Smarter Business Update – Business Rate Grants

by | Mar 31, 2020 | 0 comments

This is just a brief note to inform you about some items that have become clearer since our previous update on 26/03/20:
  • Furloughing Directors – We have now received confirmation that Directors of Limited companies can be furloughed.  As Directors have ongoing duties and responsibilities, we were unclear if they could be furloughed.  We have now had it confirmed that where day to day business operations have ceased and the Director(s) are dealing with pure statutory work, they can be furloughed along with other staff
  • Furloughing Staff – More details are coming in on this and we are sure there will be more to follow. The critical elements that we have seen and think we should update are:
    • When will grants be paid – we still don’t know how we can apply for grants for furloughed employees and will let you know as soon as we have more details
    • The scheme works based on those on the payroll as at 28 February 2020 and their pay / average pay at that point
    • 80% of all costs, including employers national insurance and pensions will be paid, but excluding fees, commissions and bonuses
    • It covers all staff, included zero-hour contracted staff
    • The guidance states that employers must write to their employees to confirm that they have been furloughed. Smarter View – We advise that professional HR advice is taken to check contract implications and that both employer and employee sign letter to ensure that proof can be produced should HMRC audit at a later date
    • Furloughing staff is for a minimum of 3 weeks
  • Business Rate Grants – We are now seeing activity from the Local Authorities in the area regarding applications for the business rate grants:
    • Teignbridge District CouncilOnline application>>
    • Mid Devon District Council – Have written to business rate payers who they think are eligible. Some have NOT received letters.  If you haven’t received a letter and think you’re eligible, we suggest you contact them directly.
    • Exeter City Council – Website is still suggesting that they will contact you if they think that you are eligible.  Has anyone heard anything form Exeter City Council regarding this?  If so, please contact us to let us know.
    • Torbay Council Online application>>
    • North Devon Council – Website is still saying not to contact them and suggesting they will look to pay out mid April to known bank details.  We assume this means that they will contact those eligible.  Email address for enquiries>>

This is just a brief update. If you want to discuss any issues, or have queries, please do not hesitate to call or email us.

Best wishes and stay safe.


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