September 2020 News Update – featuring additional news developments from our newsletter series

This month the Chancellor announced that the Job Support Scheme (JSS) will be expanded to protect jobs and support businesses required to close their doors as a result of new coronavirus restrictions. 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, to protect jobs and enabling businesses to reopen quickly once restrictions are lifted. 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. We have also seen the UKs deficit rise to £36bn, the highest debt-to-GDP ratio since 1960, according to the latest official figures. Consumer price inflation (CPI) increased in September to 0.5% from 0.2% after the end of the Treasury’s eat out to help out scheme, which cut the cost of restaurant meals, along with a nudge up in transport costs. 

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What You Missed From Our Blog – Summary

Recession Proof Your Business
Recently we reported that Covid19 has triggered the largest ever recession in the UK, so now is a good time to think about how to recession proof your business. Prestige Business Management understands unsettling a recession and the associated level of uncertainty can be for businesses of every size. Fortunately we are in full knowledge of what government support packages there are to support you and your business. You can follow our monthly news updates for regular summary. Furthermore have a thorough knowledge of business solutions to support you every step of the way. Robust financial management could give you a whole new perspective on the scope of your business, particularly during a recession. Prestige Business Management can help you analyse your cash flow and recommend strategies according to your market position to help recession proof your business. Thousands of small to medium businesses in England can still benefit from £20 million of government funding to help access new technology and other equipment and professional, legal, financial or other advice to help them get back on track. Small and medium sized businesses of between £1,000 – £5,000 to help them recover from the effects of the coronavirus pandemic. Make sure you are accessing as much support as you can to recession proof your business. Click here to read more.

Professional Services Grant
Small businesses in England can access £20m of funding via a professional services grant, which includes accountancy advice. Since the recent announcement of the new winter economy plan, which replaces the autumn budget due to unprecedented economic uncertainty due to COVID-19, we have a clearer understanding of the government’s predictions for the UK’s economy over the coming months. Ministers say they have introduced one of the most generous and comprehensive economic plans in the world… to provide certainty to businesses and workers impacted by coronavirus across the UK, with a cluster of new support schemes which make up the winter economy plan. One such scheme is the professional services grant designed to help small businesses throughout the UK recover from the impact of coronavirus through professional advice – including guidance from accountants. Click here to read more.

Construction Industry Scheme VAT Reverse Charge
The Construction Industry Scheme (CIS) VAT reverse charge is expected to come into force on 1st March 2021. The CIS VAT reverse charge was due to commence in October 2019, but this was delayed twice, firstly as a result of Brexit and then the outbreak of COVID-19. The CIS VAT domestic reverse charge measure will apply to supplies of construction work in the UK. When the reverse charge applies the customer accounts for the supplier’s output VAT. This measure only applies to construction supplies made by business to business. What the CIS VAT reverse charge means, is that the customer receiving the service will have to pay the VAT due to HMRC instead of paying it to the supplier. It will only apply to individuals or businesses registered for VAT in the UK. The reverse charge will affect supplies of building and construction services supplied at the standard or reduced rates that also need to be reported under CIS. These are called specified supplies. There is an important difference between CIS and the reverse charge where materials are included within a service. The reverse charge applies to the whole service whereas CIS payments to net status sub-contractors are apportioned and no deductions are made on the materials content. Click here to read more.

October’s Top Tips from Prestige Business Management
This month the government introduced a system of local COVID alert levels, to help businesses to continue to trade safely, despite a rising number of covid cases. Here we have summarised what restrictions apply to each local alert level. To find out your current local alert level click here.

Here we provide an overview of what restrictions apply to each local alert level:

COVID Alert Level 1 – Medium 

National restrictions continue:

• follow social distancing rules
• work from home where you can effectively do so
• when travelling, plan ahead or avoid busy times and routes; walk or cycle if you can
• you must wear a face covering in those areas where this is mandated
• you must not socialise in groups larger than 6, indoors or outdoors (other than where a legal exemption applies)
• businesses and venues can continue to operate, in a COVID-secure manner, other than those that remain closed in law
• certain businesses are required to ensure customers only consume food and drink while seated, and must close between 10pm and 5am
• businesses and venues selling food for consumption off the premises can continue to do so after 10pm as long as this is through delivery service, click-and-collect or drive-through
• schools and universities remain open
• places of worship remain open, subject to the rule of 6
• weddings and funerals can go ahead with restrictions on numbers of attendees
• exercise classes and organised sport can continue to take place outdoors, or indoors if the rule of 6 is followed; there are exceptions for supervised activities for under-18s, and disability sport

COVID alert level 2 – High

Additional to national restrictions:

• you must not socialise with anybody outside of your household or support bubble in any indoor setting, whether at home or in a public place
• you must not socialise in a group of more than 6 outside, including in a garden or other spaces like beaches or parks (other than where specific exemptions apply in law)
• businesses and venues can continue to operate, in a COVID-secure manner, other than those that remain closed in law
• certain businesses are required to ensure customers only consume food and drink while seated, and must close between 10pm and 5am
• businesses and venues selling food for consumption off the premises can continue to do so after 10pm as long as this is through delivery service, click-and-collect or drive-through
• schools, universities and places of worship remain open
• weddings and funerals can go ahead with restrictions on the number of attendees
• exercise classes and organised sport can continue to take place outdoors; these will only be permitted indoors if it is possible for people to avoid mixing with people they do not live with or share a support bubble with; there are exceptions for supervised activities for under-18s, and disability sport
• you can continue to travel to venues or amenities that are open, for work or to access education, but should look to reduce the number of journeys you make where possible

COVID alert level 3 – Very High

This is for areas with a very high level of infections and where tighter restrictions are in place. The restrictions placed on areas with a very high level of infections can vary, and are based on discussions between central and local government. You should therefore check the specific rules in your area. 

Possible enforceable restrictions:

• restrictions preventing the sale of alcohol in hospitality or closing all hospitality (except takeaway and delivery)
• closing indoor and outdoor entertainment venues and tourist attractions
• closing venues such as leisure centres and gyms (while ensuring provision remains available for elite athletes, youth and disabled sport and physical activity)
• closing public buildings, such as libraries and community centres (while ensuring provision remains available for youth and childcare activities and support groups)
• closing personal care and close contact services or prohibiting the highest-risk activities
• closing performing arts venues for the purposes of performing to audiences