Additional Lockdown Business Support Measures

Following the Prime Minister’s announcement of a new period of lockdown last night, we want to reiterate that we are here to help as much as we possibly can – please do contact us if you have any questions or concerns and we'll do all we can to support you through what will for many undoubtedly be a testing few weeks and months.

Clearly we are in the early stages following the announcement but will seek to communicate any additional support measures announced by the government as and when we hear them.

In this respect the Chancellor has announced supplementary measures for businesses designed to support those affected through this new period of enforced closure as follows:

1. One-off top-up grants for eligible businesses in the retail, hospitality and leisure of up to (whether these are automatic or require application has yet to be clarified – we expect the former, but will confirm when we know):

- £4,000 for businesses with a rateable value under £15,000;

- £6,000 for those with a rateable value between £15,000 and £51,000; and

- £9,000 for those with a rateable value over £51,000.

2. An additional £594m to be provided to local authorities for discretionary grants (we expect the application process for these to be the same as previous versions in that businesses must apply to the authority who will then allocate funding at their discretion - please refer to the website of your local authority for further details).

3. The previously-announced extension to the furlough scheme currently until the end of April.

The grant payments above will always be in conjunction with the local authority - unfortunately there are a number of scam grant application processes being uncovered at present, including this one (via Sky News) with a link to a particularly convincing fake government website: 

https://news.sky.com/story/covid-19-warning-over-scam-texts-offering-fake-third-lockdown-hmrc-grant-12179701

If you are in any doubt as to the validity of communication received please contact us.

Additionally HMRC have indicated that late filing of self-assessment tax returns because of Covid-related matters will not result in late filing penalties.

This does not represent an extension or removal of the obligation to either file the return or pay the tax on time, but more a ‘soft touch’ approach to late filing where difficulties arise due to Coronavirus.

We would still advise clients to ensure that self assessment tax returns are filed and, as far as possible, liabilities are paid by 31 January however hope this guidance from HMRC provides some comfort that penalties should not be payable where filing on time is not possible. 

If you have any questions regarding this or anything else please get in touch, and for regular updates, announcements and news please check our website (www.dsaprospect.co.uk) and make sure you’re following our LinkedIn page: https://www.linkedin.com/company/dsa-prospect-ltd

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