With the first anniversary of the first lockdown coming next month and the Spring Budget on March 3 - the deadlines for measures put in place to help business get through repeated lockdowns and Covid-19 trading restrictions are nearing fast.
Business leaders are raising concern about a 'cliff edge' for business when support scheme come to an end.
We don't know yet about whether there will be any announcements or extensions to these measures.
Chancellor Rishi Sunak's Spring Budget will be on March 3 when he will set out the next phase of the plan to tackle the virus and protect jobs.
Here is the full rundown of what we know so far about the end date for schemes that are currently in place.
Furlough (Coronavirus Job Retention Scheme)
The scheme is due to come to an end on April 30, 2021 after Chancellor Rishi Sunak announced an extension to the scheme to give employees certainty during the winter months.
The government is paying 80% of the salary of employees for hours not worked until the end of April. Employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked.
The eligibility criteria for the UK-wide scheme has remained unchanged and also apply to all Devolved Administrations.
Government backed loans
These include the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme.
The end date for these loan schemes had been due to close at the end of January 2021 but have been extended until March 31.
The loan schemes have a 12-month interest-free payment holiday, which means that those who took up loans early will have to start paying it back in the coming months.
It was announced in February that borrowers under the Bounce Back Loan Scheme can delay all repayments for a further six months, meaning businesses can choose to make no payments on their loans until 18 months after they originally took them out. The option to pause repayments will now be available to all from their first repayment, rather than after six repayments have been made.
The Pay as You Grow plan will also enable borrowers to extend the length of their loans from six to ten years (reducing monthly repayments by almost half) and make interest-only payments for six months, in order to tailor their repayment schedule to suit their individual circumstances.
The government has said there will be more support available beyond March, through a successor loan scheme with a further update on wider Covid-19 economic support expected in the Budget on 3 March.
The Self Employment Income Support Scheme grant
Claims for the third SEISS grant (covering 1 November 2020 and 29 January 2021) have now closed.
The last date for making a claim for the third grant was 29 January 2021.
Details about the fourth grant will be announced on 3 March 2021.
VAT
The government made an announcement on 8 July 2020 allowing VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies relating to:
- hospitality
- hotel and holiday accommodation
- admissions to certain attractions
The temporary reduced rate will apply to supplies that are made between 15 July 2020 and 31 March 2021.
Payment on VAT due between between 20 March and 30 June 2020 had been deferred to help businesses manage cashflow.
But the amount is now due in full on or before 31 March 2021.
There are options available beyond March with the new VAT deferral new payment scheme.
The online opt in process will be open from 23 February up to and including 21 June 2021.
Instead of paying the full amount by the end of March 2021, businesses can make up to 11 smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022.
BUSINESS RATES
Businesses in the retail, hospitality and leisure sectors and early years nurseries in England have not had to pay business rates for the 2020 to 2021 tax year, which ends on April 5, 2021.
These include:
- shop
- restaurant, café, bar or pub
- cinema or live music venue
- assembly or leisure property - for example, a sports club, a gym or a spa
- hospitality property - for example, a hotel, a guest house or self-catering accommodation
- Nursery on Ofsted’s Early Years Register
- Nursery providing care and education for children up to 5 years old ( early years foundation stage )
STAMP DUTY
Reduced rates of Stamp Duty Land Tax (SDLT) were introduced last year for residential properties purchased from 8 July 2020 until 31 March 2021 inclusive.
It means that SDLT only applies on the amount paid for the property above £500,000.
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