Coronavirus (COVID-19)

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.

Self-Employed

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.