Covid financial business support November 2020

Whilst some green shoots of hope have started to appear – including positive progress on covid vaccines and falling reinfection rates in some UK nations and regions – the hospitality industry continues to feel overwhelming pressure from lockdowns and restrictions. We’ve summarised some of the financial packages still available to support you through this tough period

Job Retention Scheme extended until March 2021

Businesses who are unable to operate as usual may be able to take advantage of furlough payments, allowing them to retain staff for whom no role currently exists, or whose role is reduced. The JRS has been extended into March 2021, with payments of up to 80% of wages, to a maximum of £2,500 throughout November, December and January. The latest iteration of the scheme does not extend to NI and pension payments – these must be covered by the employer – and the funding level for the latter months has not yet been announced.

Employees for whom a JRS claim was NOT previously made can be claimed for in the latest version of the scheme, BUT be aware – from November, claims for each month must be made within 14 days of the end of that month, e.g. claims for November furlough payments must be made by 14th December. This is a much smaller claim window than in preceding months.

Local Restrictions Support grants

The latest allocation of grant funding for businesses was announced earlier this month, with specific provision being made for business whose operations were restricted by their sector or location. Funds are allocated via local councils, but a list of criteria for application is available here

VAT Deferral

If you deferred your VAT payment that was due between 20th March and 30th June 2020, and haven’t yet paid it, your deferred payment is due to be made in full by 31st March 2021. However, a new VAT payment deferral scheme is due to launch early in 2021 that should allow you to make this payment in 11 interest free instalments ending in March 2022, giving a little further breathing space on this debt. You will need to sign up to the scheme as a business, click here for further info.

Bounce Back Loan Scheme

Bounce back loans are government backed loans that are offered to small and medium UK businesses through banks, and are intended to bridge cashflow issues caused by the pandemic.

Loans of up to £50,000 are available dependant on business turnover. The loan term is 6 years, however the first 12 months of interest payments are covered by the government and early repayment is allowed – so in effect, the loan is free to the business if repaid within 12 months. Currently, the BBLS will be available to enter up to 31st January 2021

Because of the nature of these loans and the time limit on access, some businesses have applied for funds as a precautionary measure, keeping them separately from day to day funds, with the intention of paying back before the end of the ‘interest free’ period. As they have proved popular, many financial institutions are only offering them to existing customers, so if you do want to access this loan scheme, it is sensible to approach your own business bank in the first instance.

As with any financial decision, we recommend you talk to your accountant or business adviser before taking advantage of these support schemes, as they will be able to assess the implications and impact on your financial position.

Further reading:

https://www.gov.uk/coronavirus/business-support

For the full and latest tier 1-3 information, see the Government Local Restrictions breakdown

How do I start a food business?

Starting a food business can leave you in a tangle of red tape, unless you know where to start. We’ve outlined the process below and highlighted some things to consider, as well as signposting useful links for the new food business owner.

First things first: Food Business registration

If you are not already registered as a food business, or you are taking over an existing food business from someone else, you must register online with your local authority, before you start trading. It is against the law to trade as a food business without registration – but making yourself known to your local authority gives you access to your local food safety team (including EHOs) who can be a valuable source of support and information when you are setting up.

Food business registration is required by any business which

  • sells food
  • cooks food
  • stores or handles food
  • prepares food
  • distributes food, including:
    • restaurants, cafes and takeaways
    • catering businesses run from home, B&Bs, mobile catering and temporary businesses
    • marquees, food stalls, food pop ups and food vans
    • nurseries, schools and care homes
    • distance selling, mail order and food delivery including online

You will also need to go through the legal process for setting up any kind of business, if you haven’t already done so. Check out the UK Government website, Business Wales, or NI Business Info for details of how to do this. The UK.Gov page also gives details of permits and licences required for mobile food businesses or street trading.

Premises and Facilities

You will need to demonstrate that you have suitable premises and facilities to be able to prepare food safely, including the following:

Premises must be clean, in good repair, and suitable for safe food preparation – for example, secure from pests. Provision must be made for waste disposal that does not encourage pests.

The physical space must be suitable for food preparation, including walls, ceilings and surfaces that are easy to keep clean, without peeling paint or other potential contaminants. Light and ventilation must be adequate.

You must have adequate, separate provision for handwashing, including hot water, and suitable areas for changing into clean work clothes. There must also be adequate facilities for equipment, crockery and cutlery washing and disinfection, and equipment must be in good working order.

For a more complete list of the expectations for premises and facilities, check the FSA’s Setting up a Food Business page

Food Safety

One of a food business operator’s fundamental legal responsibilties is to ensure that their food is safe to eat. Food safety encompasses a range of measures, including:

Creating and using a Food Safety Management, or HACCP, plan. This is a written plan that is used to risk assess, manage and record food preparation processes, from cleaning schedules and supplier records to temperature monitoring and stock rotation.

Being aware of the risks and laws surrounding Food Allergens, and ensuring customers can consume your food without risk of harm from allergenic ingredients.

Managing suppliers, ensuring that they are committed to providing you with food that is safe to eat and ensuring that all of your ingredients can be traced back to their original source.

Ensuring that you and your staff are adequately trained and / or supervised, understand all elements of good food hygiene practice, including how to deal with allergens, and can undertake all necessary tasks in a way which eliminates the risks of unsafe food. Make sure that any training that you undertake is designed for the correct level and staff role – for example, Level 2 Food Hygiene and Allergen training for all food handlers, or those running a very simple food operation, and Level 3 Food Hygiene for those in a managerial or supervisory role. A reputable training provider will be able to supply you with a syllabus and sample of learning material, so you can check it is right for your needs.

Click here for the FSA’s comprehensive list of your food safety responsibilities

The list above may seem daunting, but one really key point to remember, is that there are many resources available to help you. If you have any doubts about setting up and running your food business, seek out advice from your local authority food safety team, and your Environmental Health Officer. They will help you to operate safely, legally and, if you get things right, will be able to award you that all important 5 star rating – good luck!

Further reading:

What is a Food Safety Management System / HACCP?

How do I keep my restaurant Allergy Safe?

How do I turn my café into a takeaway?