COVID-19: UK Government measures and practical next steps - EY

 
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COVID-19: UK Government measures and practical next steps - EY
1

      COVID-19:
      UK Government
      measures and
      practical next steps
      Measures announced to 20 July 2020

20 July 2020            COVID-19: UK Government measures and practical next steps
COVID-19: UK Government measures and practical next steps - EY
2              COVID-19: UK Government measures and practical next steps

               Over the last few months, the Chancellor has set out what he calls a package of “temporary,
               timely and targeted measures” to support public services, people and businesses through
               the disruption caused by the COVID-19 outbreak. The initial measures focused on supporting
               employment, providing cash flow support to businesses, and increasing welfare support. The
               Chancellor’s Summer Statement on 8 July then unveiled a “Plan for Jobs” to protect, support
               and create jobs as part of the Government’s second phase of its economic response.

               Outside the support being provided to the NHS and the imposition of civil restrictions, the
               measures can be grouped into six main areas which are being delivered via three distinct
               channels.

               Areas being addressed:                                      These aims are primarily being delivered through:
               1. Providing liquidity through financing schemes            • The banking system in terms of both financing
                                                                             schemes that have been announced;
               2. Helping employers to protect jobs
                                                                           • The central tax system (covering cash tax deferral
               3. Business support through removal of fixed costs            and employment support) as well as the local tax
                  and provision of grants                                    system (for business rates and cash grants); and
               4. Cash-flow support, including tax deferrals               • The benefit system (for Universal Credit), though
               5. Administration, including governance                       Statutory Sick Pay will be paid by employers and
                                                                             reimbursed to them
               6. Benefits entitlements

20 July 2020   COVID-19: UK Government measures and practical next steps
COVID-19: UK Government measures and practical next steps - EY
3                                             UK Government announced responses
                                              Phase One — March to June
                              Liquidity and financing                                                    Cash flow measures                 Administration and welfare

  Coronavirus Business                          COVID-19 Corporate Financing                      Tax deferrals                             Tax compliance
  Interruption Loan Scheme                      Facility                                          All businesses were able to have their    • HMRC had indicated that, during the
  (CBILS)                                       Allows larger corporates to raise short           routine VAT payments due between            “lockdown”, some HMRC enquiries
  Helps smaller businesses affected by          term finance through the issuance of              20 March and 30 June deferred until         will be suspended. We expect this
  coronavirus to access bank lending and        commercial paper purchased by the                 31 March 2021.                              compliance enquiry activity will
  overdrafts if they need to. For loans up      Bank of England.                                                                              now resume in line with the general
                                                                                                  All businesses and self-employed
  to £5 million, interest will be free for                                                                                                    easing of restrictions
                                                                                                  people in financial distress, and with
  the first 12 months.                          Future Fund: Investment fund                      outstanding tax liabilities, may be
                                                for high-growth companies                         eligible to receive support with their    Statutory benefits
  Coronavirus Large Business                                                                      tax affairs through HMRC’s Time To        • Removal of minimum income floor
                                                Scheme to issue convertible loans to
  Interruption Loan Scheme                      innovative companies alongside other              Pay service.                                for Universal Credit
  (CLBILS)                                      private third party matched investor(s).          There is the option to defer July’s       • Uprating of Universal Credit
  Allows companies with turnover of                                                               payment on account for those due to
                                                Bounce back loans                                 pay then, including trusts and personal   • Expansion of eligibility for Statutory
  more than £45 million to borrow up to
                                                                                                  representatives.                            Sick Pay
  £200 million.                                 Government guaranteed loans for
                                                25% of turnover up to a maximum of
                                                £50,000.

                              Fixed costs and grants                                                     Employment support                           Self-employed

  Business Rates holiday and cash               Other measures                                    Coronavirus Job Retention                 The Self-Employment Income Support
  grants for retail, hospitality and                                                              Scheme (CJRS)                             Scheme (SEISS) provides two taxable
                                                • Statutory Sick Pay rebate for small                                                       lump sum grants. The first, which
  leisure businesses                              and medium sized businesses                     The Chancellor has confirmed that the     could be claimed up to 13 July is
  Businesses in these sectors in England          launched on 26 May                              scheme will close at the end of           worth 80% of trading profits up to a
  do not have to pay business rates for         • Small business grant funding                    October. Claims for periods ending on     maximum of £7,500 covering three
  the 2020–21 tax year. There may also                                                            or before 30 June must be made by 31      months.
  be the possibility of a cash grant of up      • COVID-19 grant schemes                          July. Separate claims need to be made
  to £25,000 per property.                                                                        for days in June and days in July,        The second and final grant can be
                                                • Funding for charities
                                                                                                  even if the employee is continuously      claimed from August and is worth 70%
                                                • Moratorium on lease forfeiture of               furloughed.                               of trading profits up to a maximum of
                                                  commercial leases for non-payment                                                         £6,570, again covering three months.
                                                  of rent until (at least) 30 June 2020

20 July 2020                                 COVID-19: UK Government measures and practical next steps
COVID-19: UK Government measures and practical next steps - EY
4                                         UK Government announced responses
                                          Phase Two — July onwards
   Phase One (March — June)                                                      Phase Two – “A Plan for Jobs” (July onwards)
      Continuing measures                                    Jobs                                    Stimulus measures                      Capital investment

  The following measures introduced in      CJRS                                              Reduced rate of VAT for                 Infrastructure package
  Phase One continue to be relevant in                                                        hospitality, accommodation and
  Phase Two:                                From 1 July the CJRS covers part-time                                                     A £5.6 billion infrastructure package
                                            working but from 1 August employers               attractions                             announced by the Prime Minister in
  • CBILS                                   will be asked to cover part of the cost           From 15 July 2020 to 12 January         June 2020.
  • CLBILS                                  of the scheme.                                    2021, a reduced 5% rate of VAT to
                                                                                              apply (previously 20%) to supplies of   Public sector and social housing
  • Corporate Financing Facility            Job retention bonus                               food and non-alcoholic drinks from      decarbonisaton
  • Future Fund                             A job retention bonus of £1,000 will              restaurants, pubs, bars, cafés and
                                                                                                                                      A £1 billion scheme offering grants to
                                            be available for employers who bring              similar premises across the UK.
  • Bounce Back Loans                                                                                                                 public sector bodies to fund energy
                                            back furloughed employees and pay a               From 15 July 2020 to 12 January
                                                                                                                                      efficiency and low carbon heat
  • Business rates holiday and grants       minimum specified wage until at least             2021, a reduced 5% rate of VAT
                                                                                                                                      upgrades.
                                            31 January 2021.                                  applies (previously 20%) to supplies
  • CJRS                                                                                      of accommodation and admission to
  • Statutory Benefits                                                                        attractions across the UK.              Green Homes Grant
                                            Kickstart Scheme
                                                                                                                                      A £2 billion Green Homes Grant to
  • SEISS                                   A £2 billion fund to create high quality          Eat Out to Help Out                     make homes more energy efficient.
                                            6-month work placements aimed at
                                            those aged 16–24 who are on Universal             A scheme to encourage people to
                                            Credit and are deemed to be at risk of            return to eating out, with a 50%
                                            long-term unemployment.                           discount of up to £10 per head on any
                                                                                              eat-in meal from Monday to Wednesday
                                                                                              in August 2020 across the UK.
                                            Boosting worksearch, skills and
                                            apprenticeships
                                                                                              Stamp Duty Land Tax (SDLT)
                                            A series of measures to boost                     temporary cut
                                            employment skills, including payments
                                            of £2,000 to employers in England for             Temporary increase in the Nil Rate
                                            each new apprentice they hire under               Band of Residential SDLT in England
                                            aged under 25, and a £1,500 payment               and Northern Ireland from £125,000
                                            for apprentices 25 and over, from                 to £500,000 until 31 March 2021.
                                            1 August 2020 to 31 January 2021.

20 July 2020                             COVID-19: UK Government measures and practical next steps
COVID-19: UK Government measures and practical next steps - EY
5                                  Liquidity and financing: COVID-19 Corporate Financing
                                   Facility (CCFF)
The COVID-19 Corporate             Who is eligible?                                  What does it cover?                         Practicalities
Financing Facility (CCFF)
                                   • Companies which make “a material                • The CCFF will provide funding to          • Companies will need to consider if
will purchase up to one-year
                                     contribution to the UK economy”                   businesses by purchasing Commercial         they are eligible to participate and how
duration Commercial Paper
                                                                                       Paper                                       long it might take to be approved to
on terms comparable to those       • No requirement to have previously
                                                                                                                                   participate
prevailing in markets before the     issued Commercial Paper                         • Minimum size of the loan is £1m with
COVID-19 economic shock.                                                               primary market purchases limited to       • If a Company does not have an existing
                                   • Looks at companies’ credit rating pre
                                                                                       certain amounts at different credit         rating, the ability to use incumbent
The scheme will be available for     COVID-19 to assess eligibility (as at
                                                                                       bands:                                      banks’ credit ratings via Credit
new drawings until March 2021.       1 March 2020)
                                                                                        • A1/P1/F1/R1 = up to £1bn                 Benchmark offers another avenue
                                   • Credit rating must be “Investment
                                                                                        • A2/P2/F2/R2 = up to £600m              • Requirement to obtain a credit rating
                                     Grade” (ST rating of A-3/P-3/F-3 or
                                                                                                                                   or otherwise utilise incumbent banks’
                                     LT rating of BBB-/Baa3/BBB-). A split              • A3/P3/F3/R3 = up to £300m
                                                                                                                                   credit ratings will mean there is a time
                                     rating is not eligible
                                                                                     • Duration is one week to 12 months.          lag to when non-rated companies will
                                   • If subsequently downgraded (i.e. after            Drawings can be rolled over                 be able to access the funding
                                     1 March 2020), company will still be
                                                                                     • Pricing should be on “comparable          As per updates announced on 19 May
                                     eligible
                                                                                       terms to those prevailing in the market   2020:
                                   • If companies do not have an existing              pre COVID-19” — initial pricing seen
                                                                                                                                 • Dividend restrictions and restraint on
                                     credit rating, they can (1) seek a rating         to be the region of a 20-60bps spread
                                                                                                                                   senior pay shall apply if Commercial
                                     from one of the major agencies or (2)             over SONIA
                                                                                                                                   Paper is issued with a maturity date
                                     utilise incumbent banks’ credit ratings
                                                                                     • The scheme will close to new drawings       beyond 19 May 2021
                                     subject to certain conditions:
                                                                                       in March 2021
                                     • Have, on average, at least three                                                          • Early repayment is now an option
                                       investment grade bank ratings                                                             • There will be public disclosure of issuer
                                     • At least two investment grade bank                                                          names for those that have issued
                                       ratings if BBB+/Baa1/BBB+ or above            How is it accessed?                           Commercial Paper under the scheme
                                                                                                                                   (there is no disclosure requirement for
                                   • “Public undertaking” entities are not           • Full details published by the Bank of
                                                                                                                                   simply having established access to
                                     able to access the scheme                         England (BoE) on Monday, 23 March
                                                                                                                                   the scheme)
                                                                                       2020
                                   • The facility is available for large
                                     housing associations that continue to           • Requires a bank to help issue the
                                     be assessed as V1 grade for viability             Commercial Paper                          For more information
                                     from the Regulator for Social Housing                                                       Luke Reeve
                                                                                                                                 lreeve@uk.ey.com
                                                                                                                                 Tel: +44 (0) 20 7951 6548

20 July 2020                       COVID-19: UK Government measures and practical next steps
COVID-19: UK Government measures and practical next steps - EY
6                                   Liquidity and financing: Coronavirus Business Interruption
                                    Loan Scheme (CBILS)
The Coronavirus Business            Who is eligible?                                  What does it cover?                             Practicalities
Interruption Loan Scheme
                                    Eligibility criteria has now been published       • Aim is to support SMEs, who may have          • Companies will need to consider
(CBILS) provides loans of up to
                                    and includes:                                       limited or insufficient security, to raise      what collateral they have available as
£5 million, with no interest or
                                                                                        additional financing                            security — unsecured loans of up to
fees due for the first 12 months.   • UK-based, in business activity
                                                                                                                                        only £250,000 are allowed
                                                                                      • Provides loans of up to £5m subject to
Borrowers will need to approach     • Turnover of no more than £45m per
                                                                                        sub-limits: (1) 2x annual wage bill; or       • They will need to consider which
one of the 40+ accredited             annum (aimed at SMEs)
                                                                                        (2) 25% of turnover; or (3) an amount           and how many lenders to approach
lenders.                            • Operate within an eligible industry               sufficient to cover liquidity need for          and how to give themselves the best
                                      sector                                            the next 18 months with appropriate             chance of success
                                                                                        justification and self-certification (12
                                    • Have a borrowing proposal, which,                                                               • On 3 April, the Government announced:
                                                                                        months for SMEs > 250 employees)
                                      were it not for the COVID-19                                                                      • It would stop lenders from
                                      pandemic, would be considered viable            • Term loans and asset finance with                 requesting personal guarantees for
                                      by the lender                                     tenors of up to six years are available           loans under £250,000
                                    • Lender believes the provision of                • Overdrafts and invoice discounting              • For loans over £250,000, personal
                                      finance will enable the business to               facilities with tenors of up to three             guarantees will be limited to 20%
                                      trade out of any short-to-medium term             years are available                               on amounts outstanding on the
                                      difficulty                                                                                          CBILS lending after recovery from
                                                                                      • The Government will also make a
                                    • Must self-certify they have been                  Business Interruption Payment to                  business assets
                                      adversely impacted by COVID-19                    cover the first 12 months of interest           • Operational changes will be made to
                                                                                        payments and any lender-levied fees               speed up lending approvals
                                    • Was not an “undertaking in difficulty”
                                      on 31 December 2019                             • Government provides a guarantee to            • Changes have been made to the
                                                                                        the lender for up to 80% of facility value.     scheme since launch so that Group
                                    • On 3 April, the Government
                                                                                        N.B. Companies remain 100% liable for           turnover for PE or VC-backed
                                      announced the extension of the
                                                                                        the debt. The Chancellor has so far ruled       businesses is no longer aggregated at
                                      scheme to all viable small businesses
                                                                                        out providing 100% guarantees except            the fund level and instead will look at
                                      affected by COVID-19, and not
                                                                                        under the Bounce Back Loan Scheme               the portfolio company level
                                      just those unable to secure regular
                                      commercial financing

                                                                                      How is it accessed?
                                                                                      • Full details published on British Business
                                                                                                                                      For more information
                                                                                        Bank’s website on 23 March 2020               Chris Lowe
                                                                                      • Companies to apply for CBILS loans            clowe@uk.ey.com
                                                                                        directly with one of the 40+ accredited       Tel: +44 (0) 7920 775642
                                                                                        lenders

20 July 2020                        COVID-19: UK Government measures and practical next steps
COVID-19: UK Government measures and practical next steps - EY
7                                  Liquidity and financing: Coronavirus Large Business
                                   Interruption Loan Scheme (CLBILS)
The Coronavirus Large Business     Who is eligible?                                  What does it cover?                          Practicalities
Interruption Loan Scheme
                                   Eligibility criteria include:                     • Finance products include term loans,       • Companies will need to demonstrate
(CLBILS) provides loans of up to
                                                                                       revolving credit facilities (including       that other than for COVID-19
£200 million for companies with    • UK-based, in business activity
                                                                                       overdrafts), and for loans up to £50m,       disruption, they would be considered
turnover of over £45 million.      • Turnover of more than £45m per                    invoice finance and asset finance.           to be viable by the lender
Companies borrowing more             annum                                             Tenors from three months to three
than £50 million will be subject                                                                                                  • Lenders will still conduct their usual
                                                                                       years available
to restrictions on dividend        • Operate within an eligible industry                                                            credit risk checks and therefore
payments, senior pay and share       sector                                          • Interest is charged at a commercial          companies will need to set out a
buy-backs.                                                                             rate of borrowing                            clear request, supported by financial
                                   • Have a borrowing proposal, which,
                                                                                                                                    information
                                     were it not for the COVID-19 pandemic,          • Government provides a guarantee
                                     would be considered viable by the                 to the lender for up to 80% of facility    • As with the CBILS scheme, companies
                                     lender                                            balance (including interest and fees).       will need to consider which and how
                                                                                       N.B. Companies remain 100% liable for        many lenders to approach and how
                                   • Lender believes the provision of finance
                                                                                       the debt                                     to give themselves the best chance of
                                     will enable the business to trade out of
                                                                                                                                    success
                                     any short-to-medium term difficulty             • Firms owned by private equity are able
                                                                                       to access the scheme                       • Consideration will need to be given
                                   • Self-certify that it has been adversely
                                                                                                                                    on how the CLBILS loans will interact
                                     impacted by COVID-19                            • Amount borrowed should not be
                                                                                                                                    with existing lending (e.g. security,
                                                                                       greater than (i) double the borrower’s
                                   • Was not an “undertaking in difficulty”                                                         ranking etc.). CLBILS loans must rank
                                                                                       annual wage bill; or (ii) 25% of the
                                     on 31 December 2019                                                                            at least pari passu with all other senior
                                                                                       borrower’s total turnover; or (iii) with
                                                                                                                                    obligations (including senior and/or
                                   • Business has not received a facility              appropriate justification and based on
                                                                                                                                    super senior obligations)
                                     under the Bank of England’s COVID-19              self-certification of the borrower, the
                                     Corporate Financing Facility                      amount may be increased to cover           • Companies borrowing more than
                                                                                       liquidity needs for the next 12 months       £50m will be subject to restrictions
                                                                                                                                    on dividend payments, senior pay and
                                                                                                                                    share buy-backs during the period of
                                                                                                                                    the loan
                                                                                     How is it accessed?
                                                                                     • Companies can apply for CLBILS loans
                                                                                       directly with an accredited lender.        For more information
                                                                                       Accredited lenders are listed on the
                                                                                       British Business Bank website              Chris Lowe
                                                                                                                                  clowe@uk.ey.com
                                                                                                                                  Tel: +44 (0) 7920 775642

20 July 2020                       COVID-19: UK Government measures and practical next steps
COVID-19: UK Government measures and practical next steps - EY
8                                  Future Fund: Investment fund for high-growth companies

On 20 April, the Chancellor        Who is eligible?                                  What does it cover?                          Practicalities
announced that UK businesses
                                   Company specific criteria include:                • The Government will make unsecured         • Consideration should be given to
driving innovation and                                                                 bridge funding available alongside other     expected funding rounds or corporate
development will be helped         • The company must be an unlisted
                                     UK incorporated limited company                   private third party matched investor(s)      events over the life of the loan as it will
through the coronavirus                                                                                                             drive the conversion or redemption price
                                     (incorporation date before 31 December          • Loan amounts provided by the
outbreak with a £1.25 billion        2019), or a non-UK jurisdiction parent                                                         of the loan
Government support package.                                                            Government of between £125,000 to
                                     company that has participated in an               a maximum of £5,000,000. Amounts           • The Government will receive a minimum
The package includes a new           Accelerator Programme before 19 April             of Future Fund loans must be at least        of 8% per annum (non-compounding)
£500 million loan scheme for         2020                                              matched by co-investment from                interest to be paid on maturity of the
high-growth firms impacted by      • The company must have raised at least             investors                                    loan. The interest rate shall be higher
the crisis. This will be made up     £250,000 in equity from third-party                                                            if a higher rate is agreed between the
                                                                                     • The Government will not set a valuation
of £250 million of funding from      investors in previous funding rounds in                                                        company and the matched investors
                                                                                       cap on the price at which the loan
                                     the last five years
Government (the Future Fund)                                                           converts into equity on the company’s      • The bridge funding shall automatically
and the matching balance from      • If part of a group, the company must be           next funding round. Where matched            convert into equity on the company’s
the private sector.                  the ultimate parent company                       investors have agreed a valuation cap,       next qualifying funding round (including
                                   • At least 50% of employees must be UK              the Government shall be entitled to the      an exit or new funding round) at a
The remaining support                based or more than 50% of revenues                same terms                                   minimum conversion discount of 20% to
package is available for small       should come from UK sales                                                                      the price set by that funding round
and medium sized businesses                                                          • The bridge funding must be used solely
                                   Investors must fall within specific categories.     for working capital purposes and shall     • The loan shall mature after a maximum
focusing on research and           Investors will not benefit from EIS/SEIS            not be used by the company to repay          of 36 months and cannot be repaid
development and will be            treatment on their matched funding.                 any borrowings, make any dividends or        early by the company other than
available through Innovate UK’s                                                        bonus payments to staff, management,         with the agreement of all investors.
grants and loan scheme.            How is it accessed?                                 shareholders or consultants or, in           If outstanding at this time, the loan
                                                                                       respect of the Government loan, pay any      shall, at the option of a majority of
                                   • The scheme has launched and is open for           advisory or placement fees or bonuses        the principal amount held by matched
                                     applications until the end of September           to external advisers                         investors (i) be repaid with a redemption
                                     2020. Funds will be deployed on a first                                                        premium; or (ii) convert into equity
                                     come, first served basis. Further details
                                     are available on the British Business
                                     Bank’s website
                                   • The application process is investor led.
                                     The investor or lead investor of a group
                                     of investors must certify they meet the         For more information
                                     scheme eligibility criteria and provide
                                                                                     Chris Lowe                                   Roxane Markarian
                                     key investment details
                                                                                     clowe@uk.ey.com                              rmarkarian@uk.ey.com
                                   • Investors and the Future Fund both invest
                                     using a convertible loan agreement which        Tel: +44 (0) 7920 775642                     Tel: +44 (0) 20 7951 2588
                                     is predefined and cannot be negotiated

20 July 2020                       COVID-19: UK Government measures and practical next steps
COVID-19: UK Government measures and practical next steps - EY
9                                   Liquidity and financing: Bounce Back Loan Scheme

The Bounce Back Loan Scheme         Who is eligible?                                  What does it cover?                        Practicalities
will help small and medium-
                                    The Scheme was launched on 4 May and              • Businesses will be able to apply for     • The Chancellor has said that for most
sized businesses to borrow
                                    eligibility criteria include:                       a loan of £2,000 or 25% of their           firms, loans should arrive within 24
between £2,000 and £50,000.
                                                                                        turnover, up to a maximum of £50,000       hours of approval
The Government will guarantee       • UK-based, in business activity and was
100% of the finance (both             established by 1 March 2020                     • The Government will make a business      • There will be no forward-looking tests
capital and interest).                                                                  interruption payment to cover the          of business viability
                                    • Can self-certify that it has been
                                                                                        interest in the first twelve months of
There will be no interest or fees     adversely impacted by COVID-19                                                             • Lenders are not permitted to take
                                                                                        the loan
to pay for the first 12 months                                                                                                     personal guarantees or take recovery
                                    • Was not an “undertaking in difficulty”
and no repayments will be due                                                         • There are no fees to access the Scheme     action over a borrower’s personal
                                      on 31 December 2019 (if it was, the
during the first 12 months.                                                                                                        assets (such as their main home or
                                      business must confirm it complies with          • No repayments will be due during the
                                                                                                                                   personal vehicle)
                                      additional state aid restrictions under           first 12 months
The Government has worked
                                      de minimis state aid rules)                                                                • The interest rate for the facility is set
with lenders to agree a low rate                                                      • The Government will support the
                                    • Is not using the Government support                                                          at 2.5% per annum for all businesses
of interest for the remaining                                                           Scheme by guaranteeing, to the
period of the loan.                   provided by CBILS, CLBILS or CCFF,                lender, 100% of the loan and interest
                                      unless the Bounce Back Loan will
                                      refinance the whole of any such support         • Loan terms will be up to six years.
                                                                                        Early repayment is allowed without
                                    • Businesses who have already received              early repayment fees
                                      a loan of up to £50,000 under CBILS
                                      and would like to transfer it into the          • N.B.Company remains 100% liable for
                                      Bounce Back Loan Scheme, can                      the debt
                                      arrange to do this with their lender
                                      until 4 November 2020
                                    • Is not in bankruptcy or liquidation             How is it accessed?
                                      or undergoing debt restructuring at
                                      the time it submits its application for         • The scheme is being delivered through
                                      finance                                           a network of accredited lenders.
                                                                                        Accredited lenders are listed on the
                                    • Derives more than 50% of its                      British Business Bank’s website
                                      income from its trading activity (this
                                      requirement does not apply to charities         • Companies should approach an
                                      or further-education colleges)                    accredited lender of their choice        For more information
                                                                                      • Companies must complete a short,         Chris Lowe
                                    • Is not a credit institution, an insurance
                                      company, a public-sector organisation             standardised online application which    clowe@uk.ey.com
                                      or a state-funded primary or                      self-certifies that the business is      Tel: +44 (0) 7920 775642
                                      secondary school                                  eligible for a loan under the Scheme

20 July 2020                        COVID-19: UK Government measures and practical next steps
COVID-19: UK Government measures and practical next steps - EY
10                                 Employment support: Coronavirus Job Retention Scheme,
                                   up to 30 June 2020
The Government is providing        Who is eligible?                                  HMRC guidance                                 Practicalities
grants which cover 80% of a
                                   The scheme is open to any employer in the         • The grant is based on salary in the last    Employers will need to consider the
retained furloughed worker’s       country which had a PAYE scheme on or               pay period prior to 19 March 2020, or       relevance of furloughing to their business
pay, up to a cap of £2,500 a       before 19 March 2020 and is registered for          in line with the provisions for employees   and then, if appropriate, undertake
month.                             online PAYE services. It covers the cost of         with variable pay. The grant can cover      workforce planning, recognising the
Any entity with a UK payroll       wages which can be backdated to 1 March.            employees with more than one employer       usual risks and requirements to avoid
                                                                                       and certain non-employees (including        discrimination in selecting people for
can apply but the claim must       Employers will need to designate affected
                                                                                       company directors) paid via PAYE            furloughing.
be made online. Claims can         employees as “furloughed”, and notify
be made by the business or         them of this change — changing the status         • Discretionary bonuses (including tips)      Employers will need to explore the
by an agent authorised to act      of employees is subject to employment law.          and non-compulsory commissions as           contractual and employment law position
for PAYE purposes and access       The employee should not undertake work              well as non-cash payments are not part      of furloughing their staff. Very few UK
the employer’s PAYE online         for the employer, or a linked or associated         of “pay”                                    styled employment contracts will contain
                                   organisation, while furloughed — the                                                            provisions governing how to do it and what
services. Amounts overclaimed                                                        • The employee is subject to tax and
                                   scheme does not provide support for the                                                         it means.
can now be adjusted for through                                                        National Insurance
                                   costs of “working” employees.
a subsequent claim. There is                                                                                                       Irrespective of whether consent (or any
                                                                                     • The employer needs to pay National
now a process to allow money       The scheme covers employees on the PAYE                                                         form of negotiation) is required or feasible
                                                                                       Insurance and Apprenticeship Levy
overclaimed to be paid back        payroll and notified to HMRC on an RTI                                                          in the time available, any terms relating to
                                                                                       (if applicable) on the payments to the
where no further claims will be    submission on or before 19 March 2020.                                                          furloughing should be recorded in writing.
                                                                                       employee. It will be taxable on the
                                   Employees that were employed and on                                                             Employers must confirm in writing to their
made. Potential underclaims                                                            grant and will get a deduction for the
                                   payroll as of 28 February 2020 who were                                                         employees that they have been furloughed.
should be raised with HMRC.        made redundant or stopped working for the
                                                                                       payments to the employees under
                                                                                                                                   HMRC has stressed that it retains the right
                                                                                       normal principles
The scheme in this form was        employer between then and 19 March can                                                          to audit all aspects of the arrangement.
open until the end of June. New    also qualify for the scheme if the employer       • Individuals with employees that are not
                                                                                                                                   Employers will need to keep a copy of all
rules will then apply to the end   re-employs them and furloughs them.                 employed as part of a business are not
                                                                                                                                   records in relation to claims made for six
                                                                                       taxable on grants received under the
of October (see next page).                                                                                                        years and copies of agreements to furlough
                                                                                       scheme
Claims for periods ending on or                                                                                                    employees for five years.
before 30 June must be made        What does it cover?
by 31 July.                        • The funds provided are grants, not loans
Under this form of the scheme,     • There is no obligation for the employer
the minimum period an                to cover the remaining 20%, though the
employee can be furloughed for       employer can do so if they wish
is three weeks. An employee                                                          For more information
                                   • The monthly cap is applied to wages,
can be furloughed more than          with a further grant covering the               David Ellis                                   Rob Riley
once.                                employer’s National Insurance cost and          dellis@uk.ey.com                              rriley@ey.com
                                     auto-enrolment contributions                    Tel: +44 (0) 20 7980 0163                     Tel: +44 (0) 20 7806 9572

20 July 2020                       COVID-19: UK Government measures and practical next steps
11                                  Employment support: Coronavirus Job Retention Scheme,
                                    from 1 August to 31 October 2020
On 12 May 2020, the                 Who is eligible?                                  What does it cover?                            Practicalities
Chancellor announced that the
                                    • Whilst the eligibility criteria for             • From July, Government support will only      In bringing employees back after furlough,
CJRS will be extended to the          employers for this period will remain             apply to hours not worked and from           employers will need to consider a a number
end of October 2020.                  unchanged, employers who were not                 August, this support will be reduced         of key issues including:
From July to October, however,        furloughing employees prior to 1 July           • For worked hours, employees will be          • Profiling which people to return to work
the CJRS will operate with            2020 will not be eligible to participate in       paid by their employer subject to their        and by when. This will require workforce
                                      the more flexible version of the scheme           employment contract and employers
greater flexibility. Employers                                                                                                         planning based upon scenario modelling
currently using the scheme          • Except for those returning from                   will be responsible for paying the tax, NI     (what will be needed), availability (not all
                                      statutory parental leave, no claim will           and pension contributions due on those         people will be able or willing to return)
will be able to bring furloughed
                                      be able to be made for employees who              amounts                                        and workforce segmentation (not all
employees back part-time.
                                      had not been furloughed for at least            • When claiming the CJRS grant for               employees do the same thing)
This should allow businesses to
                                      three full weeks prior to 1 July 2020;            furloughed hours, employers will need to
start to increase activity, while                                                                                                    • Planning for a safe and healthy
                                      in order for the current three week               report and claim for a minimum period of
managing costs.                                                                                                                        transition. This could involve the
                                      furlough period to be completed by 30             seven calendar days subject to month end
                                                                                                                                       development of safe return to work
Furloughed employees will still       June 2020, the final date by which an                                                            principles and governance, employee
receive a minimum of 80% of           employer could furlough an employee             Level of Government contribution                 consultation and engagement and site/
wages (capped at £2,500 per           for the first time was 10 June 2020                                                              office safety and occupancy planning
                                                                                      • From July the monthly cap will be
month), but the Government          • There will no longer be a minimum
                                                                                        proportionate to the hours not worked.       • How to protect the workforce and keep
will ask employers to cover the       period for which employees must be                                                               them engaged as they return. Measure
                                                                                        Employers will be required to bear part
cost of hours worked from July        furloughed                                                                                       could include tracking and monitoring,
                                                                                        of the salary costs of their furloughed
and contribute to the cost of       • Employees will be able to undertake               staff from August                              employee listening, a focus on wellbeing
hours not worked from August.         work for the employer, or a linked              • From August the Government will pay            benefits etc
                                      or associated organisation, whilst                80% of wages up to a maximum cap of          • What “return” means? Will there be a
Claims for days in July cannot        furloughed and will be able to return to          £2,500 and employers will pay employer         continued interest in remote working?
be made before 1 July.                work part-time from 1 July 2020                   NI and pension contributions for the           Will people need to come back do the
Separate claims need to be                                                              hours the employee does not work
                                    • Employers:                                                                                       same thing, or will an element of re-
made for days in June and days                                                        • From September the Government will pay
                                      • Will be able to agree any working                                                              purposing be needed?
in July, even if the employee is                                                        70% of wages up to a maximum cap of
continuously furloughed.                arrangements with previously
                                        furloughed employees                            £2,187.50 for the hours the employee
                                                                                        does not work. Employers will pay            For more information
                                      • Must agree with their employee any              employer NI and pension contributions
                                        new flexible furloughing arrangement            and 10% of wages for hours not worked        David Ellis
                                        and confirm that agreement in writing         • From October the Government will pay         dellis@uk.ey.com
                                      • Will have flexibility to claim under            60% of wages up to a maximum cap of          Tel: +44 (0) 20 7980 0163
                                        the CJRS for the hours that are not             £1,875 for the hours the employee does
                                        worked (i.e. there is no longer a need          not work. Employers will pay employer        Rob Riley
                                        for a ‘full time’ furlough)                     NI and pension contributions and 20% of      rriley@ey.com
                                                                                        wages for hours not worked                   Tel: +44 (0) 20 7806 9572

20 July 2020                        COVID-19: UK Government measures and practical next steps
12                                  Other employment issues

Each of England, Scotland           Health and safety obligations                     Practical considerations                   For more information
Wales and Northern Ireland
                                    Employers will need to understand the             Employers should ensure risk assessment    David Ellis
have the power to develop their
                                    make-up of their workforce including              requirements are met including for those   dellis@uk.ey.com
own framework for lifting the
                                    identifying vulnerable employees and              working at home. In respect of COVID-19
lockdown restrictions. There                                                                                                     Tel: +44 (0) 20 7980 0163
                                    ascertaining which employees are                  affected persons, staff should be kept
continue to be slight divergences   entitled to sick pay and for how long.            informed, but individuals should not be
in approach across the UK and                                                                                                    Rob Riley
                                    They should collect employee health data          named. Employers should be mindful
there are now powers given          in line with GDPR/Data Protection Act             of the duty to protect employees from      rriley@ey.com
to local government for “local      2018.                                             potential discrimination and harassment.   Tel: +44 (0) 20 7806 9572
lockdowns” in England.

                                    Changes to terms and conditions                   Practical considerations                   For more information
                                    Employers will need to be aware of                Employers should look to consult where     David Ellis
                                    any limits on the ability to impose new           required on changes to employee terms      dellis@uk.ey.com
                                    employment terms such as flexible                 and conditions and update employee
                                                                                                                                 Tel: +44 (0) 20 7980 0163
                                    working (including changes to duties,             policies and consider how this can best
                                    hours or location), travel bans or                be done in practice within the current
                                                                                                                                 Rob Riley
                                    redeployment to other roles.                      guidance on social distancing.
                                                                                                                                 rriley@ey.com
                                                                                                                                 Tel: +44 (0) 20 7806 9572

20 July 2020                        COVID-19: UK Government measures and practical next steps
13                                 Self-Employment Income Support Scheme

The Self-Employment Income         Who is eligible?                                  What does it cover?                          Practicalities
Support Scheme provides
                                   The scheme only applies to people who             Each grant is based on average monthly       HMRC has looked to invite those that are
financial support for self-
                                   are self-employed (including members              trading profits.                             eligible to make an online application
employed workers.
                                   of partnerships) and provides similar                                                          through the GOV.UK website. The
                                                                                     To work out the average trading profit
Up till 13 July 2020, workers      support to the measures announced for                                                          claims service opened on 13 May 2020.
                                                                                     figure, HMRC will add together the total
could claim a taxable grant        employed workers.                                                                              This is the only way to access the scheme.
                                                                                     trading profit for the three tax years
of up to 80% of their average      To be eligible, the following requirements        (2016/17, 2017/18 and 2018/19 where          The grant must be reported on the
monthly trading profits over the   must be met:                                      applicable) then divide by three (where      relevant tax return and will be subject
last three tax years (2016/17,                                                       applicable).                                 to tax and Class 4 National Insurance as
2017/18 and 2018/19),              • The individual must be already in self-
                                                                                                                                  well as being treated as income for tax
up to a maximum of £7,500 for        employment                                      Where an individual has not been trading
                                                                                                                                  credit and universal credit purposes.
a three month period, paid as a                                                      for the full three years, but at least
                                   • The individual must have submitted
single instalment.                                                                   started trading between 2016 and 2019,       In order to claim the second grant, the
                                     their tax return for the 2018/19 tax
                                                                                     HMRC will use the figures for those years    individual’s business must have been
                                     year no later than 23 April 2020 (note
From August 2020, workers                                                            for which a Self-Assessment tax return       adversely affected by COVID-19 on
                                     HMRC may consider penalties where
will be able to claim a final                                                        was filed, e.g. if an individual traded in   or after 14 July 2020. Claims for the
                                     returns are late)
taxable grant of up to 70% of                                                        2017/18 and 2018/19, it will be the          second grant will be able to be made in
their average monthly trading      • The individual must have traded in the          trading profits for the two years divided    August 2020.
profits over the last three tax      2019/20 tax year and be continuing              by two.
years (2016/17, 2017/18 and          to trade when they apply (or would be
                                                                                     Those who pay themselves a salary and
2018/19), paid out in a single       except for COVID-19)
                                                                                     dividends through their own company
instalment covering three          • The individual has reduced trading              are not covered by the scheme but
months’ worth of profit, and         profits due to COVID-19; HMRC has               will be covered for their salary by the
capped at £6,570 in total.           indicated it will take a risk-based             Coronavirus Job Retention Scheme if
It is possible to claim the          approach to compliance with this                they are operating a PAYE scheme.
second grant without having          requirement
                                                                                     Each partner in a partnership will need
claimed the first.                 In addition, the individual’s trading profit      to make a claim based on their own
                                   must have been less than £50,000 in               circumstances.
                                   the 2018/19 tax year, or their average
                                   trading profit over the last three tax
                                   years must be less than £50,000 a year.
                                   More than half of the individual’s income         For more information
                                   must have come from self-employment               David Ellis                                  Tom Evennett
                                   during the above periods.
                                                                                     dellis@uk.ey.com                             tom.evennett@ey.com
                                                                                     Tel: +44 (0) 20 7980 0163                    Tel: +44 (0) 20 7980 0890

20 July 2020                       COVID-19: UK Government measures and practical next steps
14                                  Cash flow support: Government tax deferrals

No application was needed for       VAT payments                                      Practical considerations                    For more information
the deferral of VAT due before
                                    All UK VAT registered businesses could            • The deferral of VAT payments was an       Tony Bullock (Indirect taxes)
30 June 2020.
                                    defer VAT payments due between 20                   automatic payment holiday with no         tbullock@uk.ey.com
For deferral of all taxes, there    March 2020 and 30 June 2020 until 31                application required. Note that Direct
                                                                                                                                  Tel: +44 (0) 20 7951 3408
is a dedicated HMRC helpline        March 2021. No interest will arise on the           Debits will now need to be re-activated
to call (0800 0159 559) or an       payments that are deferred.
                                                                                      • VAT refunds and reclaims will be
approach should be made to          There was no automatic deferral for                 paid by the Government as normal
the group’s CCM. We strongly        import VAT and duty but deferral may be             although we are aware of some delays
recommend engaging before a         possible in specific circumstances.                 as HMRC resources have been focused
payment becomes due and not                                                             on COVID-19
simply delaying payment of tax
due.
Where it is difficult to get        Payments on account                               Practical considerations                    For more information
through to the helpline, a record
should be kept of attempts          Taxpayers can defer their self-assessment         • No interest or penalties will be          Tom Evennett
made.                               payment on account due on 31 July 2020              applied to any tax that is deferred.      tom.evennett@uk.ey.com
                                    until 31 January 2021. The deferral is              The deferral applies to all taxpayers
                                                                                                                                  Tel: +44 (0) 20 7980 0890
                                    optional.                                           with an income tax liability to pay on
                                                                                        account

                                    Time to pay                                       Practical considerations                    For more information
                                    All businesses in financial distress, and         • The expectation is that there will        Tony Bullock (Indirect taxes)
                                    with outstanding tax liabilities, may be            be a lighter touch applied to those       tbullock@uk.ey.com
                                    eligible to receive support with their              sectors/industries already impacted
                                                                                                                                  Tel: +44 (0) 20 7951 3408
                                    tax affairs through HMRC’s Time To Pay              (e.g., restaurants, tourism and
                                    service. The arrangements will be agreed            entertainment)
                                                                                                                                  Jim Wilson (Tax Controversy and Risk
                                    on a case-by-case basis. This is for all
                                                                                      • HMRC expects these to be exceptional      Management)
                                    taxes within HMRC’s jurisdiction, so will
                                                                                        as businesses should be returning to      jwilson8@uk.ey.com
                                    cover PAYE, Air Passenger Duty and
                                                                                        paying tax on time although that will     Tel: +44 (0) 20 7951 5912
                                    corporation tax.
                                                                                        clearly depend on circumstances

20 July 2020                        COVID-19: UK Government measures and practical next steps
15                              Cash flow support: Cash tax management

The Government’s                Tax payments                                      Practical considerations                   For more information
announcements are not the
                                Review instalment payments for the                Businesses should contact HMRC and         Kerry Mckeown
only ways to manage cash tax.
                                current year if relevant and claim                look to submit amended returns and         kerry.mckeown@uk.ey.com
There are other tax related
                                repayments if appropriate. Review                 claim refunds of overpayments as soon
measures, which are not                                                                                                      Tel: +44 (0) 20 7806 9450
                                payments already made in light of tax             as possible.
specific to COVID-19,           attributes to see if repayments can
to manage liquidity.                                                              They will need to model the impact of      Katie Selvey-Clinton (Capital
                                be generated. In particular, consider
                                                                                  withholding taxes on any cross-border      allowances)
                                revisiting capital allowances claims (and
                                                                                  flows and consider the tax impact of       kselvey-clinton@uk.ey.com
                                disclaimers) for earlier periods.
                                                                                  changes to operating models or supply      Tel: +44 (0) 20 7951 3723
                                                                                  chains.

                                Research and development tax                      Practical considerations                   For more information
                                credits                                           Research and development expenditure       Roxane Markarian
                                Where appropriate, businesses should              credit (RDEC) claims can be reviewed and   rmarkarian@uk.ey.com
                                be optimising and accelerating the                repayments authorised separately from
                                                                                                                             Tel: +44 (0) 20 7951 2588
                                submission of R&D claims in order to              a company’s overall tax affairs.
                                receive cash back as soon as possible.            However, repayments will not be made
                                                                                  where there are other outstanding tax
                                                                                  debts (deferral of VAT does not create a
                                                                                  debt for these purposes).

                                VAT                                               Practical considerations                   For more information
                                Look to recover VAT as quickly as possible        Unlocking process and systems              Chris Lewis
                                by streamlining processes or introducing          limitations can improve ongoing VAT        clewis1@uk.ey.com
                                accruals to create immediate cash flow            recovery as well as an opportunity to
                                                                                                                             Tel: +44 (0) 1189 281411
                                benefits. Take advantage of reliefs where         reclaim VAT not recovered in the past.
                                customers are delaying payment.
                                                                                                                             Ben Woodfield
                                                                                                                             ben.woodfield@uk.ey.com
                                                                                                                             Tel: +44 (0) 20 7197 1123

20 July 2020                    COVID-19: UK Government measures and practical next steps
16                                Fixed costs: Business rates and property considerations

The Government has introduced     Business rates                                      Practical considerations                         For more information
a business rates holiday for
                                  The Government has provided a list of               • No actions need to be taken to claim the       Alex White
retail, hospitality and leisure   qualifying properties that is not exhaustive          holiday, although local authorities may
businesses in England for                                                                                                              alex.white1@uk.ey.com
                                  but instead serves as guide for local                 have to reissue bills
the 2020 to 2021 tax year                                                                                                              Tel: +44 (0) 20 7951 9350
                                  authorities to draw comparison and apply            • Those businesses that cannot benefit
alongside certain cash grants.    relief as they see fit. The Government has            from the holiday should explore other
                                  however provided a list of properties they            reliefs that already exist in the business
                                  expressly consider to fall outside of the relief.     rates system

                                  Commercial rent payments                            Practical considerations                         For more information
                                  The Government confirmed that commercial            Once the forfeiture moratorium is lifted,        Colette Withey
                                  landlords will be prevented from exercising         tenants will (absent other agreement)            colette.withey@uk.ey.com
                                  the right to take back the premises                 become immediately liable for the unpaid
                                                                                                                                       Tel: +44 (0) 161 333 2830
                                  (forfeiture) for non-payment of rent until          rent (potentially up to 6 months’ arrears).
                                  (at least) 30 September 2020, where                 This may make non-payment of rent
                                  non-payment of rent is due to COVID-19.             unattractive. Contractual rent concessions
                                  Any current forfeiture proceedings cannot           may be more attractive to both landlord
                                  result in the tenant being asked to give up         and tenant — for example rent reduction/
                                  possession of premises prior to (at least)          deferral, rent free periods or changes to
                                  30 September 2020.                                  the usual payment cycle i.e. quarterly to
                                                                                      monthly payments.
                                  The Government has also temporarily
                                  banned (i) the use of statutory demands             Concessions need to be agreed and
                                  (where made between 1 March 2020                    documented (usually by side letter), being
                                  and 30 September 2020) as the basis                 clear that the concession is temporary and
                                  for a winding up petition presented after           detailing when it will end. Some concessions
                                  27 April, and (ii) winding up petitions             may require lender or other third party (i.e.
                                  presented from Monday 27 April through              superior landlord) consent. Tenants should
                                  to September 2020, unless there are                 also bear in mind that statutory demands
                                  reasonable grounds to believe COVID-19              are not entirely prohibited (where not used
                                  has not had a “financial effect” on the             for winding up petitions) and a winding up
                                  recipient of the petition or the non-               petition will only be prohibited “if (and only
                                  payment would have occurred anyway.                 if) the company’s financial position worsens
                                  In each case the expiry deadline can                in consequence of, or for reasons relating
                                  be extended in line with the forfeiture             to, COVID-19”.
                                  moratorium. In addition, landlords will be
                                  prevented from using Commercial Rent
                                  Arrears Recovery (CRAR) unless they are
                                  owed at least 189 days of unpaid rent.

20 July 2020                      COVID-19: UK Government measures and practical next steps
17                                  Grants and sector-specific measures

Grants are cash-payments for        COVID-19 government grants                        Practical considerations                   For more information
organisations.
                                    There are now three different grants                                                         Alex White
Some COVID-19 grants come           available through the business rates                                                         alex.white1@uk.ey.com
from UK Government, some            system:
                                                                                                                                 Tel: +44 (0) 20 7951 9350
from devolved administrations       • Small Business Grant Fund — grants up           • Properties included in this scheme
and others from non-government        to £10,000                                        are those which on 11 March 2020
bodies.                                                                                 were eligible for relief under the
Certain sectors (such as airlines                                                       Small Business Rate Relief Scheme
and airports) may ultimately                                                            (including those with a rateable value
need to have a support package                                                          between £12,000 and £15,000)
put together by the Government.     • Retail, Hospitality and Leisure Grant —         • Covers properties within these sectors
We also understand that existing      grants up to £25,000                              which on 11 March 2020 had a
grants will continue as usual.                                                          rateable value of less than £51,000
                                                                                        and would have been eligible for a
There are new grants for                                                                discount under the business rates
COVID-19 related activities and                                                         holiday (see earlier section) had that
on the next page we highlight                                                           scheme been in force for that date
a major new grant from UK
                                    • Local Authority Discretionary Grant             • To qualify for this businesses must be
Research and Innovation.              Fund — grants up to £25,000                       small, under 50 employees, and they
                                                                                        must also be able to demonstrate that
                                                                                        they have seen a significant drop of
                                                                                        income due to Coronavirus restriction
                                                                                        measures

20 July 2020                        COVID-19: UK Government measures and practical next steps
18                                   The Sustainable Innovation Fund: Round 1

Innovate UK, as part of UK           Who is eligible?                                  What does it cover?                        Practicalities
Research and Innovation, is
                                     • Aid may be granted to organisations             • COVID-19 has affected R&D across         • These grants are a form of state
investing up to £55 million to
                                       that were not in difficulty on 31                 all sectors, and the aim of this           aid under the COVID-19 Temporary
fund single and collaborative
                                       December 2019, but faced difficulties             competition is to help all sectors of      Framework for the UK
research and development               or entered into difficulty thereafter as          the UK recover, grow and create new
projects as part of the                                                                                                           • The project’s total eligible costs must
                                       a result of the COVID-19 outbreak                 opportunities from the aftermath of
Sustainable Innovation Fund.                                                                                                        be between £100,000 and £500,000
                                                                                         the global health pandemic
                                     • Large companies are only eligible if
The aim of this competition is to                                                                                                 • Each funded partner can claim a
                                       they include at least one SME in the            • The proposal must show evidence
help all sectors of the UK rebuild                                                                                                  maximum of £175,000 against their
                                       project consortium                                of key challenges as a direct
after the effects of COVID-19.                                                                                                      eligible project costs. This amount
                                                                                         consequence of COVID-19, and how
                                     • Applicants must also carry out the                                                           cannot exceed their cumulative
                                                                                         the project can help solve them
                                       project activity in the UK and intend to                                                     aid total of £800,000 if they have
                                       exploit the project results from or in          • In addition, the proposal must             received other funding as part of the
                                       the UK                                            consider its impact on climate change      COVID-19 Temporary Framework
                                                                                         and/or environmental sustainability
                                                                                                                                  • Projects must be ready to start by 1
                                                                                       • Innovate UK would also like applicants     October 2020. They can last between
                                                                                         to address where necessary, equality,      three and nine months
                                     How is it accessed?                                 diversity and inclusion in relation to
                                     • Companies must complete an                        the project, the organisation(s) and
                                       application form                                  the approach to innovation
                                     • The application will be reviewed by
                                       up to five independent assessors.
                                       The assessors are experts from both
                                       business and academia
                                     • Before the grant is confirmed,
                                       applicants may be asked for more
                                       information

20 July 2020                         COVID-19: UK Government measures and practical next steps
19                                             Global EY COVID-19 Response Tracker

Our Response Tracker                           The Response Tracker currently covers 136 jurisdictions around the globe
provides a snapshot of the
                                   5/26/2020                                                               Page 1                                EY has produced a number
policy changes that have been                                                                                                                    of further trackers covering
                                                                                                                                                 the following topics:
announced in 136 jurisdictions
around the world in response to                                                                                                                  • Force Majeure
the COVID-19 crisis.                                                                                                                             • Global Mobility
Our associated COVID-19 global                                                                                                                   • Global Trade
stimulus tracking tool provides                                                                                                                    Considerations
a set of interactive dashboards
which allow businesses to                                                                                                                        • Immigration Policy
filter the information and a                                                                                                                     • Labour and Employment
workflow management facility                                                                                                                       Law
that enables allocation of tasks
                                                                                                                                                 • Tax Controversy
within the organisation.
                                                                                                                                                 • US State and Local
                                                                                                                                                   Taxes
                                                                                                                                                 • Transfer Pricing

                                                                                                                                                 These are all publicly
                                                                                                                                                 available on the EY website.

                                                                                                                                                1/1

                                                                                                                    To download the latest Response Tracker visit:
                                                                                                                    ey.com/en_us/tax/how-covid-19-is-causing-
                                                       EY Tax COVID-19
                                                                                                                    governments-to-adopt-economic-stimulus--
                                                       Response Tracker
                                                       9 July 2020

                                                                                                                    For more information
                                                                                                                    Chris Sanger
                                                                                                                    csanger@uk.ey.com
                                                                                                                    Tel: +44 (0) 20 7951 0150

20 July 2020                                   COVID-19: UK Government measures and practical next steps
20Contact

Chris Sanger              Rob Walker                     Chris Lowe                       Luke Reeve                  Jon Morris             David Ellis
Tax policy                Lead on Government             Capital and debt advisory        Capital and debt advisory   Liquidity management   People advisory services
csanger@uk.ey.com         stimulus                       clowe@uk.ey.com                  lreeve@uk.ey.com            and restructuring      dellis@uk.ey.com
+44 (0) 20 7951 0150      rwalker@uk.ey.com              +44 (0) 7920 775642              +44 (0) 20 7951 6548        jmorris10@uk.ey.com    +44 (0) 20 7980 0163
                          +44 (0) 118 928 1218                                                                        +44 (0) 20 7951 9869

Kerry McKeown             Roxane Markarian               Tony Bullock                     Colette Withey              Rob Riley
Cash tax management       Grants                         Indirect taxes                   Commercial law and          Employment law
kerry.mckeown@uk.ey.com   rmarkarian@uk.ey.com           tbullock@uk.ey.com               contracts                   rriley@ey.com
+44 (0) 20 7806 9450      +44 (0) 20 7951 2588           +44 (0) 20 7951 3408             colette.withey@uk.ey.com    +44 (0) 20 7806 9572
                                                                                          +44 (0) 161 333 2830

20 July 2020                           COVID-19: UK Government measures and practical next steps
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