The Chancellor announced measures to help businesses through into 2021 with the “Winter Economy Plan.” These are 3 of the 5 measures he has put in place. Our further blog details the other areas.
SEISS grant
The second SEISS grant application closes on 19th October with a third SEISS grant to be made available to cover 20% of the average monthly profits for three months.
Only those that were eligible for the first and second grants can apply, with it being capped at £1,875 per taxpayer. This is not yet open for applications.
A fourth SEISS grant will be made available from February to April 2021. This may be available for those self-employed taxpayers that were not able to claim under the first three.
Bounce Back Loan Scheme Upgraded to Pay as you Grow
All existing COVID-19 loan schemes have been extended; applications for the Coronavirus Business Interruption Loan Scheme (CBILS), the Bounce Back Loan Scheme (BBLS) and the Future Fund are open until 30 November. 31 December now the new deadline for approvals.
The CBILS and BBLS loans are extended to a 10 year repayment term. The £50,000 BBLS has been rebranded as “Pay as you Grow.” It offers borrowers a more flexible repayment schedule, starting with interest only repayments for up to six months. Businesses who are struggling can also request a six month repayment holiday.
VAT changes
The VAT rate for the hospitality and tourism sector is to remain at 5% until 31 March 2021.
VAT payments due for the period 20 March to 30 June 2020 could be deferred until 31 March 2021.
Businesses that took advantage of this deferral will be able to spread the deferred VAT payment over 11 equal instalments between April 2021 and March 2022.
If you need help with this then please call us on 0113 2864486.
Source: Accounting Web
Photo by Kylie Haulk on Unsplash
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