From April 2021, a new grant will be available to help businesses to reopen. Non-essential retail will get £6,000 per premises. Hospitality and leisure including personal care and gyms will get £18,000 per premises.
Eligible retail, hospitality and leisure properties will pay no business rates for three months from 1 April to 30 June 2021. From 1 July 2021, business rates will be discounted, by a further 66% business rates relief until 31 March 2022
The reduced 5% rate of VAT for goods and services supplied by the tourism and hospitality sector has been extended to 30 September 2021. To help support businesses further there will be a transitional rate of 12.5% from 1 October to 31 March 2022 with the standard rate of 20% applying from 1 April 2022.
The fourth taxable grant will cover 80% of average trading profits, capped at £7,500. The fourth grant will take into account 2019 and 2020 tax returns and will be open to those who became self-employed in the tax year 2019/2020. Eligibility for the scheme will be based on the tax return submitted for 2019/2020 which must have been submitted by 2 March 2021.
The furlough scheme will continue in its current form until 30 June 2021, furloughed workers will continue to receive up to 80% of their wages for the hours not worked. From 1 July 2021, employers will contribute towards the costs of unworked hours, starting with 10% in July, 20% in August and September. The scheme is set to end on 30 September 2021.
Businesses that deferred VAT payments last year can join the new scheme to pay it in smaller monthly instalments.
If you deferred VAT payments due between 20 March 2020 and 30 June 2020 and still have payments to make, you can: Pay the deferred amount in full, on or before 31 March 2021; or join the VAT deferral new payment scheme – the online service opened on 23 February 2021 and is open until 21 June 2021
The government has extended a ban on evictions of commercial property tenants until the end of March 2021, in a move that will be welcomed by struggling restaurant owners and retailers.
There is updated information about business and venue closures in England, reflecting the introduction of local restriction tiers that came into effect on 2 December 2020.
The Local Restrictions Support Grant (LRSG (Open)) supports businesses that have been severely impacted due to temporary local restrictions. Businesses that have not had to close, but which have been severely impacted due to local tier 2 or tier 3 restrictions, may be eligible for LRSG (Open).
Guidance has been updated to reflect the extension of the VAT reduced rate for tourism and hospitality from 12 January to 31 March 2021. The government made an announcement on 8 July 2020 allowing VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies.
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