COVID-19 Support Update

There have been a few updates to the available COVID-19 support, including the following four issues detailed below.

We hope these are of use to you and please do contact us if you would like any additional advice.

Also, kindly note that due to lockdown restrictions, our offices may not be staffed during office hours, so please telephone us before visiting.

Our first update is that in Wales, there is a new Local Lockdown Business Fund.

This is a fund to provide financial assistance for businesses that are facing operational and financial challenges caused by the local restrictions imposed in their local area as a result of COVID-19.

The purpose of the fund is to support businesses with cash flow support to help them survive the economic consequences of the local restrictions put in place in their local area.

Businesses will be eligible to apply for this fund when their local area has been in lockdown for a minimum of 21 days. Applications will be open for businesses in each local area on or shortly after the 28th day of local restrictions having been in place, and will be administered by the Local Authority.

Business must be able to demonstrate a drop in turnover greater than 40% as a result of the local lockdown imposed as a result of Covid-19 to be eligible for these grants and there is further information in the guidance document to refer to.

The fund consists of two separate grants:

Local Lockdown Non Domestic Rate Grant

This grant is available to businesses liable for paying business rates.

A grant of £1,500 is being made available for retail, leisure and hospitality businesses occupying properties with a rateable value of between £12,001 and £51,000.

A grant of £1,000 is being made available to businesses eligible for small business rates relief (SBRR) in Wales with a rateable value of £12,000 or less – please note the guidance documentation details some exceptions.

You are not eligible for this grant if you are eligible for, or have received, the Local Lockdown Discretionary Grant from your Local Authority

For further information on this grant please read the Local Lockdown Non Domestic Rate Grant Guidance Document.

Local Lockdown Non Domestic Rate Grant - Guidance (ENG).pdf

Local Lockdown Discretionary Grant

A grant of £1,500 is being made available for retail, leisure and hospitality businesses that do not pay business rates.

A grant of £1,000 is being made available for businesses not in the retail, leisure and hospitality sector and do not pay business rates - please note the guidance documentation details some exceptions.

You are not eligible for this grant if you are eligible for, or have received, the Local Lockdown Non-Domestic Rate Grant from your Local Authority

For further information on this grant please read the Local Lockdown Discretionary Grant Guidance Document.

Local Lockdown Discretionary Grant - Guidance (ENG)_0.pdf

Applications will be dealt with on a first come first served basis. This may lead to applications not being appraised after they have been submitted if the fund is fully committed.

Secondly, the Cultural Fund Grant for freelancers opens on Monday – see https://businesswales.gov.wales/coronavirus-advice/covid-19-support-business

Also, the latest Welsh Business Development Grants open for applications on 26 October – see https://businesswales.gov.wales/coronavirus-advice/covid-19-support-business.

The eligibility checkers on the Business Wales website will help determine whether a grant may be obtained.

Lastly, if having a new child affected the trading profits you reported for the tax year 2018 to 2019, you may be able to claim for the Self Employment Income Support Scheme (SEISS) as explained below.

If you are self-employed and had a new child, you may still be able to make a claim at the same time for the first and second grant.

If you are already eligible for the grant based on your 2016 to 2017, 2017 to 2018 and 2018 to 2019 Self Assessment tax returns, your grant amount will not change.

You may be able to make a claim if having a new child either:

• affected the trading profits or total income you reported for the tax year 2018 to 2019
• meant you did not submit a Self Assessment tax return for the tax year 2018 to 2019

For this scheme having a new child is any of the following:

• being pregnant
• giving birth (including a stillbirth after more than 24 weeks of pregnancy) and the 26 weeks after giving birth
• caring for a child within 12 months of birth if you have parental responsibility
• caring for a child within 12 months of adoption placement

You must have been self-employed in the tax year 2017 to 2018 and have submitted your Self Assessment tax return for that year on or before 23 April 2020.

You must also meet all other eligibility criteria.

HMRC will work out your eligibility and average trading profits based on your Self Assessment tax returns for either the:

• average of the tax years 2016 to 2017 and 2017 to 2018 if you were self-employed in both these years
• tax year 2017 to 2018 if you were not self-employed in the tax year 2016 to 2017

Please note you must ask HMRC to verify you had a new child which affected your eligibility for the Self-Employment Income Support Scheme before you make a claim.

If HMRC has confirmed your eligibility you can make a claim on or before 19 October 2020.

If you have not asked HMRC to verify your information you can contact HMRC now.