March 2021 News Update – featuring additional news developments from our newsletter series. Stay informed with the latest news in business support and financial affairs.
This month Prestige Business Management has moved our banking over to Starling Bank. Whilst we never encountered any problems with Barclays, this move better reflects our dynamic organisational culture. We expect even more dynamism from the economy in 2021. We will keep you informed with emerging information as we receive it.
Economic Outlook Remains Unusually Uncertain
The Bank of England reports optimism thanks to a smaller-than-expected drop in growth in January and the extension of the furlough scheme. Economic recovery still depends on the “evolution of the pandemic” and measures to protect public health. The economy shrank by 2.9% in January according to official figures, suggesting businesses have adapted to trading in lockdown. This raises expectations that recovery will be stronger than predicted, thanks in large part to the vaccine programme. Bank of England governor Andrew Bailey says he expects the economy to “get back at the end of this year to where it was at the end of 2019”.
Unemployment Figures
Meanwhile, the government’s fiscal watchdog, the Office for Budget Responsibility, forecasts that unemployment will peak at 6.5% instead of the 11.9% predicted last July. The number of unemployed is expected to fall next year as the economy recovers from the crisis. This is the highest figure for five years, and means that 1.74 million people were unemployed between November 2020 and January 2021. Contact us for guidance if you are experiencing difficulties with cash flow or retaining employees.
More Fresh News from our Blog
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Introducing Tide Banking Partner – 23rd March 2021
Powered by simple banking, Tide alternative bank account offers Prestige Business Management customers excellent benefits. At Prestige Business Management we take partnering with the right software and services very seriously. So we can offer you a complete and fast paced package of technologies, accounting and great communication that will be right for your business in the modern, economic marketplace. We also value good relationships. We continually strive to find the best tools and for our clients and pass on the benefits. Prestige Business Management is proud to introduce Tide as our newest, professional partnership. Read more about how Tide offers powerful, simple banking for modern businesses, designed to reduce the time small to medium enterprises need to dedicate to their accounting.
Spend Now Tax Later Budget – 18th March 2021
The budget 2021 has been dubbed the spend now tax later budget. Prestige Business Management reviewed the Chancellor’s 2021 budget for businesses. This covers Coronavirus Loan Schemes, the Furlough Scheme Extension and limited Green Policies. Plus your in-depth guide to the latest Taxes, IR35, National Living Wage Increase and other budget news. Read more in our deep dive into the spend now tax later budget of 2021 and the three part plan containing business support, response and investment in growth and what it means for you.
How to Distribute Dividends – 15th March 2021
A dividend is a reward distributed to shareholders in return for their investment. Directors are liable for any amount paid unlawfully. So it pays to know this system and use it to your advantage. The majority of a company’s profits is retained within the company to fund their ongoing business. The remainder can be allocated to the shareholders as a dividend. Essentially the distribution of dividends, is a transaction that transfers value to a shareholder (or related party), the terms of which are arrived at because the other party was a shareholder (or related party). Read more about recognising g realised profits and how to distribute dividends in a way that offers an advantage to your business’s cash flow.
Budget 2021 News for Self-Employment – 7th March 2021
The 2021 budget announced limited support for self-employed workers and contractors, evolving the support for business recovery. Chancellor Rishi Sunak told British workers this month that his 2021 budget ‘meets the moment with a three-part plan to protect the jobs and livelihoods of the British people’. Mr Sunak outlined that his ‘three part plan’ consists of business support for workers still being affected by coronavirus, paying for the response and investment in economic growth, in his second budget speech given on 3 March 2021. Read more about the updates to SEISS, Furlough, new loans and grants, other recovery support and tax breaks.
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
March Top Tips
With the road map out of lockdown being enacted, make sure are you familiar with the forthcoming stages. We outline the proposals here. Next month we look at how to reopen small businesses safely, securely and permanently.
8 March 2021
- Pupils began returning to schools
- Exercise outdoors with one person from another household
29 March 2021
- The rule of six, or two households will apply outdoors
- Outdoor sport and leisure facilities may restart
- Organised outdoor sport is allowed for children and adults
Click for a full list of businesses and venues that this applies to.
12 April
- Indoor leisure, including gyms and spas (but not including saunas and steam rooms) Outdoor attractions
- Libraries and community centres
- Personal care premises
- Non-essential retail
- Outdoor hospitality with no requirement for a substantial meal to be served alongside alcoholic drinks, and no curfew
- Self-contained accommodation (household only)
17 May
Businesses may reopen under strict guidance. Groups catered for will will be subject to legal limits. Click for a full list of businesses and venues this applies to.
21 June
- No legal limits on social contact
- Reopen the remaining closed settings, including nightclubs and enable large events, including theatre performances
- No legal limits on all life events
Prestige Business Management Works for You
At Prestige Business Management we can help you navigate the economy, prepare for changes in trading and forthcoming legislation. Find out what we can do for you. Call us today on 0203 773 2927.
