NITA are part of the UK Tourism Industry Emergency Response Group, representing the Tourism Industry in Northern Ireland.
We are having regular calls and are able to raise issues/concerns/questions on behalf of the whole Tourism Industry in NI. As we receive answers and further guidance we will update this page.
Our next call is 31st March. We have raised the following to date:
The Job Retention Scheme has certainly provided a life-line to a number of Tourism businesses and has saved thousands of employees being laid off. This has been very much welcomed from those tourism businesses that are able to avail of the scheme
Below we have outlined the feedback and questions we have had from members and those businesses who are not being supported through the initiatives already announced.
Support for Tourism Businesses who do not pay Business Rates
Speaking to members over the weekend, there are still a lot of tourism businesses who are not able to access any of the support that have been announced to date. These include the self-employed, those who rent premises or work from home and don’t pay business rates and are therefore not eligible for either the £10K or £25K grant and those who are zero-rated – coach operators, who in some cases have large refunds due from HMRC.
Update 30th March - There is no grant support for businesses that is not linked to business rates and we continue to push for this with government.
Self-Employed
With regard to support for the self-employed, we support the call for significantly more support. This would could be based on 80% of previous earnings up to a maximum of £2,500 per month We would note that this should be based on at least a year’s earnings, as this virus has struck following the quietest 4-5 months of the tourism calendar. The spring/summer season is when the self-employed tour guides and experience providers work flat out to ensure they have enough to see them through the winter months.
The other challenge for some self-employed is they do not necessarily pay themselves a salary but utilise drawings or dividend.
Update 30th March - The UK Chancellor announced the Self-Employed Support Scheme with those eligible receiving a cash grant worth 80% of their average monthly trading profit over the last three years. HMRC to make payments directly in a single lump sum instalment covering all 3 months - payment date: June. 2018-19 tax return MUST have been filed and you have 4 weeks to file and be included in the scheme. More details at HERE. The government has also provided FAQs
Job Retention Scheme
With regard to the Job Retention Scheme, a number of questions have been raised:
Update 30th March - New guidance was provided on 26th March for EMPLOYEES and EMPLOYERS. On 26th March NITA in partnership with Mills Selig held a webinar on Job Retention Scheme and Financial Support. Q&As from the webinar can be accessed HERE
Update 30th March - An employer can re-employ staff and place them on furlough instead. They will be able to claim a grant to cover 80% of monthly earnings, up to a monthly cap of £2,500.
Update 30th March - A furloughed employee can take part in volunteer work or training, as long as it does not provide services to or generate revenue for, or on behalf of your organisation. We are still awaiting guidance regarding those organisations who are not trading or generating income but have activities that staff can work from home on in order to plan for the recovery.
Update 30th March - If the employee has been employed for less than a year, you can claim for an average of their monthly earnings since the started work. If the employee only started in February 2020, use a pro-rata for their earnings so far to claim. Once you’ve worked out how much of an employee’s salary you can claim for, you must then work out the amount of Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions you are entitled to claim. For full time and part time salaried employees, the employee’s actual salary before tax, as of 28 February should be used to calculate the 80%. Fees, commission and bonuses should not be included.
Update 30th March - The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers for at least three months starting from 1 March 2020. The online service you’ll use to claim is not available yet. We expect it to be available by the end of April 2020. You can only submit one claim at least every 3 weeks, which is the minimum length an employee can be furloughed for. Claims can be backdated until the 1 March if applicable.
To claim, you will need:
You will need to calculate the amount you are claiming. HMRC will retain the right to retrospectively audit all aspects of your claim.
Update 30th March - We have asked for further guidance
Update 30th March - Rishi Sunak, UK Chancellor, Andrew Bailey, Governor of the Bank of England, and Andrew Woolard, the CEO of the FCA, wrote to the CEOs of the UK Banks on the subject of COVID-19 and bank lending on 25th March. They ask the banks to take all action necessary to ensure that the benefits of the measures announced by the Chancellor are passed through to business and consumers. Link to LETTER
VAT Refunds
One of the issues we have raised before, particularly for the Coach operators, is the question of VAT refunds. It has been a welcome intervention that VAT payments have been deferred, but for coach operators, they are zero-rated and have therefore paid out VAT that is not due to be refunded until May. In some circumstances this can be tens of thousands of pounds where investment has been made in new coaches. Given that a number of these businesses are renting premises and therefore not eligible for any of the grants, having this money refunded would make a huge difference.
Update 30th March - This has been raised and acknowledged by government but we are still awaiting further information.
Banks
Update 30th March - Rishi Sunak, UK Chancellor, Andrew Bailey, Governor of the Bank of England, and Andrew Woolard, the CEO of the FCA, wrote to the CEOs of the UK Banks on the subject of COVID-19 and bank lending on 25th March. They ask the banks to take all action necessary to ensure that the benefits of the measures announced by the Chancellor are passed through to business and consumers. Link to LETTER
Insurance
Update 30th March - You are advised to contact your insurance company at the earliest opportunity to discuss your particular case.
Caravan Parks
Ambiguity re closure of caravan parks and who can stay. Our understanding is that if owners are using them as interim abodes ie their main home is not available then this is OK. There was some discussion earlier that people should be staying in their main abodes and not in a secondary home. However can you confirm there is clarity on people being allowed to stay on caravan sites – most sites aren’t providing any facilities apart from electric hook ups if required.
Update 30th March - Unless caravans are being used as a primary residence they should be closed.
Self Catering Businesses
Can they still operate?
Update 24th March - Businesses should follow the guidance and take steps to close for commercial use as quickly as possible. However, full consideration should be given to the possible exclusions in terms of which residents should be allowed to remain. And any decision to close should be implemented in full compliance with the social distancing guidelines.
The closure applies to any business providing holiday accommodation, including short term lets bar very specific exclusions.
Hotels and other accommodation providers should be able to remain open if
a. They are part of the key worker / vulnerable groups / health response.
b. There is a specific need for some or all of the site to remain open (e.g. they are housing people who have been flooded out of their homes and/or being used to provide services under local authority homelessness duties/powers or by other public services to provide emergency accommodation).
c. Some people live full time in holiday parks and caravan parks - if that is their primary residence they can remain
What happens to families in temporary accommodation/B&Bs?
If the temporary accommodation is currently the families primary residence, they can remain.
Off Licence Stores
Are they able to stay open?
Update 30th March - Guidance was updated and Off Licenses are able to stay open with the social distancing requirements.