Update – COVID-19 Support for Businesses

As we go through the third national Lockdown with no foreseeable end date in sight, it is a worrying time for many businesses.

Whilst some have flourished during the pandemic, other businesses have not been so lucky. As we start the year with further restrictions, it is likely that even more businesses will now find themselves having to access support, even if they have not had to do previously.

We thought it would be useful to give an update on the business support measures which are currently in place (as at mid January 2021).

Grants and loans

• New COVID-19 grants announced at that start of Lockdown 3 allow businesses in retail, hospitality and leisure to claim up to £9,000. This in addition to the Local Restriction Support Grants which are worth up to £3,000 a month and any discretionary grants which are provided by Local Authorities.
• The Coronavirus Job Retention Scheme (furloughing staff) has been extended until 30 April 2021. Employers can claim 80% of their employee's usual salary for hours not worked, up to a maximum of £2,500 per month. The scheme is open to employers who have a UK bank account and operate a UK PAYE scheme. Employers do not need to have previously claimed for employees before 30 October 2020, plus they can furlough employees for any amount of time and with any working pattern and can still claim the grant for hours not worked.
• The Coronavirus Business Interruption Loan Scheme (CBILS) has been extended until 31 March 2021. This scheme applies to small and medium sized businesses and gives them access to loans of up to £5 million. The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.
• The Coronavirus Large Business Interruption Loan Scheme (CLBILS) has also been extended until 31 March 2021. This scheme allows larger businesses affected by coronavirus to access loans up to £200 million, with the Government guaranteeing 80% of the loan to the lender.
• The Self Employed Income Support Scheme (SEISS) is currently offering its third round of grants, but self employed businesses will need to make their claim by 29 January 2021. To qualify for making a claim they need to show their business has been negatively impacted by coronavirus since 1 November 2020. Even if they haven't needed to make a claim for the first or second SEISS grants, they can still claim for the third grant.

VAT

• VAT registered businesses within the hospitality and hotel and holiday accommodation sectors, as well as some tourism attractions, can apply a temporary 5% reduced VAT rate up to an extended date of 31 March 2021. The link above explains who the reduced VAT rate applies to in each sector and how to apply it.
• In March 2020, the Government launched the VAT payment deferral scheme which allowed VAT registered businesses to defer any VAT payments incurred between 20 March and 30 June 2020 until 31 March 2021. For businesses still struggling to pay the VAT due between the March and June 2020 deadlines, the Government are set to launch a further payment deferral in early 2021 which will allow businesses to make up to 11 smaller monthly instalments, interest free, with all outstanding VAT to be paid in full by 31 March 2022.

Self Assessment

• If you are struggling to pay your income tax bill, you may be able to set up a 'Time to pay plan' with HMRC. This only applies if you tax bill is less than £30,000, your tax returns are all up to date and have been submitted to HMRC, you don't have any other payment plans or debts with HMRC and it is less than 60 days after the payment deadline. This payment plan can be set up online.

The pandemic continues to create uncertainty and financial worries. We're here to help wherever we can, so don't hesitate to contact us at our Bingley office on 01274 518200 or our Ilkley office on 01943 817045. Alternatively, you can email us at: office@wilkinson-partners.co.uk. Sometimes chatting things through can make a big difference and we'll be happy to assist or point you in the right direction where we can.