MVT is offering sector support for Grassroots Music Venues (GMVs) to try and sustain them through the impacts of COVID-19. This takes five forms:
- MVT gathered data regularly from 9 March to 26 March (6 different national data sets) from Music Venues Alliance (MVA) members about the financial impacts of venue closure to best inform governments about the support needed to ensure they are sustained through this crisis and able to reopen. This data enables us to speak authoritatively and factually about the financial needs of GMVs
2. Information sharing
- MVT continues to bring together and disseminate to MVA members the most current information about what they must do and what they can do to try and sustain their venue
- MVT feeds into the international music industry picture and keeps track of trends
- MVT makes sure that the needs of GMVs are raised as part of all music industry and cultural sector approaches for support from the governments of the UK
- as the largest GMV membership body in Europe (Live DMA), MVT feeds into European information collecting and sharing
- to support the entire sector, MVT launched the Grassroots Music Venue Crisis Fund, created to raise money from corporate giving and high net worth individuals
- MVT continues to encourage individuals to support their local Grassroots Music Venue via crowdfunding campaigns and is working on the most effective ways of supporting this ongoing activity
5. Individual support for every Music Venues Alliance member
- since the start of the crisis MVT has grown its team, appointing Regional and National Coordinators to work with the core team and reach out to every venue across the UK. The MVA Coordinators work through all of the potential avenues of support for venues, offering advice on how best to secure every venue’s finances (and listening to their concerns)
- if these measures fail to secure the venue then they apply to the GMV Crisis Service for specialist expert advice and support
Support Announced by UK Government
The following is the latest information available of the various measures that are being made available by Government to support Grassroots Music Venues (GMVs) in England during the COVID-19 crisis. Many of these measures are UK-wide. For national variations, please see below.
In each case, this is the best information that Music Venue Trust has been able to acquire from government at this time. We are in contact with departments across government to ensure that as soon as additional advice on how to access this support becomes available we can deliver it to GMVs, together with instructions on how to qualify for it and access it.
We will continue to update each section with further guidance when we receive it from UK and national governments.
Scottish Government have announced a package of measures to support businesses in 2020/21, please click here for info.
Welsh Government have announced a package of measures to support businesses in 2020/21, please click here for info.
Northern Ireland’s Government have announced a package of measures to support businesses in 2020/21, please click here for info.
Across all nations of the UK, Music Venue Trust will continue to work with government to ensure that the entire sector, wherever located, is able to access a full range of support so that permanent closures are averted.
Help For You & Your Team
Wages/Salaries for Employees
The government has announced the creation of the Coronavirus Job Retention Scheme which will run for at least 4 months from 1 March 2020 until at least 30 June. The Coronavirus Job Retention Scheme will support GMVs to manage the wages/salaries of PAYE employees. Under this scheme HMRC will reimburse 80% of furloughed workers wage costs from the date you designated them as furloughed, up to a cap of £2,500 per worker per month. To access this scheme you will be required to:
- designate affected employees as ‘furloughed workers,’ and notify your employees of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
- submit information to HMRC about the employees that have been furloughed and their earnings through the online portal here: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme
Who can be Furloughed:
Furloughed workers may include any individual registered for PAYE prior to 19 March 2020. This includes Directors paid by PAYE, including the venue owner/operator, and a salaried member of a Limited Liability Partnership. A furloughed worker will not be able to work for you as their employer. Furloughed workers may undertake training or volunteer subject to public health guidance, as long as they are not:
- making money for your venue or a company linked or associated to your venue
- providing services to your venue or a company linked or associated to your venue
What you’ll need to make a claim
To make a claim, you will need:
- to be registered for PAYE online (if you are not currently registered for PAYE online you can register here: https://www.gov.uk/paye-online/enrol)
- your UK bank account number and sort code
- your employer PAYE scheme reference number
- the number of employees being furloughed
- each employee’s National Insurance number
- each employee’s payroll or employee number
- the start date and end date of the claim
- the full amount you’re claiming for including employer National Insurance contributions and employer minimum pension contributions
- your phone number
You also need to provide either:
- your Corporation Tax unique taxpayer reference
- your Self Assessment unique taxpayer reference
- your company registration number
How much you can claim for:
A calculator has been provided here: https://www.tax.service.gov.uk/job-retention-scheme-calculator
We recommend using this calculator prior to starting the process to be clear about your dates and information.
You can claim for salaries from the date you furloughed a member of staff until the date of your claim plus 14 days. You will be able to make further claims in future for the same or alternative employees if necessary.
After you’ve claimed
Once you’ve claimed, you’ll get a claim reference number. HMRC will then check that your claim is correct and pay the claim amount by Bacs into your bank account within 6 working days.
- keep a copy of the claim reference number for your records
- keep a copy of your calculations in case HMRC need more information about your claim
- tell your employees that you have made a claim and that they do not need to take any more action
- pay your employee their wages, if you have not already
Statutory Sick Pay
The government will support small and medium-sized businesses and employers to cope with the extra costs of paying COVID-19 related SSP by refunding eligible SSP costs. The eligibility criteria for the scheme are as follows:
- this refund will be limited to two weeks per employee
- employers with fewer than 250 employees will be eligible. The size of an employer will be determined by the number of people they employed as of 28 February 2020
- employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19
- employers should maintain records of staff absences, but should not require employees to provide a GP fit note
- the eligible period for the scheme will commence from the day on which the regulations extending SSP to self-isolators come into force
- while existing systems are not designed to facilitate such employer refunds for SSP, the government will work with employers over the coming months to set up a repayment mechanism for employers as soon as possible
- the government will pay self-employed people a taxable grant equivalent to 80% of their average income over the last three years, up to £2,500 per month per person, for at least three months
- self-employed people who are eligible can apply directly to HMRC for the grant, using a simple online form; HMRC will then pay the grant straight into your bank account
- the scheme will be open to those with income of £50,000 or less, who make the majority of their income from self-employment
- the government expects payments to be made no later than 1 June 2020 and HMRC will work to advance this date
- this scheme is limited to people who are already self-employed and have a tax return from 2019
- if you have not filed your tax return for 2019, you have a four week window to now file that return and to qualify for this scheme
How to cover your living expenses until the date of payment:
- the Coronavirus Business Loan Interruption Scheme is now open to self-employed people – contact your local bank to discuss an interest free loan for the period until this grant payment is made
- the government has made changes to the welfare system so that self-employed people can immediately apply for Universal Credit in full. You can apply here: https://www.gov.uk/apply-universal-credit
Help To Manage Your Outgoings
Business Rates Reliefs
The government has announced that all Business Rates for all Grassroots Music Venues, regardless of size, will be zero rated for 2020-21.
Music Venue Trust has written to every Music Venues Alliance GMV in this category in England with details of how to ensure they receive this relief.
Scottish MVA members please click here for info.
Welsh MVA members please click here for info.
Northern Ireland MVA members please click here for info.
VAT and Income Tax Payments
The Government has announced that it will defer Valued Added Tax (VAT) payments for 3 months. If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.
For VAT, the deferral will apply from 20 March 2020 until 30 June 2020. All GMVs are eligible. This is an automatic deferment with no applications required. GMVs will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021. If you are self-employed you are eligible. This is an automatic offer with no applications required.
No penalties or interest for late payment will be charged in the deferral period.
Time to Pay
HMRC has set up a dedicated COVID-19 helpline to help those in need, and they may be able to agree a bespoke Time to Pay arrangement. Time to Pay was successfully used in response to flooding and the financial crisis, giving businesses a time-limited deferral period on HMRC liabilities owed and a pre-agreed time period to pay these back. These tailored arrangements will give a business the time it needs to pay HMRC to support their recovery while operating through any temporary financial challenges that occur. HMRC will also waive late payment penalties and interest where a business experiences administrative difficulties contacting HMRC or paying taxes due to COVID-19.
You can learn more about Time to Pay HERE
The Government has announced that Mortgage lenders have agreed they will support customers that are experiencing issues with their finances as a result of Covid-19, including through payment holidays of up to 3 months.
Licensing and Late Night Levies
The Institute of Licensing (IoL) have issued updated licensing guidance. This shows how local authorities can help premises that can’t afford to pay their annual licence and late night levy fees due to the coronavirus lockdown.
- If a business can’t afford to pay their annual licence or late night levy fee, due to the coronavirus pandemic, they should notify their council
- The local authority can use their discretion to defer the suspension of the licence to ‘some point in the distant future’, allowing the business time to recover
- It is a convoluted mechanism without clear advice, but the guidance does exist and you may need to point your local authority towards it
- It was set out by Home Office Minister Kit Malthouse in a letter to Local Authority Chairs of Licensing on 8 April
- If you cannot afford to pay your licence or levy fee due to the coronavirus pandemic, notify your council ASAP
- Request that, as per the guidance from Home Officer Minister Kit Malthouse of 8 April, the council defers suspension of your licence to a point in the future where you are confident you will have been able to pay your licence/levy fee
For reference, click here to see the relevant section from the IoL Guidance
Help With Cashflow
Interest Free Loans
The government announced the creation of the Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, which launched on Monday 23 March to support GMVs to access bank lending and overdrafts.
This is designed so businesses will be able to access the first 12 months of any loan interest free, as government will cover the first 12 months of interest payments. The full rules of the Scheme and the list of accredited lenders is available on the British Business Bank website.
In mid April a new batch of lenders were introduced, including potential funders more experienced in cultural and social lending. Full information is available here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/current-accredited-lenders-and-partners/
Bounce Back Loans
The government has announced a new loan scheme which will launch on Monday 4 May.
Under the Bounce Back Loan scheme:
- businesses will be able to borrow between £2,000 and £50,000 and access the cash within days
- loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form
- No repayments will be due during the first 12 months
Details of how to apply will be announced on Monday; application will be via a short and simple online form
Small Business Grant Funding
Smaller GMVs: If your Rateable Value is lower than £15,000 then you are eligible to apply for the Small Business Grant Fund. This fund will provide a non-repayable grant of £10,000 to around 700,000 businesses currently eligible for SBRR or Rural Rate Relief, to help meet their ongoing business costs.
Small to Medium GMVs: If your Rateable Value is between £15,000 and £51,000 then you are eligible to apply for a grant (title to be announced). This fund will provide a non-repayable grant of £25,000 to help meet your ongoing business costs.
Local Authorities have been tasked with delivering these grants to you through a speedy process. There is no one single method of doing that; the range of methods includes simply paying money into your registered account without consultation through to an application process. You should check your account for the appropriate level of grant to confirm if you have received it. If you have not, you should contact your local authority to ask for details of how to receive it and when it will be paid.
Scottish Government have set-up an £80 million fund to provide grants of at least £3,000 to small businesses in sectors facing the worst economic impact of COVID-19, please click here for info.
Welsh Government has announced a £100m grant scheme for small businesses, please click here for info.
Northern Ireland Government has announced a grant package scheme for small and medium sized businesses please click here for info.
This remains a complicated issue: the Government announced that its advice to avoid pubs, clubs and theatres etc. was sufficient for businesses to claim on their insurance where they have appropriate business interruption cover for pandemics in place. However, Music Venue Trust are not aware of any successful claim by a GMV to date. Our experts suggest that every GMV should:
- closely check your Insurance Policy for any Business Interruption Insurance and/or Prevention of Access Insurance
- if your venue has such cover, you must check that this specific area of your policy describes Communicable Diseases and/or Notifiable Diseases and/or Pandemics as a specific peril for which you are covered (please note that this does not ensure your claim will be successful but these are terms to look for: insurers are saying that Covid-19 is on not on the list of specified diseases or that policies covering notifiable disease (ie. inc Covid-19) refer to a situation in which the premises have been closed down due to it being discovered on the premises)
- if your policy has the relevant wording, the professional advice is that you should submit a claim and see what response you get from your broker/insurer. The FCA is asking insurers to pay or explain why not
Music Venue Trust is offering more detailed information by email to MVA members. If you have not received this please send a request to [email protected]
At present all measures in England are also available in Scotland, though the Small Business Grant Funding has a different threshold (see below).
Scottish Government updated their package of measures on 18 March to support businesses in 2020/21:
- a full year’s 100% non-domestic rates relief for retail, hospitality and tourism (you do not have to apply for the relief, it is automatic so just cancel your direct debit)
- £10,000 grants for small businesses in receipt of the Small Business Bonus Scheme or Rural Relief (go to this page and then select your local authority from the drop down list – https://www.mygov.scot/non-domestic-rates-coronavirus/)
- £25,000 grants for hospitality, leisure and retail properties with a rateable value between £18,000 and £51,000 (go to this page and then select your local authority from the drop down list – https://www.mygov.scot/non-domestic-rates-coronavirus/)
- Scottish Local Authorities have been urged to relax planning rules to allow pubs and restaurants to operate temporarily as takeaways. Speak to your licensing solicitor if you are interested in offering off sales if your licence does not currently include it in your operating plan, as it may be possible to de-licence an area of your premises and relicense it for off-sales on an occasional license. We would only advise this where you think it may be financially viable
- support for Business Water Bills: relaxation of charges. Scottish Water has agreed to suspend pre-payment charges for licensed providers for two months, beginning with the April payment. This means providers – who supply water services to businesses – can be flexible with their own customers. We urge you to speak to your water provider
Creative Wales have created a Grassroots Music Relief Fund (GMRF). This open fund is available now and GMVs in Wales can apply for funding up to £25,000 to help them deal with COVID-19 related challenges. No matched funding is required (Welsh Government will provide the required money) and this is in addition to the package of support below. To request full details and an application form write to [email protected]
Welsh Government announced an updated package of support on 18 March for small businesses to help them during the coronavirus outbreak:
- all retail, leisure and hospitality businesses with a rateable value of £500,000 or below will receive 100% non-domestic rates relief in 2020-21
- businesses with a rateable value of between £12,001 and £51,000 will be offered a grant of £25,000
- businesses with a rateable value of £12,000 or less will be eligible for a £10,000 grant
The Northern Ireland Government announced a package of support on 18 March for small businesses:
- an immediate grant of £10,000 will be provided to all small businesses who are eligible for the Small Business Rate Relief Scheme (all businesses with a NAV up to £15,000)
- an immediate grant of £25,000 will be provided to companies in the retail, tourism and hospitality sectors with a rateable value between £15,000 and £51,000
- The Executive has already committed to providing a three month rates holiday to ALL businesses from April to June