Guidance for equestrian businesses

British Equestrian would like to thank the equestrian community for their current support during the coronavirus (COVID-19) pandemic. These are unprecedented times for society in general and we all need to play a part in helping to manage and restrict the spread of coronavirus (COVID-19). The current Government restrictions mean that some equestrian businesses are unable to run as normal or must close their doors and we recognise that this has far-reaching implications, and that businesses and individuals will be hit financially. The UK Government has announced an initial £330 billion of help through number of measures to help, which we’ve summarised as a guide to help those in need access the assistance available.

ADVICE AND SUPPORT FOR BUSINESSES AND EMPLOYEES

For all UK businesses, there is support through the Coronavirus Job Retention Scheme where all employers can access support to continue to pay part of their employees’ salaries for those who would have otherwise been laid off during this crisis. On 20 March, the following measures were announced/expanded upon:

• A Coronavirus Job Retention Scheme to cover a proportion of wage costs for businesses that can't afford to maintain their workforce
• The Corona Business Interruption Loan Scheme is now be available to SMEs for loans up to £5M and will now be interest-free for 12 months (previously 6 months) – more info and how to apply is available here.
•  Deferring the next quarter of VAT through to the end of June (those payments can now be paid at the end of the financial year)
• Statutory Sick Pay relief package for small or medium-size businesses who are paying sick pay to employees off due to COVID-19
• HMRC Time To Pay arrangements can be put in for a time-limited deferral period

Job Retention scheme

The Coronavirus Job Retention Scheme has been extended until 30 April 2021. From 1 November, the government will pay 80% of an employee's usual salary up to a cap of £2,500 per month for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions, and top up employee wages to ensure they receive at least 80% of their wages up to a gap of £2,500 for the hours they're furloughed. Further details are available here.

A Job Retention Bonus of £1,000 is available for employers who continuously employ previously furloughed staff until 31 January 2021. This is a one-off taxable payment and you can claim for each eligable employee that you retain. The bonus can be claimed between 15 Feburary and 31 March 2021. Further details are available here. 

Bounce Back loans

On 27 April, the Government announced the Bounce Back Loans scheme, which will provide loans of up to £50,000 to help bolster the existing package of support available to the smaller businesses affected by the coronavirus pandemic. The Government will provide lenders with a 100% guarantee for the loan, and pay any fees and interest for the first 12 months, after which the interest rate will be 2.5% a year. No repayments will be due during the first 12 months. Further details can be found here.

The scheme is open for applications until 31 January 2021. 

If you already have a Bounce Back Loan but borrowed less than you were entitled to, from 10 November you can top up your existing loan to your maximum amount. You must request the top-up by 31 January 2021.

Riding schools, livery yards and competition centres

We have had confirmation from the Sport and Recreation Alliance that riding schools, livery yards and competition centres fall under the umbrella of those businesses considered to be ‘for assembly and leisure’ – provided they are normally open to the public – and as such are eligible for the help currently on offer from the Government:

•  100% business rates relief for the year 2020/21
•  Businesses in these sectors with a rateable value of under £15,000 will receive a grant of £10,000
•  Businesses in these sectors with a rateable value of between £15,001 and £51,000 will receive a grant of £25,000

Business rates and cash grants

England

• Expanding the 100% business rates holiday for the next 12 months to cover all retail, hospitality and leisure businesses in England – not just those up to £51K rateable value
• Providing a £25,000 cash grant to retail, hospitality and leisure businesses in smaller premises, with a rateable value below £51K
• Increasing the proposed £3,000 cash grant to a £10,000 cash grant for 700,000 small businesses (those eligible for Small Business Rate Relief).

Scotland

• 100% relief rates holiday for businesses in hospitality, leisure and retail for a period of 12 months. Grants will also available for Scottish companies in this sector
• A £25,000 grant for businesses in hospitality, leisure and retail with a rateable value between £18,000 and £51,000
• Small firms receiving the small business bonus or rural relief will be eligible for a £10,000 grant. Businesses will be also be able to request to defer all payment
• All non-domestic properties will get 1.6% relief, reversing the poundage change

You can find additional details on the Scottish Government’s package of reliefs and grants here.

Northern Ireland

• A three-month rates holiday for all businesses, which effectively means a further 25% discount off your bill
• The issuing of rates bills will be deferred from April until June
• Small firms who are eligible for the Small Business Rate Relief Scheme will receive a £10,000 grant
• A £25,000 grant to companies in the hospitality, tourism and retail sectors with a rateable value from £15,000 to £51,000

Wales

• A 12-month rates relief for businesses in retail, leisure and hospitality
• A £25,000 grant for retail, leisure and hospitality businesses with a rateable value of between £12,000 and £51,000
• Shops and leisure and hospitality businesses with a rateable value of £51,000 or less will receive 100% business rates relief, administered through their local authority
• Firms eligible for Small Business Rates Relief with a rateable value of £12,000 or less will receive a £10,000 grant

You can find additional details online on the Business Wales website.

If you can’t find your rateable value, you can search for it using your postcode on GOV.UK.

The Equestrian Employers Association has further advice on equine businesses and their employees.

HMRC HOTLINE

For both businesses and individuals, the HMRC has set up a dedicated COVID-19 helpline to help those in need on 0800 0159 559, in addition to other HMRC phone contact numbers. Opening hours are 8am to 8pm on Monday to Friday, and 8am to 4pm on Saturday.