I’m sure you’ll all join me in breathing a sigh of relief that this year is finally coming to an end.
But before we sign off completely from 2020, I just wanted to make sure everyone was geared up for 2021.
There are still a number of schemes that you and your business can benefit from which could help manage the continued effects of the ongoing pandemic.
It’s vital that you take advantage of all the help you can – especially because none of us are 100% sure what lies ahead.
Here we have provided an overview of every financial boost that can be accessed by struggling businesses. If you need advice on which to adopt and which to avoid, we are here to help.
The tier restrictions
You need to keep an eye on these after the Christmas break because there are likely to be some shifts and your area may face tighter restrictions.
In a bid to protect jobs and businesses, the government has put in place a raft of support measures which cover businesses forced to close as a result of the tier restrictions and for those that have seen custom fall away because of the pandemic.
There are also a number of grants and loans available depending on each local authority.
Find out which tier you are in here
The furlough scheme
The Coronavirus Job Retention Scheme - or Furlough Scheme - has been extended to March 2021.
This allows you to furlough employees who will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.
Employers have flexibility to use the scheme for employees for any amount of time and shift pattern, including furloughing them full-time.
Find out how to claim furlough support for staff here
Help for the self-employed
The Self-Employment Income Support Scheme (SEISS) has been increased to meet 80% of trading profits covering November to January for all parts of the UK.
This is calculated based on 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500.
The Government has announced a further grant is expected to follow covering February to April so watch this space.
How to claim the Self Employed Income Support Scheme
Grants for businesses forced to close
This will be an important one for areas falling under tier 3 post-Christmas. Businesses which are forced to close due will receive up to £3,000 per month, depending on their rateable value, under the Local Restrictions Support Grant (LRSG Closed).
They can apply for up to £1,500 for every 14 day period of closure.
Grants for businesses that have stayed open
On top of that, there is help for businesses severely impacted by temporary local restrictions under the Local Restrictions Support Grant (LRSG Open).
Eligible businesses can apply for a cash grant of up to £2,100 for each 28-day period.
For nightclubs, live music venues and adult entertainment businesses
The Local Restrictions Support Grant (LSRG Sector) supports businesses that have been closed since March.
Eligible businesses including nightclubs, dance halls, discos, adult entertainment venues and hostess bars are entitled to a cash grant of up to £1,500 for each 14-period of closure. It is available from local authorities.
Grants for other businesses
The Additional Restrictions Grant (ARG) supports businesses that are not covered by other grant schemes or where additional funding is needed.
It is down to individual local authorities to determine eligibility but is designed to support:
· businesses which supply the retail, hospitality, and leisure sectors
· businesses in the events sector
· business required to close but which do not pay business rates
Applicants can visit their own local authority website for more information. Please note that it’s likely that the first phase of this funding has closed. However local authorities are now in the stages of determining the second phase of this grant so it’s worth keeping an eye on.
Business loans
Loan schemes continue to be available to struggling businesses. The application deadline for loan schemes has been extended to the end of January 2021.
These are:
· Bounce Back Loan – which helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
· The Coronavirus Business Interruption Loan Scheme (CBILS) – which also helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million. The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.
· The Coronavirus Large Business Interruption Loan Scheme (CLBILS) – which helps medium and large sized businesses to access loans and other kinds of finance up to £200 million. The government guarantees 80% of the finance to the lender.
· The Future Fund – which provides government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors. These convertible loans may be an option for businesses that rely on equity investment and are unable to access other government business support programmes because they are either pre-revenue or pre-profit.
Those businesses that have already accessed the Bounce Back Loan Scheme but have not borrowed their maximum amount can now apply to top-up their existing loan.
Other help
Don’t forget that there is reduced VAT for hospitality, accommodation and attractions until the end of March 2021.
There is also business rates relief for hospitality, retail, leisure and nurseries until the end of March 2021 in England.
And finally…
We know it has been a shocking year and that you have all struggled in one way or another to manage the fallout. We continue to be here for you in 2021 to guide you through any further upheavals and help you keep your finances on track.