government

Creating Green Growth

2 min read

2021 will see the UK host COP26, where parties from around the world will gather together to find ways to work towards the goal of a low-carbon future.

The UK government itself must accelerate the reduction of carbon emissions in order to hit the country’s climate target by 2050. The desire to reach these goals has been further fuelled by the coronavirus (COVID-19) pandemic, with many people urging governments to ‘build back better’ and businesses assessing their own roles in the ‘Green Industrial Revolution’.

For this to happen, the government will need to deliver fundamental change to help the UK meet its net-zero target while aiding an economic recovery. Chancellor Rishi Sunak has already laid out some steps towards creating a greener economy. Here, we take a look at what could be done to drive these ambitions further.

Committing to green growth

In the 2021 Budget, the Chancellor made a number of commitments to green growth. This included the first ever UK Infrastructure Bank, which will have an initial capitalisation of £12 billion and will invest in green public and private projects.

The Chancellor also unveiled a retail savings product to give UK savers the chance to support green projects to sit alongside a Sovereign Green Bond that was announced last year. Mr Sunak also committed investment to offshore wind, with funding for new port infrastructure to build the next generation of projects in Teesside and Humberside.

Holistic plan

The Confederation of British Industry (CBI) has urged the government to go further in order to encourage the green industrial revolution. It says that greening the tax system must go beyond simply looking at different environmental taxes – transport, pollution and energy taxes – as one-offs. Instead it should deliver fundamental change with a holistic, coherent tax plan to help the UK meet its net-zero target.

Bumps in the road

However, the UK government has also come in for criticism for cutting electric vehicle grants by £500 while continuing to freeze fuel duties of petrol and diesel vehicles. The Department for Transport will now provide grants of up to £2,500 for electric vehicles on cars priced under £35,000. This is a reduction from the previous £3,000 available for vehicles costing up to £50,000.

The government says this means the funding will last longer and be available to more drivers. However, critics say the cut in grants sends the wrong message, while the fuel duty freeze highlights the challenge facing the government as it seeks to assist the post-COVID recovery whilst also building back better.

How we can help

We aren’t just your average accountants. We offer a wide range of business advisory services to help you make the right decisions for your business to grow and improve. With over 40 years experience our team is dedicated to really understanding your business.

We believe by staying up to date with not only current but changing legislation and industry news we are better placed to help our clients and their businesses succeed.

If you would like to know how Loucas can assist you please do not hesitate to contact us.

COVID-19 Business Support Measures Update

2 min read

The Government have recently issued further guidance on two of the support packages available to businesses affected by COVID-19.

Coronavirus Job Retention Scheme (“CJRS”)

The updated guidance on the CJRS sets out the procedures following the changes that come into force on 1 July 2020.  The major change on 1 July will be that employers will be able to bring back employees on a part time basis.  The guidance covers in detail how the furlough grant should be calculated in this situation. 

The CJRS will come to an end on 31 October with the level of support being reduced as from 1 August.

  • June and July – The level of support is be unchanged
  • August – the Government will pay 80% of wages up to a cap of £2,500 and employers will pay ER NICs and pension contributions for the hours the employee does not work.
  • September, the Government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
  • October, the Government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.

Self-Employment Income Support Scheme (“SEISS”)

The deadline for claiming the first grant under the SEISS is 13 July.  All claims must be made on or before this date.  To find out if you are eligible to make a claim follow this link. 

Details of the second and final grant for self employed individuals have been released on the .GOV website.  Eligible individuals can claim a taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profit, and capped at £6,570 in total.

The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus when applying for the second and final grant. An individual does not need to have claimed the first grant in order to be eligible for the second and final grant.

Applications to make a claim for the second grant will open in August 2020.

If you have any questions, our team of expert Accountants would be happy to assist.

Disclaimer: Content posted is for informational & knowledge sharing purposes only, and is not intended to be a substitute for professional advice related to tax, finance or accounting. Each comment posted by third party readers/subscribers of our website on topics of tax and accounting is their personal opinion and due professional care should be taken by you before you act after reading the contents of that post. No warranty whatsoever is made that any of the posts are accurate and is not intended to provide, and should not be relied on for tax or accounting advice.

Supporting businesses impacted by COVID-19

3 min read

In an interconnected global economy, the new coronavirus (also known as COVID-19) is affecting UK businesses and their operations. It has resulted in restrictions on travel and public gatherings, as well as supply chain disruptions and market uncertainty. We share some practical steps you can take to help manage the impact of COVID-19 on your business.

This page is updated regularly to give the latest news and resources for business owners. We’ve pooled together all our experts’ advice and sources of support together in one place. This should make it easier for you to find useful information and to know what your next steps are at this challenging time.

Keep up to date with the latest developments and advice        

You can read the latest guidance and advice to businesses on the GOV.UK website. The CBI have also published detailed guidance on their website.

Have a plan

In case all or some of your workforce have to self isolate put together a plan as to how you will manage this process now.  Here are a few practical things to consider:

  1. How will you communicate to your customers what is happening
  2. Can you divert your phone system
  3. How will the workforce communicate with each other if working from home
  4. Do you have up to date contact details for all your workforce
  5. If staff would need to connect to a computer network remotely check they can do this now
  6. Is it possible to split departments and segregate from one another to reduce the risk that everyone in a single department is affected  

Keep your staff informed

Firstly, keep everyone updated as to what you are doing to reduce the risk of exposure in the workplace.  Ensure everyone knows what they should do in the event that they do experience symptoms.

To avoid uncertainty you should also communicate to your staff the company sickness policy and how this would apply in different circumstances.

Financial support for businesses

The Government announced in the Budget a number of measures they are introducing to support businesses that are affected by COVID-19.

These include:

  • a statutory sick pay relief package for SMEs
  • a Business Rate Relief for small businesses and pubs
  • small business grant funding of £3,000 for all business in receipt of Small Business Rates Relief (SBRR) and Rural Rates Relief
  • the Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance
  • the HMRC Time To Pay Scheme

Full details can be found on the GOV.UK website

Struggling to pay your tax because of COVID-19

If you are having difficulty or believe you will have difficulty paying your taxes on time HM Revenue & Customs have set up a new Coronavirus helpline.

Where possible you should call HMRC before the tax liability falls due to discuss a payment plan.  If you do not contact HMRC and don’t settle your liabilities on time you may incur a penalty.  HMRC Coronavirus Helpline – Telephone: 0800 015 9559

Sick pay for Self-Employed

For the self employed who find themselves out of work or have to self isolate, it is now simple to make a claim for Universal Credit or Contributory Employment and Support Allowance. https://www.gov.uk/employment-support-allowance

Coronavirus Business Interruption Loan Scheme

For the Business Interruption Loan schemes contact your bank as they will be the lenders that administer the loans. You can find out more information on the British Business Bank website. https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/

Government launches coronavirus business support finder tool

The Government have launched a new tool to help businesses quickly and easily identify what support is available to them during the COVID-19 pandemic.

You can find the tool at: https://www.gov.uk/business-coronavirus-support-finder

The Future Fund

HM Treasury have published details of a new scheme called the Future Fund.  This new scheme, which is set to go live in May, is aimed at start-up high growth businesses which rely on equity investment and are unable to access the Coronavirus Business Interruption Loan Scheme.  The Government will issue convertible loans of between £125,000 and £5,000,000, which need to be matched by private investment.

The scheme, when launched, will be run in partnership with the British Business Bank.

Full terms of the loans and eligibility can be found at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/880119/Convertible_Loan_Key_Terms_-__Final_Version_.pdf

Self-Employment Income Support Scheme (SEISS) Going Live

HMRC have announced that the scheme will be open on 13 May with the first claims being paid into bank accounts on 25 May or within six working days of making a claim if later.

HMRC have already started to contact individuals that they believe may be entitled to claim.    

It is possible to check your eligibility by using HMRC’s online checker.  You will need your Unique Tax Reference (UTR) Number and National Insurance Number.  Once you have checked your eligibility you will be given a date as to when you should make your claim.

Those who are eligible will be able to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500 (equivalent to three months’ profits), paid in a single instalment.

Full details of the scheme can be found here.