This page is kept up to date with a summary of the latest guidance we've issued, giving you a snapshot overview of the key announcements and updates.
The following was updated on Wednesday 3 March at 4pm.
We've outlined the details of additional funding measures announced over the last week which may prove useful to you and your business:
Non sector-specific update for individuals and businesses
Support for the Hospitality and Tourism sector
Support for the Food and Drink sector
Support for the Seafood Sector
Support for Freelancers and the Events sector
Support for the Health and Beauty Sector
Non sector specific update for individuals and businesses
Extension of Furlough and corporation tax implications
Chancellor, Rishi Sunak, announced in his Budget (on 3 March 2021) that the furlough scheme for employees has been extended until the end of September. In his announcement, he confirmed that the scheme - which pays 80% of employees' wages for the hours they cannot work in the pandemic - would help millions through "the challenging months ahead".
While this is good news for businesses, it's important to remember that furloughed employees are able to carry forward their holiday entitlement for up to two years, which could have corporate tax implications for businesses.
Corporation Tax legislation sets out that any unpaid employee remuneration included in a company’s accounts can only be deductible for Corporation Tax purposes where that remuneration is paid within nine months of the year end. This has an impact on holiday pay accruals, where these are not paid or the holidays are not taken within nine months of the year end.
The ability to carry forward holiday entitlement for up to two years will mean that some businesses will be unable to claim Corporation Tax relief on the costs accrued. This is likely to increase their Corporation Tax liability or reduce any Corporation Tax refund that would otherwise be due.
For more information, read our insight on the topic here.
Bounce Back Loan Scheme - Deadline for applications is 31 March 2021
Accessing finance quickly is important for smaller businesses hit by coronavirus disruption. The Bounce Back Loan Scheme (BBLS) was introduced to help small- to medium-sized businesses gain access to funding 100% guaranteed by the UK Government.
Until the end of this month, you can apply for loans in any amount from £2000 up to 25% of your turnover. The maximum loan amount is £50,000.
You can apply through one of 11 accredited lenders. If you are refused by one lender, you can apply through another.
Please note: If you already have a Bounce Back Loan but borrowed less than you were entitled to, the deadline for topping up the existing loan has now passed.
Find out more information here.
Self-Employment Income Support Scheme
Rishi Sunak has announced that the self-employment income support scheme will be extended until September.
A fourth grant under the Self-Employment Income Support Scheme (SEISS) scheme will run from February until April, covering up to 80% of three months' trading profits up to £7,500. There will then be a fifth grant from May to September.
People whose turnover has fallen by 30% or more will get the 80% grant, but self-employed people whose turnover has fallen by less than 30% will get a 30% grant.
The grant allows self-employed people whose business and income have been affected by the Covid-19 pandemic to claim money from the Government.
Eligibility for the scheme will now be based on your submitted 2019 to 2020 tax return. This may also affect the amount of the fourth grant which could be higher or lower than previous grants you may have received. You can find out more here.
Newly Self-Employed Hardship Fund - Deadline for applications is 5pm on 16 March 2021.
This grant scheme was introduced to offer a one-off payment of £4,000 to those whose status as being newly self-employed makes them ineligible for the UK Government's Coronavirus (COVID-19) Self-Employment Income Support Scheme.
There were technical issues when the fund opened, impacting the ability of some people to successfully submit applications and that may have led to a number of eligible applications being declined. However, all applications impacted by a known error have been contacted directly to resolve the issue as swiftly as possible.
If you have a question about your application, please use the separate enquiry form provided here. If you have already submitted an enquiry, you do not need to resubmit. Responses may take up to five days due to the current high volume of queries.
When you submit your application, you will receive a unique reference number. These reference numbers do not indicate when an application will be processed and concluded, as the work involved in each case may differ.
Find out more information about this funding here.
Recovery Loan Scheme
There is a new UK-wide Recovery Loan Scheme to make available loans between £25,001 and £10 million, and asset and invoice finance between £1,000 and £10 million, to help businesses of all sizes through the next stage of recovery. You can find out more here.
Support for the Hospitality and Tourism sector
Scotland Tour Operators Fund - applications open Thursday 4 March
The criteria for the Scotland Inbound Tour Operators – COVID-19 Business Support and Continuity Fund has widened and a new fund, the Scotland Day Tour Operators – COVID-19 Business Support and Continuity Fund, has been introduced to support more Scotland-based businesses in the tour operator sector critical to Scotland’s tourism economy.
Due to the complexity and breadth of businesses within the sector, a two-strand approach to grant funding is necessary to meet the needs of the sector.
The two strands are:
- Scotland Inbound Tour Operators - COVID-19 Business Support and Continuity Fund: guidance available now, applications open Thursday 4 March 2021
- Scotland Day Tour Operators - COVID-19 Business Support and Continuity Fund: guidance available now, applications open Thursday 4 March 2021
The £15 million fund is being delivered by VisitScotland on behalf of the Scottish Government and has been developed with input from the Scottish Tourism Alliance, the Scottish Destination Management Association, the Scottish Incoming Golf Tour Operators Association, UK Inbound and the Scottish Independent Tour Operators Association.
Find out more information here.
Scotland's Tour Guides Fund
Applications for this fund opened today (3 March 2021).
The £3 million fund is being delivered on behalf of the Scottish Government by VisitScotland, with development input from the Scottish Tourist Guides Association and other industry partners. VisitScotland is the awarding body for this fund.
The fund recognises the critical role that guided experiences play in the visitor economy, welcoming visitors to Scotland and sharing their knowledge and passion in order to provide a memorable experience and world-class service.
Find out more here.
Support for the Food and Drink Sector
Funding for regional projects promoting the development of local food and drink across Scotland - Deadline for applications is Monday 15 March 2021
The Regional Food Fund offers grants of up to £5,000 to support projects and initiatives that promote the development of local food and drink across Scotland. The funding is aligned to the Food Tourism Scotland Action Plan and is part of the Scotland Food & Drink Partnership’s Recovery Plan, supported by the Scottish Government.
The fund is specifically aimed at collaborative projects that:
- contribute to the food and drink sector’s recovery from COVID-19
- contribute to the promotion and sales of regional produce
- develop food tourism
Find out more here.
Support for the Seafood Sector
Seafood Producers Resilience Fund
The scheme has now closed to fishing vessels. If you have applied, you will get a response in 15 days.
The deadline for applications for aquaculture undertakings is 23 April 2021.
The Seafood Producers Resilience Fund will provide support to eligible shellfish catchers and eligible shellfish and trout aquaculture businesses. The funding aims to help businesses which have lost access to domestic and international food markets as a result of COVID-19 and the difficult trading conditions that have resulted from the end of the transition period following the UK’s withdrawal from the EU.
The scheme will provide vital cash to vulnerable fishers and producers as quickly as possible in order to:
- support the seafood producing sector
- ensure that viable businesses are not lost
- keep jobs in remote coastal communities
Find out more information here.
Support for Freelancers and the Events sector
Hardship Fund for Creative Freelancers - Deadline for applications is midday on 22 March 2021 or earlier if all funds are allocated
The Scottish Government has committed £17 million through Creative Scotland and Screen Scotland for creative freelancers who are experiencing hardship due to lost income from work and/or practice in the creative sector due to COVID-19. £8 million was distributed between October 2020 and February 2021. A further £9 million is to be distributed in March 2021.
In this latest round, as well as supporting new applicants, previous recipients of the fund who have been awarded funding can also apply again for a further award of up to £2,000.
Find out more here.
Association of Independent Music Immediate Access Crisis Fund
Please note: This fund is currently paused in order to process applications. It will reopen if funds are still available. Check the AIM website for updates.
The AIM Immediate Access Crisis Fund provides hardship payments of up to £1,000 to freelancers and contractors in the independent music industry whose income has been severely affected due to the coronavirus crisis.
The fund supports contractors who were due to work with new and developing artists currently signed to AIM member labels, but have lost committed income in April and May because of cancelled projects and do not qualify for other music industry hardship funds on offer.
Applicants can receive up to 80% of their lost committed income from the project, to a maximum of £1,000. Payments will be made immediately once an application is approved.
Find out more here.
Film & TV Production Restart Scheme
There is an extension of the Film & TV Production Restart Scheme in the UK, with an additional £300 million to support theatres, museums and other cultural organisations in England through the Culture Recovery Fund. You can find out more here.
Support for the Health and Beauty Sector
Mobile and Home-based Close Contact Services Fund - Deadline for applications is 5pm on 16 March 2021
Please note: There appears to have been a technical issue impacting the ability of some people to successfully submit applications and that may have led to a number of eligible applications being declined. All applications impacted by a known error have been contacted directly to resolve the issue as swiftly as possible.
This funding is being provided by the Scottish Government. Eligible applicants will receive a one-off £4,000 payment (£2,000 for the period to end December 2020 and a further £2,000 to cover the period from January 2021 onwards). To be eligible for this grant you must:
- have been operating your business before 17 March 2020
- have lost income as a result of COVID-19 restrictions, and
- meet all of the eligibility criteria
This fund is for owners and operators of mobile and home-based close contact service businesses and for registered driving instructors. It is not for employees of those businesses. If you are an employee of one of those businesses, you should speak with your employer on your eligibility for support through the UK Government’s Job Retention scheme. If you think you are eligible and intend to apply, please gather all of the information and supporting evidence outlined in the "Important information" section before starting your application. You can find out more information here.
