News

Financial Support for Individuals and Businesses Affected by COVID-19

**Source – Isle of Man Government

The Isle of Man Government has set out a package of measures, to support individuals and businesses throughout the unprecedented disruption caused by COVID-19. These include the following new schemes and initiatives.

Financial Assistance

Click here for more information - this guide is intended to signpost you to the potential financial assistance schemes on offer. The details of some schemes, including eligibility, may change at short notice and whilst the Isle of Man Government intend to keep this up to date the results should be seen as a general guide, not a definitive statement of eligibility.

COVID-19 Salary Support Scheme

Overview

12 week wage support package for businesses with a flat rate contribution of £280 per week for every full time equivalent staff member.

Who can apply?

A range of sectors. Financial services, legal services, ICT, large retail, utilities, space, public administration and eGaming sectors are currently excluded. The self-employed are ineligible.

COVID-19 Manx Earnings Replacement Allowance

Overview

12 week income support of £200 a week to those who have been temporarily or permanently laid off, or lost their self-employed work.

Who can apply?*

Displaced employees; who must have been earning at least £200 per week. Registered self-employed who have paid Class 2 NI contributions

*A self-employed person cannot claim MERA if they have received a Coronavirus Business Support Scheme grant

£3,000 Coronavirus Business Support Scheme

Overview

A £3,000 grant to support businesses & self-employed.

Who can apply?

Both self-employed and businesses in the tourist accommodation, catering & entertainment, travel & tour operators, logistics, small retail, construction, horticulture & education sectors Note there are eligibility requirements around the number of employees employed.

Coronavirus Business Interruption Loan Guarantee Agreement

Overview

£60 million of new business lending supported by the Island's commercial banks & Government.

Who can apply?

IOM registered businesses & self-employed with a turnover of up to £10million.

Exclusions include: financial & professional services, real estate, utilities, space, public administration & FSA or GSC regulated businesses.

VAT Deferment Initiative

Overview

VAT payments due to the Treasury, Customs & Excise Division between now and the end of June 2020 can be deferred.

Who can apply?

Any Isle of Man registered businesses or self-employed individual Note there are further eligibility requirements.

Strategic Investment Fund to improve cash flow

Overview

This scheme allows Government to offer loans and purchase assets from strategically important businesses.

Who can apply?

Typically larger employers that are unable to access the Business Interruption Loan Guarantee Scheme.

Please note this scheme is not yet open.

Strategic Capacity Scheme

Overview

Fund to help strategically important business sectors, initially available to the tourism accommodation sector Strategic Capacity Scheme.

Who can apply?

3 stars & above serviced & non-serviced accommodation.

Exclusions include: permanent campsites and glamping sites, TT and MGP Homestay, B&Bs and temporary TT and MGP campsites & glamping sites.

Mortgage Repayments Holiday

Overview

Bank support package which offers homeowners a repayment mortgage holiday of up to three months.

Who can apply?

Residential homeowners with a mortgage with Isle of Man Bank, Santander International, HSBC, Barclays, Lloyds, Nedbank Private Wealth International and Cayman National Bank.

National Insurance Holiday

Overview

Businesses can apply for a nil rate of secondary Class 1 (Employers) Contributions in respect of March 2020 remittances, which are due and payable by 19 April 2020.

Who can apply?

Businesses in the tourist accommodation, catering & entertainment, travel & tour operators and logistics sectors.

Coronavirus Business Adaptation Scheme

Overview

Businesses that have had to adapt their business as a result of COVID-19 can apply for 50% of any of the costs involved in the adaptation.

Who can apply?

Businesses and self-employed in any sector may apply, with the exception of large retail businesses with taxable income of more than £500,000.

For more information

If you need any clarification or help regarding your situation, please get in touch with the team at Browne Craine & Co as we are more than happy to provide you with free advice and will help where we can.

Peregrine Tiagnet ICAEW