COVID UPDATE - 22 March 2021
A number of COVID support announcements were made in the budget, in summary:
- There will be a 4th and 5th self-employed grant and being based now on 19/20 tax returns as well, self-employed people (not directors) who were not eligible before may be eligible and there are stricter criteria. Grants will be taxed in the tax year of receipt (regardless of trading accounts year-end).
- Furlough scheme is extended until 30th September 2021 and newer employees may be eligible. There are increasing employer contributions later in year.
- Changes to shielding advice for vulnerable employees.
- The bounce back loan scheme will be followed by a new loan/overdraft scheme in April.
- The reduced VAT rate for hospitality, holiday accommodation and attractions is extended with a tapering rate.
- New restart grants for those sectors that were forced to shut.
Further information on the points above can be found on our COVID-19 webpages.
Your action plan
What your business can do -
- Make a plan to follow the latest government guidance and consider the long term impact on sales and operations. Consider possible home working and staff flexibility
- Consider the likely impact of staff absences due to sickness, isolation, childcare issues (schools may be forced to shut or relatives no longer able to give care)
- Plan cash flow with regard to the above points, consider if tax can be deferred, if finance will be required
- Consider your personal situation and outgoings and what you need to draw from the business
- Check insurance policies or speak with your insurer
- If staff hours must be cut consider contracts and legal obligations, get advice if necessary.
- Track COVID-19 related absence and sickness