11th December 2020 – Hillmans Weekly Update
Below I have summarised all the main tax related updates we have seen this week.
- Local Restriction Support Grant (For Open Businesses in England)
- Claim a Grant Through The Self Employment Income Support Scheme
- VAT Reduced Rate for Hospitality Extension
- Government Announces £1,000 Christmas Grant for 'Wet-Led Pubs' - England
If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.
I hope you have a good weekend.
Stay safe and well.
Steven Hillman BSc (Hons) ACA
Tel: 01934 444100
Local Restriction Support Grant (For Open Businesses in England)
The Local Restrictions Support Grant (LRSG (Open) supports businesses that have been severely impacted due to temporary local restrictions.
Businesses that have not had to close, but which have been severely impacted due to local tier 2 or tier 3 restrictions, may be eligible for LRSG (Open).
Eligible businesses may be entitled to a cash grant from their local council for each 14-day period under local restrictions.
Local councils have the discretion to provide grant funding for businesses under this scheme. They will use their discretion in identifying the right businesses to receive this funding, based on their application process.
Claim a Grant Through The Self Employment Income Support Scheme
The third grant for SEISS is now open. To make a claim for the grant, your business must have been impacted by coronavirus on or after 1st November 2020. You can make a claim for the third grant if you are eligible, even if you did not make a claim for the first or second.
What you will need to make your claim
You will need your:
• Self-Assessment Unique Taxpayer Reference (UTR)
• National Insurance number
• Government Gateway user ID and password
• UK bank details including account number, sort code, name on the account and address linked to the account
You may also need to answer questions about your passport, driving licence or information held on your credit file.
You must make your claim between 30th November 2020 and 29th January 2021 using the government website below.
VAT Reduced Rate for Hospitality Extension
Government guidance has been updated to reflect the extension of the VAT reduced rate for tourism and hospitality from 12th January to 31st March 2021.
The government made an announcement on 8th July 2020 allowing VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies relating to:
• hotel and holiday accommodation
• admissions to certain attractions
The temporary reduced rate will apply to supplies that are made between 15th July 2020 and 31st March 2021.
Government Announces £1,000 Christmas Grant for 'Wet-Led Pubs' - England
Prime Minister, Boris Johnson, has announced an additional £1,000 Christmas grant for ‘wet-led pubs’ in tiers 2 and 3 in England, who will miss out on turnover during the busy Christmas period.
Pubs that predominantly serve alcohol rather than provide food, have been asked to make sacrifices over the festive season and will be eligible for a one-off £1,000 to help make ends meet.
The payment will be a one-off for December and will be paid on top of the existing £3,000 monthly cash grants for businesses. This will cover those in tiers 2 and 3 forced to reduce their operations as a result of the latest regional measures put in place to contain transmission of the virus.