30th October 2020 – Hillmans Weekly Update

I hope you are keeping safe and well.

30^th October 2020 – Hillmans Weekly Update

 

Below I have summarised all the main tax related updates we have seen this week.

 

·         Defer your Self- Assessment payment on account due to coronavirus (COVID-19)

·         Job Retention and Bonus Schemes

·         Working Safely During COVID-19

·         Travel Corridors

 

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 great weekend!

 

Best wishes,

 

Steve

 

Steven Hillman BSc (Hons) ACA

Chartered Accountant

Tel: 01934 444100

https://www.hillmans.co.uk/covid-19-updates

Travel Corridors

The list of countries, territories and regions from where you can travel to England, and may not have to self-isolate, regularly changes. 

If you travel on business, keep your eye on the Government website page below. 

The list is updated regularly, with the update on the 25th October adding Crete to the list. Italy, San Merino and Vatican City State were removed from the list.

See: https://www.gov.uk/guidance/coronavirus-covid-19-travel-corridors

Working Safely During COVID-19

The Government has published 14 guides which cover a range of different types of work and how to work safely during Coronavirus COVID-19. 

Many businesses operate more than one type of workplace, such as an office, factory and fleet of vehicles. 

You may need to use more than one of these guides as you think through what you need to do to keep people safe. Priority actions are outlined at the top of each guide. 

The latest changes are guides for Performing Arts – updated guidance on thinking about risk (section 1) and managing performances (section 3).

See: https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19

Job Retention and Bonus Schemes

The Treasury has published its Direction in relation to the Coronavirus Job Retention Scheme and Job Retention Bonus Scheme. This is the first step in the Treasury instructing HMRC to be responsible for the payment and management of these schemes. 

We will issue further guidance to our clients once the details are known. 

The Job Retention Scheme will apply from 1 November and if your business intends to apply for this support, please contact us and we can estimate your claim in advance and help you make the claim to HMRC.

See: https://www.gov.uk/government/publications/treasury-direction-made-under-sections-71-and-76-of-the-coronavirus-act-2020

Defer your Self- Assessment payment on account due to coronavirus (COVID-19)

The HMRC webpage link below allows you to check what you need to do after 31 July 2020 if you choose to defer your second payment on account for the 2019 to 2020 tax year.

You had the option to defer your second payment on account if you were:

•           registered in the UK for Self-Assessment and

•           finding it difficult to make that payment by 31 July 2020 due to the impact of coronavirus

You can still pay your deferred July 2020 payment on account any time up to 31 January 2021. There will be no interest or penalty as long as you pay in full by that date.

See: https://www.gov.uk/guidance/defer-your-self-assessment-payment-on-account-due-to-coronavirus-covid-19

23rd October 2020 – Hillmans Weekly Update

Below I have summarised all the main tax related updates we have seen this week.

• Plan For Jobs: Chancellor Increases Financial Support for Businesses and Workers
• New Online Service to Check the Status of SEISS
• COVID-19 News Update and Business Planning
• 20 Point UK Brexit Planning Checklist
• Apply for a Kickstart Grant 

I’m away on annual leave next week with the family for half-term, but please don’t hesitate to contact the team on 01934 444100 or email at team@hillmans.co.uk if you have any queries about this week’s content, or if you need any assistance. 

I hope you have a great weekend!

Best wishes,

Steve

Steven Hillman BSc (Hons) ACA

Chartered Accountant

Tel: 01934 444100

https://www.hillmans.co.uk/covid-19-updates 

Plan For Jobs: Chancellor Increases Financial Support for Businesses and Workers

The government today announced it will increase the amounts and reach of its winter support schemes.

In recognition of the challenging times ahead, the Chancellor said he would be increasing support through the existing Job Support and self-employed schemes and expanding business grants to support companies in high-alert level areas.

H M Treasury states that open businesses which are experiencing difficulty will be given extra help to keep staff on as the Government will increase contributions to wage costs under the Job Support Scheme, and business contributions drop to 5%.

Business grants are expanded to cover businesses in particularly affected sectors in high-alert level areas. 

Grants for the self-employed doubled to 40% of previous earnings

Job Support Scheme (JSS)

When originally announced, the JSS – which starts on 1 November, saw employers paying a third of their employees’ wages for hours not worked and required employees to be working 33% of their normal hours.

Today’s announcement reduces the employer contribution to those unworked hours to 5%, and reduces the minimum hours requirements to 20%, so those working just one day a week will be eligible. That means that if someone was being paid £587 for their unworked hours, the government would be contributing £543 and their employer £44.

Self-employed grant

Today’s announcement increases the amount of profits covered by the two forthcoming self-employed grants from 20 per cent to 40 per cent, meaning the maximum grant will increase from £1,875 to £3,750.

Business Grants

The Chancellor has also announced approved additional funding to support cash grants of up to £2,100 per month primarily for businesses in the hospitality, accommodation and leisure sector who may be adversely impacted by the restrictions in high-alert level areas. These grants will be available retrospectively for areas who have already been subject to restrictions and come on top of higher levels of additional business support for Local Authorities moving into Tier 3. 

These grants could benefit around 150,000 businesses in England, including hotels, restaurants, B&Bs and many more who are not legally required to close but have been adversely affected by local restrictions.

See: https://www.gov.uk/government/news/plan-for-jobs-chancellor-increases-financial-support-for-businesses-and-workers

New Online Service to Check the Status of SEISS

Self-Employment Income Support Scheme (SEISS)

The HMRC online service is now closed for the Self-Employment Income Support Scheme and you can no longer make a claim for the second grant.

However there is a new online service to check the status of SEISS payments. 

You can use this new service if you think the grant amount is too low or HMRC have asked you to update your details for your claim.

See: https://www.gov.uk/guidance/return-to-your-claim-for-the-self-employment-income-support-scheme

COVID-19 News Update and Business Planning

This week has seen more discord between national and regional government in England as the new three tier system has been introduced. Wales goes into a national lockdown for a “short, sharp circuit-break” on Friday, in which people will be told to stay at home in most circumstances and the hospitality and leisure sector closing. There are new restrictions in parts of central Scotland and four weeks of tighter rules announced for Northern Ireland. We can expect more of the same over the coming months.

THE LATEST INDICATORS FOR THE UK ECONOMY AND SOCIETY

The Office for National Statistics has announced its latest experimental data on the economy which shows nearly half (48%) of currently trading businesses reported that their turnover had decreased below what is normally expected for this time of year. This is not a surprise given the Pandemic.

See: https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/conditionsanddiseases/bulletins/coronavirustheukeconomyandsocietyfasterindicators/15october2020#main-points

So, if you are running a business and turnover is down, what should you be doing to ensure resilience?

Clearly we are living in tough times and it makes sense to take advantage of Government supports both directly such as the job retention and new support schemes, deferring tax and using bounce back loans. 

There are also grants available to help firms with Brexit changes for import and export administration.

We have helped many businesses apply and claim these supports and if you need any assistance please contact us.  

BUSINESS PLANNING

Business planning for the unknown can be very difficult but there are some practical steps you can take to minimise potential disruption to your business:

1. Review your Budgets and set realistic and achievable targets for the remainder of 2020 and into the early part of 2021.

2. Get your employees involved in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues.  

3. Use ‘bottom up’ budgeting where everyone in the business gives input on areas over which they have control – target a 10% cost saving.

4. Review and flow chart the main processes in your business (e.g. Sales processing, order fulfilment, shipping etc.) and challenge the need for each step.

5. Encourage team members to suggest ways to streamline and simplify processes (e.g. sit down and brainstorm about efficiencies and cost reduction).

6. Put extra effort into making sure your relationships with your customers are solid.

7. Review your list of products and services and eliminate those that are unprofitable or not core products/services.

8. Review efficiency of business processes and consider alternatives such as outsourcing certain activities locally or overseas.

9. Agree extended payment terms with all suppliers in advance.

10. Pull everyone together and explain the business strategy and get their buy-in.

Please talk to us about cash flow planning for the next six months, we can help with a template so you can do this yourself (see below) or work together to produce estimates for a variety of scenarios.

FREE CASH-FLOW TEMPLATE

In order to help with this we are making available a basic cash-flow forecast template to anyone who needs it. You can download the template free of charge from our website here: https://www.hillmans.co.uk/cash-flow-template

20 Point UK Brexit Planning Checklist

There is still some uncertainty as to whether the UK or EU will agree a tariff free trade agreement. Either way UK business will face additional documentation for importing and exporting goods to the EU from 1 January 2021.

Planning for the new requirements seems sensible right now. There are also other business matters to consider such as data protection, intellectual property and replacing existing agreements with EU suppliers and customers. 

Use this 20-point checklist to review your Brexit preparedness and the Government information to prepare actions for 1 January 2021.

The Government has published guidance: “The transition period ends in December” see:  https://www.gov.uk/transition

This outlines actions to take now if you are:

• importing goods into the UK

• exporting goods from the UK

• travelling to the EU

• living and working in the EU

• staying in the UK if you're an EU citizen

Here are some of the areas you should consider, particularly if you import or export goods to the EU and haven’t had the need to complete the various forms before: 

1. If you move goods to or from the EU register (unless you already have) for an Economic Operator Registration and Identification (EORI) number -  https://www.gov.uk/eori

2. Consider an agent to help with completing import/export forms – www.export.org.uk or DIY the forms (see below).

3. If you export goods see the step by step guide here: https://www.gov.uk/prepare-to-export-from-great-britain-from-january-2021

4. Export rules are specific by sector so review “The transition period ends in December” Government website. There you can get a personalised list of actions and can subscribe for email updates: https://www.gov.uk/transition

5. The VAT reporting rules for EU sales can be found here: https://www.gov.uk/guidance/vat-how-to-report-your-eu-sales

6. If you import goods then see the guidance “Starting to import”:   https://www.gov.uk/starting-to-import/moving-goods-from-eu-countries

7. There is a step by step guide on importing here: https://www.gov.uk/prepare-to-import-to-great-britain-from-january-2021

8. Guidance on paying VAT on imports can be found here: https://www.gov.uk/guidance/vat-imports-acquisitions-and-purchases-from-abroad

9. Review HMRC YouTube videos on international trade here:    https://www.gov.uk/guidance/help-and-support-for-international-trade

10. You may choose to register for “Authorised Economic Operator (AEO) status which enables “Trusted” businesses simplified customs procedures. Application does take time and is complex. See:  https://www.gov.uk/guidance/authorised-economic-operator-certification

11. In the event of the EU and UK not agreeing a free trade agreement, from 1 January 2021 all exports and imports to the EU will be subject to tariffs. You will need to identify where “inputs” come from and which categories of product they fall into so you can work out the tariffs that will apply. The UK Government have published trade tariffs duty and VAT rates by commodity: https://www.gov.uk/trade-tariff

12. If you currently have business agreements with EU companies these may need to be redrafted to cover off areas such as customs arrangements, import duties, how VAT is accounted for, definitions such as “Territory”, dispute resolution and unanticipated administration as a result of Brexit. Consult a lawyer for advice to avoid any potential issues sooner rather than later. 

13. Review all EU employees currently working in your business and ascertain whether they are applying for “Settled status” by 31 December 2020. See: Your UK employees working in the EU may need to apply for similar status. https://www.gov.uk/government/publications/eu-settlement-scheme-employer-toolkit 

14. If your business has a “.EU” domain name you should check the eligibility to hold such a domain here: https://www.gov.uk/government/publications/guidance-on-eu-top-level-domain-name-registrations-in-the-event-of-a-no-deal-eu-exit/guidance-on-eu-top-level-domain-name-registrations-in-the-event-of-a-no-deal-eu-exit

15. If you are involved in eCommerce then read the Governments EU guidance: https://www.gov.uk/government/publications/ecommerce-eu-exit-guidance

16. Data Protection – you may need to comply with new license requirements and changes in regulation. The Information Commissioner’s office (ICO) will update its guidance once the outcome of the negotiations is known. See:  https://ico.org.uk/for-organisations/data-protection-at-the-end-of-the-transition-period/

17. Copyrights - A substantial part of UK copyright law is derived from the EU copyright framework. Because of this, there are references in UK law to the EU, the EEA, and member states. Some of these references occur in the UK’s implementation of EU cross-border copyright arrangements. These arrangements apply only within the EU and EEA and provide reciprocal protections and benefits between member states. If there is no future reciprocal UK EU deal contact your lawyer to discuss. See: https://www.gov.uk/guidance/changes-to-copyright-law-after-the-transition-period

18. For Intellectual Property see: https://www.gov.uk/government/news/intellectual-property-and-the-transition-period

19. For Trademarks see: https://www.gov.uk/guidance/eu-trademark-protection-and-comparable-uk-trademarks

20. Consider forming a company in the EU. 

Disclaimer

No responsibility for loss occasioned to any person acting or refraining from action as a result of the material in this article can be accepted by Hillmans Limited. 

Apply for a Kickstart Grant

 

The Kickstart Scheme provides funding to employers to create job placements for 16 to 24-year olds on Universal Credit who are at risk of long-term unemployment.

 Employers of all sizes can apply for funding which covers:

•         100% of the National Minimum Wage (or the National Living Wage depending on the age of the participant) for 25 hours per week for a total of 6 months
•         associated employer National Insurance contributions
•         employer minimum automatic enrolment contributions

Employers can spread the start date of the job placements up until the end of December 2021.

A Kickstart Scheme application must be for a minimum of 30 job placements. If a single employer cannot provide this many job placements, they can find an existing Kickstart gateway, such as a local authority, charity or trade body for help applying.

Further funding is available for training and support so that young people on the scheme can get a job in the future.

The Department for work & Pensions have announced new entries of organisations who can help employers with the Kickstart scheme across all regions of the UK So you can find a Kickstart gateway in England, Scotland or Wales who have expressed interest in helping employers get a Kickstart Scheme grant.

See: https://www.gov.uk/guidance/find-someone-to-apply-for-a-kickstart-scheme-grant-on-your-behalf

APPLY FOR A KICKSTART SCHEME GRANT: 29 OR LESS JOB PLACEMENTS

If you are an employer looking to create 29 or less jobs placements for young people, apply for funding as part of the Kickstart Scheme.

As an employer with 29 or less job placements you need to find an existing Kickstart gateway, such as a local authority, charity or trade body.

See: https://www.gov.uk/guidance/find-someone-to-apply-for-a-kickstart-scheme-grant-on-your-behalf

Whoever represents you will apply on your behalf. You will need to give them information about the job placements.

The job placements must not:

•          replace existing or planned vacancies
•         cause existing employees, apprentices or contractors to lose work or reduce their working hours

Tell your Kickstart gateway:

• how many employees you have
• about changes to your workforce in the last 6 months and why (for example redundancies and changes to hours worked by existing staff)
• the number of people affected by changes to your workforce in the last 6 months
• about the kinds of roles, functions and average salary of those who were made redundant or who had their hours reduced in the last 6 months
• if you would be able to create these job placements without Kickstart Scheme funding and what funding source you would use
• what recruitment you have completed, started or paused in the last 6 months, including how similar these vacancies are or were to the roles you are creating for the Kickstart Scheme
•  if the job placements will be similar to existing or planned roles or the roles previously done by those made redundant or with fewer working hours, why you are using Kickstart Scheme funding to create similar roles
•  if you have engaged with any relevant trade unions and any advice the unions have given

See: https://www.gov.uk/guidance/apply-for-a-kickstart-scheme-grant-29-or-less-job-placements

16th October 2020 – Hillmans Weekly Update

Below I have summarised all the main tax related updates we have seen this week.

·         Self-Employment Income Support Scheme – Apply for Second Grant on or Before 19th October 2020
·         Government Grant for Customs Training Funding
·         Ensure Your Savings Are Safe - FSCS Bank Protection Limit
·         Job Support Scheme Expanded to Firms Required to Close Due to COVID Restrictions

If you have any queries about this week’s content, please do not hesitate to contact me.

I hope you have a great weekend!

Best wishes,

Steve

Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk/covid-19-updates

Government Grant for Customs Training Funding

HMRC have extended the deadline for customs training funding.

Applications are open until 30 June 2021 (or until all funding is allocated)

The funding can be used towards helping businesses train staff in making customs declarations. 

The funding is open to businesses that are established in or have a branch in the UK when the grant is paid to you, and for those that have not previously failed to meet tax obligations.

To apply for the grants, your business must either complete customs declarations for yourself or someone else (or intend to in the future) and you must import from or export to the EU.

The grant will give you up to 100% of the cost of training for your employees, up to a limit of £1,500 per trainee.

See: https://www.customsintermediarygrant.co.uk/

OTHER GRANTS IF YOUR BUSINESS COMPLETES CUSTOMS DECLARATIONS

If your business completes customs declarations You can apply for 3 grants to help your business complete customs declarations for recruitment, training and IT improvements.

You can apply to get funding for:

• training that helps your business to complete customs declarations and processes (see above)
• hiring new staff to help your business complete customs declarations
• IT improvements to help your business complete customs declarations more efficiently

Your business must:

• have been established in the UK for at least 12 months before the submission of your application and when the grant is paid
• not have previously failed to meet its tax obligations 

In addition, your businesses must meet one of the descriptions below:

• complete or intend to complete customs declarations on behalf of your clients
• be an importer or exporter and complete or intend to complete declarations internally for your own goods
• be an organisation which recruits, trains and places apprentices in businesses to undertake customs declarations.

See: https://www.gov.uk/guidance/grants-for-businesses-that-complete-customs-declarations

Ensure Your Savings Are Safe - FSCS Bank Protection Limit

If you have money held with a UK institution which is regulated by either the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA), you will have access to the Financial Services Compensation Scheme FSCS in the event that something goes wrong.

Under the FSCS, the first £85,000 of your savings (£170,000 if your money is held in a joint account) is protected if the bank or building society provider were to become insolvent or go bust.

The FSCS provides the same level of compensation for both a small company and individual savers.

We advise clients to save a percentage of their profits to cover their tax liabilities and for working capital requirements, however it can mean that a business can amass a significant sum in their deposit accounts. If the balance held is more than £85,000, it is important to consider spreading the money with different regulated banks.

You can read more information on the FSCS and check that the financial institution holding your money is protected here: https://www.fscs.org.uk/check-your-money-is-protected/

Job Support Scheme Expanded to Firms Required to Close Due to COVID Restrictions

 

The government’s Job Support Scheme (JSS) will be expanded to protect jobs and support businesses required to close their doors as a result of coronavirus restrictions, the Chancellor announced 9 October.

Under the expansion, firms whose premises are legally required to shut for some period over winter as part of local or national restrictions will receive grants to pay the wages of staff who cannot work The Government’s aim is to protect jobs and enable businesses to reopen quickly once restrictions are lifted.

The government will support eligible businesses by paying two thirds of each employees’ salary (or 67%), up to a maximum of £2,100 a month.

Under the scheme, employers will not be required to contribute towards wages and only asked to cover NICS and pension contributions, a very small proportion of overall employment costs. It is estimated that around half of potential claims are likely not to incur employer NICs or auto-enrolment pension contributions and so face no employer contribution.

Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days. Businesses can apply for the JSS including the new expansion even if they haven’t previously used the Coronavirus Job Retention Scheme (CJRS). 

The scheme will begin on 1 November and will be available for six months, with a review point in January. In line with the rest of the JSS, payments to businesses will be made in arrears, via a HMRC claims service that will be available from early December. Employees of firms that have been legally closed in the period before 1 November are eligible for the CJRS.

The scheme is UK wide and the UK Government will work with the devolved administrations to ensure the scheme operates across all four nations.

See: https://www.gov.uk/government/news/job-support-scheme-expanded-to-firms-required-to-close-due-to-covid-restrictions

Self-Employment Income Support Scheme – Apply for Second Grant On Or Before 19th October 2020

The Self-Employment Income Support Scheme (SEISS) allowed you to claim a first taxable grant. Applications for the first grant closed on 13 July 2020.

The second taxable grant is worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total.

Applications for the second grant are now open. Make your claim from the date HMRC give you. If you are eligible and your business has been adversely affected on or after 14 July 2020, you must make your claim for the second grant on or before 19 October 2020.

The scheme is being extended from 1 November. The grant extension is for self-employed individuals who are currently eligible for the Self-Employment Income Support Scheme and are actively continuing to trade but are facing reduced demand due to coronavirus (COVID-19).

The extension will provide two grants and will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.

The first grant will cover a three-month period from the start of November until the end of January. HMRC will provide a taxable grant covering 20 per cent of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.

HMRC are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.

The second grant will cover a three-month period from the start of February until the end of April. HMRC will review the level of the second grant and set this in due course.

The grants are subject to Income Tax and National Insurance Contributions.

See: https://www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension

9th October 2020 – Hillmans Weekly Update

 

Below I have summarised all the main tax related updates we have seen this week.

• Coronavirus Local Lockdown Restrictions Support Grant

• Self-Assessment Tax Payers Can Now Apply Online to Spread the Cost of their Tax Bill

• Check if you can claim the Job Retention Bonus from 15 February 2021

• Advisory Fuel Rate for Company Cars

 

If you have any queries about this week’s content, please do not hesitate to contact me.

I hope you have a great weekend!

 

Best wishes,

 

Steve

 

Steven Hillman BSc (Hons) ACA

Chartered Accountant

Tel: 01934 444100

https://www.hillmans.co.uk/covid-19-updates

 

Coronavirus Local Lockdown Restrictions Support Grant

The Local Restrictions Support Grant (LRSG) supports businesses that have been required to close due to temporary COVID-19 local lockdown restrictions imposed by the government.

 

The Local Restrictions Support Grant (LRSG) supports businesses that were open as usual, providing services in person to customers from their business premises, but which were then required to close for at least 3 weeks due to local lockdown restrictions imposed by government.

 

It is for businesses that pay business rates on their premises with grants being based on the rateable value of the property on the first full day of local lockdown restrictions .

 

Local councils may at their discretion also provide funding for businesses that don’t pay business rates up to £1,500.

 

Read our blog post for more information on the grant scheme: https://blog.hillmans.co.uk/2020/10/coronavirus-local-lockdown-restrictions-support.html

 

Self-Assessment Tax Payers Can Now Apply Online to Spread the Cost of their Tax Bill into Monthly Payments

Self-Assessment tax payers can now apply online to HMRC to spread the cost of their tax bill into monthly payments without the need to call them. 

 

The online self-serve 'Time to Pay' service, has been increased to £30,000 for Self-Assessment customers, to help ease any potential financial burden they may be experiencing due to the coronavirus pandemic.

 

Once you have completed your tax return for the 2019-20 tax year, you can use the online self-serve 'Time to Pay' service through GOV.UK to set up a direct debit and pay any tax that is owed in monthly instalments, up to a 12-month period.

 

If you wish to set up your own self-serve 'Time to Pay', you must meet the following requirements:

 

• No outstanding tax returns

• No other tax debts

• No other HMRC payments set up

• your Self-Assessment tax bill is between £32 and £30,000

• It is no more than 60 days since the tax was due for payment.

 

If you do not meet these requirements, you might still qualify for Time to Pay, but you will need to call HMRC to set this up.

 

If you set up a 'Time to Pay' arrangement, you will have to pay interest on the tax paid late. Interest will be applied to any outstanding balance from 1 February 2021.

 

See: https://content.govdelivery.com/accounts/UKHMRCED/bulletins/2a43394

 

Check if you can claim the Job Retention Bonus from 15 February 2021

The Job Retention Bonus is a £1,000 one-off taxable payment to you (the employer), for each eligible employee that you furloughed and kept continuously employed until 31 January 2021.

 

You will be able to claim the bonus between 15 February 2021 and 31 March 2021. You do not have to pay this money to your employee.

 

We've put together a blog post which details how and when you can claim the Job Retention Bonus from 15 February 2021: https://blog.hillmans.co.uk/2020/10/check-if-you-can-claim-job-retention-bonus.html

 

Advisory Fuel Rate for Company Cars

HMRC have updated the reimbursement rates for employees' private mileage using their company car from 1 September 2020. 

You can view the new rates and guidance in our blog post here: https://blog.hillmans.co.uk/2020/10/advisory-fuel-rate-for-company-cars.html

Coronavirus Local Lockdown Restrictions Support Grant

Published 24 September the Local Restrictions Support Grant (LRSG) supports businesses that have been required to close due to temporary COVID-19 local lockdown restrictions imposed by the government.

The Local Restrictions Support Grant (LRSG) supports businesses that were open as usual, providing services in person to customers from their business premises, but which were then required to close for at least 3 weeks due to local lockdown restrictions imposed by government.

It is for businesses that pay business rates on their premises. Local councils may at their discretion also provide funding for businesses that don’t pay business rates.

Eligibility

Your business may be eligible if it:

• occupies property on which it pays business rates

• Is in a local lockdown area and has been required to close because of the formal publication of local restrictions guidance that resulted in a first full day of closure on or after 9 September. This funding is not retrospective

• has been required to close for at least 3 weeks because of the lockdown

• has been unable to provide its usual in-person customer service from its premises

For example this could include non-essential retail, personal services or cafes/restaurants that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway-only service instead.

Eligible businesses will get one grant for each property liable for business rates within the lockdown zone.

Businesses that are required to close but do not pay business rates may be eligible for funding at the discretion of the local council, as may businesses not required to close but which are severely impacted.

If your business is eligible and has a property with a rateable value of less than £51,000, you will receive a cash grant of £1,000 for each 3-week period your business is closed.

If your business is eligible and has a property with a rateable value of £51,000 or above, you will receive a cash grant of £1,500 for each 3-week period your business is closed.

The grant will be extended to cover each additional 3-week period, so if your business is closed for 6 weeks it will receive £2,000 or £3,000, depending on the rateable value of the property.

Grants will be based on the rateable value of the property on the first full day of local lockdown restrictions.

DISCRETIONARY FUNDING

You may receive a grant of up to £1,500 at the discretion of your local council if:

Your business is required to close but you do not pay business rates

If your business is not required to close, but has been severely affected, for example as a result of customer businesses being closed

Your local council will publish details of discretionary funding on their website.

Exclusions

• businesses which are able to continue to operate during the lockdown because they do not depend on providing direct in-person services from their premises

• businesses that have chosen to close, but have not been required to close as part of a local lockdown

• businesses that are still subject to national closures such as nightclubs

• businesses that have reached the state aid limit

If you already get state aid

The Local Restrictions Support Grant counts towards state aid.

Payments count towards the total de minimis State aid you’re allowed to get over a 3-year period - €200,000. If you have reached that threshold, you may still be eligible for funding under the COVID-19 Temporary Framework. The limit for the framework is €800,000.

Your local council will ask you to complete a declaration confirming that:

• You will not exceed the relevant State aid threshold

• You were not an ‘undertaking in difficulty’ on 31 December 2019. This applies only to the COVID-19 Temporary Framework

The undertaking in difficulty test does not apply to small and micro undertakings (less than 50 employees and less than EUR 10 million of annual turnover and/or annual balance sheet) unless they were already in insolvency proceedings, have received rescue aid that has not been repaid, or are subject to a restructuring plan under State aid rules.

How to apply

Visit your local council’s website to find out how to apply:

See:  https://www.gov.uk/find-local-council