Safe to say the UK government has been busy! As I am sure you have noticed, there is currently an awful lot of support available for businesses to help them and their staff through the pandemic. However, with so many options it can be difficult to get your head around them all.

Below is a quick summary of the key support available:

Bounce Back Loans – Pay As You Grow

A new flexible repayment system that provides flexibility for firms repaying a Bounce Back Loan. This includes extending the length of the loan from six to ten years, which will cut monthly repayments by nearly half, and introduces payment holidays and interest only periods of up to six months.

For more information check out our other article here.

Coronavirus Business Interruption Loan Scheme (CBILS)

This has now been extended to the end of November. And lenders have been given the option to extend current loan deals from 6 years to 10 years. With the CBILS application, it is still best to go for a multi-tracked application via an intermediary who has in-depth experience of the lending market and can push your application through successfully.

Coronavirus Job Retention Scheme (CJRS)

The current furlough scheme which will end in October as planned.

Job Support Scheme (JSS)

Introduced from 1st November this new scheme will run for six months. Under this scheme, the government will contribute towards wages of employees who are working fewer hours than normal.

For more information check out our other article here.

Self-Employment Income Support Scheme (SEISS)

An initial taxable grant that will be provided to those who are currently eligible for the sole trader support. This will cover three months’ worth of profits and is worth 20% of your average monthly profits up to a total of £1,875.

VAT and Income tax deferrals

If you deferred your VAT bill earlier this year, you will be able to pay this back in instalments now rather than a lump sum. You can arrange 11 smaller interest-free payments during the 21-22 financial year.

For more information check out our other article here.

VAT rates for Tourism and Hospitality sectors

Tourism and hospitality sectors will continue with 5% VAT rate.

Hopefully, this has been useful, but if you feel like you need a little extra support or guidance please do pick up the phone and have a chat with our team. Call us on 01993 225030 or email hello@modus-accountants.co.uk.