Skip to content

Can we apply for a loan under the CBILS?

If you are running a business, yes you can.  Please see our Funding and Finance FAQ’s.

We are hearing that Banks are more likely to advance monies on the basis of known income, so for example notified legacies, where there may be a time lag in them being received or against investments where, if they were realised now, would crystallise a loss.  Asking for a loan which will need to repaid from future services or trading income should be carefully considered in particular where the charity does not operate to create a surplus which would allow this.

Related FAQs

If an employee works with vulnerable people who are at high risk of catching coronavirus, can the employer require them to limit their activities outside of work?

It is unlikely that an employer can place such a requirement on staff without infringing the employee’s privacy. If the employee is acting in accordance with the rules, limiting their activity would likely be considered unreasonable.

When does Flexible Furlough start?

The Flexible Furlough Scheme was introduced from 1 July 2020 and is due to come to an end on 30 September 2021.

Is there going to be any support after October 2020 for employers to try and protect jobs?

The Chancellor announced:

  • A new “job retention bonus” for employers to access for furloughed employees subject to certain conditions being met – see below for more information.
  • A “Kickstart scheme” which will directly pay employers to create jobs for any 16-24 year old at risk of long-term unemployment.
  • Incentives for employers to take on apprentices.

As a result of the CJRS being extended, the Job Retention Bonus will no longer be paid in February 2021.

What if the contractor is supplied by an agency?

As mentioned earlier, if an agency is involved you must send them a copy of the status determination statement for each contractor, and they will also have the right to dispute the outcome.

If the agency pays the contractor, they will be responsible for the operation of PAYE and NIC’s deductions and any apprenticeship levy. The agency may try to recover these costs from the end user client.

If workers are supplied by an agency or umbrella company and are already treated as employees by the agency, they will remain unaffected by IR35.

How do I guard against contractor insolvency in the construction industry?

It is almost impossible to completely guard against the risks associated with contractor insolvency, but there are some steps which can assist in mitigating and managing the risks involved.   To be in the best possible position, it is worth considering the following at the outset of any project:

  • Check the contractor’s financial position – particularly the specific company which will enter into the building contract, as the employer’s rights will be against this company rather than the business as a whole
  • Take legal advice to ensure that the building contract is properly drafted with appropriate provisions to deal with an insolvency event
  • Consider requiring a performance bond and/or parent company guarantee (each serve slightly different purposes)
  • Obtain collateral warranties from the consultants and sub-contractors involved, so that there are contractual rights against other parties if the contractor is no longer able to meet claims
  • Consider requiring retention bonds, advance payment bonds or vesting certificates if necessary
  • Project bank accounts and escrow accounts can also provide some further assurances for the parties involved