This email is part of a regular update I send out to businesses in Scunthorpe. If you have not received this email directly from me please click here to subscribe to my COVID-19 Business newsletter.
Good Afternoon,
Today's special Business Update mainly covers the Chancellor's budget announcements.
- Budget Overview
- Other updates including Closed Business Grants and Discretionary Grants
- Updates from HMRC - VAT deferral and Self-Assessment update
Budget Overview
This afternoon Chancellor revealed his plans for our businesses and economy. Having lobbied him on a long list of items I am pleased that, to a large extent, he has listened to feedback from MPs such as myself. Once again, a massive thank you to all local businesses who have taken the time to write to me and provide feedback.
Locally, this budget is a big win for our area.
We will be receiving £20.9 million of "new money" funding for our Towns Fund deal to boost our local area. This funding is in addition to the £10.6 million Future High Street Fund announced in December. Plus, our bid for a Humber Freeport has also been successful. This is a huge boost for our area and hopefully will create investments and jobs in the long run.
You can read the full budget document here.
Business Costs
- Business Rates holiday extended to the end of June. Subsequently, there will be a 2/3 discount for up 9 months.
- 5% lower VAT rate for hospitality, holiday accom. and attractions extended until the end of September, 12.5% for the next 6 months. 20% will resume next April. More info here.
- Alcohol duties frozen.
- Fuel duty rise cancelled
- The nil-rate stamp duty increase from £125,000 to £500,000 has been extended until the end of June, after which there will be a taper.
You can see the work that has been done to campaign for these issues here, here, and here.
Employment Support
Furlough has been extended until September. There will be a taper from July. Details here.
Self-Employed Income Support Scheme to be extended for another two periods. In addition, it has been extended for those who have registered a tax return in 2019-20. Having worked with residents to raise this issue throughout last year I know that this will be good news for many newly self-employed people in our area. Details here.
In addition, the £20 Universal Credit uplift has been extended for another 6 months.
Business Support Schemes
- Restart grants of up to £6,000 per premise for non-essential retail businesses and up to £18,000 per premise for hospitality and other sectors that are opening later. Details to follow.
- Recovery Loan Scheme
- 130% Super Deduction on capital investment for companies(more details to follow)
- Increase of incentive payment to £3000 for every new Kickstart Scheme apprentice hired
- Help to Grow Scheme to help small and medium-sized businesses across the UK learn new skills, reach new customers and boost profits
Other Updates
North Lincs Closed Business Grant
Those in receipt of the January grant do not need to re-apply. Payments confirmed for the 44-day period between 16 Feb - 31 March
- £2,096 for businesses with a rateable value under £15,000
- £3,143 for businesses with a rateable value between £15,000 and £51,000
- £4,714 for properties with a rateable value over £51,000
More info including deadlines here. NLC will need some time to process these payments so please only get in touch if you haven't heard anything from next week.
Discretionary Grants
The Discretionary Grant will be rolled-over to previous successful applicants. North Lincs Council is currently working out the figures on discretionary grants and will provide an update on that.
Wedding Rehearsals
In addition to raising the points made by the Weddings Taskforce, I have contacted Ministers asking for guidance if venues can hold covid-secure viewings and rehearsals ahead of reopenings.
Hospitality meeting in Parliament
I will be attending a meeting with colleagues and the Hospitality APPG to discuss the impact has COVID-19 had on the offer of hospitality and tourism businesses in City and Town centres next Monday. As ever I will try to raise local concerns and any points that have been made to me.
Updates from HMRC
VAT deferral new payment scheme – now open
Businesses that deferred VAT payments due between 20 March and 30 June 2020 and still have payments to make can now join the online VAT deferral new payment scheme to pay deferred VAT in equal instalments, interest-free.
Before joining, businesses need to:
- create their own Government Gateway account (if they don’t already have one)
- submit any outstanding VAT returns from the last 4 years – otherwise, they’ll not be able to join the scheme
- correct errors on their VAT returns as soon as possible
- make sure they know how much they owe, including the amount they originally deferred and how much they may have already paid.
The online service will close on 21 June 2021 and if businesses want to join the scheme online, they must do so before 21 June.
Businesses can join the scheme online quickly and simply without the need to call. More information is available on GOV.UK.
If your business is unable to pay deferred VAT and need more time please get in touch with HMRC.
More help for Self Assessment taxpayers
Self Assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1 April 2021.
The payment deadline for Self Assessment is 31 January and interest is charged from 1 February on any amounts outstanding. Normally, a 5% late payment penalty is also charged on any unpaid tax that is still outstanding on 3 March. But this year, because of the impact of the COVID-19 pandemic, HMRC is giving taxpayers more time to pay or set up a payment plan.
Taxpayers can pay their tax bill or set up a monthly payment plan online at GOV.UK. They need to do this by midnight on 1 April to prevent being charged a late payment penalty. The online Time to Pay facility allows taxpayers to spread the cost of their Self Assessment tax bill into monthly instalments until January 2022.
We are also reminding Self Assessment taxpayers that they have until the 28 February to submit their late tax returns to prevent a late filing £100 penalty. More than 1.5 million taxpayers missed this deadline and are still to file their tax return. They are accruing interest on any unpaid tax liabilities but still have time to file and pay without incurring penalty charges.
HMRC recognises the pressure affecting taxpayers due to the pandemic, and encourages anyone worried about paying their tax and unable to set up a payment plan online to contact HMRC for help and support on 0300 200 3822.
As with most budget updates, I will provide a further update with details once I receive more information. This is, to my mind, the right budget at the right time.
I am genuinely excited by all the government focus and investment in our area, and I hope that local residents can see and feel the difference in the coming months and years.
Take care,
Holly
Click here to provide your feedback on my business survey
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