Important news from The House of Commons last night, in response to the economic impact of coronavirus the IR35 off-payroll rules for private sector engagers have been delayed until 6th April 2021.
The IR35 delay came in response to growing calls for the government to offer support to the self-employed and freelancers.
This will be welcome news to many of our clients and contacts who are contractors through limited companies.
Please do contact us if you would like any further information on this.
New measures announced by the Chancellor
The biggest single element in the Chancellor’s rescue package is a package of £330bn bank loan guarantees to help small and large businesses manage cashflows during the pandemic.
“That means any business who needs access to cash to pay their rent, the salaries, suppliers, or purchase stock, will be able to access a government-backed loan, on attractive terms,” said Sunak.
One year payment holiday for business rates
The business rates holiday now applies to all businesses in the retail, hospitality and leisure sectors for 12 months, regardless of rateable value. The Chancellor’s universal business rate holiday goes further than last week’s announcement which was only eligible for the businesses in those sectors with a rateable value below £51,000.
Grants for small business
£25,000 grants are also available to retail, hospitality and leisure businesses in smaller premises with a rateable value of over £15,000 and below £51,000.
Another adjustment to last week’s Budget, the Chancellor enhanced the small business rate relief grant of £3,000 to £10,000. Funding for the scheme will be provided to local authorities by the government in early April. Guidance for local authorities on the scheme will be provided shortly and we will update our clients as soon as we have further information.
Insurance
Hospitality and leisure businesses had voiced concern about the effect the government’s advice to avoid pubs, clubs and theatres would have on their insurance, but the chancellor confirmed that this advice is sufficient for those businesses to claim insurance if they have appropriate business interruption cover for pandemics in place.
Mortgages
The Chancellor also confirmed that mortgage lenders have agreed support for struggling customers as a result of COVID-19 with an up to three month payment holiday.
Team HB will be updating our clients and contacts as the government released new information – we want to assure you that we will be here throughout this crisis for our clients and contacts, if you have any concerns at all please do not hesitate to contact us.
Our business contingency plan is in place and we will do everything we can to support our clients during this uncertain period, please do not hesitate to contact us here by email or call 01992 444466 if you have any concerns or queries regarding the above or anything to do with the COVID-19 outbreak. We are here for you during this difficult time.
If you missed our earlier mail out on “What you can do to help your business/sole trade through the COVID-19 crisis” please click here.
Stay safe & healthy
From all the Team at HB Accountants
The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above
