Other business costs
As part of the Government’s Coronavirus Act 2020 (the Act), new measures were introduced to protect commercial tenants. Section 82 of the Act bans the forfeiture of commercial leases until 30 June 2020 for non-payment of rent, thus preventing evictions.
The Government has also temporarily banned the use of statutory demands (made between 1 March 2020 and 30 June 2020) and winding up petitions presented from Monday 27 April, through to 30 June, where a company cannot pay its bills due to coronavirus. This will help ensure these companies do not fall into deeper financial strain.
The Government is also introducing new legislation to provide tenants with more breathing space to pay rent by preventing landlords using Commercial Rent Arrears Recovery (CRAR) unless they are owed 90 days of unpaid rent.
The Financial Conduct Authority (FCA) has fast-tracked new measures that force banks to freeze loans and credit card payments for up to three months to help those individuals whose finances are affected by the Coronavirus outbreak. This includes:
- A three-month repayment freeze on loans;
- A temporary freeze on credit card and store card debt up to three months; and
- Zero-interest for three months on up to £500 for customers affected by Coronavirus using an arranged overdraft for up to three months.
The FCA wants to ensure that “consumers are no worse off and not paying more than they would have under previous prices.”
It is recommended that you speak with your lender to ensure you can make use of these facilities.
Businesses and individuals currently repaying finance on vehicles are to be granted a payment holiday under new measures from the Financial Conduct Authority (FCA).
The financial watchdog is currently consulting with motor finance firms to grant a three-month freeze.
Motor finance companies have also been asked to halt repossessions and not end loan agreements with customers who are “experiencing temporary financial difficulties due to coronavirus”.
You are recommended to speak with your lender to find out what options are available to you.