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Information about Scottish government schemes and support for businesses

Government schemes
and support for businesses affected by coronavirus (Covid-19)

Bounce Back Loan for small businesses

Lending from £2k to £50k over 6 years for businesses impacted by coronavirus. No interest payments for 12 months.

See Bounce Back Loan details

Coronavirus Business Interruption Loan Scheme (CBILS)

To support SMEs, CBILS will provide loans of £50,001 to £5 million, with no interest due for the first 12 months.

If your business has been impacted by coronavirus, we will be able to consider your application under CBILS.

Visit our CBILS page for more information.

Business rates relief

Businesses are facing acute challenges, and as such, all non-domestic properties in Scotland will get a 1.6% rates relief. Sectors that have been particularly impacted will receive further rates relief in Scotland for the 2020 to 2021 tax year.

Retail, hospitality and leisure

The retail, hospitality and leisure sectors have also been severely affected. Businesses in Scotland in these sectors with occupied property will automatically receive 100% rates relief.

This relief will be applied to your bill by your local council.

Find out more

Aviation

The government is providing Scottish airports, and organisations providing handling services for scheduled passenger flights, with 100% rates relief for a year.

Any organisation providing one or more of the below handling services at a Scottish airport is eligible:

De-icing

Re-fuelling

Moving aircraft

Waste servicing

Allocation of seating

Handling of baggage

Supervision of boarding

Find out more

Government grant schemes

Retail and Hospitality Grant Scheme

Retail and hospitality businesses in Scotland with a rateable value between £18,001 and £50,999 will be able to apply for a one-off grant of £25,000.

How to access the grant schemes

You need to apply directly via your your Local Authority. You can find further information on the government website, under 'Local Authorities - coronavirus grants'.

Small Business Support Grant

The government will provide extra funding for businesses based in Scotland that receive Small Business Bonus Scheme relief or Rural Relief.

Business with a rateable value up to £18,000 are eligible.  You can also get this grant if you applied for Nursery Relief or Disabled Relief but are eligible for the Small Business Bonus Scheme.

The government will provide a one-off grant of £10,000.

How to access the grant schemes

You need to apply directly via your your Local Authority. You can find further information on the government website, under 'Local Authorities - coronavirus grants'.

Job retention and sick pay

Coronavirus Job Retention Scheme

All UK businesses will be able to access support to continue paying part of their employees' salary for those employees that would otherwise have been laid off during this crisis.

How to access the scheme

You will need to:

Designate affected employees as 'furloughed workers', and notify your employees of this change - changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation

Submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.

Coronavirus Job Retention Scheme

Statutory Sick Pay Rebate

SSP is payable to qualifying employees and is now payable from day one for those who self-isolate or are unwell because of coronavirus (the first 3 days are normally unpaid). The current rate of SSP is £94.25 per week.

HM Treasury has announced that small and medium sized employers (those with fewer than 250 employees) may recover this cost where SSP has been paid as a result of coronavirus from 13 March for a maximum of two weeks' sickness per employee.

Government support for employers

Self-employed workers

Self-employment Income Support Scheme (SEISS)

This scheme will provide a taxable grant worth 80% of your trading profits, up to £2,500 per month for the next 3 months.

The scheme is available to those with a trading profit less than £50,000 in 2018-19. Or, an average trading profit of less than £50,000 for the last 3 tax years.

Can I benefit?

You can get support if you're self-employed (including members of partnerships) and have lost income due to coronavirus. Trading profits must be less than £50,000 and make up more than half of your income from self-employment.

The scheme is initially available for 3 months in one lump sum payment. HMRC will begin payments at the beginning of June.

Visit the government website to see how your trading profits and eligibility are determined.

How do I access the scheme?

You do not need to do anything. HMRC will contact you if you are eligible for the scheme and invite you to apply online.

If you pay yourself a salary and dividends through your own company, you won't be covered by the scheme. You can access the Coronavirus Job Retention scheme which covers 80% of your salary, if operating through PAYE.

Time To Pay Service

Businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support through HMRC’s Time To Pay Service.

How to access the scheme

If you have missed a payment or you might miss your next payment due to coronavirus, contact HMRC’s helpline on 0800 015 9 559.

If you’re worried about a future payment, you should call nearer the time.

Find out more

Support for larger firms

Covid Corporate Financing Facility (CCFF)

Under this scheme the Bank of England will buy short term debt from larger companies.

How to apply

The scheme is now available for applications. More information is available from the Bank of England.

Coronavirus Large Business Interruption Loan Scheme (CLBILS)

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) will support businesses with annual Group turnover of over £45 million to access loans of up to £200 million.

Find out more about CLBILS.

Protection from eviction for commercial tenants

Private and social tenants in Scotland will have their minimum notice period increased to 6 months, dependent on the grounds used.

This protection has been granted across most grounds for reposession, except for those involving criminal or antisocial behaviour, or if the landlord needs to move into the property themselves.

This is not a rental holiday. All commercial tenants will still be liable for the rent. Commercial tenants are protected from eviction if they are unable to pay rent.

How to access the scheme

The bill was passed on April 1 and has now come into effect.

VAT and Income Tax payments

VAT

The government will be deferring Valued Added Tax (VAT) payments for 3 months for UK businesses.

How to access the scheme

This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.

Customers who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. Please do so in enough time so that HMRC do not attempt to automatically collect on receipt of your VAT return.

Income Tax

Self-employed people may have their Income Tax Self-Assessment payments due on the 31 July 2020 deferred until 31 January 2021.

How to access the scheme

This is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment until January 2021.

Government guidance

Further information on support for UK businesses can be found on the government website.

Because some elements of business support are devolved, the measures you can access may differ from England if your business is in Scotland, Wales or Northern Ireland.

Businesses in Scotland

Businesses in Wales

Businesses in Northern Ireland

Coronavirus guidance and support

We’re here to support your business. See our latest guidance and find out how we might be able to help you.

Coronavirus support

 

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