Coronavirus: Flowchart illustrates options for businesses

The main elements of the government's support are detailed in this signposting flowchart (above). It has been designed by Helen Froggett-Thomson at The Accountancy Practice, Royston, Herts to help small businesses, employees, directors and the self-employed understand their options. It shows how the schemes fit together and who they relate to. 

The overriding, if unexpected principle, is that the government is using PAYE administrators to effectively extend the reach of social services support and provide help for those in need as quickly and efficiently as possible. 

There are some detailed points which are important to note: 

• Employers need to write to staff to inform them that they are being furloughed under the Coronavirus Job Retention Scheme (CJRS). This communication needs to be held on record for five years.

• Many people who were in grey areas of employment have been brought into the fold – the gig economy workers notably. If the individual is paid under PAYE and working through any of the following: umbrella companies, agencies, as seasonal workers, nannies, ‘limb b’ workers, they can be furloughed and 80% of their wages claimed as part of the CJRS grant, by the administers of the PAYE scheme. 

• If the fixed-term contract, or employment, has ended since 19 March or is due to end in the next couple of months, the contract /employment can be extended so furloughing can happen. It is down to the discretion of the employer provider as to whether it happens.

• Regular commission (not tips) and overtime can be included in calculations of wages.

• The new style contributory Employment and Support Allowance (ESA) does not now require the claimant to be off sick to apply. 

• New style ESA has been amended to include those paying class 2 NIC for two years 

• Coronavirus Business Interruption Loan Scheme (CBILS) has been amended to include concessions to small businesses applying for the scheme – no longer requiring the borrower to own a home or provide a personal guarantee to support a loan of less than £250,000. A different coronavirus large business interruption loan scheme (CLIBILS) provides loans of up to £5m for larger businesses.

• For businesses in the retail, hospitality and leisure sectors and those who may be eligible for the small business grants, please check your local authority’s website as conditions for business rates relief and grants vary across the UK.

• Two weeks of SSP paid to employees who are self-isolating or unwell as a result of the coronavirus may be reclaimed by small businesses (under 250 staff) 

Further information 

These pages are being updated regularly as the government irons out the details of the following schemes:

• Claim for your employee’s wages through the CJRS 
• Coronavirus business interruption loan scheme