Welcome to the May 2021 News Update from Prestige Business Management

May 2021 News Update – featuring additional news developments from our newsletter series. Stay informed with the latest news in business support and financial affairs.

Hospitality Sector Bounce Back Business Surge

Since restrictions on the hospitality sector were relaxed further this month, pubs and restaurants have seen a surge in business, topping even pre-pandemic figures, up 8.6% on the same week in 2019, according to data from Barclaycard. Pubs and bars recorded the biggest surge in spending this week, up 162% in transaction values compared with the previous week, while restaurants posted a 58% increase in the total amount spent. The Office for National Statistics also reported a steep rise in restaurant bookings. It said figures from the booking website OpenTable show that reservations in the week to 17 May rose to 73% of their level two years ago. In contrast, fewer hospitality venues have reopened in central London and the city, owing to the shift in working patterns and office spaces not reopening at a scale that supports the hospitality sector in those locations.

Revolut to Rank with Most Valuable Fintech

Prestige Business Management banking partner Revolut, is on track to rank among the most valuable technology companies ever created in Britain. Precise figures are unlikely to be finalised for several months and would depend partly on investor demand. However their latest fundraising strategy will cement founder Nik Storonsky as one of Europe’s youngest fintech billionaires. 

CJRS Latest Updates

In July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875. Employers will need to pay the 10% difference in July (20% in August and September), so that they can continue to pay their furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. For the hours not worked, employers can continue to choose to top up their employees’ wages above the 80% level or cap for each month, at their own expense.

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Post Brexit Trade Statistics – 24th May 2021 

Data for January 2021 was the first to show how trade has responded after the transition period ended on 31 December 2020. While some of the fluctuations in trade with continental Europe is due to the effects of the Covid pandemic, the BCC said many firms blame the brexit trade deal for shipping delays, increased cost of transporting goods and extensive new paperwork requirements. Read here to find out what the first quarter says about post brexit trade in 2021. 

Brexit Trade Deal Facts – 17th May 2021

Boris Johnson’s Brexit trade deal ‘puts UK businesses at risk’ as 41% report fall in exports to EU. The Chambers of Commerce has called for fresh negotiations with the EU, to lower trade barriers created by the Prime Minister’s brexit trade deal. The free trade deal between the UK and European Union (EU) came into force on 1 January 2021. Trade can also be made simpler if countries have the same rules, such as the colour of wires in plugs. The closer the rules are, the less likely that goods need to be checked. Following brexit, the UK and EU needed to renegotiate the rules for their future trading relationship. As the UK is no longer required to follow EU rules on product standards, businesses will need to adjust to new checks. Prior to brexit the UK was automatically part of any trade deal the EU had negotiated with another country. The EU had about 40 trade deals covering more than 70 countries at the time the UK left. The UK has made deals to continue trading in the same way with 63 of these countries. Read what deals have been made here. 

How to Safely Reopen Your Business – 10th May 2021

Businesses that are reopening should check various areas of health and safety that may have been compromised during extended periods of closure. 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 few key actions that can support you to safely reopen your business. Workers returning to a business premises will need to know what to do to work safely. New, extra measures have costs and cash flow implications. One robust security measure all businesses can take is to conduct a cash flow forecast. Find out everything you need to know. 

IR35 has come into force from April – 4th May 2021

IR35 is anti-avoidance tax legislation designed to assess whether a contractor is a genuine contractor rather than a ‘disguised’ employee, for the purposes of paying tax. Previously workers who owned their own limited company could receive payments from a client directly to the company, meaning that profits could be distributed as dividends, which are not subject to National Insurance payments. Workers could also save tax by splitting ownership of the company with family members in order to place income in lower tax bands. However this was criticised as tax fraud. Put simply the IR35 rules aim to ensure that workers, who would normally be classed as direct employees of one company, pay the same income tax and national insurance contributions as their equivalent co-workers. Now IR35 has come into force for freelancers and contractors in the private sector. Find out more about how Prestige Business Management can help clarify your legal rights and responsibilities.

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

May Top Tips

With the roadmap out of lockdown going ahead as planned, here we take a quick look at where we stand right now.

Since 17th May

• Outdoors – most social contact rules lifted
• Yet still no gatherings of more than 30 people
• Rule of six or a larger group of up to two households allowed indoors
• Pubs, restaurants, cinemas, theatres, museums, galleries, concert halls, children play areas, hotels, B&Bs, indoor exercise classes 
• Large indoor performances and sporting events with a capacity of 1,000 people
• Outdoor large performances and sporting events will have a maximum capacity of 4,000 people or must only be half full, whichever is lower
• Bigger sports stadiums will be allowed 10,000 people or can only be a quarter full, whichever is lower
• Weddings, wedding receptions, wakes, funerals and christenings will be allowed with 30 people or fewer
• Remaining university students to return to campus, with new home testing kits 

From 21st June – pending

• All legal limits on social contact removed
• Nightclubs and large events such as festivals
• Testing could be used as a condition of entry
• Ministers hope to remove restrictions on weddings

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.