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Writer's pictureLinda Young

The Chancellor's Winter Economic Plan

We are still in the midst of the coronavirus pandemic (nothing like stating the obvious) and many businesses have benefitted from help from the Government, others not so lucky, it is however, forever changing and hard to keep up with. We thought we would summarise what’s currently available, especially now we are back in lockdown: -


1. Coronavirus Job Retention Scheme (CJRS)

This has been extended to 30th April 2021, with grants on employees wages up to 80% of normal pay (capped at £2,500) with employers paying employers NI and Pension contributions. Eligible employees had to be on payroll by 30th October 2020 and can be fully furloughed or flexible furloughed.


a) Job Support Scheme (JSS)

This is now not needed, although there maybe another Job Support Scheme introduced once CJRS has finished.

b) Job Retention Bonus

This was due to have been paid out in February 2021 and has now been scrapped due to the extension of the CJRS.



2. Self Employed Income Support Scheme (SEISS)

The third grant will be calculated at 80% of your average monthly profits, capped at £2,500, based on same profit figures as the first two grants. Applications opened 30th November 2020 and will close on 29th January 2021.


A fourth grant will be payable for 3 months to help you during Feb-Apr 2021. At this time it’s not clear what the grant or cap will be. Eligibility will likely be the same as the previous three grants.



3. Tax Deferrals

Some elements of Self Assessment tax and VAT were allowed to be deferred in 2020. Further deferrals are to be made available in 2021.


a) Self Assessment Tax

Deferred tax from 2020 is due to be paid by 31st January 2021 along with tax due on 19/20 tax return. If you are having difficulties paying this, you can contact HMRC to arrange to pay under 12 monthly instalments instead, under the time to pay arrangements, as long as your liability is under £30,000. If the total tax due exceeds £30,000, or you need longer to pay, you will be able to call HMRC to agree a bespoke payment plan.


b) VAT

Deferred VAT from the period 20th March to 30th June 2020 is due to be paid by 31st March 2021, however, you may be able to opt into a scheme before 31 March to spread the VAT over 2 to 11 equal monthly instalments, interest free. You must be up to date with your VAT returns to use this scheme and pay all the deferred VAT by direct debit. This deferred VAT will not be subject to penalties if the payments are made on the dates as agreed.



4. Business Support Loans

The Bounce Back Loan Scheme (BBLS) is extended until 31st March 2021. The criteria remains the same, your business has to have been trading by 1st March 2020. However, the banks have made this really hard to receive, due to the high level of fraud that has occurred. If you have an account with one of the mainstream banks and were trading by 1st March 2020, you are entitled to this, there are financial experts that can help if your bank isn’t being co-operative.


5. Local Authority Grants

From 1 January 2021 businesses can access grants from their Scottish local authority in the following situations:


Strategic Framework Business Fund


a) Business must close

Grants are payable every four weeks according to the rateable value of the business premises:


Rateable value of Premises Grant payable every four weeks

Up to £51,000 £2,000

£51,000 or more £3,000


The grants will be paid every four weeks in arrears.


b) Business must modify operations but remains open

If the business is required to modify its operations according to the Health Protection (coronavirus restrictions and requirements) (local levels) Regulations, or is on a specified list of restricted businesses, it can access grants according to the rateable value of the premises:


Rateable value of Premises Grant payable every four weeks

Up to £51,000 £1,400

£51,000 or more £2,100


From 1 January 2021 there is no upper limit for any eligible business operating multiple business premises. This grant isn’t available if you don’t have business premises with a rateable value attached to your business.


c) Extending support for hospitality, retail and leisure

In addition to the grants businesses receive through the Strategic Business Framework Fund, eligible businesses will also get a one off grant of:

  • £25,000 for larger hospitality businesses on top of the 4-weekly £3,000

  • £6,000 for smaller hospitality businesses on top of the 4-weekly £2,000

  • £9,000 for larger retail and leisure businesses on top of the 4-weekly £3,000

  • £6,000 for smaller retail and leisure businesses on top of the 4-weekly £2,000


6. Self Isolation Grants

Individuals who have been told to self-isolate by the Test and Protect Service in Scotland on or after 28 September 2020 may be eligible to claim a £500 grant from their local authority, if they are unable to work from home and as a result will lose income.

This self-isolation payment can be claimed by individuals who are employed or self-employed and who also receive one of these benefits:


• Universal Credit • Working Tax Credit • Income Support

• Income-based Jobseeker’s Allowance • Pension Credit

• Income-based Employment and Support Allowance • Housing Benefit

Applications can be made at any point during the period when you have been told to self-isolate. The system will, though, allow claims to be backdated to 28 September, as applications only opened on 12 October 2020.


This self-isolation payment does not cover people who are self-isolating after returning to the UK from abroad, unless they have tested positive for coronavirus or have been told to stay at home and self-isolate by the Test and Protect Service.


The self-isolation payment is taxable, but it is not subject to National Insurance.


If you need assistance with any of the above, please give us a call.


This information is also available as a download.


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