Welsh Government announces Covid-19 Grants for businesses in Wales

Welsh Government announces Covid-19 Grants Welsh Businesses

There are several key areas where businesses can access funding; these include:

Grant Support

  • Under the Retail and Hospitality Grant Scheme businesses can access cash grants of £25,000 for each property in England with a rateable value of £15,001- £51,000 and £10,000 for each property in England with a rateable value of £15,000 or lower.
  • Details of the properties that will benefit from the relief can be found here.
  • Small businesses which occupy premises in England and already receive small business rate relief or rural rate relief are eligible for a one-off grant of £10,000 to help meet their ongoing business costs.
  • Scotland & Wales have announced similar grant schemes.
  • Your local authority should be able to confirm if you are eligible for a grant.

Employee Wage Support

  • Covers any business, charity or non-profit organisation
  • Covers up to 80% of the salary (up to £2,500/mth) of anyone not working (but retaining job)
  • as a result of Covid-19
  • Wages backdated to 1 March 2020
  • The initial period of 3 months, but extended if necessary
  •  No limit on funding
  • Will be in the form of a grant (not a loan)
  • Expect first to be paid within weeks, certainly by the end of April

Tax Payments

  • Businesses can defer VAT payments which would have been due between 20 March and 30 June 2020 until 31 March 2021.
  • Self-employed individuals with income tax payments due in July 2020 under the Self-Assessment system can defer payment until January 2021.
  • HMRC have also scaled up their ‘Time to Pay’ service and requests can be made to defer other tax payments including corporation tax and PAYE which are due (or overdue) to HMRC by calling a dedicated HMRC Coronavirus helpline on 0800 015 9559.
  • 3-month deferrals have been agreed through this process during the last week.
  • Statutory Sick Pay
  • Businesses with less than 250 employees can obtain a refund from the Government for Statutory Sick Pay paid for up to 2 weeks’ absence due to COVID-19. This also covers absence due to self-isolating in line with Government advice.

Mortgage & Rent

  • 3-month payment holidays offered to Help to Buy equity loans
  • 3-month payment holidays offered to Buy to Let mortgages
  • 3-month payment holidays offered for Residential mortgages I
  • It is important to remember that you still owe the amounts that you don’t pay as a result of the payment holiday. Interest will continue to be charged on the amount you owe.
  • You should contact your lender if you think you may potentially experience payment difficulties as a result of the coronavirus situation.
  • Your lender shouldn’t need any evidence that your income has been affected by coronavirus.
  • Interest on your mortgage continues during the payment holiday
  • Taking a payment holiday will not impact your credit score.
  • We expect lenders to offer payment holidays to borrowers who may experience payment difficulties as a result of the coronavirus.
  • If you are behind with your mortgage payments, you can still have a payment holiday. You will need to discuss this with your lender.
  • If you think you may experience payment difficulties and may need a payment holiday, you should speak to your lender in good time before the next payment is due.
  • You can apply for a payment holiday at any time before this guidance is reviewed in 3 months. The payment holiday will not start, however, until it has been agreed with your lender.
  • Repossessions – Lenders are temporarily stopping repossession acti