The Covid-19 Pandemic

2020 is going to be a year remembered for the challenging pandemic,
which has had a huge impact on people’s well-being, both health wise and
financially.

On a positive note, people are appreciating the ‘simple’ things in
life and there is a heightened attitude of looking out for and assisting
others, particularly those falling into the vulnerable category.

Most Governments have taken sympathetic measures to support their
health services and to try to keep business functioning during the
challenging circumstances.

Measures taken in the Jurisdictions where Dixcart has Offices

Please see below a summary of the support measures being taken in the
eight key jurisdictions where Dixcart has an office. This is by no
means a comprehensive summary, rather an outline of some of the
innovative measures being taken and is only relevant at the time of
publication.

Cyprus

• • Suspension of the collection of loan instalments and interest until the end of 2020.

• • Central Bank of Cyprus guidelines to banks to provide short-term
    liquidity facilities, for up to 12 months, at preferential terms
    (interest rate and other charges). A maximum amount, to be available of
    double the annual payroll cost, or 25% of the entity’s most recent
    annual turnover.

• • Special plan for a ‘Full Suspension of Business or Partial
    Suspension of Operations’ – payment of a Special Unemployment Benefit to
    private sector employees.

• • Special Self-Employed Benefit, a similar concept to the above payment.

• • ‘Child Care Special Leave Allowance’ to be awarded to working
    parents who are responsible for the care of children up to 15 years of
    age and / or children with disabilities of any age and due to the nature
    of their work cannot work from home.

 Guernsey

• • As of 19 March, a requirement was imposed on all persons arriving in
    the Bailiwick from anywhere in the world (including, for the avoidance
    of doubt, Jersey and the United Kingdom), to self-isolate for 14 days on
    arrival. This is a legal requirement, and failure to comply is a
    criminal offence.

• • Testing and contact tracing have formed a major part of the response
    strategy. Guernsey has employed a high rate of testing, several times
    more per capita than many other jurisdictions.

• • Deferral of payment of Social Security contributions for both Quarter 1 (due mid-April), and Quarter 2 (due mid-July).

• • ‘Coronavirus Payroll Co-Funding Scheme’ – the Government will pay
    employees an amount equivalent to Guernsey’s minimum wage. For a 35-hour
    week, this figure equates to a gross figure of £298. The States of
    Guernsey will meet 80% of this figure (i.e. £238 per week based on a
    35-hour week). Employers must make up the remaining 20%.

• • ‘Small Businesses and Self-employed Grant’ – the amount payable will be a flat sum of £3,000.

• • A loan guarantee scheme to enable further financial support for trading businesses with a turnover of less than £10m.

• • Commencement of phased relaxation of lockdown rules with businesses
    and workers for certain types of business able to operate from 25 April
    2020, if public health requirements on social distancing and hygiene are
    met.

• • There is a weekly national ‘clap’ for the National Health Service,
    at 20.00 (GMT), every Thursday evening. Individuals and families stand
    outside their homes (preserving social distancing), or at their open
    windows and clap to show appreciation for healthcare workers and carers.

Isle of Man

• • As of 6am on Friday 27 March 2020, the Isle of Man’s borders closed
    to passengers, until further notice. The only exception is the return of
    Manx residents from overseas.

• • To help viable businesses that have been affected to retain staff, a
    wage support package is available for 12 weeks, to provide businesses
    with a flat rate contribution of £280 per week for every full-time
    equivalent staff member.

• • ‘Business Adaptation Grant’ – £3.5m is being made available to
    support businesses looking to evolve. 50% of any costs will be met, that
    can be shown to be involved in the adaptation of a business, as a
    result of changing market conditions due to the Coronavirus outbreak –
    the business must also have a viable business plan going forward

• • A range of support measure are available from Manx Utilities
    Authority, Manx Telecom, Sure, and Manx Gas, for individuals who are
    being affected.

 Malta

• • A two-month deferral for businesses, including the self-employed, to
    pay: Provisional Tax, VAT and National Insurance Contribution on
    salaries.

• • €900 million has been provided in bank guarantees, for companies
    requesting operational loans. These loans will enjoy low interest rates
    and longer repayment periods.

• • Employers and self-employed individuals investing in technology that
    enables working from home, can claim to partially cover the costs of
    this investment.

• • Full-time employees of businesses and self-employed individuals,
    operating in sectors that have suffered drastically due to the COVID-19
    pandemic, will be entitled to up to five days’ salary a month,
    equivalent to a maximum €800 per month, to be financed by the Maltese
    Government. Part-time employees will be eligible to a maximum €500 per
    month.

• • The government has increase rent subsidies for individuals whose jobs have been terminated.

• • Companies that operate in adversely affected sectors and
    have suffered 25% loss in turnover will be entitled to one days’ salary
    per week equivalent to €160 per month per member of staff.

 Portugal

• • The Portuguese Government declared a State of Emergency on March 18 and it is currently in place until 2 May 2020.

• • A mandatory restriction on movement and measures relating to social isolation have been put in place.

• • Commercial passenger flights are not permitted during the State of
    Emergency, except for emergency or repatriation purposes. Individuals
    cannot cross between Spain and Portugal for leisure or tourist purposes.

• • As at the end of April, Social Security Lay-off Payments have been
    approved for over 40,000 companies. The average amount to be paid is
    €422 per employee per month.

 Switzerland

• • On March 25 the Swiss Government extended entry restrictions to all
    Schengen and non-Schengen states except Swiss nationals and foreigners
    with Swiss permits.

• • Salaries for the month of March are guaranteed, although in some cases there might be delays.

• • In total the government has set aside around CHF62 billion to
    support the economy. On April 3, it announced it was doubling the amount
    of emergency loans available to struggling companies to CHF40 billion
    ($41 billion). It has since presented a plan to offer additional loans
    of up to CHF154 million for start-up companies.

• • A grant to cover 80% of wages (up to CHF 12,350 per month), for
    employees who are not working due to the impact of Coronavirus but are
    retained on the payroll. This will be backdated to 1^stMarch 2020 and will be open for a maximum one-year period.

• • The self-employed will be assisted for 2 months. They will receive CHF 5,880 maximum per month, backdated to 17 March 2020.

• • Since the beginning of the crisis, Switzerland has increased testing
    for the coronavirus to achieve one of the highest per capita rates.

• • A three-step easing of emergency lockdown measures began on April
    27. With protection measures for staff and customers, hair stylists,
    beauticians and physiotherapists can re-open their doors, along with
    florists and garden/DIY stores. Dental and medical centres can offer
    non-urgent care. Bars, restaurants, museums, libraries and markets will
    reopen on 11 May.

• • The ban on gatherings of more than five people remains in place.

UK

• • As of the end of April, the British Government has announced that a
    phased and gradual easing of lockdown restrictions will take place,
    starting May 2020.

• • A grant to cover 80% of wages (up to £2,500 per month), for
    employees who are not working due to the impact of Coronavirus but are
    retained on the payroll. This will be backdated to 1^stMarch 2020 and was open initially for a three-month period, now extended to 30^th June 2020.

• • No business will have to pay any VAT from the third week in March
    2020, until mid-June. The payment will be deferred, and businesses will
    have until the end of the 2020-21 tax year to settle any liabilities
    that have accumulated during the deferral period.

• • The Coronavirus Business Interruption Loan Scheme (CBILS) was launched on Monday 23^rdMarch
    2020. Loans will be delivered by lenders that partner with the British
    Business Bank, including all of the major banks. The lender will receive
    a guarantee of 80% of the loan amount from the government. The loan
    will be interest free for the first 12 months.

• • No ‘rates’ will payable to local authorities for the 2020-2021 tax
    year, for any business in the retail, hospitality or leisure sectors.

• • There is a weekly national ‘clap’ for the National Health Service,
    at 20.00 (GMT), every Thursday evening. Individuals and families stand
    outside their homes (preserving social distancing), or at their open
    windows and clap to show appreciation for healthcare workers and carers.
    It is a moving experience.

 Assistance

All of the Dixcart offices are fully operational.

Each office can provide you with an update on the status in their
particular jurisdiction and can give advice in terms of applying for
appropriate financial assistance. Please speak to you usual Dixcart
contact or alternatively email: advice@dixcart.com.