52 Covid Support for Businesses by Chris Alcock - CMA Accountancy It goes without saying that it has been an extremely difficult year for all of us and particularly those that run a small business. This article will outline the updated measures that have been taken by the government to support business over the next 6 months. EXTENSION TO THE CORONAVIRUS JOB RETENTION SCHEME This scheme has now been extended to the end of March 2021. Employees will receive 80% of their usual salary for hours not worked and can be used for any amount of time worked. Employers have until the 14th of the following month to make their claim. HMRC will review the rates at the end of January. JOB RETENTION BONUS The £1,000 JRB due on 31st January 2021 has been postponed and will be re-issued at the appropriate time, presumably after the CJRS has stopped. FINANCIAL SUPPORT FOR LOCAL BUSINESSES Businesses that have been forced to close will receive grants of up to £3,000 per month. This should cover monthly rent and is based on the business properties’ rateable value:- • For properties with a rateable value of £15k or under, grants will be available of up to £1,334 per month or £667 per two weeks • For properties with a rateable value of between £15k and £51k, grants will be available of up to £2,000 per month or £1,000 per two weeks • For properties with a rateable value of £51k or over, grants will be available of up to £3,000 per month or £1,500 per two weeks Businesses in the hospitality, leisure and accommodation sectors that suffered from reduced demand (due to local restrictions introduced between 1 August <strong>2020</strong> and 5 November <strong>2020</strong>) will also receive help. Backdated grants at 70% of closed business grants, will be available. Grants will be up to a maximum of £2,100 per month for this period. Applications for discretionary <strong>Local</strong> Authority grants will be also be available. We recommend you contact your <strong>Local</strong> Authority now as limited funds are available for the discretionary grants. SELF EMPLOYED INCOME SUPPORT SCHEME – SEISS This grant for the self-employed has been extended for the period from Nov <strong>2020</strong> to Apr 2021. Grants will be paid in two lump sums, each covering a 3 month period, Nov <strong>2020</strong> to Jan 2021 and Feb 2021 to Apr 2021 and will now be worth up to 80% of their average monthly trading profit, capped at £7,500 per claim. Self Employed workers must pay close attention to the deadline for making these claims once they are published. TAX CUTS AND DEFERRALS The temporary reduction of VAT to 5% for the tourism and hospitality sectors has been extended to March 2021. Businesses that deferred their VAT payment earlier this year can now apply to pay this back in 11 interest free instalments from April 2021 rather than in full in March 2021. Self-assessment taxpayers will also be able to apply from a separate 12-month extension meaning payments deferred from July <strong>2020</strong> will now not need to be paid until January 2022. FLEXIBILITY TO PAY BACK LOANS Businesses who took out a Bounce Back Loan can use a Pay as You Grow flexible repayment system to ease the burden of repayments. All the schemes introduced have had tremendous impact on businesses and in many cases have allowed them to retain staff and manage the obvious impact that the lockdown has brought. And finally, I just wanted to mention the benefits of cloud accounting packages. This has proved invaluable over the past few months as we have been able to offer hands on support, using up to information, to help clients track their cashflow, apply for loans and discuss payments plans with HMRC. If you’re looking to consoli and gro your business in 2021, then we have a range of solutions to assist businesses of all sizes, starting with our Essentials package for start-ups and sole traders, the Growth package to help you take control of your accounts and the Premier package designed to help you drive your business forward. If you’d like a free initial consultation on how CMA can help your business in 2021, please get in touch. We can meet in our COVID-safe office or over a Zoom call to discuss your requirements. Chris Alcock ACMA - CMA Accountancy 39 Skull House Lane, Appley Bridge, <strong>Wigan</strong>, WN6 9DR 01257 255521 info@handsonaccounting.co.uk www.handsonaccounting.co.uk
53 Do you need help and guidance with; Company Accounts? Auto Enrolment? Self Assessment? Cloud-based Software? Payroll Services? Making Tax Digital? AE SA deadline VAT Benefits SA FREE INITIAL CONSULTATION Call CMA Accountancy today www.cma-accountancy.com info@cma-accountancy.com Skull House Lane, Appley Bridge. 01257 255521
Change language