Following the recent address from the Prime Minister we wanted to take the time to provide some further information regarding the newly announced support measures as a result of the new lockdown. We also wanted to highlight and provide a summary of some of the reliefs still in place from previous Government announcements, so you have an overview of the support available.
New COVID-19 Support
Today (Tuesday 5th) the Chancellor announced £4.6 billion available for grants to help businesses in the retail, hospitality and leisure sectors, by way of a one-off grant worth up to £9,000 per property to help businesses through to Springtime.
A further £594 million has been made available to support other impacted businesses via a discretionary fund.
This support is in addition to the £1.1 billion further discretionary grant funding for Local Authorities, Local Restriction Support Grants worth up to £3,000 a month and the extension of furlough scheme until end of April 2021.
The Government has also provided 100% business rate relief for retail, hospitality and leisure businesses, as well as extending the 100% government backed loans until the end of March 2021.
The one-off top-ups will be granted to closed businesses as follows:
- £4,000 for businesses with a rateable value of £15,000 or under
- £6,000 for businesses with a rateable value between £15,000 and £51,000
- £9,000 for businesses with a rateable value of over £51,000
Coronavirus Job Retention Scheme (CJRS)
If you’ve had to ask your employees to stop working or work less because of coronavirus (put them on ‘furlough’) you can get support to pay their wages for the hours they do not work.
The government will pay 80% of employees’ usual wages for hours they do not work, up to a maximum of £2,500 per month.
The scheme is open until 30 April 2021.
You must submit your claim by:
- 14 January 2021, for eligible employees on furlough in December 2020
- 15 February 2021, for eligible employees on furlough in January 2021
- 15 March 2021, for eligible employees on furlough in February 2021
- 14 April 2021, for eligible employees on furlough in March 2021
- 14 May 2021, for eligible employees on furlough in April 2021
Check if you can claim your employees’ wages through the CJRS here
VAT deferral payments
If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can:
- pay the deferred VAT in full on or before 31 March 2021
- opt in to the VAT deferral new payment scheme when it launches in 2021
- contact HMRC if you need more help to pay
The online opt in process to the new payment scheme will be available in early 2021, but is not yet open. You must opt in to this scheme yourself, unfortunately agents cannot do this for you.
Instead of paying the full amount by the end of March 2021 the new payment scheme enables you to make up to 11 smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022.
The scheme will allow you to:
- Pay your deferred VAT in instalments without adding interest
- Select the number of instalments from 2 to 11 equal monthly payments
To use this scheme you must:
- Still have deferred VAT to pay
- Be up to date with your VAT returns
- Opt in before the end of March 2021
- Pay the first instalment before the end of March 2021
- Be able to pay the deferred VAT by Direct Debit
If you opt in to the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.
For further information click here
Coronavirus Business Interruption Loan Scheme (CBILS)
The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.
CBILS has been significantly expanded along with changes to the scheme’s features and eligibility criteria. The changes mean even more smaller businesses across the UK impacted by the coronavirus crisis can access the funding they need.
Importantly, access to the scheme has been opened up to those smaller businesses that would have previously met the requirements for a commercial facility but would not have been eligible for CBILS. This significantly increases the number of businesses eligible for the scheme.
Please note that as of 17 December, the Government has announced that the Coronavirus Business Interruption Loan Scheme (CBILS) will be extended until 31 March 2021.
To give you some breathing space, there are no repayments for the first 12 months. The Government will pay the interest during that time and the upfront fee, helping to reduce the overall cost. If you want to settle the loan early, there’s also no fees for full early repayment.
Am I eligible for a CBILS loan?
To be eligible to apply for a CBILS loan you need to meet the following criteria:
- UK-based business that’s been adversely affected by coronavirus
- Turnover of over £200,000
- Minimum 2 years of trading history
- Over 50% of turnover from trading activity (e.g. not from investments)
- Loan is for business purposes
- Loan is primarily for trading in the UK
When taking out a CBILS loan, the business is liable for the full loan amount. If the business is unable to repay, the scheme provides a partial guarantee to the lender, not to the business. A personal guarantee is required for CBILS loans of over £250,000.
For more information about CBILS or for assistance with your application, please contact our Specialist Services Manager – Andrew Chubb | andrewc@advaloremgroup.uk | 07702 458122
Find out what support is available to you
If you are unsure what support is available to you, please follow the link below and answer the questions.
Find out what support is available for your business here
If you have any questions at all about what support is available, please do not hesitate to contact us using our details below:
(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk
