Well 2021 hasn’t started quite the way we hoped!
And it might feel like you’re frozen in time, yet there are small shoots of hope pushing through the frosty ground.
The Oxford Vaccine brings real hope of conquering Covid more quickly and we can look to a safer future for our families.
A Brexit deal was agreed – Obviously, not perfect (as everyone wanted something different). At least, we can move forward. Yes – Brexit will certainly offer challenges, but will also different opportunities in time.
And best of all 2020 is gone and we got through it.
So for now stay safe and look forward to those better times that we can just about see ahead.
PS – For safety we’re working remotely so please don’t call to the office unannounced or post urgent paper-work!! Please ring us and we’ll agree a solution.
New Lockdown Funding
In response to the new lockdown restrictions the Chancellor announced:
- One-off top up grants for retail, hospitality and leisure businesses worth up to £9,000 per property to help businesses through to the Spring
- £594 million discretionary fund also made available to support other impacted businesses
- comes in addition to £1.1 billion further discretionary grant funding for Local Authorities, Local Restriction Support Grants worth up to £3,000 a month and extension of furlough scheme.
How this funding will filter through to Welsh Businesses is yet to be seen, in the meantime some of the current funding in Wales is below
More details are on your local authority website or click Business Wales
Not sure if you are eligible?
Check Here Eligibility Checker
Got a question Frequently Asked Questions
Restrictions Business Fund Non Domestic Rate Grant
A £3,000 cash grant payment for hospitality businesses or hospitality not-for-profit organisations and non-essential retail businesses with Small Business Rate Relief (SBRR) qualifying hereditaments with rateable value £12,000 or less.
A £5,000 cash grant payment for hospitality businesses or hospitality not-for-profit organisations and non-essential retail businesses occupying hereditaments with a rateable value between £12,001 and £51,000.
A £5,000 cash grant payment for hospitality businesses or hospitality not-for-profit organisations and non-essential retail businesses occupying hereditaments with a rateable value between £51,001 and £150,000.
These grants will be available to hospitality, tourism and leisure businesses and their supply chain and retail businesses with qualifying SBRR properties that can evidence (on a self-declared basis) greater than 40% reduction in turnover as a result of the new restrictions.
NDR Apply RCT
Restrictions Business Fund Discretionary Grant
A discretionary grant of £2,000 is available to assist businesses that have either:
- been forced or required to close as a result of the national restrictions put in place for hospitality businesses
- estimate that the latest restrictions put in place will result in at least a 40% reduction in their turnover for December 2020 as compared to December 2019 (or September 2020 turnover if not trading in December 2019)
Or For further information please read the Restrictions Business Fund Discretionary Grant Guidance Document
Forms should be available on your local authority website, here are a few links for you
In relation to self-catering accommodation, properties will not be eligible for the grant unless the following criteria are met:
- Not registered for Non Domestic Rates
- The self-catering accommodation can produce two years of trading accounts directly preceding the current financial year of the business
- The self-catering accommodation must actually have been let for a period of 140 days or more in the financial year 2019-20
- The self-catering accommodation business must be the primary source of income for the owner (minimum threshold is 50%).
- For self-catering properties, local authorities have full discretion to request and examine trading business accounts, booking lists and self-assessment tax returns submitted to HMRC for the financial year ending 31 March 2019 if additional evidence is required to demonstrate that this criteria is met.
ERF Sector Specific Support
If you are not eligible for the above grants you may be eligible for the ERF Sector Specific Fund, more details are available on the ERF Sector Specific Support page.
How to access the ERF Sector Specific Fund:
Tax Returns in Lockdown
Despite the chaos HMRC won’t extend the 31st January Self-Assessment deadline.
With increasing rates of infection and staff sickness we may not have enough staff at the end of January if you leave things to the last minute
So please sign off your return on our secure portal as soon as you receive it, so we can get it in.
As we are again in lockdown, everything has to now be done remotely.
If you still haven’t provided your information and don’t know how to send your records digitally, please ring us urgently and we’ll talk you through. If you did your Christmas shopping online it’ll be a doddle.
But Please, what ever else you do don’t leave this any longer!!
URGENT Brexit VAT Changes
1st January 2021
With Brexit finally here the new VAT rules applied from 1st January 2021. Here are some key areas we covered in December in case you missed it:
If you transport goods across the border from GB into the EU or Northern Ireland, then you’ll need an EORI number. You can apply at https://www.gov.uk/eori.NB if you currently have an EORI number, check it starts with ‘GB’, otherwise you’ll need a new one.Exports to Northern Ireland are affected by these changes. If you supply goods to NI when you have the ‘GB’ EORI number. you can apply for a second EORI Number that starts with ‘XI’ It’s a two step application process.Importing Goods
Imported Goods may be liable to Import VAT, normally payable at the UK port before goods are released.
However to ease cashflow, and avoid port delays, HMRC have introduced ‘Postponed VAT Accounting’ which allows you to include the Import VAT on your VAT Return. This will mean that you will pay the Import VAT, and if allowed under normal VAT Rules, reclaim the Import VAT at the same time.
For services, the rules stay largely the same with the ‘Place of Supply’ still the important factor in determining if VAT is charged. You also need to determine if services are to a business customer or non-business customer (i.e. the general public).
Supply of Digital Services
The place of supply for digital services will always be where the customer belongs. The VAT MOSS System will end on 31st December 2020 and to continue to use this system, you must register in an EU member state as a ‘non-Union’ member. Alternatively, you’ll need to register in each member state you supply the services to.
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