skip to navigationskip to main content

06/01/2021 Holderness Gazette Article

Happy New Year. I hope you had a relaxing and peaceful Christmas.

We are now coming into our busiest time of the year, with the Self-Assessment Tax Return submission deadline being the 31st January 2021. We are all geared up. Are you? Contact us now and we will endeavour to make sure you don’t get that dreaded fine!

After having hear the Prime Minister’s announcement of the 3rd National Lockdown on Monday evening and like many businesses, we have been having to look at and review the way we are to work over the next few weeks, and maybe months. We could complain about the short notice but I’m guessing, with the new strain of the virus appearing to kick in, time is not something we have a great deal of in order to really combat the virus again. Although it is a much more restrictive position than the tier system, it does give us all that certainty as to what we can or cannot do and that clarity is something businesses have been wanting. It may not be the outcome many wanted but at least we can now plan better for the future.

I found it quite a sad day on Tuesday when we had to make the decision to reduce the numbers working in the office to those who cannot reasonably work from home. We had all got used to working together with the support for each other and banter that comes with it. To have to split our fantastic team again was difficult. As ever, we have all worked hard to put in place a solution that enables those who can work from home to do so, those who can’t to be safe in the office and, importantly, to enable all our clients to receive the same quality service they deserve. We have also ensured our trainees continue to receive the same support to help them to develop. I am blessed with a great bunch of people to work with.

We, sadly, have had to reduce the amount of face-to-face client contact but our office will remain open for dropping off and picking up only but, as ever, we will be available by telephone, email, or teams, zoom, WhatsApp video calls if necessary.

The Government has only announced one additional support package so far with most of the existing packages continuing.

Businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000, the Chancellor has said.

It is understood that the cash is provided on a per-property basis to support businesses through the latest restrictions, and is expected to benefit over 600,000 business properties, worth £4bn in total across all nations of the UK.

The one-off top-ups will be granted to closed businesses based on rateable values.

There is £4,000 available 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; and £9,000 for businesses with a rateable value of over £51,000.

Details of the other package in place are briefly detailed below.

Coronavirus Job Retention Scheme

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

You can no longer submit claims for eligible employees in November.

Statutory Sick Pay rebate

You can reclaim Statutory Sick Pay you’ve paid for employees who are off sick, self-isolating or shielding because of coronavirus. This scheme will cover up to 2 weeks of SSP for every eligible employee.

You’re eligible if both of the following apply to your business:

it’s based in the UK

it has had fewer than 250 employees since 28 February 2020

Christmas support payments for pubs

If your pub is in tier 2 or tier 3 between 2 December 2020 and 29 December 2020 you may be eligible for a payment of £1000.

This is additional funding to any other funding you may be eligible for.

You are eligible if your pub:

  • is in England
  • is in tier 2 or tier 3 at any point between 2 December 2020 and 29 December 2020
  • has less than 50% in revenue from food sales (you may be asked to provide accounting evidence)

You must apply through your local authority before 31 January 2021.

One business can apply for multiple eligible pubs.

Coronavirus Bounce Back Loan

You might be able to borrow between £2,000 and £50,000 for a small or medium-sized enterprise, or if you’re self-employed.

The government will guarantee 100% of the loan and for the first 12 months you will not have to pay any fees or interest or make repayments. If you already have a Bounce Back Loan but borrowed less than you were entitled to, you can top up your existing loan to your maximum amount. You must apply for the top-up by 31 January 2021.

Support for businesses paying tax: Time To Pay Service

If you cannot pay your tax bill on time because of coronavirus, you may be able to delay it without penalty using HMRC’s Time to Pay service.

Grants available from your local council

You might be eligible for grants from your council. There are schemes for businesses that were closed by law and schemes for businesses that stayed open.

Local Restrictions Support Grant

You might be able to get a grant from your local council if your business has been closed by law since 5 November 2020 because of national coronavirus restrictions. The grant covers your business being shut between 5 November and 2 December 2020.

Businesses that are required to close due to national restrictions as of 5 January 2021 might be eligible for a one-off grant of up to £9,000.

How much you can get depends on the rateable value of your property.

Local Restrictions Support Grant (if Closed)

You might be able to get a grant from your local council if all or part of your business was closed by law at any time either:

  • between 1 August and 5 November 2020
  • after 2 December 2020

Your business must have been in a ‘high’ (tier 2) or ‘very high’ (tier 3) local alert level at the time.

How much you can get depends on the rateable value of your property.

You can claim for each 14-day period your business was closed for.

Local Restrictions Support Grant (if remained Open)

You might be able to get a grant from your local council if your business stayed open between 1 August and 5 November 2020 in a ‘high’ (tier 2) or ‘very high’ (tier 3) local alert level. You’ll need to demonstrate to the council that your business was negatively affected by coronavirus.

How much you get is decided by your council and will be based on the rateable value of your property.

Additional Restrictions Grant

You might be able to get this grant from your local council if your business has been negatively affected by coronavirus. Your local council will decide which businesses are eligible and how much they are entitled to. Examples of what makes a business eligible could include:

  • you do not pay business rates and your business was closed by law
  • you supply an industry that had to close because of coronavirus, for example the retail, hospitality, or leisure sector
  • your business is in the events sector

STAY SAFE AND SUPPORT EACH OTHER.

Subscribe to our newsletter

Our monthly newsletter contains a round up of the latest tax news and updates of what's happening at Southgates Chartered Certified Accountants

As a subscriber you will automatically recieve our newsletter direct to your inbox