MWT Coronavirus Newsletter - Issue 32
ERF Sector Specific Grant for Hospitality, Leisure and Tourism businesses opens 12 noon today
The fund will remain open for 2 weeks or until funds are fully committed - Make sure you get your application in ASAP once applications open at 12 noon today.

Please have ready the following information before opening the online form:
  • VAT registration Number (if applicable)
  • Company or Charity Registration Number: (if applicable)
  • The Sector the business works in
  • Number of Employees
  • Annual Turnover
  • Bank account details – Bank, Sort code and Account number
  • Which COVID-19 support funds you have applied for or been accepted for.


WHO CAN APPLY?

The ERF Sector Specific Support package is targeted at Hospitality, Tourism and Leisure (HTL) businesses or supply chain companies who are materially impacted with a greater than 60% impact of turnover as a result of the restrictions. 

Businesses who have accessed the ERF Restrictions Business Fund could also apply for this fund if they meet the eligibility requirements. 

For eligible businesses the package of support will provide the following grant awards:

  • For single employee business, minimum grant of £2,500
 
  • SMEs (up to 249 employees) - £1,500 per employee up to a maximum of 10 employees, representing £15,000 or for those employing more than 10, £1,500 per employee or self-declared operating costs for the restricted period (whichever is the lower amount). 
 
  • There would be an upper limit of £100,000 for SME businesses with a digital system based application.
 
  • Large businesses (250+ employees) - £500 per employee for Welsh headquartered large business applicants to a maximum of £150,000, with a manual case by case application via the sector team.

Eligibility criteria and information required to make a Micro application:

  • In excess of a 60% reduction in turnover through 4 December 2020 to 22 January 2021;

  • Have an annual turnover of at least £50,000

  • Meet one of the three of the below:

  • a company registered with Companies House or the Charities Commission
  • is VAT registered with turnover above £85k
  • sector exempt from VAT with turnover above £85k, see the details of VAT exemption.

  • Operating address in Wales and has employees in Wales;

  • A sustainable business plan exists to trade beyond the COVID-19 pandemic;

  • Not eligible for the (COVID-19) Self-employment Income Support Scheme” through the UK Government.

  • Applicant businesses and organisation will be expected to align with the ethos and principles of the Economic Contract, and maximise use of the Job Retention Scheme for all eligible workers.

  • Total of all Grants received in the last 12 months cannot exceed 100% of overall turnover for the same period
Self Catering Survey Update
As all our self-catering members should be aware, we have repeatedly raised the issue of the 3 criteria that Local Authorities have been placing on NDR registered self catering businesses, and the issues some have been having accessing grant support.

Last week we circulated a short survey to gather data on the situation. It is not too late to complete the survey, if you have not already done so: our reports automatically update when someone fills it in.
Thank you to everyone who has completed it so far. Our WTA representatives (Wales Tourism Alliance) have again raised this at the Welsh Government Task Force meeting using the survey results as further evidence.

As a result, Lord Dafydd Elis-Thomas (Deputy Minister for Culture, Sport & Tourism) has asked for this to go directly to him so this can be reviewed.

Although there is no guarantee on what the outcome will be, this has been elevated to the highest levels of the Welsh Government. We will keep you all posted when we hear back.
Important: Self catering businesses (particularly those who pay NDR) - if you have not applied for the ERF Restrictions grant because you fail one or more of the current criteria imposed by the Local Authorities, we encourage you to apply anyway so they have a record of your application. If we are successful in pushing for a change to the current rules, they will have to review all applications on record.
Applications Open
Applications Open
Applications Open
CJRS Update
The guidance on the furlough scheme has been updated to state that employees can be furloughed if caring responsibilities arising from Coronavirus (COVID-19) mean they are:
  • unable to work (including from home)
  • working reduced hours
 
Examples of caring responsibilities include caring for:
  • children who are at home as a result of school or childcare facilities closing
  • a vulnerable individual in your household
Tax Treatment of Coronavirus expenses & benefits
Find out about taxable expenses and benefits when they are paid to employees because of coronavirus and how to report them to HMRC. Please note also that the Government has updated guidance on the tax treatment of coronavirus related expenses to include coronavirus testing.
 
The guidance is that
  • coronavirus tests provided by the government, as part of its national testing scheme, are not treated as a benefit in kind for tax purposes and do not need to be reported.
  • If you’re providing antigen testing kits to your employees, outside of the government’s national testing scheme, either directly or by purchasing tests that are carried out by a third party, no Income Tax or Class 1A National Insurance contributions will be due. Similarly, employers and their employees will not be liable to any Income Tax or National Insurance contributions, where an employee receives money from their employer for obtaining a test.
 
The Government is legislating for this through regulations, and guidance will be updated shortly.
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As always, if you need any additional help or support please contact us