Economic Development,
Tourism, Sport & Culture
Ministerial Decision – Written Report
Approval of Fixed Costs Support Scheme and Guidance
Date: Friday 5 February
Author: Associate Director, Financial Services
Summary
This report outlines the Fixed Costs Support Scheme (“the Scheme”) for the approval of the Minister for Economic Development, Tourism, Sport and Culture. This Ministerial Decision approves the implementation of the Scheme and guidance (Annex 1).
The Scheme was approved by Competent Authorities Ministers on 20th January 2021, and subsequently approved by the Economic Recovery Political Oversight Group on 4th February 2021. The Scheme runs from January-April 2021, with claims being made a month in arrears.
Whilst the Scheme seeks to support businesses which have been materially adversely impacted by Government imposed measures to tackle the Covid-19 pandemic, and has a number of economic benefits, there are a number of risks associated with the intervention in terms of its breadth, uncertainties, and deadweight.
Noting the obligations on Accountable Officers under Article 39(1)(b) of the Public Finances (Jersey) Law 2019, the Minister for Economic Development, Tourism, Sport and Culture is required to instruct the Accountable Officer to implement the Scheme.
The Scheme is estimated to cost £9,532,000, including approximately £130,000 for administration and audit.
Background
The outbreak of COVID-19 presents a public health emergency and the measures necessary to combat the virus are precipitating acute economic crisis that presents significant risk to Jersey’s economy. To support the economy through the crisis, the Government of Jersey has announced a bold package of interventions, which includes the Government Co-Funded Payroll Scheme.
The Scheme carries several over-arching objectives:
- To effectively secure Jersey’s economic infrastructure
- To provide equitable support across sectors where trade has been and / or continues to be materially affected by prevailing public health measures
- To support the diversity of local businesses comprising our island economy recognising the significant prevalence of small business and in particular, ‘micro businesses’[1] within our economic make-up and the general frailty they possess in terms of balance sheet strength and access to finance;
- To secure employment of islanders in order to enhance economic recovery and recognising the consequential financial and workflow pressures Government of Jersey would have to address under Actively Seeking Work population
- To avoid a ‘domino effect’ of consequential business failures across sectors and deeper recession / weaker recovery
- To balance ease, effectiveness and timeliness of implementation appropriately
Risks
There are a range of risks associated with this intervention which cannot be fully mitigated. These are listed in detail in the business case.
The risks inherent in the Scheme are greater than would normally be accepted by Government. However, the expected economic benefits of the Scheme and the continuing unprecedented threats to the economy posed by the Covid-19 pandemic are significant.
Decision
The Minister is requested to consider establishing the Fixed Costs Support Scheme, noting the approval by the Competent Authorities Ministers, and approval of the Economic Recovery Political Oversight Group. The Director General Economy would be the Accountable Officer. The Director General, Customer and Local Services, would be delegated responsibility as administrator of the Scheme, by the Director General, Economy under the existing Head of Expenditure.
The specific SIC codes with scope of the Scheme will be determined in the Scheme’s administration, within the scope of the approved eligible business sectors.
Financial and manpower implications
The Scheme is estimated to cost £9,532,000, including approximately £130,000 for administration and audit.
The cost of the scheme has been modelled using data on non-domestic rates paid in the Parish of St Helier, the June 2020 Jersey Labour Market Report, and breaking down business sectors by SIC codes. The analysis models the expected number of businesses who could fall into the scheme and calculates the maximum claim that they could make under the scheme using the extrapolated non-domestic rates data. The model assumes a reopening of different sectors in line with current public health timelines.
The actual cost of the scheme would depend on the proportion of modelled businesses apply. To illustrate, if two thirds of firms applied, the cost would be approximately £6,260,000.
Officer time has also been incurred in the development of the scheme, which is funded by existing budgets. Where expected to be backfilled, this has been included in the administrative costs.
Annex 1: Scheme Guidance
Fixed Costs Support Scheme Guidance
Introduction
- The Government of Jersey Fixed Costs Support Scheme (FCSS) is a scheme which makes a financial contribution towards a business’ fixed costs where they have been impacted by Covid-19 related public health measures. The FCSS is designed to compensate a business for the impact of either not being able to open or being restricted in its ability to trade by public health measures. The FCSS will run from January 2021 until April 2021 and will be kept under review.
- To be eligible for a payment under the FCSS the business’ primary business activity must be severely impacted by the public health measures to tackle the spread of Covid-19. The business will be required to declare that it has suffered material detriment of 20% (being a 20% fall in turnover when compared with a comparable month in 2019). This will be calculated using the same calculation as an application for the co-funded payroll scheme (CFPS).
- The FCSS is open to the following business sectors[2]:
- Non-essential retail
- Licensed restaurants
- Pubs
- Cafes and places of refreshment (excluding takeaway from a fixed premises)
- Food and/or beverage wholesalers[3]
- Visitor attractions
- Wellbeing, beauty and cosmetic services:
- hairdressers
- barbers
- beauty and nail salons
- piercing and tattoo
- acupuncture and massage
- laser and cosmetic clinics delivering non-essential cosmetic treatments
- Other human health activities delivering non-essential treatments
- Gyms/fitness centres (indoor sports and exercise including jacuzzi, saunas and steam rooms)
- Nightclubs
- Betting and bookmakers
- Travel agency and tour operator activities
- Dedicated events venues
- Events-related businesses with dedicated premises – outdoor/event caterers, AV providers etc
- Mobile businesses with reliance on events[4]/close contact[5] but without fixed premises
- Car rental businesses, driving instructors and taxi drivers
Where a business undertakes multiple business activities, if the majority (over 50%) of its normal trade would be within an eligible industry, the business will be considered eligible for the FCSS.
- The maximum level of subsidy a business can claim is capped by 4 different subsidy levels, determined by the rates paid by the business on their business premises (i.e. a non-domestic premises) in 2020. Businesses that do not have any commercial premises are considered mobile businesses. Businesses that do not pay rates but sub-let from another business are automatically in Level 2. The FCSS will operate in line with Table 1 below which should indicate to businesses the likely maximum levels of subsidy they will receive:
Table 1: Maximum level of subsidy claimable under the FCSS
Subsidy Level | Criteria for entry | Maximum amount claimable per month (up to 100% of fixed costs) When the business is closed | Maximum amount claimable per month (up to 50% of fixed costs) When the business is trading but is still restricted NB: exclusions apply |
Level 1 | Mobile Businesses with reliance on events/close conduct | £1,500[6] | £1,500 |
Level 2 | Business that paid rates up to £4,999 in 2020 (including any business that sub-let any premises) | £3,000 | £1,500 |
Level 3 | Business that paid rates between £5,000 to £9,999 in 2020 | £5,000 | £2,500 |
Level 4 | Business that paid rates above £10,000 in 2020 | £10,000 | £5,000 |
- The subsidy that will be payable will be dependant on the eligible fixed costs that the business can demonstrate during the relevant month, up to the levels listed above. Fixed costs are those costs that a business must incur regardless of whether it is able to trade. A list of eligible fixed costs is included within the section ‘Definition of ‘Fixed Costs’’. Businesses will be required to declare these fixed costs on application.
- When permitted to open but required to operate under restrictions such as 2m physical distancing and restricted hours of trading and other listed restrictions the following businesses will be permitted to claim up to 50% of the maximum monthly amounts set out above:
- Licensed restaurants
- Pubs
- Cafes and places of refreshment (excluding takeaway from a fixed premises)
- Food and/or beverage wholesalers
- Visitor attractions
- Gyms and fitness centres (indoor sports and exercise including jacuzzi, saunas and steam rooms)
- Nightclubs
- Dedicated events venues
- Events-related businesses with dedicated premises – outdoor/event caterers, AV providers etc
- Mobile businesses with reliance on events/close contact but without fixed premises
- Car rental businesses, driving instructors and taxi drivers
A full list of businesses able to continue claiming under the FCSS when permitted to open but their trading is restricted, and the restrictions under which they remain eligible for payments, is in Table 2: Business Category, Determined Impact & Claimable Payment.
- Government policy will determine when trading restrictions are lifted, and businesses are entitled to claim 50% of the maximum monthly amounts. This will be clearly outlined in Government public health guidance. It will be this policy that is applied to the operation of the FCSS and the eligibility of a business, not any decision of the business.
For example: restriction changes to allow opening of restaurants with curfew, restriction changes to allow operation of gyms with low intensity exercise.
- Applications for the FCSS open in February 2021, when businesses can apply for their subsidy for January 2021 costs. The last month covered by the FCSS is April 2021, and businesses will be able to claim for April’s payment in May 2021.
- Where a business operates multiple premises, it can still claim under the FCSS. However, all claims for a single business are capped at £30,000 per month.
For example: a retail company may operate a flagship store in St Helier, and 3 smaller satellite shops in other parishes, and therefore operate under one undertaking reference. Similarly, a restaurant business may operate 5 pubs and restaurants throughout the Island. The maximum claim payable to the business per month by reference to the undertaking reference will be £30,000.
- A link to the application from can be found on www.gov.je
Outline of the FCSS
Declaration of Material Detriment
- For a business to make a claim under the FCSS, it will be required to confirm by declaration that it has suffered material detriment during the relevant period as a result of the restrictions brought about by COVID19.
- The online application form will now require the business to input relevant monthly turnover in 2021 and comparatively in 2019 at the point of application in order to calculate detriment (%).
- The definition of “Material Detriment” which will apply under this FCSS is as follows: A business is considered to have suffered material detriment if during the relevant period it can evidence a drop in turnover of at least 20% in 2021 when compared to the same period in 2019.
Amounts claimable under the FCSS
- Where this document refers to “rates payment” or “rates paid”, this refers to the total amount of non-domestic rates paid in 2020, inclusive of both Island-wide and Parish rates. You can find this information in the letter you receive from your Parish. An example of a Parish rates letter has been included in the FAQ section of this document (see Figure 1).
- A business can claim 100% of its fixed costs in the month being claimed for, up to the maximum claimable amounts outlined above. The maximum amount that a business can claim depends on the value of the non-domestic rates that the business paid in 2020.
- The table below outlines when a business will be able to continue claiming under the FCSS, particularly when closure conditions lift but some restrictions are still in place. A business is eligible to claim the highest payment if it was required to close at any time in the month of the claim because of the public health restrictions. For example, if a business was forcibly closed for half of a month, it would be eligible to claim up to 100% of fixed costs (up to the relevant limit) for the whole month.
Table 2: Business Category, Conditions of eligibility & Claimable Payment
| 100% Payment of Fixed Costs up to the maximum allowable claim | 50% Payment of Fixed Cost up to the maximum allowable claim |
| Conditions of eligibility | Conditions of eligibility |
Non-essential retail | - Closure or collection only
| |
Licensed restaurants | - Closure or collection (takeaway) only
| - Physical distancing of 2 metres
- Hours restricted by curfew
|
Pubs | - Closure or collection (takeaway) only
| - Physical distancing of 1 metre or more
- Hours restricted by curfew
|
Cafes and place of refreshment | - Closure or collection (takeaway) only
| - Outdoor/al fresco service only
- Physical distancing of 2 metres
|
Food and/or beverage wholesalers[7] | - When core hospitality customer base is closed
| - When core hospitality customer base is operating at physical distancing of 2 metres or more
- Hours restricted by curfew
|
Visitor attraction | | - Physical distancing of 2 metres or more
|
Wellbeing, beauty and cosmetic services | | |
Gyms/fitness centres (indoor sports and exercise including jacuzzi, saunas and steam rooms) | | - Physical distancing of 2 metres or more
- Restriction to low intensity training
|
Nightclubs | - Closure or collection (takeaway) only
| - Physical distancing of 2 metres or less
- Curfew hours
|
Dedicated events venues | | |
Events-related businesses with dedicated premises – outdoor/event caterers, AV providers etc | - Closed to trade or cannot operate in accordance with the prevailing public health advice
| |
Mobile businesses with reliance on events but without fixed premises (including driving instructors and taxi drivers) | - If it is not possible to provide the mobile service due to lack of events/ability to have close contact
| |
- The interpretation of whether a business has been forced to close or is restricted by the Covid-19 public health measures in Table 2: Business Category, Determined Impact & Claimable Payment, will be made in line with relevant legislation and guidance. This includes the Covid-19 (Restricted Trading) (Jersey) Regulations 2020, Covid-19 (Gatherings) (Jersey) Regulations 2020, the Covid-19 (Workplace Restrictions) (Jersey) Regulations 2020 and relevant Public Health legislation.
- All businesses can claim under the FCSS regardless of their legal structure. This includes companies, partnerships, and charities, where operating as a business and carrying out a relevant business category under the FCSS.
- For the purposes of this FCSS, pubs and bars and cafes providing any form of food service (excludes snack items such as crisps, nuts etc.) will be classified as restaurants regardless of whether they hold a separate restaurant license. However, businesses whose primary business line is a non-seated takeaway service operating in a fixed premises are not eligible to claim under the FCSS.
Mobile businesses, sub-letting business premises and working from home
- Mobile businesses will be eligible for the FCSS if they are normally reliant on events/close contact for their income. For the purpose of FCSS, this will also include driving instructors and taxi drivers. Mobile businesses will automatically be in Level 1 of the FCSS. Therefore, the maximum claim that can be made by a mobile business will therefore be £1,500. Whilst to be eligible, a mobile business must normally be reliant on events/close contact for their income, thebusiness can claim regardless of whether it is forcibly closed (in this case, no events possible under public health guidance) or required to operate at 2m distancing during the calendar month being claimed.
- Where a business sub-lets a workspace, (for example a hairdresser renting a chair in a salon) a claim is permissible under the FCSS. Sub-letting will automatically be in Level 2 of the FCSS. The maximum claim that can be made by a sub-letting business will therefore be £3,000. £3,000.
- The business providing the sub-let should claim on the basis of the total rates paid for the premises during 2020.
- Where a business operates from a residential address, a claim is permissible under the FCSS. The maximum the business will be able to claim will be the limit for Level 1 which is £1,500.
- No payment will be made to essential or non-essential retail operating at 2m distancing.
- Food and/or beverage wholesalers that derive more than 75% of their income from businesses that were required to close for part of a month as a result of the public health measures set out in the Government's Winter Strategy, can claim under the FCSS.
Trading Groups
- If businesses are structured as a trading group and different businesses in the trading group
undertake different activities, some of which are eligible industries under the FCSS and some of which are ineligible, the following will apply:
Businesses in the trading group can be considered eligible for a claim under the FCSS in the following circumstances:
- the eligible businesses alone can meet the material detriment test (20% drop in turnover over in the same month/comparable trading period in 2019); and
- the trading group as a whole can meet the material detriment test for the relevant month that the claim is made for (20% drop in trading group turnover over in the same month/comparable trading period in 2019)]
- A trading group can claim for a payment for each premises up to the amounts set out above, but the maximum amount that can be made to any single undertaking is £30,000 per month. This will be a single claim under the FCSS. See Table 3 below for more examples.
Examples
Table 3: Examples
Example 1: A non-essential shop which is not able to open, paying annual Parish rates of £7,500, would fall into Business forcibly closed Level 2. The business would be eligible for 100% of their fixed costs up to a maximum of £5,000. |
Example 2: A DJ would fall into the mobile business category. The business would be eligible for fixed costs up to a maximum of £1,500. |
Example 3: A restaurant which is able to open but operating at 2m physical distancing, paying annual Parish rates of £1,000, would fall into Restaurant operating at 2m distancing Level 2. The business would be eligible for 50% of their fixed costs up to a maximum of £1,500. |
Example 4: A business operates 4 cafes, which are not able to open. 2 cafes pay rates of £2,000, and 2 cafes pay rates of £6,000. The business would be able to claim up to £16,000. Working out: A café paying rates of £2,000 falls into Business forcibly closed Level 2, would be eligible for 100% of their fixed costs up to a maximum of £3,000. A café paying rates of £6,000 falls into Business forcibly closed Level 3, would be eligible for 100% of their fixed costs up to a maximum of £5,000. 2 cafes can claim up to £3,000, and 2 cafes can claim £5,000, so the maximum claim is £16,000. |
Example 5: A business provides plumbing and decorating services to private residences. Customers have cancelled scheduled work due the customer isolating, or not being comfortable with others entering their home. The business is not within scope of the FCSS, so cannot claim for a payment because it has not been forced to close by Government guidelines. |
Example 6: A catering van, who usually relies on income from events is calculating its claim under the scheme. The business is a mobile business (i.e. one which operates its services from no fixed premises, or by working from home with a reliance on events for income). The business may be able to claim up to £1500 each month, this would be 100% of costs if it is not possible to provide the mobile service due to lack of events eligible for 50% of their fixed costs. |
- Where this document refers to “rates payment” or “rates paid”, this refers to the total amount of non-domestic rates paid in 2020, inclusive of both Island-wide and Parish rates. You can find this information in the letter you receive from your Parish. An example of a Parish rates letter has been included in the FAQ section of this document (see Figure 1).
Interaction with other Government support schemes
- A business can claim under the FCSS whilst also benefiting from the CFPS and the Business Disruption Loan Guarantee Scheme.
- Where a business has claimed under the Visitor Accommodation Subsidy Scheme or Visitor Attractions and Events Scheme, the business can opt out of these schemes in order to claim, where eligible, under the FCSS. A business, that would be eligible for the FCSS, Visitor Accommodation Subsidy Scheme or Visitor Attractions and Events Scheme can only choose to enter the FCSS once. Once it is part of the FCSS it is ineligible for the Visitor Accommodation Subsidy Scheme or Visitor Attractions and Events Scheme.
- For the avoidance of doubt, hotels are not permitted to claim under the FCSS.
- When making an application, a business will be required to provide a breakdown list of its fixed costs for the month being claimed. The business may be asked to provide evidence of the fixed costs listed after the claim. Fixed costs which can be claimed within this FCSS are listed below. There is also a non-exclusive list of costs that cannot be claimed under the FCSS
Fixed costs that can be claimed under the FCSS
- Rent payable on business premises where the landlord is not a party connected to the business*
- Interest on mortgage payments;
- Property management service charges
- Rent/leasing of equipment where the lessor is not a party connected to the business*
- Maintenance of fixed and leased assets essential to the operation of the business
- Utilities (gas, heating, electric, water, fuel, non-guest phones, internet etc.)
- Parish rates
- Software licences
- Insurance
- Essential subscriptions (e.g. trade magazines and subscriptions to membership bodies)
- Licences (liquor, TV, tourism etc.)
- Audit/accounting fees
- Refuse collection
- Uniforms
- Statutory staff training
- Pest control
- Hawkers licence
- Group costs, where they are apportioned and charged to the business, if they are a cost to the head office company and they are apportioned and charged in that month to operating businesses on a basis consistent with previous periods.
Non-exclusive list of example costs that will not be considered fixed costs under the FCSS
- Rent payable on business premises where the landlord is a party connected to the business*
- Repayments of capital are not covered by the FCSS
- Labour costs
- Food
- Beverages
- Raw Materials
- Stock
- Motor Fuel
- New or replacement equipment
*A connected party to the business for the purposes of rent/leasing constitutes a relationship where there is more than 50% of legal/ultimate beneficial ownership in common between the parties
Example for rent payable where the landlord/lessor is a party connected to the business: Grouville Restaurant is owned by Ms Mary and Mr Lawrence, they rent their premises from Clement Property Holdings Ltd. Mr Lawrence owns 75% of Clement Property Holdings Ltd. Rent is therefore not an eligible fixed cost in these circumstances.
- Where payments are made on an annual basis which benefit the business over the year, such as parish rates, insurance, or a hawkers licence, they can be claimed on an apportioned basis, i.e. 1/12th of the annual cost can be claimed per month. Quarterly rent payments can also be apportioned into 3 monthly payments and claimed on a monthly basis.
- Any item which does not appear in the above list is not a “fixed cost” for the purpose of this FCSS and cannot be claimed for.
- For the avoidance of doubt, costs such as rent, mortgage, utilities and service charges on residential properties cannot be claimed for.
How do I find my rates?
- Owners and occupiers of land are liable to Rates. You will need to refer to your 2020 Rates Assessment to identify the total amount paid for the year which will determine your eligibility level (i.e. Level 1, Level 2 or Level 3). The assessment will be in a similar format to that shown below in Figure 1. The rates payable number, required to identify the maximum that can be claimed, is circled in red.
NB: If you are unable to locate a copy of your Rates Assessment for 2020 you should check online: https://parish.gov.je/Pages/Rates.aspx#online . If this does not work you can contact your Parish, who will be able to assist.
Figure 1: Parish Of St Helier Rates Bill Template
Insurance Policies
- If an applicant to the FCSS has an insurance or other policy under which it is eligible to make a claim for business disruption, it is obliged to pursue that claim before making an application under the FCSS. If a business makes a claim under the FCSS and later ascertains that it is able to make a claim against an insurance or other policy, it is obliged to contact the Customer and Local Services Department to inform them of their claim and to repay funds received under the FCSS to Government.
Dividend Payments
- During 2020, and the period of the operation of the FCSS, no dividends or coupons (excluding commercial bank interest) have been / will be paid to holders of equity or debt instruments exceeding £100,000 e.g. holders of shares including preference shares; providers of shareholder loans. Where such payments have been made the business may claim provided the excess is returned to the business, for example as a shareholder loan. The business will not pay dividends in excess of £100,000 during 2021.
Eligibility of Government Arm’s Length Organisations (“ALOs”) and States Owned Entities
- An ALO is an organisation which either has statutory fee levying powers or fulfils a role or function the Government of Jersey would otherwise perform (for the purposes of Guidance, this definition does not extend to organisations which receive funding from the Government of Jersey of less than £75,000 per year).
- ALOs are not eligible to apply to the FCSS. All ALOs have been contacted by Government officials to discuss their specific financial pressures during COVID-19.
- Any queries in this regard should be directed to the ALO’s usual contact within Government.
Onus on Applicant
- It is for the Applicant to satisfy the FCSS that the business is eligible for support under the provisions of the FCSS.
Unpaid Social Security Contributions
- A business or self-employed individual with unpaid social security contributions is still entitled to support under the FCSS.
Requirement to comply with relevant public health guidance and legal requirements
- Businesses in receipt of subsidies under the FCSS are required to comply with and implement relevant public health guidance designed to limit the rate of Covid-19 infections, and any Covid-19 related legal restrictions that are relevant.
- Gross violations of public health guidance and/or failure to comply with legal requirements related to Covid-19 may lead to a business being disqualified for any further support under the FCSS.
Process to claim under FCSS
- Applications will need to be made every month via the online application form. The following information will need to be entered onto the form:
- Business Undertaking Reference (as seen on your Business Licence or Manpower return)
- 2019 turnover and 2021 turnover for the relevant months
- Address of each premises that your business trades from
- Fixed costs incurred for the relevant month relating to each premises or if mobile business the fixed costs incurred
- Combined rates for each premises
- Bank account details and front cover of bank statement
- Contact details
Once the application has been submitted, an automated email will be send confirming the application has been sent.
Applications will be reviewed within 10 working days and following approval will take up to 3 days for the payment to be received.
Applicants will receive an email to confirm that payment has been sent and the amount they will receive.
Queries regarding the applications can be made to FCSS@gov.je
Access to information and Data Protection
- The overarching objective of the Scheme is to support businesses through financial contributions towards a business’ fixed costs where they have been impacted by the Covid 19 related public health measures. In order to do so, the processing of personal data received in connection with an application to the Scheme will be processed in accordance with Schedule 2, Part 1, Paragraph 4 of the Data Protection (Jersey) Law 2018, which permits the processing of personal data by public authorities, when performing public functions.
- In order to determine an application, or for the purpose of auditing claims, the FCSS may require access to a significant amount of financial information and non-financial records held by businesses. Failure to submit your income tax return and any required business accounts within the required timeframe may result in repayment in full of any Government support received.
- The business will need to confirm its understanding that in order to determine an application and for the purpose of auditing, evaluating, monitoring and sharing information in respect of an application, the Government of Jersey (and its relevant departments), Parish Authorities, administrators of the Scheme and/or any auditors acting on behalf of the administrators of the Scheme, may require access to financial information and non-financial information held by the business.
- The business will further need to confirm its understanding for Government of Jersey (or its representatives), Parish Authorities and Scheme administrators disclosing and sharing any information disclosed as part of the application process as may be reasonably required with one another for the purposes of the Scheme.
- I understand that any award made to my business under this scheme may be published
- Whether or not an application has been determined, the FCSS will retain copies of all relevant information relating to an application in accordance with established retention schedules.
Other Government filing requirements
- It should be noted that this is a new emergency scheme, and businesses and self-employed workers will still be required to file returns such as Social Security Contribution Schedules, Manpower returns, GST filings, required Tax filings and any required business accounts in the usual way (acknowledging that Businesses employing less than 80 employees can defer certain payments under a Government deferral due to COVID-19).
Publication of information under the FCSS
- Claimants should be aware that the Government of Jersey will periodically publish appropriate information in respect of businesses and self-employed individuals that have claimed under the FCSS. For businesses, this may include the name of the business and the total amount claimed. It may include similar aggregated information for self-employed workers.
General Powers of the Minister Under the FCSS
- The Minister for Economic Development, Tourism, Sport and Culture has the power to determine all matters related to the Government FCSS.
- The Minister may require a business or individual to provide written evidence in respect of any aspect of the eligibility of the business for the FCSS and/or the level of payments claimed under the FCSS.
- Where evidence is requested and is not provided to the satisfaction of the Minister, the Minister may require any payment made under the FCSS to be repaid.
- Where evidence is submitted which shows that the business or individual is not eligible for the FCSS or for a payment under the FCSS, the Minister may require any payment made under the FCSS to be repaid.
- Any decision taken by the Minister or their delegate is final.
Appeals
- There is no appeal process for the Government FCSS. Information will be provided in respect of the outcome of individual applications.
Status of Guidance and amendment of Guidance
- The Government FCSS is a non-statutory scheme. As such the terms of the FCSS can be amended or withdrawn without notice at the discretion of the Minister for Economic Development, Tourism Sport and Culture.
- The Guidance, including the eligibility conditions and financial support provided by the FCSS can be amended, withdrawn or re-issued at any time.
Freedom of Information
- The Government of Jersey is subject to the requirements of the Freedom of Information (Jersey) Law 2011.
- The Government of Jersey is responsible for determining whether any sensitive information and/or any other information:
- is exempt from disclosure in response to a Freedom of Information request in accordance with the provisions of the Freedom of Information (Jersey) Law 2011; or
- is to be disclosed.
Costs
- By way of clarity, the FCSS will not pay any contribution towards any Legal or other Professional Fees incurred by an Applicant in relation to their Application to the FCSS.
[END]
Annex 1: Declarations
Qualifying Criteria: Declarations
In order to make a claim, the business is required to make the following declarations:
- The business has suffered material detriment of20% or more loss of turnover for the month of that claim compared with a previous comparable month.
- In considering the eligibility of the business to make a claim under the FCSS, the claimant confirms that more than 50% of ordinary business turnover was derived from an eligible sector.
- Where the claimant is a trading group, that 50% of ordinary (2019 comparison) consolidated group business turnover was derived from an eligible sector.
- The claim has been limited to the lower of actual fixed costs or the maximum level permitted by the Scheme. Claimants will be required to input and validate fixed costs within the business for each month of claim. Qualifying fixed costs are considered to be:
a) Rent payable on business premises where the landlord is not a party connected to the business*
b) Interest on mortgage payments; repayments of capital are not covered by the FCSS
c) Property management service charges
d) Rent/leasing of equipment where the lessor is not a party connected to the business*
e) Maintenance of fixed and leased assets essential to the operation of the business
f) Utilities (gas, heating, electric, water, fuel, non-guest phones, internet etc.)
g) Parish rates
h) Software licences
i) Insurance
j) Essential subscriptions (e.g. trade magazines and subscriptions to membership bodies)
k) Licences (liquor, TV, tourism etc.)
l) Audit/accounting fees
m) Refuse collection
n) Uniforms
o) Statutory staff training
p) Pest control
q) Hawkers licence
r) Group costs, where they are apportioned and charged to the business, if they are a cost to the head office company and they are apportioned and charged in that month to operating businesses on a basis consistent with previous periods.
* A connected party to the business for the purposes of rent/leasing constitutes a relationship where there is more than 50% of legal/ultimate beneficial ownership in common between the parties
- During 2020, and the period of the operation of the FCSS, no dividends or coupons (excluding commercial bank interest) have been / will be paid to holders of equity or debt instruments exceeding £100,000 e.g. holders of shares including preference shares; providers of shareholder loans. Where such payments have been made the business may claim provided the excess is returned to the business, for example as a shareholder loan. The business will not pay dividends in excess of £100,000 during 2021.
- That the business has a ‘good order’ relationship with Government of Jersey to the effect that arrangements for payment of GST, income tax, social security contributions etc are either up to date, subject to terms of the prevailing COVID-19 related deferment terms and / or in line with any agreed repayment plan.
- The claimant understands that GoJ (and its relevant departments) and/or administrators of the Scheme having rights to audit including, but not restricted to, request for financial forecasts, financial statements, debtor and creditor analysis, evidence of fixed costs, and most recent available accounts.
- The claimant understands that there may be the publication of amounts paid to them under the FCSS.
- The claimant declares that the business has been trading since 30th November 2020.
- The claimant declares that at the time of application that the business considered that application to the FCSS was necessary to ensure the continued survival of the business and that all other reasonable opportunities for investment into the business have been considered.
- The claimant declares they are not at immediate risk of insolvency, winding up or ceasing to trade on a permanent basis.
Restriction on claims under the FCSS
- Once the business has made a claim to the FCSS, it will not be eligible to claim under the Visitor Accommodation Subsidy scheme or Visitor Attractions and Events scheme. The claimant declares they will not make a claim under the Visitor Accommodation Subsidy Scheme or Visitor Attractions and Events Scheme after applying for the FCSS.
- Claims must be made by the parent or controlling entity within a group of companies, often generally referred to as a ‘Topco’. For example, substantial multi-site organisations must claim at the highest entity level not on an individual site basis;
- Claims will be capped at £30,000 per month for any single trading group or business with multiple premises.
- Claims will not be permitted from those solely in the business of owning a property that falls within the affected sectors. Claims must relate to detriment suffered from the trading business engaged within that sector.
- Claimants must be clearly identifiable as trading principally within a sector that has been closed or restricted in trading.
- Multiple claims are prohibited on a single premises under common ownership or management.
For example, a site holding a nightclub and restaurant license may only claim under one category. This is permitted to be the most advantageous category to the business under the FCSS provided more than 50% of normal (2019) turnover is derived from activity in that category. Similarly, for a non-essential retailer also operating a café on-site may only claim under one category. The eligibility of independent businesses operating within a larger site to claim is unaffected by this restriction. - For the purposes of this FCSS, pubs providing any form of food service (excludes snack items such as crisps, nuts etc) will be classified as restaurants irrespective of whether or not they hold a separate restaurant license.
- Multiple claims will not be entertained for a single business premises unless evidence of separate rates billing can be evidenced, except for when the premises is contractually sub-let to a business, not part of the same Trading Group, who may make a claim under the FCSS.
Dishonest/fraudulent claims
Where there is cause to suspect that a fraudulent claim may have been made, the claimant will be referred to the States of Jersey Police for possible investigation and may be prosecuted.
Freedom of Information
The Government of Jersey is subject to the requirements of the Freedom of Information (Jersey) Law 2011.
The Government of Jersey is responsible for determining whether any sensitive information and/or any other information: i. is exempt from disclosure in response to a Freedom of Information request in accordance with the provisions of the Freedom of Information (Jersey) Law 2011; or ii. is to be disclosed.
Publication of information under the FCSS
Claimants should be aware that the Government of Jersey will periodically publish appropriate information in respect of businesses and self-employed individuals that have claimed under the FCSS. This may include the name of the business and the value of claims. It may include similar aggregated information for self-employed workers.
Costs
By way of clarity, the FCSS will not pay any contribution towards any Legal or other Professional Fees incurred by an Applicant in relation to their Application to the FCSS. Where a business incurs fees as part of its ongoing operation unrelated to the FCSS, for example for the use of accounting and audit services, these can be claimed.
Annex 2: Definitions
Wellbeing, beauty and cosmetic services: hairdressers, barbers, beauty and nail salons, piercing and tattoo, acupuncture and massage, laser and cosmetic clinics delivering non-essential cosmetic treatments
Gyms/Fitness centres: indoor sports and exercise including jacuzzi, saunas and steam rooms
Material Detriment: A business is considered to have suffered material detriment if during the relevant period it can evidence a drop in turnover of at least 20% in 2021 when compared to the same period in 2019.
Relevant Period: the month being claimed for under the FCSS
Business Premises: the premises a business usually operates from
Mobile Business: This is a business that has no fixed commercial business premises (domestic premises will not be considered business premises). The business will also be normally reliant on events/close contact for their income. In respect of close contact, an example is a mobile hairdresser/beautician. For the purpose of the FCSS, this definition will also include driving instructors and taxi drivers.
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