Lockdown3 – Everything you need to know

Here we go again! With the latest government announcement on Monday the 4th of January 2021, the nation is once again in lockdown. The announcement has outlined that everyone must stay at home and only leave for specific reasons. This also includes the closure of non essential businesses, restrictions on outdoor socialising, education and so on. So as a business owner, I am sure you have questions on not only what lockdown3 means for your business but what this means for the subsequent schemes the government introduced to support you. For example, furlough, business loans etc.

At Aspreys, we appreciate the frustrations we are all going through and want to share our support where we can. This includes providing you with clear guidance on everything you need to know and what can help you as a business or business owner. The following blog will outline the extensions that have been introduced to business grants, schemes, loans and VAT reductions.

Coronavirus Job Retention Scheme (Furlough Scheme)

This scheme was due to end last year, however with the second lockdown announced the scheme was extended. With the introduction of lockdown3, the scheme has been extended again until the end of April 2021. This also means that the Job Support Scheme has now been postponed until the extended furlough scheme closes.

You can find full HMRC guidance here: https://www.gov.uk/coronavirus

Business Grants

Following the announcement on the 4th of January, Rishi Sunak made an announcement on the 5th of January, introducing another one off grant available for retail, hospitality and leisure businesses:

• £4,000 for businesses with a rateable value of £15,000 or under
• £6,000 for businesses with a rateable value between £15,000 and £51,000
• £9,000 for businesses with a rateable value of over £51,000

For those that are not eligible for the one off grant, he has introduced a further £594m for local authorities and devolved administrations.

Please contact your local council regarding their application process for these additional local grants

Business Loans

As introduced last year, there are two loans available for businesses to help with cashflow:

• Coronavirus Business Interruption Loan Scheme
• Bounce Back Loan Scheme

To relieve the pressures of repayments,  “Pay as you grow” was introduced:

• loan terms can be extended from 6 to 10 years (cutting repayments almost in half)
• businesses who are struggling can apply for interest only repayments for 6 months
• and those who need it can apply for a further 6 month interest free period.
• None of these measures will affect your credit rating.

The deadline for applications has now been extended to the 31st of March 2021.

Settled Status or Pre-settled Status VAT Reduction For Hospitality 

Last year the reduction of VAT to 5% for the hospitality industry was announced, this has now been extended until 31st of March 2021.

Closing thoughts

If you’re looking for further information or have specific questions relating to the content in this blog or lockdown3, please feel free to reach out to us: [email protected]