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|Support for Businesses|
SUPPORT FOR BUSINESSES
Updated: Tuesday 14 July 2020
VAT Cut for Hospitality – Guidelines
Further details have been published by the UK Government and HMRC regarding the temporary reduced rate of VAT for hospitality, holiday accommodation and attractions.
This cut in the VAT rate from the standard rate of 20% to 5% will have effect from 15 July 2020 to 12 January 2021. The guidance confirms the cut applies to “hot takeaway food and non-alcoholic beverages”.
The cut does not apply to cold-takeaway food “which is normally of a type that’s always standard-rated” (such as crisps, sweets and some beverages including bottled water).
Coronavirus Job Retention Scheme (Furloughing Staff)
Business Rates Relief
The Scottish Government is working with Scotland's 32 Councils to make sure this relief is administered in the most effective way.
Small Business & Retail, Hospitality and Leisure Grants
This scheme was at the beginning of May to provide grants for additional properties, and once again extended from Monday 8 June 2020 to extend the maximum cumulative rateable value of multiple qualifying properties to £500,000.
In addition to the 100% grant on the first property, ratepayers will also be eligible for a 75% grant on each subsequent property that meets the criteria for each grant. Applications are open now through your Local Authority and all should have update their websites with the revised details.It has also been confirmed that the Small Business Grant and Retail, Hospitality and Leisure Grant schemes will close for new applications on 10 July.
Coronavirus Business Interruption Loan Scheme (CBILS)
CBILS is a new initiative launched by the government and coordinated by the government owned British Business Bank. It is a lending scheme for small and medium sized businesses who are experiencing disruption due to the Coronavirus pandemic.
Loans of up to £5m for a maximum term of six years are available to help businesses struggling with their cashflow. Businesses looking for shorter term finance can also access overdrafts and invoice finance for a maximum of three years through CBILS.
Bounce Back Loans scheme
Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the Chancellor announced on Monday 27 April.
The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days
The government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.
The loans will be easy to apply for through a short, standardised online application. The loan should reach businesses within days, providing immediate support to those that need it as easily as possible.Please note: you can only access these loans if you are a customer of a bank authorised to administer them.
Support for businesses through deferring VAT and Income Tax payments
The Government will support businesses by deferring Valued Added Tax (VAT) payments for 3 months. If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system may be deferred until January 2021.
For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.
All UK businesses are eligible.
How to access the scheme
This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
Customers who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. Please do so in sufficient time so that HMRC do not attempt to automatically collect on receipt of your VAT return.
Support for businesses who are paying sick pay to employees
The Government has brought forward legislation to allow small and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. The eligibility criteria for the scheme will be as follows:
Anyone whose first day of sick leave due to COVID-19 was 13th March 2020 or later gets Statutory Sick Pay (SSP) from day one of the absence. But they still have to qualify by earning at least an average of £118 per week right now, and £120 per week from 6th April 2020.
Addtionaly, staff who can no longer take their full annual leave entitlement can now carry this over the next two leave years.
Support for businesses paying tax
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.
These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
For information on any of the measures above