Small Business Grants:

The Welsh government has pledged £1.4 billion to help small businesses during the COVID-19 pandemic. A £25,000 grant will be awarded to all retail, leisure, and hospitality businesses with a rateable value of £12,001 to £51,000 while those businesses that have a rateable value of less than £12,000 will receive a £10,000 grant.

All retail, leisure, and hospitality businesses with a rateable value of less than £51,000 will also receive a business rates holiday for the financial year of 2020 - 2021.

This support will be administered through the Business Rates system, so businesses that qualify will not need to do anything to apply. Your local authority will write to you if you are eligible for this grant.

Learn more about Wales' Small Business Grant.

Economic Resilience Fund:

A grant of £10,000 is available to Microbusinesses that employ 1 - 9 employees, operate in Wales, and are VAT registered with a turnover of more than £85,000. In order to be eligible, microbusinesses must have experienced a 40% or more drop in turnover as a result of COVID-19, must aim to keep their employees on for 12 months, and must not be eligible for the Business Rate Grant or the Support for Self-Employed grant.

Only one application can be made per business and you will need to provide details of the reduction in your turnover as well as your VAT registration as proof of business address.

A grant of between £25,000 and £100,000 will also be available to Small and Medium-Sized Enterprises (SMEs) that employ between 10 and 249 employees. These businesses must be VAT registered with a turnover of more than £85,000, operate in Wales, and have experienced a 60% or more drop in turnover due to COVID-19.

These businesses will also need to prove that they will be sustainable for at least 12 months, can access at least some funding to cover costs, and can demonstrate that they have attempted to access funding (successful or not) from wider sources, are not pursuing any other type of government-funded, non-repayable COVID-19 support, and must promise not to make any redundancies while the Job Retention Scheme is in place.

Does Your Business Interruption Insurance Cover You for COVID-19?

Business Insurance is usually broken into sections, so you will need to see if you have a business interruption section, which generally provides coverage if your business is closed due to property damage. Business Interruption Insurance can cover against viruses and diseases, but they usually cover for known diseases, such as anthrax, chickenpox, dysentery, typhoid fever, measles, rabies, tuberculosis, and yellow fever. However, they don't usually cover new diseases like COVID-19.

You will need to look through the Business Interruption section for anything related to "Notifiable Diseases", which COVID-19 has been labeled as by the UK government, or contagious and/or infectious diseases. If your policy covers these diseases without a specified list, you may have coverage for COVID-19 in specific scenarios.

If COVID-19 can be covered, it will only be in specific scenarios, such as your business being forcibly closed by government or local authorities or the notifiable disease is present at your business or within a specified distance of your business.

Business insurance is not likely to cover any losses due to a reduction in customers or delays with suppliers or stock due to COVID-19. Also, it will not be worth your while to switch insurers or buy new insurance that covers COVID-19 as it is no longer seen as an unforeseeable event.


Do I still have to pay business taxes?

No, all income tax payments that are generally due by July 31, 2020 will be deferred to January 31, 2021 for self-employed individuals. Valued Added Tax (VAT) payments will be deferred from March 20, 2020, to June 30, 2020.

Where can I apply for a Coronavirus Business Interruption Loan?

The Coronavirus Business Interruption Loan will support loans of up to £5 million for UK based businesses with a turnover of less than £45 million per year. Your business must meet British Business Bank's eligibility criteria and you can view these criteria as well as British Business Bank's list of accredited lenders and partners, on their website.

Related Articles:

Essential Business in the UK

View which businesses will be closed for the COVID-19 lockdown.

UK Small Business Grant Funds

Funds to help small businesses in the UK during the COVID-19 pandemic.

Government Aid for U.K. Small Business Owners Affected by COVID-19

COVID-19 support information for small business owners and self-employed individuals.

Resources for UK Workers Laid Off due to COVID-19 (Coronavirus)

COVID-19: Support for laid-off UK workers.

Help for Self-Employed Affected by COVID-19 (Coronavirus)

Learn more about the Self-Employment Income Support Scheme and how to access it.