Remaining COVID-19 Government Business Support
The Queen’s Speech provided a useful overview of current Central Government support to business, and when schemes will end. Below is a list of current support and incentives for businesses to survive and recover after the COVID-10 pandemic.
- The Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme will both continue to operate until September 2021
- The Kickstart scheme, which offers incentives to employ 16-24 year olds on six-month placements
- The Recovery Loan scheme (80% Government guaranteed) is open to businesses – including those that have already received support from other schemes
- Restart Grants to help businesses open safely. Hospitality, accommodation, leisure, personal care and gym business premises in England are eligible for grants up to £18,000. Non-essential retail business premises in England are eligible to receive grants worth up to £6,000.
- The 5% VAT rate in hospitality, attractions and accommodation sectors (introduced in July 2020) has been extended to September 2021, followed by a new 12.5% rate from 1st October to 31 March 2022.
- Businesses can make 11 smaller repayments on any deferred VAT still outstanding on the 31st March 2021. Access to the scheme will close on 21st June 2021.
- Eligible businesses in the retail, hospitality and leisure sectors benefit from business rates relief worth over £6 billion in 2021-22. This includes a three-month extension of the current 100 per cent rates relief from 1st April 2021 to 30th June 2021. This will be followed by 66 per cent relief for the period 1 July 2021 to 31 March 2022 for eligible properties (although with maximum caps in place).
- Business rates multiplier for 2021/22 has been frozen
- A £1.5 billion relief fund to be awarded to non-retail, hospitality and leisure properties most affected by COVID-19 by Local Authorities on a discretionary basis.
- Key cultural organisations can benefit from the additional £300m Culture Recovery Fund in 2021/22 to support cultural organisations in England as audiences begin to return.
- From April 2021 until the end of March 2023, companies can claim 130% ‘Super-Deduction’ capital allowances on qualifying plant and machinery investments. For every pound a company invests, their taxes are cut by up to 25p.
- The ‘Help to Grow’ scheme can help small businesses learn new skills, reach new customers and boost profits. Eligible SMEs can receive support from an Executive Development programme, free online advice and money off software.