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Recovery Loan Scheme

Recovery Loan Scheme

The Bounce Back Loan Scheme (BBLS) application entries terminated on 31/03/2021 and now the government has introduced the Recovery Loan Scheme to finance UK businesses as they grow and recover from the disruption of the COVID-19 pandemic.

The government guarantees 80% of the finance to the lenders, meaning the necessity of credit checks on the business are negated, but as the borrower, you are still 100% liable for the debt.

Loans are available through a network of accredited lenders, listed on the British Business Bank’s website.

You can apply for a loan if your business:

  • is trading in the UK
  • would be viable were it not for the pandemic
  • has been adversely impacted by the pandemic
  • is not in collective insolvency proceedings

Loans or overdrafts between £25,001 – £10M can be applied for (for up to 3-year period) and the APR will be dependent on the duration, but the typical APR on a £25K loan over 36-months is 7.7% bringing the value of the loan to £28,435.

Or you can apply for asset financing between £1,000 and £10M per business over a maximum of 6 years.

You can apply for the Recovery Loan Scheme directly from your bank and the scheme is open till 31 December 2021.

More information can be found HERE.

Restart Grant NOW Available to Eligible Businesses

Restart Grant NOW Available to Eligible Businesses

The Restart Grant scheme supports businesses in reopening safely as COVID-19 restrictions are lifted. Grants are available from 1 April 2021.

To be eligible, your business must be in the non-essential retail sector and you may be entitled to a one-off cash grant of up to £6,000 from your local borough.

Eligible businesses in the hospitality, accommodation, leisure, personal care and gym sectors may be entitled to a one-off cash grant of up to £18,000 from their local borough.

Your business must be:

  • based in England
  • business rate-payer
  • in the non-essential retail, hospitality, accommodation, leisure, personal care or gym sectors
  • opening ‘shop’ and trading as of 1 April 2021

Your council should have contacted you about the one-off grant payment, but if you believe you are eligible but have not heard form them, then please do not hesitate to give them a call.

4th SEISS Grant Available THIS Week

4th SEISS Grant Available THIS Week

If you are self-employed or a member of a partnership and have been impacted by coronavirus (COVID-19), the 4th Self-Employment Income Support Scheme (SEISS) grant will be available to those eligible from this week (w/c 19 April 2021), and the online service for the fourth SEISS grant is now online HERE

The grant covers the period from 01/02/2021 – 30/04/2021 and eligibility for the fourth grant is dependent on you having traded for both tax years:

  • 2019 to 2020 and submitted your tax return on or before 2 March 2021
  • 2020 to 2021

You must either:

  • be currently trading but are impacted by reduced demand due to coronavirus
  • have been trading but are temporarily unable to do so due to coronavirus
  • intend to continue to trade
  • reasonably believe there will be a significant reduction in your trading profits

The same criteria that were applied for the first 3 SEISS grants still apply & this grant will be 80% of your average trading profits for up to 4 tax years (2016/17, 2017/18, 2018/19, & 2019/20) for 3-months.

The closing date for the 4th SEISS Grant is 01 June 2021.

By now you should have received an email form HMRC stating when you can claim your 4th SEISS grant from.  If you need any assistance with your claim, please do not hesitate to contact us on 020 8761 8000 or email/message us here.

Furlough Scheme Extended until End of September

Furlough Scheme Extended until End of September

In The Chancellor’s 2021 budget speech it was announced that the furlough scheme would be extended until the end of September 2021, to protect the jobs and livelihoods of the UK population during the pandemic.

The Government will pay employees 80% of the hours not worked through to the end of June 2021.  As the country opens up it will then offer 70% with the employer to contribute the other 10%, then in August through to the end of September they will ask the employer to pay 20% while the Government covers the remaining 60%, so the employee continues to receive the 80% of their income for the hours not worked.

If you or your business need help setting up a payroll and help with the furlough scheme, then please do not hesitate to contact us on 020 8761 8000.

Bounce Back Loan Applications & Top-Ups ENDING

Bounce Back Loan Scheme: applications & top-ups deadline (31 March 2021)

Applications for the Bounce Back Loan Scheme (BBLS) come to a close on 31st March 2021.

The purpose of the scheme was to allow small businesses, regardless whether they were sole traders, partnerships, or limited companies, a way of getting a cash flow worth 25% of their turnover (within the range of £2-£50k) to support them during the pandemic.  This is a great way to get a cash injection with a very small interest repayment (2.5% over 6-years, where the Government will pay the first 12 month’s interest on your behalf).

The deadline for Bounce Back Loan applications is Wednesday 31st March 2021.  If you have not applied for the BBLS and need money to pay tax debts or to get your business moving again, then we recommend you make an application directly with your bank before time runs out.

If you have already taken out a BBLS, you can apply for a top-up to their existing Bounce Back Loan if you originally borrowed less than the maximum amount available to you.  The top-ups are only available from your existing BBLS lender & you can apply for the lesser of £50k or 25% of the annual turnover the borrower certified in their original successful BBLS application form, minus the value of the original loan given to you.

If you need any assistance with your application then please do not hesitate to contact us on 020 8761 8000.

SEISS Grant 4 – News Coming Soon!

SEISS Grant 4 – News Coming Soon!

Money Saving Expert founder Martin Lewis has announced¹ exclusive news about a possible 4th SEISS Grant for self-employed people. The Self-Employment Income Support Scheme (SEISS) offers direct financial support from the Government for those self-employed people who have seen a significant drop in profits due to the coronavirus pandemic, where eligible. He says the official announcement is currently scheduled for 3rd March 2021 during the Chancellor of the Exchequer’s Spring Budget.

Applications for the current 3rd SEISS grant closed on the 29th of January. The fourth SEISS grant period will cover the months February, March and April. Martin’s exclusive information suggests:

“… there will not be an announcement made on the amount of that grant and who is eligible […] until the budget, which is on the third of March. So over a month after the grant period starts, there won’t be news on exactly how much money you can get, and who is going to get it.”

He goes on to say:

“I doubt this actually means that people will receive their money any later, relatively, than they have done in the prior grants, because you’ve never been able to apply on the first day of the period”

Martin goes on to confirm that he suspects Read more

HMRC Extends the Self-Assessment Submission Deadline to 28th February BUT Payments still need to be made by 31st January

Self-Assessment tax return deadline extendedto February but tax needs to be paid by 31 January

Yesterday HMRC made an 11th hour decision to give the remaining 3 million tax payers an additional 28-days to file their tax return electronically.

For most, a submission after the 31st of January would have resulted in a £100 late filing penalty.  With planning already underway at HMRC on how to cope with the administrative task of appeals around COVID & late filing, HMRC has decided to only issue the penalties after 28th February, effectively offering a 1-month extension on the electronic submission of self-assessment income tax.

However, the payment date for taxes remains unchanged, so it is important to note that taxpayers are still obliged to pay any tax they still owe (including any deferred payments) by 31/01.  In fact we are advising our clients to pay as much as they can into their HMRC self-assessment account and to view it as a bank account with HMRC so that, once their taxes are filed, they are not left with any unwanted surprises with interest on late payments, as any unpaid tax from 19/20 will be charged interest as of 01/02.

The extension has been welcomed and our own Director Guy Bridger had approached the Treasury requesting this extension.  so even though there is a sense of relief, we are adamant that tax payers realise they need to settle their outstanding tax bill if they can, even if it is an estimate, otherwise they will face HMRC’s low rate of annual interest on late payment of taxes along with the initial surcharge of 5% of any tax unpaid for the 19/20 tax year after 28-days.  So Guy’s suggestion is to pay as much tax as you can before 28th of February.

Please view your UTR as a bank account with HMRC, and any money paid into HMRC’s account with your UTR is money that will sit on your account until it needs to be used up.

So, even though your taxes can now be filed electronically by no later than 28/02, you will need to pay money into your HMRC account by 31/01.  If you still need us to calculate and submit your 19/20 taxes, please come and see us or call us on 020 8761 8000. Even though we might not file them before the 31st January, you will at least know the outstanding amount owed.

Job Support Scheme Replaces the Job Retention Scheme from 1st November 2020

The Job Support Scheme for employees starts 1 November 2020

The Job Retention Scheme (JRS) winds down at the end of October. It will be followed, for the next six months, by a new job support scheme, which subsidises the wages of employees working at least a third of their normal hours, to further support viable UK employers who face lower demands due to COVID-19.

In an attempt to keep employees attached to the workforce, the Government will be introducing a new Job Support Scheme from 1 November 2020, where employees will need to work a minimum of 33% of their usual hours.

For every hour not worked the employer and the Government will each pay one third of the employee’s usual pay. The government contribution will be capped at £697.92 per month.

Employees using the scheme will receive at least 77% of their pay (where the Government contribution has not been capped) & the employer will be reimbursed in arrears for the government contribution. The employee must not be on a redundancy notice.

The scheme will run for six months from 1 November 2020 and is open to all employers with a UK bank account and a UK PAYE scheme.

All Small and Medium-Sized Enterprises (SMEs) will be eligible. Large businesses will be required to demonstrate that Read more

2nd SEISS grant now open for applications (started 17 August 2020)

2nd SEISS Grant Applications – NOW OPEN!

2nd SEISS grant now open for applications (started 17 August 2020)

The Government previously announced that, much like the furlough scheme, the Self-Employment Income Support Scheme (‘SEISS’) is to be extended for a second period and in fact it’s now open for applications.

If your business has been adversely affected as a result of COVID-19 on or after 14th July 2020 you can make a claim from 17th August 2020 for the second and final grant.

You can make a claim for the second grant, if you’re eligible, even if you did not make a claim for the first grant. 

Your eligibility for the 2nd SEISS grant must meet the same criteria as those outlined for the 1st grant:

  • you must have traded in the tax year 2018/19 and submitted your Self Assessment tax return on or before 23 April 2020;
  • you must have traded as self-employed in the tax year 2019/20;
  • you must have all intentions to trade as self-employed in the tax year 2020/21;
  • your average trading profits must be less than £50,0000;
  • your trade must have been adversely affected by coronavirus.

Like the first SEISS grant, the second SEISS grant is a taxable one. However, this time, it is based on 70% of your average monthly trading profits. It will be paid out in a single instalment, based on a 3-month period of average profits, and is capped at a maximum of £6,570.

Taxfile will be in touch with clients to remind them. Now that the 2nd grant is available, do feel free to call us if you’d like our assistance in helping you to make your claim.

Please remember the deadline for claiming the first SEISS grant was 13 July 2020. You can start claiming the second SEISS grant now, as it opened to applications on 17 August 2020.

Please call Taxfile on 020 8761 8000 if you need help to make a claim for either of these SEISS grants and we’ll be happy to help. Alternatively, fill in and submit the form below and we’ll be in touch to help you.

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[Article updated 17 August 2020].