Unfortunately, ASSC Members are experiencing a variety of scenarios where their Furnished Holiday Let business means they are falling through the gaps between the Coronavirus Job Retention Scheme (CJRS), Self-Employed Income Support Scheme (SEISS) – which are provided by the UK Government – and Small Business Grantsfrom the Scottish Government that are being administered by local councils. In addition, everyone is aware of the issues concerning the Coronavirus Business Interruption Loan Scheme (CBILS). As far as bank support is concerned, debt is still debt, and many small businesses will not be able to service such loans.
Appreciating that the FHL tax rules, the CJRS and SEISS are the responsibility of HM Treasury, we wish to flag these to the attention of the Scottish Government, which we hope that they in turn will raise with UK Government Ministers.
Support for Furnished Holiday Lets
In order to qualify as trading businesses under the Furnished Holiday Let (FHL) tax rules, a property must be available for let for 210 days and actually let for 105 days.
Coronavirus Job Retention Scheme (CJRS) Read More
If you are trading through a limited company and taking a low salary then accessing the CJRS personally is likely to be difficult. You can’t work when furloughed and so it is hard to see how a director/shareholder can satisfy that requirement. Further, 80% of a low salary is not very much. If you are trading through a limited company and not taking salary, you will not be able to access CJRS. Instead, you might need to consider a Universal Credit application.
Self-Employed Income Support Scheme (SEISS) Read More
The SEISS is available to the self-employed or a partner of a trading partnership. Furnished Holiday Let income is not deemed to be self-employed income, so operators will most likely not be eligible for this personal support.
2. Eligibility Criteria for Self-Catering Grants from Scottish Government – Read More
The ASSC’s key concern remains the disparity with the rest of the UK in terms of grant support for the self-catering sector. We have been told by officials at the Scottish Government that “Scottish Government local government finance colleagues have been busy working with councils to ensure that their guidance is applied in a consistent way regarding how the income criteria can be evidenced and are looking to resolve any discrepancies as soon as possible to support applications”. Local authorities are, however, adopting different approaches, which will disadvantage people in different local authorities.
Questions for the Cabinet Secretary:
3. Corresponding Member Issues Directly with Scottish Government
We understand that Members raising their individual issues and concerns with their MSP and MP are now causing a backlog because of the quantity of correspondence.
We do appreciate the number of representations that will have been made, based in the growing anxiety from across the sector.
Unfortunately, where Members are receiving a response, it is usually in the form of ‘blanket correspondence’ from the Scottish Government which is not relevant to the individual’s enquiry, nor does it answer the specific concerns or reassure that support will be forthcoming.
ASSC Members, and others in the self-catering sector, need clarity and transparency from government.
We welcomed Fergus Ewing’s correspondence to the ASSC, dated 6th April, which stated “I recognise that there continue to be gaps in the support, we are working to further address these. I hope this provides some reassurance to you at this difficult time. Please do continue to work closely with my officials.”
Questions for the Cabinet Secretary:
When will the Scottish Government provide people with clarity around the following issues:
In an email to ASSC on 3rd April from Scottish Government officials, we were informed that: “The very wide-ranging nature of our policy brief, and the number of items of correspondence we are currently receiving, makes it very difficult to have clear lines of sight in terms of raising and addressing matters more widely. It is very helpful for us to receive these points through a single point of contact so that we can use our best efforts to achieving the speediest, and most beneficial solutions in what are very challenging times for all of us. The Scottish Tourism Alliance has furnished us with an issues log, which we have found very useful, and it may be something that the ASSC could consider.”
The ASSC represents 665 members. We are collating feedback from our members and presenting them as evidence to the Scottish Government. Appreciating the magnitude of the task on everyone’s hands, guidance on how best to communicate our concerns would be appreciated.
Question for the Cabinet Secretary:
The ASSC may shortly have to furlough 2 of its 3 staff due to membership subscriptions not being able to be paid, regional event cancellations & loss of sponsorship. If this is the case, the ASSC membership will be left without effective representation. This is being replicated in other membership organisations.
4. NHS Homes / Accommodation for Key Workers
In this unpredictable and unprecedented time, we are relying on our NHS staff, our supermarket and transport workers, our delivery drivers and our police and military personnel, who are working long hours to ensure that we still have the services and resources we need to get through this. The ASSC has sought clarity from the Scottish Government regarding its position on the accommodation of key workers who cannot necessarily stay at home, or need to stay closer to their place of work. The self-catering sector is well placed to provide this accommodation, but we believe there should be a considered approach, with the endorsement of the Scottish Government. The ASSC has put forward a proposal, in line with the scheme that is being delivered in England by our colleagues at the Short-term Accommodation Association.
Question for the Cabinet Secretary:
When will the Scottish Government respond to calls for clarity on accommodation provision in self-catering units so that we can support our key workers appropriately?
Fiona Campbell
Chief Executive
Association of Scotland’s Self-Caterers