As summer has ended and the
colder nights approach, it can be a bit tough to take with the local lockdowns
in place. We need to try and stay spirited and make the most of our situation.
If you are having to close or reduce hours, make sure to keep promoting your
business on social media, so once you are back, you are still in front of people’s
mind. There is some support still out there, carry on reading to see what you
can apply for before the deadlines approach.
Coronavirus Loans
The Chancellor, Rishi Sunak
has announced that businesses that have borrowed money through the government's
loan scheme, such as the “bounce back” loan and the “Coronavirus Business
Interruption Loan Scheme” would be given more time to repay the money.
A new Pay as You Grow flexible
repayment system has been introduced by the chancellor for small businesses who
took out the "Bounce Back". It means borrowings can be repaid over ten
years instead of the original six-year term.
The longer repayment time also
applied to small and medium-sized firms who borrowed under the “Coronavirus
Business Interruption Loan Scheme”.
Businesses will also have more
time to apply for these loans, application dates for the schemes had been due
to end in October.
Job
Support Scheme
As furlough comes towards the
end, the chancellor announced a new replacement scheme for the Job Retention
Scheme (furlough). From 01 November, the new scheme known as Job Support Scheme
will see that the government will contribute towards the wages of employees who
are working fewer than normal hours.
Any hours worked by the
employees the employer will continue to pay their usual wages of the hours
worked. For hours not worked, the government and the employer will each pay one
third of the equivalent salary. The government’s contribution will be capped at
£697.92 a month.
Kickstart
Scheme
With Coronavirus effecting
everyone, some of the hardest hit were the young people. The Kickstart Scheme
provides funding to employers to create new 6-month job placements for young
people aged between 16 – 24 who are currently claiming Universal Credit and at
risk of long-term unemployment.
This is the government’s plan
for jobs and to create hundreds and thousands of new, fully funded jobs across
England, Scotland and Wales. More details are yet to come out and the first
placements are likely to be available from November.
The Kickstart Scheme will
cover 100% of the National Minimum Wage for 25 hours a week as well as the
employer National Insurance contributions and employer minimum automatic
enrolment contributions.
There will also be extra
funding to support young people after the 6-month period to help build their
experience and help them move into sustained employment after they have
completed their Kickstart Scheme.
Self-Employment
Income Support Scheme
The previous support for the
self-employed has been decided by the government to be extended. The extension
will provide two grants and will last for six months, from November 2020 to
April 2021. Grants will be paid in two lump sum instalments each covering a 3-month
period.
You must currently be eligible
for the original Self-Employed Income Support Scheme, though you do not need to
have claimed it. It must be declared that you are actively trading and that you
are impacted by the pandemic. HMRC will provide more details about claiming in
due course.
VAT Reduced Rate
There was a series of new
measures introduced to help hospitality, holiday accommodation and attractions
sector. These included VAT being cut to 5%, effective from 15 July 2020. The
VAT cut will remain in place and has been extended to run until 31 March
2021.
For restaurants and cafés that
provide food services for both take away and dine in, the temporary reduction
in the VAT rate only applies to;
·
Food for consumption on the premises on which
they are supplied
·
Non-alcoholic beverages for consumption on the
premises on which they are supplied
·
Hot takeaway food for consumption off the
premises on which they are supplied
·
Hot takeaway non-alcoholic beverages for
consumption off the premises on which they are supplied
We all need to continue
supporting each other, shop local wherever possible, helping the small
independent shops. Let’s follow government guidelines and rules, to stop a
spike in cases and who knows, our sacrifices may be worth it when we may be
able to celebrate come Christmas.
