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Coronavirus Advice Update (April 2021)

Tax Cuts and Deferrals

15% VAT cut for hospitality and tourism sector extended to end September 2021.

This has been extended from March 2021 and there will be a new rate of 12.5% from 1st October 2021 to 31 March 2022.

The pandemic has crushed businesses across the country from having to deal with social distancing measures and forced closures. These changes are being brought in as an urgent response to the COVID-19 pandemic.


HMRC “Time to Pay” self-service facility – 12 month extension can now be deferred further under a formal Time to Pay arrangement. This includes any deferred payments on accounts that were due in July 2020. The tax due must be paid by 12 monthly instalments. If the tax deferred is £30,000 or less, there will be an online facility to request the Time To Pay arrangements. Where tax deferred is > £30,000 a phone call will need to be made to HMRC to agree the arrangement.

Investment in Public services

£68.7 billion of additional funding has been approved by the Treasury, including £24.3 billion since the Summer Economic Update in July. HS2 going ahead.

Capital Allowances & the Super Deduction

This is only available to companies for expenditure incurred on NEW qualifying assets from 1 April 2021 until the end of March 2023. It gives a 130% first-year deduction on qualifying main rate plant and machinery investments.

There is also a 50% first-year allowance (FYA) for special rate (including long life) assets.

Quick Guide: https://www.ouryclark.com/resource-library/quick-guides/tax/capital-allowances-and-the-super-deduction.html

Job Support Scheme & Returning to Work

Job support Scheme

  • It is a Government grant for businesses – running 1 November 2020 – 30 September 2021.
  • Designed to protect “viable ”jobs and keep employees “attached” to the workforce.
  • Employer pays for time worked and cost of hours not worked will be split between the government and the employer.

Details can be found on our downloadable presentation here.

The Map for Easing Restrictions

From 8 March, people in England have seen restrictions start to lift and the government’s four-step roadmap offer a route back to a more normal life. The remaining three phases will all start (according to the government) NO EARLIER than the dates below.

Phase one – 12 April

The government is planning on the reopening non-essential retail; personal care premises such as hairdressers and nail salons; and public buildings, including libraries and community centres. Most outdoor attractions (e.g zoos, theme parks and drive in cinemas) will reopen, hospitality venues will be allowed to serve people outdoors and indoor leisure will reopen.

Phase two – 17 May

Most businesses in all but the highest risk sectors will be able to reopen. However, businesses must follow COVID-Secure and will not be able to cater for groups bigger than the legal limits.
Hospitality will reopen indoors. Businesses will not have to serve a substantial meal with alcoholic drinks; nor will there be a curfew and seating is compulsory.
Other indoor locations to open-up include indoor entertainment venues such as cinemas and children’s play areas; the rest of the accommodation sector, including hotels, hostels and B&Bs; and indoor adult group sports and exercise classes. 

Phase three – 21 June

The government will open this phase subject to the results of a scientific Events Research Programme. This aims to test the outcome of certain pilot events which are being carried out through the spring and summer.
The hope is to reopen remaining premises, including nightclubs, and ease the restrictions on large events.

Nine Government Schemes to Help Your Business Through COVID-19

The world is full of uncertainty and over information in these testing times. We have prepared a list of the best UK government schemes to consider:

  1. Innovate UK Smart Grants January 2021 - a share of up to £25 million from Innovate UK to deliver game-changing and commercially viable R&D innovation that can significantly impact the UK economy.
  2. Restart Grants - a one off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England.
  3. Recovery Loan Scheme - Loans between £25,001 and £10 million, and asset and invoice finance between £1,000 and £10 million.
  4. Culture Recovery Fund - £25,000 - £1m to support theatres, museums, and other cultural organisations in England through the Funds for cultural organisation (both profit and not for profit)
  5. £150 million Community Ownership Fund – Offered to communities across the UK to invest to protect the assets that matter most to them such as pubs, theatres, shops, or local sports clubs.
  1. Innovate UK Smart Grants January 2021 - the government are offering a share of up to £25 million from Innovate UK to deliver game-changing and commercially viable R&D innovation that can significantly impact the UK economy.
  2. ATI Programme strategic batch: expression of interest March 2021 – The government have allocated up to £150 million a year to fund innovation projects in the ATI Programme.
  3. ISCF Smart Sustainable Plastic Packaging Demonstrators – The government is looking to fund large-scale commercial demonstration projects. You must request a grant of no less than £1 million and no more than £12 million for your project, subject to subsidy control.
  4. Seed Enterprise Investment Scheme (SEIS) - Must carry out a new qualifying trade. Most trades will qualify, including any research and development which will lead to a qualifying trade. Maximum of £150,000 available.

Latest News

Coronavirus Support Finder

The Government has developed Coronavirus related support packages tool that helps businesses try to determine what support they might be eligible for.

View here

Raising Money for Startups and Everyone Else

If you are seeking to raise money for your business, through private or venture investment - a practical solution is to use an ASA – an Advanced Subscription Agreement.

It allows you to raise money now, for a future promise at equity – at a pre agreed, and often discounted price. You do not have to set a valuation (crucial in the current crisis), and crucially it is compatible with EIS/SEIS relief – almost essential if you want to raise private finance in the UK.

We have enclosed here a template guide to assist you in that manner. With all the obvious caveats. Please feel free to use it, please get advice. And obviously we cannot be held responsible for anything that might happen with this template – unless you get advice from us. We just provide this to help as best we can.

Download ASA template
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