Budget 2021 and Coronavirus Financial Help for Businesses

Budget 2021 and Coronavirus Financial Help for Businesses

Yesterday, Wednesday the 3rd of March 2021, was an important day for the economy and our clients.

Rishi Sunak, the Chancellor of the Exchequer, delivered the most critical budget since the 2008 financial crisis.

Notably, this included changes to coronavirus schemes which will help many businesses continue through lockdown and open up on the 12th of April.

Before we get going, if you have chosen during the last year to let your policy lapse or cancel because you were not able to afford it, we can now quote and provide cover for the 12th of April.

Previously, in the build-up to the end of lockdowns and reopening, we have found that our phone lines have been increasingly busy. Please make sure that you contact us to arrange cover well in advance of the 12th of April to ensure your cover is in place for the big reopening!

To contact us, you can either call us on 01200 309516, email us at hello@insyncinsurance.co.uk or click here to book a time to be called back.

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What you need to know about the 2021 Budget and Business Support

BIG NEWS – SEISS – Self Employed Grants you don't have to pay back

One of the biggest injustices we have seen is that newly self-employed people didn't qualify for SEISS. We know this affected a lot of our clients.

The government have now announced that the newly self-employed who filed their the 6th of April 2019 – the 5th of April 2020 Tax Returns before midnight on the 2nd of March, can now access the grants and that this will be 80% of 3 months' worth of the profits showing on that return, you will get this twice.

These Grants have been extended for everyone who qualifies. There will be two payments, one in May 2021 (Covering March, April and May) and one in July 2021 (Covering June, July and August).

You can claim up to £7,500 directly into your bank account within six working days from HMRC. You will get 80% of your taxable profits up to a maximum of £7,500 if you have been adversely affected by coronavirus.

If you have been able to get this SEISS grant before, the same rules apply for the average of your last three filed tax returns.

The process is simple. You need your Unique Tax Reference (UTR) Number and National Insurance Number, which you can find on your HM Revenue and Customs tax paperwork.

You will also need the details you use to log in to fill out your return online. If you have an accountant, they can give you the info.

How to find out how much you will receive

To find out how much you will receive from HMRC, firstly, follow this link.

You will need to:

  • Enter your UTR and National Insurance number to check if you are eligible
  • To make your claim, you will need to enter your bank details and verify your identity

Once you have verified your identity, HMRC will tell you how much you will receive.

Restart Grants - Grants if you have a business premises (non-repayable)

Finally, the government have realised that close contact services, gyms and hospitality have been the hardest hit during the pandemic, and the support hasn't matched this. If you go to your local council website, you can see how to apply for these.

Non-essential retail businesses can claim grants of up to £6,000 for each business premises.

Meanwhile, hospitality and leisure, including close contact services and gyms, will be eligible for up to £18,000 for each business premises. These will be available in the coming days.

Find out more on the government website here.

Contact your council today to get to the front of the queue and ensure you get your grant in good time.

Local Council Grants – Grants if you don't qualify for the restart grant (non-repayable)

If you don't have a business premises, you can still get a grant. We know that our clients have been able to access these grants, and Rishi Sunak has given another £425m to fund these grants.

If you look for your local council website and search for coronavirus grants, this will give you the contact information you need for your area.

Check if you're eligible for the coronavirus Local Restrictions Support Grant (for closed businesses)

Rates Holidays Extended

Rishi Sunak announced that the government will freeze business rates until the end of June 2021. After this, it will be discounted. So, don't pay your rates bill if you have received them.

If you have been paying your business rates but haven't been able to trade from your premises (rented or owned), you can claim all of that back from your local council.

You can find the contact information on your rates bills of who you need to contact to claim a refund.

Furlough – If you have staff on the payroll – Grants (non-repayable)

Furlough has been extended for employees until the end of September/

For now, the government will still cover 80% of workers' salaries for hours they are not working, up to a maximum of £2,500 a month, with employers only asked to pay pension and national insurance contributions.

Employers are still expected to pay workers for hours worked at the usual rate.

However, from July, businesses will be expected to contribute 10% of employees' wages for hours not worked, increasing to 20 per cent in August and September.

Please see the up-to-date Job Retention Scheme page on the government website here for more information on which employees are eligible for furlough.

Don't forget if you're a company director, you can furlough yourself and get the grant as long as the qualifying criteria apply!

Find out more here.

Loans for businesses from March 2021

Previously, the government required businesses to guarantee part of the loan and its repayment to the banks, which meant some people could not access them.

Now the government has guaranteed 100% of loans from £2,500 to £50,000 to small businesses, which you can access by speaking with your business bank.

These are interest-free in the first year and 2.5% interest after that. Very few people are rejected, and they are quick to get.

Find out more about coronavirus bounce back loans here.

If you pay PAYE or VAT

The government has put a PAYE and VAT deferral scheme in place, and the scheme for deferrals has again been extended.

If you have a PAYE or VAT bill during the crisis, they can agree to defer the payment for up to 24 months if you contact HMRC.

Find out more information about PAYE or VAT deferral here.

Make sure your business insurance is ready for reopening

While we know it will be a busy time getting your business ready to reopen in the coming months, we urge you to get a head start on restarting your business insurance.

There will be a high demand for business insurance in the coming weeks. To make sure you get the cover you need on time, call us directly on 01200 309516 or request your free insurance review on our website here.

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