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