COVID-19

COVID 19 - Funding Information and Support


We are aware that this is a very challenging time for individuals and businesses and COVID-19 is having a significant impact. We will regularly update this page with funding opportunities and support available.

We are available Monday – Friday, 9am to 5pm. You can contact us by emailing invest@angus.gov.uk and we will reply as soon as possible.

Coronavirus Financial Support for Self Employed

Please view our dedicated page for self-employed funding and support information.

Coronavirus Financial Support for Businesses

The UK Government has created a tool to help find what support is available to businesses. Coronavirus (COVID-19) support is available to employers and the self-employed. You may be eligible for loans, tax relief and cash grants. Find financial support for your business. 

See below for details of current funding opportunities.

The Strategic Framework Business Fund is now open for applications.

If your business is required to close by law or to significantly change its operations due to COVID-19 restrictions from 2 November 2020, you may be eligible to apply for grant funding from the Coronavirus (COVID-19): Strategic Framework Business Fund.

You can apply for a:

  • temporary closure grant – £2,000 or £3,000 (depending on rateable value) if your business is required to close by law.
  • business restrictions grant – £1,400 or £2,100 (depending on rateable value) if your business can remain open but is specifically required to modify its operations by law, for example having to close earlier than normal.This does not include where a demand for your products or services has been reduced because of the pandemic.

Grants will be paid every four weeks in arrears.

Payments will be administered by local authorities, and you do not need to re-apply if restrictions are extended beyond four weeks, or if the Level in your area changes.

Eligible businesses will be funded for the period of any closures or restrictions.

Payments, four weekly in arrears, will be based on a weekly pro-rata grant amount reflecting the level of restrictions which are in place during the period, and the period of time they applied.

Check to see if your business is eligible. 

This support is separate from, and in addition to, the Coronavirus (COVID-19) Restrictions Fund to support employees and businesses impacted by local COVID-19 restrictions, from 9 October until 1 November. Applications for that funding closed on 3 November. 

The COVID-19 Restrictions Fund closed on 3 November.

Any appeals to decisions, including any relevant documentation, should be submitted by close on Friday 11 December to your local authority.

See the Strategic Framework Fund to find out what support is available to businesses in Scotland affected by COVID-19 restriction from 2 November.

If you have any queries about your application, please get in touch.

This first phase of the Contingency Fund will provide one-off grants to two sectors that that have been closed by law since March 2020: nightclubs and soft-play centres.

This first phase of Contingency Fund grants will operate as a three-tiered scheme, with awards ranging from £10k – £50k, dependent on  Rateable Value.

You do not need to apply for this funding.  Your local authority will contact you shortly to begin the process of gathering information in support of your claim.

The government is extending the Coronavirus Job Retention Scheme (CJRS) to support individuals and businesses who are impacted by disruption caused by coronavirus (COVID-19) this winter. This is an extension of the CJRS and the scheme rules will remain the same except where otherwise stated.

The CJRS (also known as the furlough scheme) will remain open until 31 March 2021. For claim periods running to January 2021, employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. The £2,500 cap is proportional to the hours not worked.

The government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.

Claims can be made by employers across the UK that meet the eligibility criteria.

See the policy paper for updated details on:

  • eligibility criteria for employers and employees
  • what employers will need in order to claim
  • updated information on reference data to calculate those claims

The launch of the Job Support Scheme has been postponed because of national developments related to the coronavirus pandemic.

The Job Retention Bonus (JRB) will no longer be paid in February 2021 and a retention incentive will be deployed at the appropriate time. The purpose of the JRB was to encourage employers to keep people in work until the end of January. However, as the CJRS is now being extended to 31 March 2021, the policy intent of the JRB no longer applies.

The Job Support Scheme, which was due to start on 1 November 2020, has been postponed as the Coronavirus Job Retention Scheme is being extended until December.

Find out more about the Coronavirus Job Retention Scheme.

The Coronavirus Statutory Sick Pay Rebate Scheme opened on 26 May. Businesses with fewer than 250 employees can apply to HMRC to recover the costs of paying COVID-19-related Statutory Sick Pay.

The repayment will cover up to two weeks of SSP, and is payable if an employee is unable to work because they:

  • have coronavirus; or
  • are self-isolating and unable to work from home; or
  • are shielding because they’ve been advised that they’re at high risk of severe illness from coronavirus

If you use an agent who is authorised to do PAYE online for you, they will be able to claim on your behalf. Employers who are unable to claim online should have received a letter on an alternative way to claim. Contact HMRC if you have not received a letter and are unable to make any eligible claims online.

Find out more about the Coronavirus Statutory Sick Pay Rebate Scheme and how to apply.

The Kickstart Scheme is a new £2 billion fund to create job placements for 16 to 24 year olds who are on Universal Credit and are deemed to be at risk of long term unemployment.

Funding is available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions. There is also £1,500 per job placement available for setup costs, support and training.

Funding is available following a successful application process. Applications must be for a minimum of 30 job placements. If you are unable to offer this many job placements, you can partner with other organisations to reach the minimum number.

Businesses can submit an application via the UK Government website.

Crowdfunder  UK is offering zero platform fees for those fundraising to start up a new business after being affected by Covid-19.

The Historic Environment Recovery Fund aims to support Scotland’s historic environment sector to recover from the impacts of COVID-19, enabling organisations to remain solvent, safeguard jobs and training opportunities and ensure that historic buildings and sites can re-open to the public.  It will also invest in urgent repairs and maintenance, helping to generate work for specialist contractors and the wider heritage economy.

Grants of between £10k and £100k will be available for costs to be incurred before 31 March 2021 under the following two funding streams:

Stream 1: Re-opening Historic Buildings and Sites

  • Open to organisations which manage historic buildings and other sites normally open to the public at least 28 days per year.
  • Eligible costs include equipment purchases, training, minor adaptations and urgent repairs/maintenance required to re-open in line with government guidelines on COVID-19.  Activities aiming to re-engage communities and volunteers with sites as they re-open are also eligible.

Stream 2: Sector Resilience and Recovery

  • Open to organisations which deliver significant outcomes for Scotland’s historic environment – ensuring that it is understood, valued, cared for and enjoyed.
  • Eligible costs include essential operating costs for qualifying organisations, business planning activities to promote organisational resilience and investment to protect delivery of existing skills training opportunities.

HES is administering this fund on behalf of Scottish Government as part of the £97 million package of targeted funding to support Scotland’s culture and heritage sectors through the impacts of COVID-19.

The fund will be open for applications until 2 November 2020.  Applications will be assessed as they are received, with the aim of decisions being taken within  four weeks of receipt.

Further details, including who can apply and how to apply, can be found here.

This project fund has been opened up for Accredited Scottish museums that have not been eligible for the Recovery & Resilience Fund.

Local Authority museums, museums managed by ALEO’s and University museums can apply for up to £60,000 to deliver projects that will help them build resilience and address some of the challenges brought about by the Coronavirus pandemic.

Applicants can apply for up to £60,000. There is no specific match funding requirement but in the interests of ensuring that funds can support as many strong projects as possible, Museums Galleries Scotland are keen to see a financial contribution to the project from your organisation whenever this is possible. Match funding from other sources is also welcomed.

There will be two rounds of funding:

Round 1 closing date: 13 November 2020 at 5pm.

Round 1 award date: 18 December 2020.

Round 2 closing date: 5 February 2021 at 5pm.

Round 2 award date: 12 March 2021

Apply online via the Museums Galleries Scotland website.

The Museums Resilience and Recovery Fund is a £4m fund to provide support for Scotland’s museums and galleries. The fund will aid the return of staff from furlough and the wider reopening of museums and galleries.

The new Museums Resilience and Recovery Fund will be administered by Museums Galleries Scotland (MGS). MGS will target support to museums in communities where closure would have a heightened impact because of a lack of alternative cultural attractions nearby.

The fund will open to applications on 17 August 2020 and MGS will accept applications on a rolling basis until the fund closes at 5pm on Friday 30 October.

Find out more and apply.

Scotland’s Events Recovery Fund (SERF) has been established in conjunction with Scottish Government to help Scotland’s events sector plan and deliver events through to the end of 2021, and to provide support as the industry responds and adapts to the effects of COVID-19.

As part of our tourism and events recovery plan, this fund aims to help restart the events sector as restrictions are eased, and address additional costs which may be incurred as a result of new hygiene and health and safety requirements, allowing communities and the public to regain confidence in hosting and attending events.

A total of £2.75 million is available for eligible events planned to take place before the end of 2021. This is an open fund without a fixed application deadline. It is anticipated that up to £1.5m in funding may be awarded for applications received up to 31 December 2020, and that the remainder will be retained to support applications received between 1 January and 31 March 2021.

The fund is designed to support innovation by organisers in planning events, and applicants are encouraged to seek viable solutions, pilot new ideas and share best practice in their event plans.

There are two routes to funding available:

A.         Community Events, and Events with existing EventScotland funding offers.

Awards of between £1,000 – £5,000 are available for eligible event organisers in Scotland.

B.         Events supporting the visitor economy (e.g. regional and Scottish domestic tourism).

Awards of between £5,000 – £35,000 are available to larger scale events.

Find out more, and apply to the fund.

The £1 million Scottish Government Scotland Loves Local Fund aims to empower communities by enabling local delivery of projects, and giving them support and guidance to help them achieve aims important to them. The fund encourages communities to ‘love local’, recognise the importance of their local areas, and actively engage in and develop them.

The Scottish Government are inviting eligible groups to develop projects to improve and promote their local place and communities. This can include making small scale local improvements and supporting localised responses in town and settlement centres.

The Scotland Loves Local Fund will provide grants of between £500 and £5,000.

Find out more about eligibility and how to apply.

The Flexible Workforce Development Fund (FWDF) provides employers in Scotland who are UK Apprenticeship Levy-payers with flexible workforce development training opportunities within the high-quality learning environments available in Scotland’s colleges. It is also open to SMEs across the private, public and third sectors.

Eligible employers can use the FWDF to address priority skills gaps in their organisation by accessing up to £15,000 in funding to create tailored training programmes with their local college.

SMEs will be able to access up to £5,000 of college and Open University training.

The fund is flexible and allows employers to choose the training that will bring the greatest benefits to their organisation, while motivating and engaging their employees. The fund can be used to completely cover training or to partially cover training at a higher cost.

For Levy-paying employers who are interested in using private training provision administered through SDS, you need to fill out an enquiry form.

For all other FWDF enquiries, including SME applications and how to apply, please visit the Scottish Funding Council website

The BT Small Business Support Scheme introduces a range of new measures to help small business boost their connectivity, cash flow and confidence.

Boosting Connectivity

Funding ultrafast business connections: BT is helping to fund the total cost of an Ethernet line by subsidising the total cost by up to £2,500 per customer.

Bursaries for UK start-ups: BT has launched a new bursary scheme to give 1,000 UK start-ups and entrepreneurs a financial head start. Eligible companies can apply for a bursary to benefit from six months free fibre broadband and mobile bundles. You’ll need to have set up your company after 1 October 2019 and be taking BT Broadband for the first time.

Helping small businesses to go cashless: BT is preparing to launch a new digital payments solution, to help small businesses move to cashless transactions. Further details will be announced in due course.

Building Confidence

Helping small businesses access the full power of digital and social media advertising: BT is looking to help small firms across the UK to better promote their goods and services online. More details will be announced in due course.

Supporting small businesses through mentoring: BT is introducing a new mentoring scheme for small businesses, to provide them with free access to its expertise across strategy, marketing, sales, and more. BT will support businesses via Digital Boost, a free non-profit platform uniting digital experts with leaders of small businesses and charities.

Helping small businesses acquire new digital skills: Help for small businesses with digital skills training is available through BT’s Skills for Tomorrow .BT has released new learning content on crucial topics, including how to prevent cyber-attacks and using social media to reach new customers.

Find out more about the BT Small Business Support Scheme.

Up to £90 million is available in continuity grants, paid upfront, to SMEs and third sector organisations who are existing Innovate UK award holders and who are at risk of abandoning their project due to a sudden shortage or even unavailability of funds directly related to COVID-19.

Continuity grants are available to eligible SMEs from now until 29 May 2020.

Continuity loan applications are now open and will remain open until all the money is allocated or 31 December 2020 – whichever is earlier.

Further details and guidance will be sent to existing Innovate UK customers.

Find out more.

Update: The Future Fund will be extended until 31 January 2021.

The Future Fund is a £250m fund which issues convertible loans to innovative UK companies with good potential, which typically rely on equity investment and are currently affected by Covid-19. Loans range from £125,000 to £5 million, subject to at least equal match funding from private investors.

The application process is investor-led. This means an investor, or lead investor of a group of investors, applies in connection with an eligible company.

Find out more.

Expressions of Interest for this fund have now closed.

If you have now been invited to apply, you have until 5pm on Wednesday 16 December 2020 to submit your application.

The Creative Freelancer Hardship Fund is a £5 million fund to address the current financial hardship being felt by creative freelancers who normally work in the culture sector, but whose work has been impacted by Covid-19.

The funds offer a one-off monetary contribution to those who are most deeply impacted and disadvantaged by the cancellation of work as a result of the emergency situation.

Bursaries can be requested for any sum from £500 – £2000. If you have specific access needs, then you may request more than this.

Applications through Creative Scotland and partners were paused on Tuesday 27 October when the fund reached 60% allocation in order to allow those who may need additional time and support in applying, to access the fund.

Applications to the fund have now reopened.

The fund will only remain open for as long as the funds are available with each of the partners. Creative Scotland therefore encourage applicants to apply as early as possible.

The Sustaining Creative Practice Fund is a £5 million fund which supports artists to continue developing new creative work that will make a significant contribution to Scotland’s recovery from Covid-19.

This includes £1.5 million for the Culture Collective programme, mentioned in the Scottish Government’s Programme for Government, supporting organisations employing freelance artists to work in and with communities across Scotland. The remaining £3.5m will be added to Creative Scotland’s existing open fund which is open for applications from individuals now.

More information on eligibility and how to apply to the Open Fund can be accessed via the Creative Scotland website.

This fund aims to enable creative organisations  to explore ways of working that will help them to adapt and respond to the current changing circumstances.

Due to a funding boost the fund threshold has been raised. Organisations and individuals can now apply for funding of between £1,000 and £100,000.

Funding for Individuals – Freelance and self-employed artists and creative practitioners in Scotland can apply for projects supporting the development of their practice.

Funding for Organisations – Organisations and groups based in Scotland whose work or project involves the arts, screen and creative industries.

Find out more about this fund.

The Community & Third Sector Recovery Programme is a £25 million programme providing specialist advice and financial support (grants and loans).

The aim is to help organisations to adapt and change so they can re-open and operate sustainably post-COVID whilst continuing to have a positive impact on people and communities.

This programme will have two strands, the Adapt & Thrive Programme and the Communities Recovery Fund.

The Adapt & Thrive Programme aims to support organisational change. Working with an advisor, organisations will be supported to develop a plan so they can operate sustainably post-COVID. Funding to implement the plan is also available in the form of grants (£5,000 – £25,000) and flexible 0% interest loans (from £25,000 to £250,000). In some cases, a blended approach of both grant and loan may be recommended. When this is the case, the minimum loan ‘portion’ that can be offered is £25,000.

The Adapt & Thrive Programme will run until March 2021.

The Communities Recovery Fund aims to support the delivery of services in communities that were suspended or reduced because of COVID, or the creation of new services that tackle new challenges presented by COVID. This fund will offer grant support of between £5,000 – £25,000 to implement changes to facilities, services and activities and up to £75,000 for partnership applications.

Applications for both funds are open now. Find out more.

In some cases, there will be an overlap and organisations may wish to access both Adapt and Thrive and Communities Recovery programmes. The single online application form covers both of these funds meaning the applicant can request support from both programmes and will be prompted to complete all relevant questions.

This means that, while an organisation’s request will be assessed separately by each strand, the organisation only needs to complete one form and its request can be assessed simultaneously. To receive support from both, an organisation will need to meet all relevant criteria for each programme.

This fund is to support organisations to continue their operations in the ‘new normal’, to re-establish or re-design their activities to comply with new regulations in addition to providing emergency support for those who need it most.

The funding is to support constituted community groups and charities that are responding to the coronavirus pandemic in their local community with grants of between £1,000 and £5,000. Only constituted groups, with a governing document, can apply. Organisations must have an income of less than £250,000 to apply to this fund.

This fund cannot support the loss of income. Organisations seeking funding to assist with loss of income or support ongoing salary costs please visit the SCVO website for details on the Third Sector Resilience Fund and Supporting Communities Fund.

Application forms, fund guidance and FAQ’s can be accessed via the Foundation Scotland website.

The Youth Arts Fund is a £3 million fund to ensure creative opportunities for children and young people continue to exist across Scotland despite the Covid-19 pandemic.

The fund will include targeted and open funding to youth music and wider youth arts organisations, a scheme to devolve grants locally to artists who work with young people and small grants delivered directly to young people to support them fulfil their creative ambitions.

This fund will be distributed by the following routes:

  • A £1.05 million Targeted Fund. The purpose of this fund is to offer strategic youth music and wider youth arts organisations targeted funding to support infrastructure and project delivery. 20 targeted national and regional arts organisations, who have an established track record and existing relationships with freelancers working with the fund’s priority groups, will be invited to apply.
  • An open Access Fund of at least £1.2m, designed to support an increased range of music-making projects, as well as introducing projects which deliver across wider art-form areas. This fund closed on Thursday 12 November 2020.
  • A £700,000 Small Grants Scheme which will be open to organisations and local authorities and will provide funding directly to freelance artists to undertake artist led youth arts activities within communities. This fund closed on 2 November 2020,
  • A £50k boost to the Nurturing Talent Fund to provide opportunities to young, emerging artists who are entering a challenging funding environment.

The Scottish Zoo and Aquarium Animal Welfare Fund is a £2.6m support fund for zoos and aquariums.

If you run a zoo or aquarium in Scotland and are experiencing financial hardship as a result of COVID-19, you may be able to apply for a 0% unsecured loan or grant of up to £100,000 to pay for three months of animal care costs.

Loans are the primary support mechanism and will be made available to any zoo or aquarium that meets the criteria. Grants will only be available when loan support would not be viable. This is considered to be the case where a zoo or aquarium has 12 weeks or less operating costs remaining, including any loan or overdraft facilities.

Find out more via the Scottish Government website.

Applications are now open. Call 0300 244 9999 to request an application pack, or email szaawf@gov.scot.

The Covid-19 Residential Outdoor Education Centre Recovery Fund is a £2 million recovery fund to support the sustainability of residential outdoor centres in Scotland.

The fund is open to third and private sector centres that have been financially impacted by the Covid-19 pandemic and subsequent restrictions on residential stays. Centres must have been providing activities previously to be able to apply.

The fund, administered by YouthLink Scotland, will have two separate rounds, with round one now open for applications.

Round 1: Centres are invited to apply for support with essential running costs. The deadline for applications to round one is 1pm on 11 December.

Round 2: Will open for applications on the 11th of January 2021 and close on the 5th of February 2021.

Find full application guidance and the online application form via the YouthLink Scotland website.

The Low Carbon Infrastructure Transition Programme (LCITP) will provide project capital funding to stimulate and accelerate the delivery of low carbon energy opportunities across Scotland, including the provision of support to projects in urban, rural, island and remote parts of Scotland and areas that are off gas grid.

This LCITP funding invitation will target a minimum of £50 million of support for projects that demonstrate innovative low carbon heat solutions for buildings, as well as proposals for integrated energy systems that support the ambitions for Scotland to achieve net zero emissions by 2045 and further catalyse economic recovery from the challenges imposed by the COVID-19 Pandemic.

LCITP wishes to consider support for projects at capital readiness that can demonstrate a funding gap. For capital ready projects, support may be offered in the form of financial assistance for up to 50% of the total eligible capital costs of a project up to a maximum of £5 million per project, where capital costs covers financial costs associated with the build and installation of an exemplar project.

Expressions of Interest are now open and should be submitted by 12 noon on 13 November 2020.

Detailed fund guidance and an application process timeline can be accessed via the Scottish Government website.

Aquaculture businesses affected by the collapse of international markets due to the coronavirus pandemic can apply to cover the costs of storing unsold stock

To be eligible you must be an Aquaculture Enterprise, broadly defined as a business practicing the farming of fish, crustaceans, molluscs, aquatic plants, algae, and other organisms.

The eligible costs you can apply for are the additional storage costs occurring between 1 February and 31 December 2020 as a consequence of the COVID‐19 outbreak.  These are expected to be the cost of refrigeration/freezing and transport. Other costs will be considered on a case by case basis.

Further details including application guidance and how to apply can be found via the Scottish Government website.

Before you make an Application please contact EMFF@gov.scot with brief details so your interest can be registered.

The Private Rent Sector Landlord Covid-19 Loan Scheme offers interest free loans to landlords whose tenants are having difficulty paying rent.

Applications are open now.

The loan is being delivered by the Energy Saving Trust on behalf of the Scottish Government.

Further information including online application form, general guidance and FAQs can be found via the Energy Savings Trust website.

Update: The CBILS has been extended until 31 January 2021.

This scheme opened on Monday 20 April 2020. British Business Bank will operate the CLBILS via its accredited lenders. A lender can provide:

  • Up to £25 million to businesses with a turnover from £45 million to £250 million
  • Up to £50 million to businesses with a turnover of over £250 million

Not every accredited lender can provide every type of finance available under CLBILS, and the amount of finance offered varies between lenders. Please see the lenders’ websites for more information on the amounts they are able to offer.

Apply for the Coronavirus Business Interruption Loan Scheme and find a lender.

The COVID Working Capital Loan provides Scottish SMEs with a loan to help fund working capital and cashflow needs. Eligible businesses may be able to borrow between £25,000 and £100,000, or up to £250,000 in exceptional circumstances.

All borrowers will be given an initial 3-month capital and interest holiday, with interest fixed at 6% thereafter.

Businesses must be able to prove they were not previously in financial difficulty, were financially viable at 31st December 2019 and demonstrate that with the support of a COVID Working Capital Loan they can trade through this pandemic.

Businesses should have tried to access the Coronavirus Business Interruption Loan Scheme (CBILS) or Bounce Back Loan Scheme (BBLS) available from the UK Government before applying to Business Loans Scotland for a COVID Working Capital Loan. Current or previous borrowers from Business Loans Scotland, as well as those businesses which have successfully applied to the Coronavirus Business Interruption Loan Scheme (CBILS) or the Bounce Back Loan Scheme (BBLS) are also eligible to apply.

Applications can be made through the Business Loans Scotland website until 31 December 2020.

Update – The Bounce Back Loan Scheme will be extended until 31 January 2021. The UK Government will adjust the Bounce Back Loan Scheme rules to allow those businesses who have borrowed less than their maximum (i.e. the lower of £50,000 or less than 25% of their turnover) to top-up their existing loan. Businesses will be able to take-up this option from w/c 9 November and they can make use of this option once. You must request the top-up by 31 January 2021.

The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and up to 25% of a business’ turnover. The maximum loan amount is £50,000.

The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.

Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

Apply for the Coronavirus Bounce Back Loan Scheme and find a lender.

The COVID-19 Corporate Financing Facility is designed to support liquidity among larger firms, helping them to bridge coronavirus disruption to their cash flows through the purchase of short-term debt in the form of commercial paper.

Companies – and their financial subsidiaries – that make a material contribution to the UK economy are able to participate in the facility.

Further information on eligibility can be found on the Bank of England website as well as details of a recent update to the terms of the CCFF.

The scheme is now open for applications.

The CCFF will close for new purchases of CP from eligible issuers with effect from 23 March 2021. This means that the Facility will make no purchases of CP after 22 March 2021.

The CCFF will also close to new applications from counterparties and issuers looking to become eligible on 31 December 2020.

Given that, as noted above, the CCFF will close to new applications from issuers at the end of 2020, the deadline for submitting a letter of commitment to the Bank for HM Treasury’s review is also 31 December 2020.

The UK Government has announced £750m worth of grants and loans for R&D focused SMEs. Innovate UK, the national innovation agency, will accelerate up to £200 million of grant and loan payments for its 2,500 existing Innovate UK customers on an opt-in basis.

£550 million will also be made available to increase support for existing customers. £175,000 of support will be offered to around 1,200 firms not currently in receipt of Innovate UK funding.

Find out more.

VAT registered businesses can apply a temporary 5% reduced rate of VAT to certain supplies relating to hospitality, hotel and holiday accommodation and admissions to certain attractions.

The temporary reduced rate will apply to supplies that are made between 15 July 2020 and 12 January 2021.

Hospitality

If you supply food and non-alcoholic beverages for consumption on your premises, for example, a restaurant, café or pub, you’re currently required to charge VAT at the standard rate of 20%. However, when you make these supplies between 15 July 2020 and 12 January 2021 you will only need to charge 5%. You will also be able to charge the reduced rate of VAT on your supplies of hot takeaway food and hot takeaway non-alcoholic drinks.

Hotel and holiday accommodation

You will benefit from the temporary reduced rate if you:

  • supply sleeping accommodation in a hotel or similar establishment
  • make certain supplies of holiday accommodation
  • charge fees for caravan pitches and associated facilities
  • charge fees for tent pitches or camping facilities

Admission to certain attractions

If you charge a fee for admission to certain attractions where the supplies are currently standard rated, you will only need to charge the reduced rate of VAT between 15 July 2020 and 12 January 2021. However, if the fee you charge for admission is currently exempt that will take precedence and your supplies will not qualify for the reduced rate.

Find out more.

Update: If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can opt in to the VAT deferral new payment scheme when it launches in 2021.

Instead of paying the full amount by the end of March 2021, you can make up to 11 smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022.

You cannot opt in yet. The online opt in process will be available in early 2021. You must opt in yourself, your agent cannot do this for you. You can still pay the deferred VAT in full on or before 31 March 2021.

If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to:

  • Defer your VAT payment
  • Pay the VAT due as normal

HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement.

You can only defer:

  • Quarterly and monthly VAT returns’ payments for the periods ending February, March and April
  • Payments on account due between 20 March 2020 and 30 June 2020
  • Annual accounting advance payments due between 20 March 2020 and 30 June 2020

You can apply online via the UK Government website to move to monthly returns to improve your cash flow if you’re in a repayment position. You still need to submit your VAT returns on time.

Trade Credit Insurance, which provides essential cover to business-to-business transactions, will receive up to £10 billion of UK Government guarantees.

The Trade Credit Reinsurance scheme, which has been agreed following extensive discussions with the insurance sector, will see the vast majority of Trade Credit Insurance coverage maintained across the UK. The guarantees will support supply chains and help businesses to trade with confidence knowing that they will be protected if a customer defaults or delays on payment.

The scheme is available on a temporary basis for nine months, backdated to 1 April 2020, and running until 31 December 2020, with the potential for extension if required. The scheme will be delivered through a reinsurance agreement that is open to all insurers currently operating in the UK market, covering both domestic and overseas trade with payment terms of up to 2 years

Implementation of the scheme is subject to state aid approval, agreement of full form documentation with insurers and acceptance of applications from insurers for participation

Further information can be found via the News section of the UK Government website.