Business News - 10 January 2022
A round up of the latest business news for our clients. Please contact us if you want to talk about how these updates affect your business. We are here to support you.
This update includes:
HMRC gives Self-Assessment taxpayers more time to ease COVID-19 pressures
Self-certification period temporarily extended
National Living Wage and National Minimum Wage rates for 2022
Recovery Loan Scheme extended
New business grants
HMRC gives Self-Assessment taxpayers more time to ease COVID-19 pressures
HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for Self-Assessment taxpayers for one month – giving them extra time, if they need it, to complete their 2020 to 2021 tax return and pay any tax due.
HMRC is encouraging taxpayers to file and pay on time if they can, as the department reveals that, of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.
HMRC recognises COVID-19 is affecting the capacity of some agents and taxpayers to meet their obligations in time for the 31 January deadline. The penalty waivers give taxpayers who need it more time to complete and file their return online and pay the tax due without worrying about receiving a penalty.
The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:
anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February
anyone who cannot pay their Self-Assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April
Interest will be payable from 1 February, as usual, so it is still better to pay on time if possible.
See: HMRC gives Self Assessment taxpayers more time to ease COVID-19 pressures - GOV.UK (www.gov.uk)
Self-certification period temporarily extended
The UK Government has announced that employees in the UK can self-certify sickness absence for 28 days instead of seven. The change came into force on 17 December 2021 and applies to absences beginning on or after 10 December 2021, up to and including absences, which begin on or before 26 January 2022.
See: Statutory Sick Pay: employee fitness to work - GOV.UK (www.gov.uk)
National Living Wage and National Minimum Wage rates for 2022
The UK Government have announced the rise in the National Minimum Wage and National Living Wage from April 2022.
In full, the increases are:
National Living Wage (23+) to increase from £8.91 to £9.50
National Minimum Wage (21-22) to increase from £8.36 to £9.18
National Minimum Wage (18-20) to increase £6.56 to £6.83
National Minimum Wage (16-17) to increase £4.62 to £4.81
Apprenticeship Wage to increase from £4.30 to £4.81
See: UK government announces pay rise for millions of people - GOV.UK (www.gov.uk)
Recovery Loan Scheme extended
Applications for this loan have been extended and are now open until 30 June 2022.
Launched on 6 April 2021, the Recovery Loan Scheme (RLS) provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic.
You can apply to the scheme if Covid-19 has affected your business. You can use the finance for any legitimate business purpose – including managing cashflow, investment and growth. However, you must be able to afford to take out additional debt finance for these purposes.
If your business has already borrowed from any of the other coronavirus loan schemes – namely:
the Bounce Back Loan Scheme (BBLS)
the Coronavirus Business Interruption Loan Scheme (CBILS)
the Coronavirus Large Business Interruption Loan Scheme (CLBILS)
RLS is still open to you, although the amount you have borrowed under an existing scheme may in certain circumstances limit the amount you may borrow under RLS.
At Autumn Budget 2021, the government announced that the Recovery Loan Scheme will be extended by six months to 30 June 2022, with the following changes applying from 1 January 2022:
The scheme will only be open to businesses with a turnover not exceeding £45m per annum
The maximum amount of finance available will be £2 million per business (maximum amount per Group limited to £6m)
The guaranteed coverage that the government will provide to lenders will be reduced to 70%
See: Recovery Loan Scheme - British Business Bank (british-business-bank.co.uk)
New Business Grants
The government is introducing a new grant scheme to support businesses that are experiencing difficulties because of the Omicron variant. Hospitality and leisure premises will benefit from targeted grant support. The Additional Restrictions Grant will also be topped up so local authorities (LAs) can continue to use their discretion to support other businesses in their area, based on local economic need.
Hospitality (defined as accommodation, food & beverage services) and leisure premises will benefit from targeted grant support. The Additional Restrictions Grant (ARG) will also be topped up so local authorities (LAs) can continue to use their discretion to support other businesses in their area, based on local economic need.
Nearly £700 million of targeted grants for hospitality and leisure businesses in England have been allocated for the hospitality and leisure sector.
Recipients must be solvent businesses, and ratepayers in the hospitality and leisure sector. For example, a pub; hotel; restaurant; bar; cinema; or amusement park. Grants are per premises and the amount paid is varied by rateable value (RV) of each eligible premises, in three bands: £0-15k; £15-51k; and over £51k.
Rateable value Value of Grant
£0-15k £2,700
£15-51k £4,000
>£51k £6,000
In addition, Local Authorities (LAs) in England will receive a top-up worth a total of £102 million to their Additional Restrictions Grant fund. Up to £250 million is still currently with LAs, which they will distribute.
To find your local council and for their application process see: Find your local council - GOV.UK (www.gov.uk)
