April 2021 News Update – featuring additional news developments from our newsletter series. Stay informed with the latest news in business support and financial affairs.
Recovery Loan Scheme
The Recovery Loan Scheme which was announced in the 2021 budget replaced the Coronavirus Loan Schemes on 6 April 2021. The Recovery Loan Scheme will provide lenders with a guaranteed 80% on eligible loans between £25,000 and £10 million, to give continued support and confidence to businesses in the UK. The scheme will be open to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes and those who haven’t.
National Living Wage Raised
The national living wage has been extended to 23 and 24-year olds for the first time this month. Previously, it only applied to people aged 25 and over. This rate will revive a 19p increase, from £8.72 to £8.91 per hour. This represents a 2.2 per cent rise, in line with inflation. The original plan was for the living wage to increase by 5.6 per cent, to £9.21 per hour. Boris Johnson pledged to give the lowest paid their “biggest ever cash boost” during the 2019 general election. However, the Low Pay Commission advised the Chancellor to make a U-turn on this, saying it would have a negative effect on businesses already struggling to stay afloat during the Covid-19 pandemic.
New hourly rates
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Reintroduction of the Freeport – 26th April 2021
A UK Freeport will be a geographical area with a diameter up to 45km which is closely linked to a sea port, airport or rail port. Eight new freeports in England are due to enter operation in late 2021. The government proposes a range of measures covering customs, tax reliefs, planning, regeneration funding and innovation to create Freeports as national hubs for global trade and investment across the UK. Goods that arrive into freeports from abroad aren’t subject to the tax charges, called tariffs, that are normally paid to the government. These taxes are only paid if the goods leave the freeport and are moved elsewhere in the UK. Otherwise, they are sent overseas without the charges being paid. It is hoped the reintroduction of the freeport will help regenerate deprived areas. Critics argue that freeports do not create new jobs and simply allow freeloading employers to dodge taxes. Read more here.
Caution Urged Over Fourth SEISS Grant – 19th April 2021
Workers in urgent need of the fourth SEISS grant urged to wait as HMRC doesn’t have full data and applicants may be misled. It has been announced that the portal for applications for the fourth Self-Employment Income Support Scheme (SEISS) Grant, will open on 22 April. Self employed workers have been waiting since February for further guidance about the fourth SEISS Grant, which has been promised since October, but was not confirmed until the 2021 Budget on 3 March. Logging in early in the hope that an application may be processed ahead of schedule is causing applicants to be potentially misled. Read more here.
Introducing MLM Accountant – 12th April 2021
Prestige Business Management has always taken pride in being anything but traditional. It’s always a small challenge to quantify exactly how much value we add by the way we work with our clients. This is one reason why we are proud to introduce to you MLM Accountant. A branch of Prestige Business Management with specialist Multi Level Marketing accounting expertise. We are thrilled to be working with such a dynamic and diverse sector, populated with MLM businesses, each as infectiously vibrant as you can imagine. From its inception to launching the brand in 2020, we have all of our new clients to thank for supporting us and informing us on this venture. This has been especially pleasing throughout the various lockdown situations we have all found ourselves in over the past twelve months. So we offer every gratitude to our allies for that. Read more about the brand and the businesses we are working with.
MTD for Corporation Tax – 6th April 2021
Making Tax Digital (MTD) will be extended to apply to corporation tax. This will come into practice in 2024 and will be enforceable from 2026. MTD makes it mandatory for businesses to keep digital accounting records and complete their VAT submissions to HMRC via an Application Programme Interface (API), utilising MTD compliant software. The roll out of MTD Phase 2 was postponed until April 2021 to allow businesses the breathing space to concentrate their limited resources and cash flow on surviving the restrictions imposed on trading due to the pandemic. All existing Prestige Business Management clients are already set up for MTD for corporation tax. Our processes are MTD ready for corporation tax in partnership with Quickbooks and other cloud accounting software, suitable to our clients needs. For businesses not yet prepared, the extension of MTD to corporation tax will cause an overhaul of business’s record keeping and filing requirements. Find out everything you need to know.
Client Referral Programme
We pride ourselves in treating our loyal clients with top notch perks and services. Our client referral programme is one way that we like to give back and reward you for doing business with us. You can recommend a friend to receive, up to £100 cash reward, per referral! All you have to do is recommend us – and make sure they tell us you sent them. We’ll do the rest
April Top Tips
How to Safely Reopen for Small Businesses
Businesses eager to get back to work following extended periods of lockdown, need to do so safely and sustainably. There are few key actions that can support you to safely reopen your business. Now the future is looking more hopeful, with the government’s roadmap setting out various points when you can safely reopen your business and larger groups of consumers may be accessing a wider range of products and services. There are three key areas to consider:
Businesses that are reopening should check various areas of health and safety that may have been compromised during closure, such as overdue checks and any deterioration around the building.
Workers returning to a business premises will need to know what to do to work safely. These measures will be unique to your place of work, like how you approach social distancing for example. This is why a dedicated risk assessment is crucial to safely reopen your business.
All of these extra measures have costs and cash flow implications. Your business will need to evaluate how the profit and losses will be affected by investing in these measures, plus changes to trading patterns, staffing and possible restricted consumer access. One robust security measure all businesses can take is to conduct a cash flow forecast that will allow your business to test all the possible variables in your trading pattern and predict business activities according to real time outcomes. All of these will be unique to your business and your industry. These simple steps will help any business to start on the road to recovery and safely reopen your business.
Prestige Business Management Works for You
At Prestige Business Management we can help your business understand the best solutions for the success of your business. Find out what we can do for you. Call us today on 0203 773 2927.