Well, what a year it has been! Financially and personally for most of us it has been turbulent to say the least, and unfortunately, it’s looking like we’re not out of the woods just yet.
Advanced have been as busy as ever adapting to the changing financial landscape. While many of our wonderful clients have sadly had to shut up shop or reduce their hours, we have dedicated our time to providing them with assistance by applying for local authority grants, loans, self-employment support schemes, furloughing staff and much much more.
Most people see accountancy firms as an extra expense they can’t afford when times get tough but we think having an accountant on your side to navigate through such turbulent situations can actually prove to be financially beneficial….and based on the feedback we’ve been getting, our clients agree!
The hospitality industry in particular has struggled. Pubs, restaurants, clubs, bars and accommodation have had to shut for an extended period of time, and they have all faced huge changes since reopening. Some businesses had a brief boom during August as the ‘eat out to help out’ scheme proved extremely popular (or £10 off and 10lb on as I preferred to call it…) but now that they’ve been hit with a 10pm curfew and with many regional households not being able to mix the financial pressure is back on.
So what support is now out there to ensure we do not lose our valued establishments and countless jobs?
Aside from the eat out to help out, the hospitality industry has been given a reduced VAT rate (on affected supplies) of just 5% which has now been extended. This applies to hospitality, holiday accommodation and attractions. This temporary change will run from 15th of July 2020 and remain in place until 31st March 2021.
The hospitality industry has also been granted a Business Rates Relief which allows businesses in the retail, hospitality and leisure industry to not pay any business rates for the 2020/2021 tax year.
In addition, with the furlough scheme changing as of 2nd October 2020, paying now only 60% of wages instead of the original 80%, the government have launched a new system of support to help people to retain their jobs.
A new jobs support scheme has been designed to protect jobs in businesses who are going to be facing difficulty over the winter months due to COVID. This scheme starts on the 1st of November and will run for 6 months. It will allow businesses to cut the hours of their employees if they cannot justify having fulltime staff. Employees can keep their jobs under reduced hours whilst still receiving 77% of their original wage (one third of which will be paid by the government)
Employers who use the job support scheme will also be able to claim the job retention bonus and you will be able to claim this bonus on the gov website from December 2020.
As always, if you need any help such as bringing your staff back from furlough or applying for the jobs support scheme or anything else, Advanced Accountancy are just a phone call away on 01384 271858 or email Enquiries@advancedaccountancy.co.uk
We hope you’re keeping safe!