Below is a summary of current support measures available to businesses in Scotland, including recent changes to schemes announced by the Government.
We will update all the detailed support measures again following the Budget on 3 March 2021.
Coronavirus Job Retention Scheme (CJRS) Extension
Following the Prime Minister’s announcement of a second England lockdown from 5th November, the planned implementation of the Job Support Scheme – intended to commence from 1st November - has been postponed and instead an extension of the Coronavirus Job Retention Scheme has been put in place, reverting back to the 80% salary support terms of the original scheme. The scheme will run until 30 April 2021. Read more details about the Job Retention Extension.
VAT Deferral
For those businesses that took advantage of the deferral of their VAT liabilities due in the 20 March to 30 June 2020 quarter, there is further assistance to defer the original settlement due on 31 March 2021 for a further 11 months by instalments which may be an option for those businesses carefully managing their Cash Flow. Businesses in the Tourism and Hospitality sector are also currently benefitting from a reduced VAT rate of 5% on their non–alcohol sales through to 31 March 2021.
For those individuals that deferred their payment due on 31 July 2020, originally for settlement on 31 January 2021, there will also be the opportunity to spread that payment further beyond 31 January 2021. This will be limited to liabilities up to £30,000 and your 2019/2020 Tax Return must have been submitted. Visit the Gov.co.uk website for details on the Self-Assement Payment Plan.
Self Employment Income Support Scheme (SEISS) Extension
Claims for the third SEISS grant have now closed. The last date for making a claim for the third grant was 29 January 2021.
Details about the fourth grant will be announced on 3 March 2021.
Coronavirus “Bounce Back” Loans and CBILS Loans
The date for application for Loan funding under these schemes has been extended to 31st March 2021 for those still to apply. In addition, the period for Loan Repayment can now be extended to 10 years rather than the previous 6 year term. Bounce Back Loan holders will also have the opportunity to take a six month repayment holiday during the Loan term to assist with Cash flow issues and those who have borrowed less than their maximum can top-up their existing loan.
Visit Gov.Scot for full details on Covid-19 Business Support Funds for Sectors.
Coronavirus Restrictions Fund
This is an additional fund to support businesses forced to close due to temporary lockdown measures. This is mainly aimed at Hospitality businesses but is not restricted only to those. Applications open from 20 October 2020 and more information on eligibility and how to apply can be found at https://findbusinesssupport.gov.scot/service/funding/coronavirus-restrictions-fund#involves
Coronavirus (COVID-19): Business Contingency Fund
This first phase of the Contingency Fund will provide one-off grants to two sectors that have been closed by law since March 2020: nightclubs and soft-play centres.
This first phase of Contingency Fund grants will operate as a three-tiered scheme, with awards dependent on Rateable Value.
Eligible businesses will receive:
£10,000 grant for a property from which they operate with a rateable value of £18,000 or under; or
a £25,000 grant for a property from which they operate with a rateable value between £18,001 and £51,000; or
a £50,000 grant for a property from which they operate with a rateable value above £51,001.
Businesses operating multiple premises will be eligible for each one, with second and subsequent locations payable at 75% of the standard rates set out above.
The Kickstart Scheme gives you financial support to create new 6-month job placements for young people who are currently on Universal Credit and at risk of long-term unemployment. The scheme is open to all organizations. While the support is available for those organizations with a minimum of 30 placements, any business can be involved through a Partner organization such as Dumfries & Galloway Chamber of Commerce.
It pays:
100% of the relevant National Minimum Wage for 25 hours a week
employer National Insurance
minimum automatic pension enrolment contributions
£1,500 per job placement for setup costs, support and training
The previously planned Job Retention Bonus payment has now been put on hold.
Extension Business Rates Relief for retail, leisure and aviation sectors - Extended until 2022.
The Scottish government has confirmed that it is extending 100% of its business rates relief for the hospitality, retail, leisure and aviation sectors for another year.
For more information about the assistance available to you and your business, get in touch with Douglas by calling 01387 955900 or email douglas.russell@armstrongwatson.co.uk
