New Financial Support for Northern Ireland
Businesses that may be forced to close due to restrictions and local lockdowns will be able to access financial support for every 2 weeks they have to close. The amount available is dependent on the size of the business, for example, the thresholds are:
Small businesses with a Net Annual Value (NAV) of up to £15,000
Medium businesses with a NAV of £15,001 to £51,000
Large businesses with NAV of £51,001 or more
Tax Cuts and Deferrals
The Government has also announced that it is extending the temporary 15% VAT cut for the tourism and hospitality sectors until the end of March 2021. The 5% tax rate has been a fixture in the hospitality and tourism industry since July, so businesses are probably well aware of what it means. However, to reiterate, businesses are not obliged to pass the 15% tax relief across to their customers by dropping their prices. It is up to each individual company to decide how to incorporate the 15% VAT cut into their business.
In addition, those businesses that deferred their VAT bills are to be given more breathing space through a new and improved payment scheme. The new payment scheme provides businesses with the option of paying back their deferred VAT bills in smaller instalments, helping balance the books. Rather than paying a lump sum in full at the end of March 2021, businesses can make 11 smaller interest-free payments during the 2021-2022 financial year.
Pay As You Grow – Flexible Loan Repayments
For those businesses who took out a Bounce Back Loan earlier on in the pandemic, the Government have introduced the Pay as You Grow flexible loan repayment scheme. Initially the loan would have had to have been paid off within 6 years. However, this has now been extended to 10 years, meaning monthly repayments are cut by nearly half. There will also be interest-only periods of up to 6 months and payment holidays available for businesses.
This is a summary of details provided on www.nibusinessinfo.co.uk
N.I. Federation of Clubs
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