25thAug
News article

Government provides £20 million in funding to boost recovery of small firms

Small businesses in England are set to benefit from an additional £20 million in funding to help them recover from the coronavirus (COVID-19) pandemic.

Click or touch to read the full article..

Small businesses in England are set to benefit from an additional £20 million in funding to help them recover from the coronavirus (COVID-19) pandemic.

The government recently announced that small and medium-sized businesses will have access to grants of between £1,000 and £5,000 to help them recover from the effects of the pandemic.

The funding will allow businesses to access new technology as well as professional, financial and legal advice to help them get back on track.

The grants will be fully funded by the government, and there will be no obligation for businesses to contribute financially.

Commenting on the funding, Simon Clarke, Minister for Regional Growth and Local Government, said: 'We have always said that we would stand behind our businesses and communities as we rebuild following the COVID-19 pandemic. This new funding does exactly that.

'Businesses will be able to use these new grants to pay for the expertise, equipment and technology they need to adapt, recover and build.'

24thAug
News article

HMRC blocks thousands of furlough applications

HMRC has blocked thousands of applications for the government's Coronavirus Job Retention Scheme (CJRS) due to fears they are fraudulent.

Click or touch to read the full article..

HMRC has blocked thousands of applications for the government's Coronavirus Job Retention Scheme (CJRS) due to fears they are fraudulent.

More than 30,000 CJRS applications have been rejected by HMRC, according to reports. At the end of June, 1,526 CJRS claims were rejected because the companies applying had ceased trading.

An additional 23,899 applications were rejected because businesses didn't have any employees on their payroll for the 2019/20 tax year.

HMRC reportedly believes many applications are fraudulent, and has taken steps to block claims.

The CJRS has provided £35.4 billion in support for 9.6 million jobs. It is being gradually wound down and will end in October, to be replaced by a Job Retention Bonus. This will see UK employers receive a one-off payment of £1,000 for each furloughed employee who is still employed as of 31 January 2021.

To qualify for the payment, the employee must be paid at least £520 on average in each month from November to January. Payments will be made from February 2021.

21stAug
News article

Treasury outlines plans for carbon emissions tax

The Treasury has published plans for a carbon emissions tax, which could be introduced if the UK fails to secure a Brexit deal with the EU.

Click or touch to read the full article..

The Treasury has published plans for a carbon emissions tax, which could be introduced if the UK fails to secure a Brexit deal with the EU.

A consultation published by the Treasury sets out how the Carbon Emissions Tax would operate if it was introduced from 1 January 2021. The consultation also outlines how the tax might be developed.

Under the new Carbon Emissions Tax, installations currently in the EU Emissions Trading System (EU ETS) whose emissions exceed their annual tax emission allowance would be liable to pay the tax on their emissions from 1 January 2021.

The consultation states that, as outlined in the UK's Approach to Negotiations Brexit document, the UK would be 'open to considering a link between any future UK ETS and the EU ETS'. If a link cannot be established, the UK will implement either an unlinked UK ETS or the Carbon Emissions Tax from 1 January.

The consultation is open to individuals and organisations, and closes on 29 September 2020.

20thAug
News article

Businesses 'vulnerable' as coronavirus schemes wind down, BCC suggests

The latest Coronavirus Business Tracker from the British Chambers of Commerce (BCC) has suggested that UK businesses are vulnerable as government support schemes begin to wind down.

Click or touch to read the full article..

The latest Coronavirus Business Tracker from the British Chambers of Commerce (BCC) has suggested that UK businesses are vulnerable as government support schemes begin to wind down.

According to the BCC, firms are still reporting high levels of reliance on government coronavirus (COVID-19) support schemes to 'help stem cashflow issues'.

38% of businesses stated that they have three months or less worth of cash in reserve. However, 38% of firms reported improved revenue from UK clients, a rise from the previous tracker's figure of 34%.

The BCC said that, with government support schemes set to wind down in the coming weeks, it 'remains unclear' what further support, if any, firms will receive.

'While some firms are seeing improvements in trading conditions, we are still very much in the eye of the storm, with further turbulence ahead,' said Adam Marshall, Director General of the BCC.

'As the government's emergency measures begin to wind down over the coming weeks, and with the prospect of further local lockdowns still very real, businesses across the UK are going to need further support to weather uncertainty over the coming months.'

19thAug
News article

29% of SMEs 'carried on as usual' during pandemic, survey finds

A survey carried out by Purbeck Insurance Services has revealed that 29% of small and medium-sized enterprises (SMEs) carried on business as usual during the coronavirus (COVID-19) pandemic.

Click or touch to read the full article..

A survey carried out by Purbeck Insurance Services has revealed that 29% of small and medium-sized enterprises (SMEs) carried on business as usual during the coronavirus (COVID-19) pandemic.

29% of SMEs carried on with no assistance from the government, according to the survey. 31% reported that they were confident about their job prospects and 17% described themselves as very confident in regard to job security.

80% of employees surveyed said that their manager was transparent about how their business was coping financially during the pandemic.

Commenting on the survey, Todd Davison, Managing Director of Purbeck Insurance Services, said: 'Based on our survey, one in five owners and directors of SMEs are shouldering huge personal financial risk because they have put their home and other personal assets on the line for a business loan by providing a personal guarantee to the lender.

'If SME owners start to look round for finance independent of any government support it is vital they look at the ways they can mitigate the risk of a personal guarantee-backed loan as the options outside of this type of loan could become quite limited.'

18thAug
News article

Drop in number of self-employed will lead to 'brittle workforce', IPSE warns

The Association of Independent Professionals and the Self-Employed (IPSE) has warned that a 'disproportionate and disturbing' decrease in the number of self-employed individuals will lead to a 'brittle workforce'.

Click or touch to read the full article..

The Association of Independent Professionals and the Self-Employed (IPSE) has warned that a 'disproportionate and disturbing' decrease in the number of self-employed individuals will lead to a 'brittle workforce'.

IPSE's warning came following the publication of data by the Office for National Statistics (ONS) which showed that the number of self-employed individuals fell by a record 238,000 in the second quarter of 2020.

IPSE blamed the decrease on gaps in government support for the self-employed during the coronavirus (COVID-19) pandemic compared to more comprehensive support for employees.

Additionally, quarterly incomes for the self-employed have dropped by 25% following a reduction in the amount of work available to self-employed individuals.

Commenting on the matter, Derek Cribb, CEO of IPSE, said: 'In the second quarter of 2020, there was a disproportionate and disturbing slump in the number of self-employed in the UK – far more than among employees.

'Going into a recession, we would normally expect a jump not a slump in the number of self-employed, as businesses look to the flexible expertise they offer. However, with government policy driving down the number of self-employed, there is a real fear the UK workforce will become brittle and rigid just when it needs to be at its most agile.'

17thAug
News article

Second round of grants for the self-employed opens

The Self-Employment Income Support Scheme (SEISS) has opened for applications for the second and final grant.

Click or touch to read the full article..

The Self-Employment Income Support Scheme (SEISS) has opened for applications for the second and final grant.

Under the scheme, the government pays self-employed individuals a taxable grant based on an average of their earnings over the past three years.

The grant covers up to 70% of earnings, up to a limit of £2,190 a month.

The eligibility criteria for the second grant are the same as for the first one. To be eligible, self-employed workers must have filed a tax return for the 2018/19 tax year and have average trading profits under £50,000 for the past three years.

The claimant's business must have been adversely affected by the coronavirus (COVID-19) at any time since 14 July. Both those who claimed the first grant and those who did not are eligible for the second grant. Claims must be made by 19 October.

Detailed guidance about the grants can be found here.

As your accountants, we can guide you through the SEISS eligibility criteria and the process for checking and claiming. Please contact us for more information.

14thAug
News article

Freelancers experience drop in income

Freelancers experienced a drop in income during the coronavirus (COVID-19) lockdown, according to research published by the Association of Independent Professionals and the Self-Employed (IPSE).

Click or touch to read the full article..

Freelancers experienced a drop in income during the coronavirus (COVID-19) lockdown, according to research published by the Association of Independent Professionals and the Self-Employed (IPSE).

The research showed an average drop of 25% during the second quarter of this year.

The drop in income was driven by a record fall in the average number of weeks freelancers worked this quarter. Between March and June, the average freelancer went five and a half weeks out of 13 without work.

This, combined with a 3% fall in freelancers' average day rates, lead to a decline in average quarterly earnings from £20,821 in the first quarter of 2020 to £15,709 in the second quarter.

Inna Yordanova, Senior Researcher at IPSE, said: 'It's been clear for some time that the economic impact of coronavirus has fallen particularly hard on freelancers.

'Freelancers are a vital and extremely productive part of the workforce who have historically always been essential to recovery from economic depressions. If they are to play this crucial role, however, the government must make sure that in the event of a second wave, all freelancers have the support they need. Otherwise, going through another full lockdown and the resultant slump in work and income could be utterly devastating for them.'

13thAug
News article

FSB urges local councils 'not to delay small business grants'

The Federation of Small Businesses (FSB) has urged local councils in England to ensure the speedy issuance of small business grants to firms that require them.

Click or touch to read the full article..

The Federation of Small Businesses (FSB) has urged local councils in England to ensure the speedy issuance of small business grants to firms that require them.

The business group found that only 23% of councils across England have issued 100% of funds to businesses. The FSB has urged all local authorities to expedite the issuance of funds, whether it be the Discretionary Grant Fund or the Small Business Grants Fund.

The FSB is also urging small firms to sign up for coronavirus (COVID-19) small business grants as the deadline for applications approaches.

Commenting on the issue, Mike Cherry, National Chairman of the FSB, said: 'Small businesses have been through what for many has been and will be the most difficult period they have ever faced, and while things are slowly starting to improve, we're not out of the woods yet.

'That is why we are making this call . . . for small firms to apply as soon as possible so that they don't miss out on grant funding that could prevent a business from going under.'

12thAug
News article

UK economy falls into recession for first time in 11 years

Lockdown measures introduced as a result of the coronavirus (COVID-19) pandemic have pushed the UK economy into recession, data published by the Office for National Statistics (ONS) has revealed.

Click or touch to read the full article..

Lockdown measures introduced as a result of the coronavirus (COVID-19) pandemic have pushed the UK economy into recession, data published by the Office for National Statistics (ONS) has revealed.

The data showed that the economy shrank by 20.4% in the second quarter of 2020. Construction and factory output slowed as the lockdown took effect and household spending decreased as a result of the closure of shops.

Additionally, the UK services sector experienced the largest quarterly decline since records began, according to the ONS.

Commenting on the data, Tej Parikh, Chief Economist at the Institute of Directors (IoD), said: 'These dire figures highlight the painful reality households and businesses across the country are facing. The battle now is to prevent longer-term scarring from this coronavirus-induced plunge in economic activity.

'Job losses have been mounting and may only increase as we reach the end of the furlough scheme. The pile of debt businesses have had to take on could also cause a lasting hangover. With flimsy balance sheets, directors will find it difficult to push ahead with any spending plans. Meanwhile, sales and operations will remain limited by the need for social distancing and ongoing uncertainty around the virus.'

The IoD has urged the government to respond with measures to support jobs, such as reducing employers' national insurance contributions (NICs).