Originally written by Timothy Adler on Small Business
Rishi Sunak is set to extend furlough and other Covid support for small business in next month’s Budget 2021 on March 3.
The chancellor is almost certain to also extend the current business rates suspension for many small businesses, while setting the scene for an online sales tax all retailers may have to pay later in the year.
In July it was revealed that the Treasury was considering a 2 per cent online sales tax to raise £2bn a year, giving physical shops an advantage when it comes to purchases made instore.
>See also: SME owners hold £1.2bn of personal liabilities linked to Covid-19 loans
Recent polling by Kekst CNC found that an online sales tax would be the most popular way of recouping some of the costs of the Covid crisis: 56 per cent of voters want online retailers to pay more tax.
One idea is that small businesses that sell online could offset their business rates against the online sales tax, giving high street shops a boost.
Meanwhile, 18 companies and organisations including Waterstones have urged Sunak to introduce a digital sales tax while reducing business rates.
Business rates are assessed every few years and based on rent
Tag Archive for Rishi Sunak
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Government plans permanent state-backed small business loan scheme
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The government is planning to replace existing coronavirus business support with a permanent state-backed small business loan scheme.
Under the plan, which would be launched in January, the government would guarantee 80 per cent of loans to small businesses, ranging from a few thousand pounds up to £10m per company over a six-year lending period.
In effect, the new state-backed SME loan scheme would extend the Coronavirus Business Interruption Loan Scheme (CBILS) but with a lower threshold. The minimum CBILS loan is £10,000.
>See also: Treasury eyes hitting self-employed gig workers with VAT charge
According to the Financial Times, the banks would set their own interest rate for their loans, but the rate is likely to be capped at about 15 per cent – just like the CBILS – which is far higher than the 2.5 per cent fixed interest rate of the parallel Bounce Back Loans Scheme (BBLS).
Research by our sister title GrowthBusiness found that lenders are charging anything between 3 per cent and 15 per cent for CBILS loans.
As of last month, the CBILS and the BBLS have lent £60.64bn to struggling businesses between them.
And the new state-backed SME lending scheme would have more stringent
Hot Business News Today
Government plans permanent state-backed small business loan scheme
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The government is planning to replace existing coronavirus business support with a permanent state-backed small business loan scheme.
Under the plan, which would be launched in January, the government would guarantee 80 per cent of loans to small businesses, ranging from a few thousand pounds up to £10m per company over a six-year lending period.
In effect, the new state-backed SME loan scheme would extend the Coronavirus Business Interruption Loan Scheme (CBILS) but with a lower threshold. The minimum CBILS loan is £10,000.
>See also: Treasury eyes hitting self-employed gig workers with VAT charge
According to the Financial Times, the banks would set their own interest rate for their loans, but the rate is likely to be capped at about 15 per cent – just like the CBILS – which is far higher than the 2.5 per cent fixed interest rate of the parallel Bounce Back Loans Scheme (BBLS).
Research by our sister title GrowthBusiness found that lenders are charging anything between 3 per cent and 15 per cent for CBILS loans.
As of last month, the CBILS and the BBLS have lent £60.64bn to struggling businesses between them.
And the new state-backed SME lending scheme would have more stringent
Hot Business News Today
Government makes further changes to Coronavirus Job Retention Scheme
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
UPDATED: The government has announced further changes to the Coronavirus Job Retention Scheme (CJRS).
The scheme, also known as furlough, has been extended until the end of March, with furloughed employees being paid 80 per cent of their wages until January 2021. It will be reviewed at this point.
What happens when furlough ends?
Rishi Sunak’s previous plan was to wind up the furlough scheme on October 31. After that, staff returning to work would’ve been moved onto the less generous Job Support Scheme (JSS). JSS has been put on hold.
But now that the furlough scheme has been extended until the end of March, furloughed employees will remain on the Job Retention Scheme, with the government paying up to 80 per cent of staff wages (capped at £2,500 a month). Anyone made redundant after September 23 can be rehired and put back on furlough.
Can you work while on furlough?
No, employees cannot take on any work for, or on behalf of, their employer while they’re on furlough. Nor can they take on any work linked or associated with their employer. This includes providing services (that includes attending meetings) and generating revenue for the business.
Employees can undertake study and
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When and where to apply for the new 80% self-employed grant
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Rishi Sunak has announced that the third self-employed income support grant covering November to January will increase to 80 per cent of profits.
The next self-employed grant will be capped at £7,500 per person, based on average trading profits.
The online service for the next self-employed grant will be available from November 30 through the GOV.UK website.
>See also: Self-employed Income Support Scheme (SEISS) to be doubled for November
The self-employed grant is taxable income and also subject to National Insurance contributions.
The government has already announced there will be a fourth grant covering February to April 2021, the level of which has yet to be announced.
Universal Credit U-turn
The government has also extended the suspension of the Minimum Income Floor, a rule within the universal credit system which capped payments to self-employed workers to the equivalent of what you’re given if you are working full-time on minimum wage but still claiming.
The Treasury said that the cost of support for the self-employed would be up to £7.3bn, £2.8bn of which was new money announced for the third self-employed grant.
Who’s still excluded from the self-employed grant
However, swathes of the self-employed – calculated to be 690,000 people – are still excluded
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When and where to apply for the new 80% self-employed grant
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Rishi Sunak has announced that the third self-employed income support grant covering November to January will increase to 80 per cent of profits.
The next self-employed grant will be capped at £7,500 per person, based on average trading profits.
The online service for the next self-employed grant will be available from November 30 through the GOV.UK website.
>See also: Self-employed Income Support Scheme (SEISS) to be doubled for November
The self-employed grant is taxable income and also subject to National Insurance contributions.
The government has already announced there will be a fourth grant covering February to April 2021, the level of which has yet to be announced.
Universal Credit U-turn
The government has also extended the suspension of the Minimum Income Floor, a rule within the universal credit system which capped payments to self-employed workers to the equivalent of what you’re given if you are working full-time on minimum wage but still claiming.
The Treasury said that the cost of support for the self-employed would be up to £7.3bn, £2.8bn of which was new money announced for the third self-employed grant.
Who’s still excluded from the self-employed grant
However, swathes of the self-employed – calculated to be 690,000 people – are still excluded
Hot Business News Today
Job Support Scheme changes what they mean for your business
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Chancellor Rishi Sunak has made changes to the Job Support Scheme, making it more generous, offered grants for businesses in Tier 2 regions with their business restricted due to Covid restrictions and doubling help for the self-employed.
Mr Sunak made the announcement about changes to the Jobs Support Scheme, grants for restricted businesses in Tier 2 and increased help for the self-employed in the House of Commons this morning, responding to the worsening Covid pandemic.
Job Support Scheme changes
The Job Support Scheme has been made more generous, with employers only contributing 5 per cent of wage bills for employees on days not worked. And, rather than having to work at least half their usual hours, now employees only have to work 20 per cent of minimum hours, so those working just one day a week will be eligible
The Self-employed Income Support Scheme (SEISS) will be more generous, with the government covering an average of 40 per cent of lost profits compared to the current 20 per cent, meaning the maximum grant will increase from £1,875 to £3,750
Any business in Tier 2 with its business restricted, such as hospitality, accommodation and leisure, can now claim a
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Just when you thought it couldn’t get worse, business rates return in April
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The government needs to say whether the current one-year business rates holiday for retail and hospitality businesses is going to be extended.
So says John Webber, head of business rates of property consultancy Colliers International, which has monitored the number of business rates appeals flooding the Valuation Office Agency (VOA), part of HM Revenue & Customs, which is tasked with processing complaints as part of a three-stage “check, challenge, appeal” process.
According to Colliers, some 170,000 businesses have taken the first step towards appealing against their rates since the pandemic began in the UK in March. That is more than the total number in the three previous years, during which 159,000 queried their rates.
>See also: Chancellor Rishi Sunak may scrap business rates in favour of a land tax
Partly, it’s the government’s own fault that the VOA is so swamped with business rates appeals.
Businesses are being forced into challenging ratings assessments now because the government has yet to announce whether the one-year business rates holiday for retail and hospitality announced in March is going to be extended.
Business rates are a tax on properties that are used for commercial purposes and are charged based on an estimate
Hot Business News Today
Just when you thought it couldn’t get worse, business rates return in April
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The government needs to say whether the current one-year business rates holiday for retail and hospitality businesses is going to be extended.
So says John Webber, head of business rates of property consultancy Colliers International, which has monitored the number of business rates appeals flooding the Valuation Office Agency (VOA), part of HM Revenue & Customs, which is tasked with processing complaints as part of a three-stage “check, challenge, appeal” process.
According to Colliers, some 170,000 businesses have taken the first step towards appealing against their rates since the pandemic began in the UK in March. That is more than the total number in the three previous years, during which 159,000 queried their rates.
>See also: Chancellor Rishi Sunak may scrap business rates in favour of a land tax
Partly, it’s the government’s own fault that the VOA is so swamped with business rates appeals.
Businesses are being forced into challenging ratings assessments now because the government has yet to announce whether the one-year business rates holiday for retail and hospitality announced in March is going to be extended.
Business rates are a tax on properties that are used for commercial purposes and are charged based on an estimate
Hot Business News Today
How the 100% Local Furlough Scheme grant will work for your small business
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
UPDATED: Chancellor Rishi Sunak is due to announce a further Local Furlough Scheme for businesses caught out by hard local lockdowns.
The government will cover 100 per cent of staff wages for small businesses ordered to close in areas in hardest-hit regions.
Larger firms blindsided by the highest lockdown level will have between 60 per cent and 80 per cent of staff wages covered.
Manchester, Liverpool and other areas of the North are expected to go into harder lockdown early next week, once the government launches its new traffic-light system for dealing with coronavirus outbreaks.
>See also: Rishi Sunak plans grants for small businesses hit by hard lockdown
London is expected to follow shortly, following a warning from Mayor Sadiq Khan.
Meanwhile help for hospitality businesses forced to close in Scotland will get their own £40m support package.
The Local Furlough Scheme is far more generous than the Jobs Support Scheme, announced last month, as the successor to the Coronavirus Job Retention Scheme, which ends on October 31.
>See also: Local lockdowns only make the problem of late payment worse
Every business in the UK is eligible for the Jobs Support Scheme from November, which covers one third of the wages for