Lockdown 3.0 has felt like an eternity. However, there is a light at the end of the tunnel with the vaccinations being rolled out. Hopefully everyone will have some more clarity when the Prime Minister announces his road map to normality on Monday the 22nd of Feb.
Many businesses have taken on the Government support schemes throughout the pandemic and some of these are scheduled to end soon. However, there is support to help your business get back to normal and avoid getting into debt.
Did you defer your VAT between 20th March and 30th June 2020?
If you deferred your VAT payment for any returns between the 20th of March 2020 to 30th of June 2020 the payment deadline is the 31st of March 2021.This additional outgoing can be scary for businesses. However, HMRC will allow you to pay it back interest free over 12 months. To do this you MUST:
- Register with HMRC between the 23rd of Feb and 21st of June 2021
- Have access to your own Government gateway.
Unfortunately this is not something we can do for our client, however we can certainly help anyone through the process.
For more information please follow this link – https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
Bounce Back Loans (BBL)
If your business needs cash, and you haven’t yet taken a bounce back loan, this is is your opportunity. The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year. This scheme is open until the 31st of March.
If you have already taken a bounce back loan the government is now offering a new ‘pay as you grow’ scheme. They are offering flexible terms for up to 10 years to help you repay the bounce back loan.
Take a look at the details by following this link – https://www.gov.uk/government/news/chancellor-eases-burden-on-more-than-a-million-businesses-through-pay-as-you-grow-flexible-repayment-options
There is also an option to pay back your bounce back loan by taking on a Coronavirus Business Interruption loan. This would then give you another 12 months before having to make a payment. However this should only be an option if your business can afford it!
Job Retention Scheme (JRS)
The job retention scheme is scheduled to cease in April. Have you considered the effect this might have on your business?
Many businesses have been using the furlough scheme to stabilise their businesses, however with it coming to an end, some big decisions might need to be made.
A cash flow forecast will help your business gain clarity to see where you are at and where you are going.