Tag Archive for COVID-19

Hot Business News Today

Taxman could claw back up to 10% of furlough cash

by  •  • 0 Comments

By Timothy Adler on Small Business – Advice and Ideas for UK Small Businesses and SMEs

The taxman could claw back up to 10 per cent of all furlough cash from small businesses unaware they have overclaimed.

HMRC and the National Audit Office estimate between 5 per cent and 10 per cent of the total furlough money claimed could represent overclaims.

The Government is due to have spent over £70bn on furlough once the scheme ends on 30 September, nearly double the total UK defence spend in 2019/19.

>See also: This change to the furlough scheme could lead to more costly redundancies

At its peak 8.9m people were on furlough; the latest figure is 1.9m.

Nigel Morris, employment tax director at MHA, says innocent errors and incorrect claims will be pursued for many years by HMRC. He advises small businesses check their claims in detail, now that furlough is winding down. They should repay any overclaims through the Government’s own website before HMRC hits them with interest and penalties.

The most common administrative slip-up made by companies has been forgetting to work out claims for flexible furlough on calendar days (365 per annum) and have instead used working days (260 per annum), which they might use for

Read more...

Hot Business News Today

Retailers call for half of rent backlog to be waived

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

The communities secretary is facing new calls from retailers to force landlords to waive at least 50 per cent of rent debts accrued during the pandemic.

The Commercial Tenants Association, representing 500 businesses, has written to Robert Jenrick suggesting that the government adopts an Australian-style strategy to deal with rent debt. Under Australia’s rent relief scheme, it was mandatory for landlords to agree to a reduction in rent payable, up to 100 per cent, relative to the reduction in the tenant’s business during Covid-19. The scheme required landlords to waive 50 per cent of the total reduction in the rent payable and accept deferral of the remaining balance paid back in instalments over the remaining time on their lease.

CTA’s founder and chief executive, Peter Bell, said: “What we’re really calling for is for the government to impose a minimum of 50 per cent rental relief, in the form of a waiver to be agreed between the landlord and tenant.

“We’re hoping that arbitration is set up in a way that’s open, fair and transparent. We want to see a fair scenario where tenants are listened to and

Read more...

Hot Business News Today

Retailers call for half of rent backlog to be waived

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

The communities secretary is facing new calls from retailers to force landlords to waive at least 50 per cent of rent debts accrued during the pandemic.

The Commercial Tenants Association, representing 500 businesses, has written to Robert Jenrick suggesting that the government adopts an Australian-style strategy to deal with rent debt. Under Australia’s rent relief scheme, it was mandatory for landlords to agree to a reduction in rent payable, up to 100 per cent, relative to the reduction in the tenant’s business during Covid-19. The scheme required landlords to waive 50 per cent of the total reduction in the rent payable and accept deferral of the remaining balance paid back in instalments over the remaining time on their lease.

CTA’s founder and chief executive, Peter Bell, said: “What we’re really calling for is for the government to impose a minimum of 50 per cent rental relief, in the form of a waiver to be agreed between the landlord and tenant.

“We’re hoping that arbitration is set up in a way that’s open, fair and transparent. We want to see a fair scenario where tenants are listened to and

Read more...

Hot Business News Today

Over half of SMEs have already bounced back from the pandemic

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

More than half (54 per cent) of UK SMEs have already met or exceeded pandemic turnover levels.

One in five (22 per cent) have already exceeded pre-Covid levels while 31 per cent predict they’ll match pre-Covid figures soon. Only one in seven still deem their path to recovery ‘uncertain’.

The study from Paragon Bank also shows that nine in ten businesses feel positive about Covid recovery. This positive sentiment is especially high among SMEs, up from 86 per cent in September to 92 per cent at the end of May.

Companies with fewer than 100 employees expected the fastest rate of recovery, with 64 per cent reporting turnover matching or exceeding pre-pandemic levels, compared to 47 per cent of larger SMEs (100-249 employees).

The survey revealed that 58 per cent of SMEs experienced cash flow difficulties during the pandemic, making it the most common challenge for UK businesses. Loss of profit was the second most common challenge, faced by 53 per cent of SMEs, followed by late payments, which affected one in three (34 per cent).

>See also: How to deal with late payment

Levels of cash reserve remain a

Read more...

Hot Business News Today

Over half of SMEs have already bounced back from the pandemic

by  •  • 0 Comments

By Anna Jordan on Small Business – Advice and Ideas for UK Small Businesses and SMEs

More than half (54 per cent) of UK SMEs have already met or exceeded pandemic turnover levels.

One in five (22 per cent) have already exceeded pre-Covid levels while 31 per cent predict they’ll match pre-Covid figures soon. Only one in seven still deem their path to recovery ‘uncertain’.

The study from Paragon Bank also shows that nine in ten businesses feel positive about Covid recovery. This positive sentiment is especially high among SMEs, up from 86 per cent in September to 92 per cent at the end of May.

Companies with fewer than 100 employees expected the fastest rate of recovery, with 64 per cent reporting turnover matching or exceeding pre-pandemic levels, compared to 47 per cent of larger SMEs (100-249 employees).

The survey revealed that 58 per cent of SMEs experienced cash flow difficulties during the pandemic, making it the most common challenge for UK businesses. Loss of profit was the second most common challenge, faced by 53 per cent of SMEs, followed by late payments, which affected one in three (34 per cent).

>See also: How to deal with late payment

Levels of cash reserve remain a

Read more...

Hot Business News Today

Is my small business exempt if one of my staff is pinged?

by  •  • 0 Comments

By Timothy Adler on Small Business – Advice and Ideas for UK Small Businesses and SMEs

The government has carved out two major exemptions for workers if they are pinged by the NHS Covid app and have to self-isolate. But is your small business exempt?

First, it has approved a blanket exemption for supermarket depot workers and suppliers to come back to work, despite being alerted by the NHS Covid-19 app that they have been near someone with Covid. This is despite whether they have been vaccinated or not. Instead, they will be allowed to take daily lateral flow tests for seven days instead of self-isolating.

>See also: Do staff have to self-isolate if they’ve been pinged by the NHS Covid app?

Second, the government has announced 16sectors where workers could be exempt from having to self-isolate.

Is my small business exempt from being pinged by NHS Covid app?

Workers in these 16 sectors may be exempt from self-isolation if their work is essential and critical, and if their company applies for permission from the government.

EnergyCivil nuclearDigital infrastructureFood production and supplyWasteWaterVeterinary medicinesChemicalsTransportMedicinesMedical devicesClinical consumable suppliesEmergency servicesBorder controlDefenceLocal government

Frustratingly for small business owner-managers, these are not blanket exemptions — your small business must submit the name of

Read more...