9th April 2021
As chartered accountants and tax advisers, we focus on ways to help SMEs to be in a position to plan and grow. Accessing finance and being ‘tax savvy’ is crucial to that …
Although we’re still living with the pandemic, it’s great to feel we’re getting somewhere, with restrictions starting to relax and more businesses being able to re-open.
After such a challenging year, you may have a great SME business which has ‘ridden out the storm’ and you’re now ready to get back on track. You may be unsure about how to find new opportunities, how to fund ideas and projects – or the best way to maximise your tax allowances. With financial matters and business ventures you don’t have to tackle things alone – it helps to talk to experts like us.
In the meantime, for retail and outdoor hospitality re-opening In England this month, there are two actions you can be taking right now to aid recovery and planning as you go through 2021.
Specifically, have you taken advantage of the two latest grants for the non-essential Retail, Hospitality or Personal Care sectors?
Those businesses in the government’s ‘non-essential retail’ bracket, such as restaurants, coffee shops, hairdressers and gyms can now apply for these new grants – The Recovery Loan Scheme and The Restart Grant scheme.
These are in addition to the other existing coronavirus support such as the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme.
Here are the details …
This new government-backed loan scheme, which was announced in the Budget, launched on 6 April and runs until 31 December.
The scheme, which aims to provide additional finance to those businesses that need it throughout 2021, is being administered by the British Business Bank.
Eligible businesses can apply for the Recovery Loan Scheme from an accredited commercial lender. The loans will vary in size from £25,000, up to a maximum of £10 million. Invoice and asset finance is available from £1,000.
The government will provide an 80% guarantee for these loans and they have capped interest rates at 14.99%. It’s hoped that the interest rate will in fact be much lower than that in the majority of cases.
The British Business Bank has full details about eligibility and a list of lenders.
The Restart Grant scheme, open since 1 April 2021, offers a one-off cash payment.
Eligible businesses in the non-essential retail sector could get up to £6,000 from their local council. Those in the hospitality, accommodation, leisure, personal care and gym sectors may be entitled to up to £18,000.
Local councils will use their discretion to determine whether your business meets the eligibility criteria but you have to be:
• based in England,
• paying rates,
• trading on 1 April 2021.
This scheme is covered by three subsidy allowances:
Grants under these three allowances can be combined for a potential total allowance of up to £10,935,000 (subject to exchange rates).
Visit your local council’s website. You can find it via this link.
If you want to get your business back on track, we at Wise & Co chartered accountants and tax advisers can help on all sorts of matters. Why not contact us today?
Visits to our offices are now limited to the delivery and collection of records only.
Our switchboard is open but to safeguard our staff and to comply with Government COVID restrictions we are operating with minimal staff working in the office and the remainder working from home.
Thank you for your understanding. We wish everyone safe and well as we weather these difficult times together.