Originally written by Anna Jordan on Small Business
The Government is making an extra £1.5bn in business rates relief available to firms that weren’t eligible before – including offices and wholesalers.
Existing business rates relief is available to those in retail, leisure and hospitality.
The Federation of Small Businesses (FSB) welcomed the move. “Many of those businesses such as wholesalers, suppliers and brewers have been hit hard by the pandemic but haven’t been able to access the same levels of support,” said its national chair, Mike Cherry.
However, business rates relief appeals made due to Covid-19 are now banned as well. These appeals were expected to cost up to £5bn, so the Government has saved itself £3.5bn, according to figures from the Rating Surveyors’ Association.
>See also: Business rates appeal talks halted as thousands of firms wait for outcome
The Government said that allowing rates appeals on material change of circumstances could have led to ‘significant amounts of taxpayer support going to businesses who have been able to operate normally throughout the pandemic’. It added this could disproportionately benefit firms in London.
‘It is the wrong thing to do on every level’
Experts describe the move as ‘outrageous’, writing off the hundreds of thousands of business owners who
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Hot Business News Today
Government extends business rates relief by £1.5bn to help more Covid-hit firms
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The Government is making an extra £1.5bn in business rates relief available to firms that weren’t eligible before – including offices and wholesalers.
Existing business rates relief is available to those in retail, leisure and hospitality.
The Federation of Small Businesses (FSB) welcomed the move. “Many of those businesses such as wholesalers, suppliers and brewers have been hit hard by the pandemic but haven’t been able to access the same levels of support,” said its national chair, Mike Cherry.
However, business rates relief appeals made due to Covid-19 are now banned as well. These appeals were expected to cost up to £5bn, so the Government has saved itself £3.5bn, according to figures from the Rating Surveyors’ Association.
>See also: Business rates appeal talks halted as thousands of firms wait for outcome
The Government said that allowing rates appeals on material change of circumstances could have led to ‘significant amounts of taxpayer support going to businesses who have been able to operate normally throughout the pandemic’. It added this could disproportionately benefit firms in London.
‘It is the wrong thing to do on every level’
Experts describe the move as ‘outrageous’, writing off the hundreds of thousands of business owners who
Hot Business News Today
Insurers pay out nearly 40% of expected £1.2bn SME Covid bill
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Insurers have paid out on less than half of estimated business interruption loan claims since the Supreme Court tipped in favour of SMEs.
The test case weighed up whether SMES that claimed on business interruption insurance for pandemic-related losses should be entitled to it.
>See also: Small firms win pay-outs in Covid business interruption insurance ruling
More than 10,000 UK policyholders have received some money since the Supreme Court ruling in January, with the total topping £470m. However, thousands are still waiting for an answer, even though the court ruled that decisions should be made quickly.
The Financial Conduct Authority (FCA) released the first batch of claims data this week, based on admissions from insurers. It set out how many claims relating to the case had been accepted and repaid.
The regulator’s preliminary assessment last June showed that the total claims from this test case could be £1.2bn. It made clear that this was not a firm estimate and was set out before the Supreme Court’s ruling.
For 8,177 of the claims, where final settlements have been agreed and paid, a total of £280m had been paid out, according to the FCA. For the 2,030 claims that hadn’t been
Hot Business News Today
Insurers pay out nearly 40% of expected £1.2bn SME Covid bill
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Insurers have paid out on less than half of estimated business interruption loan claims since the Supreme Court tipped in favour of SMEs.
The test case weighed up whether SMES that claimed on business interruption insurance for pandemic-related losses should be entitled to it.
>See also: Small firms win pay-outs in Covid business interruption insurance ruling
More than 10,000 UK policyholders have received some money since the Supreme Court ruling in January, with the total topping £470m. However, thousands are still waiting for an answer, even though the court ruled that decisions should be made quickly.
The Financial Conduct Authority (FCA) released the first batch of claims data this week, based on admissions from insurers. It set out how many claims relating to the case had been accepted and repaid.
The regulator’s preliminary assessment last June showed that the total claims from this test case could be £1.2bn. It made clear that this was not a firm estimate and was set out before the Supreme Court’s ruling.
For 8,177 of the claims, where final settlements have been agreed and paid, a total of £280m had been paid out, according to the FCA. For the 2,030 claims that hadn’t been
Hot Business News Today
You should file your tax return by January 31, despite HMRC extension
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Self-employed people have an extra month to file their tax return without penalty, but experts warn that you should stick to the original deadline.
Now you have until February 28 to file you return, as HMRC has decided to give businesses ‘breathing space’ amid COVID-19.
HMRC chief executive Jim Harra said: “We can reasonably assume most of these people will have a valid reason for filing late, caused by the pandemic.”
Why you should file your tax return by January 31 anyway
Warning about the potential outcomes of this news, Nimesh Shah, CEO at Blick Rothenberg, said: “There may be certain claims and elections that need to be submitted by January 31 (usually done via the tax return), and taxpayers need to be clear on the wider implications of filing after January 31 – they may not receive a £100 late filing penalty but there could be other consequences in relation to their tax affairs.”
He added: “I would still urge self-employed individuals to file their return by January 31, as they risk being excluded from future government support. The government has not yet announced the eligibility criteria for the fourth SEISS grant, but I expect that HMRC
Hot Business News Today
Small firms win pay-outs in COVID business interruption insurance ruling
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Tens of thousands of small businesses who faced COVID-19 earning losses during the first lockdown are set to receive insurance pay-outs.
The Supreme Court has ruled in favour of small businesses to get pay-outs from their business interruption policies.
Many businesses claimed on their policies in spring 2020 to recover lost earnings. However, insurers refused to pay because they say that only their most specialist policies had cover in such unprecedented circumstances.
The judgement says that ‘it substantially allows’ the appeal from the Financial Conduct Authority (FCA) and campaign groups Hiscox Action Group and Hospitality Insurance Group Action. Insurers including Arch, Argenta, MS Amlin, RSA and QBE had their appeals rejected.
It was agreed that a number of policy wordings should be contested in court to set the parameters of what would be a valid claim. This ruling gives guidance for 700 different insurance policies, potentially covering 370,000 small businesses.
High Court and Appeal Court judges had appealed largely in favour of policyholders earlier in the pandemic. In September, the High Court ruled that most claims should be paid where the policy has pandemic or disease clauses.
However, that ruling said that losses arising from general fall in customer
Hot Business News Today
Small firms win pay-outs in COVID business interruption insurance ruling
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Tens of thousands of small businesses who faced COVID-19 earning losses during the first lockdown are set to receive insurance pay-outs.
The Supreme Court has ruled in favour of small businesses to get pay-outs from their business interruption policies.
Many businesses claimed on their policies in spring 2020 to recover lost earnings. However, insurers refused to pay because they say that only their most specialist policies had cover in such unprecedented circumstances.
The judgement says that ‘it substantially allows’ the appeal from the Financial Conduct Authority (FCA) and campaign groups Hiscox Action Group and Hospitality Insurance Group Action. Insurers including Arch, Argenta, MS Amlin, RSA and QBE had their appeals rejected.
It was agreed that a number of policy wordings should be contested in court to set the parameters of what would be a valid claim. This ruling gives guidance for 700 different insurance policies, potentially covering 370,000 small businesses.
High Court and Appeal Court judges had appealed largely in favour of policyholders earlier in the pandemic. In September, the High Court ruled that most claims should be paid where the policy has pandemic or disease clauses.
However, that ruling said that losses arising from general fall in customer
Hot Business News Today
Commercial tenants face legal action over non-payment of rent
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Commercial tenants are being threatened with legal action for non-payment of rent during the coronavirus crisis, despite government protection.
Last month, Section 82 of the Coronavirus Act 2020 was introduced to ban the forfeit of commercial leases until 30 June 2020 – or longer if the government deems it necessary – for not paying rent.
However, this doesn’t stop landlords from issuing statutory demand notices and winding up orders, making debt claims or pursuing Commercial Rent Arrears Recovery (CRAR). These threats are serious – winding up orders and statutory demand notices can push businesses into insolvency within days.
Larger brands that have been affected include Caffe Concerto, Pho, David Lloyd Clubs and PureGym.
Mixed reactions
Some small business owners are having to turn to unsympathetic landlords.
Janine Tozer, founder of Not Just Pets, has branches in Bath and Frome. She has two separate landlords and, at the time that the lockdown started, approached both about either deferring rent payments or paying them by half for three months. Neither of the landlords were happy with the proposals, saying that she’s still trading and should be relying on emergency government funding.
“We were doing deliveries, but we were taking less than half
Hot Business News Today
More than four in 10 businesses could phase out contractors due to IR35
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
New research reveals that as many as four in ten businesses (41pc) will review their strategy around contractors come April 2020 when IR35 is introduced.
The survey from bedigitaluk.com is part of ongoing study into the way that British businesses are preparing for the IR35 legislation. Off-payroll rules are being brought in to combat tax avoidance caused by workers supplying services to clients through an ‘intermediary’.
Out of the 1,500 British business owners surveyed, just under two thirds (65pc) were aware of the IR35 legislation and have a plan set to deal with the law changes. After being informed on what IR35 is, 41pc said they will look to review their strategy for procuring contractors into their businesses. Just over one in ten (11pc) said that they would take more drastic action by decreasing contractor numbers, having a potentially damaging effect on critical projects.
When asked if they’d switched to outcome-based ‘statement of work’ (SoW) contracts, only one in five businesses had done so. Though it’s not that simple – 45pc of businesses admitted to being confused around what action to take next.
Which sectors are struggling the most with IR35?
Those operating within the construction sector were
Hot Business News Today
GDPR and Brexit – 5 steps your small business can take
by Ian Osborne • • 0 Comments
Originally written by Ian Osborne on Small Business
Whatever side of the Brexit debate you sit on, it is becoming increasingly likely that the UK will no longer be part of the EU from the end of October.
This presents an array of challenges – and arguably opportunities – for small and medium-sized enterprises (SMEs).
However, one key aspect that business leaders must be aware of is GDPR and Brexit and how leaving the EU will affect their operations in terms of data security.
See also: GDPR one year on: what fines have been issued so far?
What the government says you should do
Guidance from the Information Commissioner’s Office (ICO) has confirmed that whether we leave with EU with or without a deal, most of the data protection rules affecting SMEs will remain the same.
The good news is that UK businesses that comply with GDPR and have no contacts or customers in the EEA (the EEA is the EU plus Iceland, Norway and Liechtenstein) don’t need to do much more to prepare for data protection after Brexit.
What if you receive data from Europe?
However, UK businesses that receive personal data from contacts within the EEA must take additional steps to ensure they are fully compliant after