In response to the economic struggle businesses are facing during the pandemic and numerous lockdowns, the government established various response measures to aid businesses through these tough times.
Keeping track of these schemes can be quite difficult and confusing. As a result, we have created a concise list of the available government scheme showing the application close date or end dates for each one.
Top-up grants for retail, hospitality and leisure business
Eligible businesses can apply for a one-off top-up grant worth up to £9,000. This was shortly announced after the news of the 3rd national lockdown in early January.
There are three different amounts you may be eligible for depending on the rateable value of your business, which are:
- £4,000 – businesses with a rateable value of up to £15,000.
- £6,000 – businesses with a rateable value of between and £15,000 to £51,000.
- £9,000 – businesses with a rateable value of over £51,000.
There is no closing date as of yet.
Self-Employment Income Support Scheme (SEISS)
SEISS gives two taxable grants to those who are self-employed and their business has been impacted by coronavirus.
It was extended in October 2020 to cover another 6 months through two separate grants. One from November 2020 to January 2021 which has now closed. And another from February 2021 to April 2021.
The government has not yet announced when applications will open for the fourth grant and how much can be claimed. Previously in the November to January stretch, this was 80% of average monthly trading profits capped at £7,500 in total. The Chancellor is expected to outline the details at the budget announcement on the 3rd of March
Coronavirus loan schemes
Three loan schemes are part of the relief schemes, the government has offered to businesses. Each provides guaranteed loans at low-interest schemes.
The loan schemes are:
- Bounce Back Loan Scheme (BBLS)
- Coronavirus Business Interruption Loan Scheme (CBILS)
- Coronavirus Large Business Interruption Loan Scheme (CLBILS)
For all of the above schemes, the 31st of March 2021 is the final application closing date.
Coronavirus Job Retention Scheme (CJRS)
This is one of the earliest relief schemes coming into establishment in the first lockdown. It allows employers to furlough their staff due to lower demand. The main aim was to retain and protect jobs.
Originally, employees could be furloughed full-time, yet recent revisions mean that part-time furlough is now an option. Furthermore, employers are also obliged to make contributions to the grant.
Furlough officially ends on the 30th of April 2021, the final claim date has not been announced.
VAT reduced rate for hospitality and tourism
Again this is another initial relief measures. It means that hospitality and tourism businesses can apply to reduce VAT to 5% on certain goods. These include food and soft drinks – both eaten on their premises and takeaway, and holiday accommodation.
Recently the deadline was extended to the 31st of March 2021.
VAT Deferral New Payment Scheme
Businesses who are VAT-registered can defer their VAT for the period from March to June 2020.
In the winter economy plan, Rishi Sunak announced the payment could be spread across the 2021/2022 financial year. The VAT must be paid by the end of March 2022, it can be paid in 11 monthly interest-free instalments.
Alternatively, businesses can pay the full amount by the end of March 2021.
Job Retention Bonus
For every employer who continuously worked between November 2020 and January 2021, the business could claim a £1,000 one-off bonus. This was as long as:
- The employee was not starting redundancy procedures.
- The employees needed to average at least £520 per month in the pre-disclosed period before the bonus could be claimed.
- The payments made to the employee for the above months were reported to the HMRC through a Full Payment Submission via the Real Time Information system before making the claim.
This bonus has now been cancelled, however, the government have advised that they will “redeploy a retention incentive at the right time.” The right time is expected to proceed with the ending of the CJRS on the 30th of April.
Enhanced Time to Pay for Self-Assessment taxpayers
Anyone who uses Self-Assessment could have deferred their tax payments from July 2020 to January 2021 – up to £30,000. The government has allowed these individuals to pay the tax from this period and January’s across a year using the existing Time To Pay scheme.
Applications have now closed in January 2021, however, the claimants have until January 2022 to make the final instalment.
Pay As You Grow
The Bounce Back Loan Scheme (BBLS) was announced as part of the first measures.
The government extended the applications for the loan scheme and are allowing businesses to pay in interest-only payments for up to a six month period. In addition, businesses who have been granted a loan now have a period of 10 years to repay the loan in full – November or December 2030.
Tax relief for home working expenses
The government amended the pre-existing policy so individuals who are forced to work from home due to coronavirus can claim tax relief for additional household costs. Beforehand, in an employees contract, it had to say that they were home-based. Furthermore, for the tax year, 2020/21 payers can claim a full year’s relief regardless of if they were only required to work from home for one day.
You can claim a flat rate of £6 per week without having to provide evidence of extra costs. On the other hand, you can claim the exact amount per week. However, you will need evidence e.g. receipts, bills and contracts.
There is currently no end date to this relief measure.
Utilising coronavirus relief measures can be helpful during these unprecedented times.
We hope that this resource has been useful by bringing all of the relevant information we are aware of into one place allowing you to take note of the necessary schemes and their end dates.
*Information correct at time of publishing on the Synergy Technology website.
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