FINANCIAL SUPPORT UPDATE

FINANCIAL SUPPORT UPDATE

11 February 2021

LARGE HOSPITALITY GRANT SCHEME

 

HU continues to engage with the relevant departments to ensure the fastest possible commencement of the scheme and anticipate that the department will contact the qualifying businesses week commencing 22nd February.

 

 

OUTSTANDING GRANT APPLICATIONS

 

On behalf of members, HU continues to raise individual cases of outstanding or declined grant applications. To-date we have been able to resolve many individual cases with payments now either made or imminent.

 

A limited number of applications have been delayed as they potentially fall into other schemes and discussions are ongoing to ensure they are included in the most advantageous scheme.

 

Engagement on the unresolved cases continues at the highest level in the department.

 

 

BOUNCE BACK LOANS

 

NOTE: the closing date for applying for a Bounce Back Loan is 31 March 2021

 

The UK Chancellor announced a number of changes to Bounce Back Loans (CLICK HERE) aimed at providing additional support for businesses. At the moment, a Bounce Back Loan is for a six year period, with no payments being due in the first 12 months. Following the announcement, before the first repayment is due, your lender will contact you about further options to:

 

  • Extend the term of your loan to 10 years
  • Move to interest-only repayments for a period of 6 months (you can use this option up to 3 times)
  • Pause your repayments for a period of 6 months (you can use this option once)

 

 

SELF ASSESSMENT PAYMENTS INCLUDING CLASS 2 NATIONAL INSURANCE CONTRIBUTIONS


Self Assessment taxpayers were given the option of deferring payment (CLICK HERE) of their July 2020 Payment on Account until 31 January 2021 and, as a result, have 3 payments to make on this date, the deferred July 2020 payment on account (if it remains unpaid), any 2019 to 2020 balancing charge and the first 2020 to 2021 payment on account.

 

However, there is a Time to Pay option which some people would have taken which could result in 2019 to 2020 Class 2 National Insurance contributions being paid after their due date of 31 January 2021, leading to a detrimental effect on certain contributory benefits claimed.

 

People affected by this are advised to contact HMRC as soon as possible for help. They may be able to allocate monies have already paid for 2019 to 2020 Self Assessment liabilities against the Class 2 National Insurance contributions, resulting in a small amount of interest being paid and contributory benefit claims being protected.

 

HMRC is also advising Self Assessment taxpayers that they can still pay tax by instalments if they are unable to pay in full by 31 January 2021. If you have not filed your 2019 to 2020 Self Assessment return, you will need to file it as soon as possible and they will let you know what payments you owe and how to set up a Time to Pay instalment arrangement. People owing up to £30,000 can do this online without contacting HMRC

 

 

CALL TO ACTION

 

Hospitality Ulster and UK Hospitality have been lobbying the Government and MPs to include further support for the sector in the Budget – expected to be delivered on 3 March.

 

To amplify our call we are asking all hospitality businesses to use our tool to write to their MP ahead of the Budget. 

 

There is a preloaded email which outlines our Budget asks, which you can amend should you have any specific asks for your business or business type ahead of sending it in. It should take only a couple of minutes to do.

 

Please do share this as widely as you possibly can.

 

To write to your MP, please CLICK HERE
  

 

CJRS UPDATE

 

HMRC has updated it’s guidance to businesses on the CJRS (CLICK HERE) to say that there is no right of appeal if you are deemed to be ineligible for the Coronavirus Job Retention Scheme. They have also provided additional examples of how to calculate their claim for pension schemes.

 

 

YOU CAN HELP BY TAKING OUR REOPENING / RECOVERY SURVEY

 

Whilst our entire industry still remains in the survival stage of this crisis and our immediate focus remains on helping our members through this phase, we are also aware of the need for a reopening plan that provides the opportunity for businesses to return to profitability with the help of reduced taxation and the need for ongoing financial support well beyond the date of reopening.

 

Key to recovery will be a clear roadmap of policy, financial and fiscal interventions which support a timely, safe and viable re-opening of the hospitality sector.

 

Working with our industry stakeholder group we have compiled the following list of the key interventions required and now seek the views of the industry.

 

Please rate the following list of interventions on a scale of 1 – 5, with 1 being the LOWEST priority and 5 being the HIGHEST priority. All responses are private and confidential, and the survey can be completed quickly and easily on your phone, tablet, laptop or desktop.

 

To take the survey PLEASE CLICK HERE