Fourth SEISS Grant
22nd of April, 2021Those who were eligible before or who might now be eligible due to having filed the 19/20 Tax Return will be getting a notification from HMRC any day now as to when they can claim. There is then up to 31 May to make a claim and it is not possible to claim until after the date HMRC will tell you.
You need to let HMRC know that your income has been affected adversely by COVID.
The amount is still based at 80% of average trading profits for 3 months – but the 19/20 reported figures are now being taken into account and so the amounts will not necessarily be the same as previously and HMRC will compute what is due.
Bounce Back Loan Repayments and Pay as You Grow
The Bounce Back Loan repayments are likely to be starting up soon as it is almost a year since the loans were started.
The Government scheme to flex the initial loan by allowing you to extend the period is called “Pay as you Grow” but you have to apply via your Bank’s website for this – it will not happen automatically.
- You can request to have a 6 month interest free period and can do this up to three times during the life of the loan.
- You can request a 6 month payment holiday (once during the life of the loan)
- You can request to extend the term to 10 years.
Each of these have implications for how much in total you will pay over the life of the loan.
Business Recovery Loan
These loans are available from April 2021 and are Government backed through the British Business Bank.
Anyone can apply, even if you already have a Bounce Back Loan or CBBLS loan, but your overall ability to pay and credit rating will be taken into account in deciding whether or not you are eligible.
The Government are not paying the fees or offering any interest free periods.
The best way to proceed is via your own bank as a selection of banks reviewed all state that they are only offering this to their own customers at the moment – although we have not checked all the banks listed on the website of the British Business Bank.
VAT deferral
HMRC have set up an instalment plan for the re-payment of VAT deferred last year (between March 2020 and June 2020). The amount is technically due by 31 March 2021, but it is possible to sign up to pay the amount due by instalments calculated to finish by 31 March 2022. This needs to be done through a client Government Gateway account. We can offer advice/help with this, but the deferral application should be made by the client. Any applications for payment by instalments must be made by 21 June 2021.
