COVID-19 Government Support Initiatives

When the Covid-19 pandemic first hit our shores, the government were quick to introduce a variety of measures to support businesses impacted by COVID-19. These included the furlough scheme, government-backed loans, as well as the option to defer upcoming tax obligation.

As the situation has continued, however, these initiatives have been largely scaled back, with businesses now expected to fend for themselves. In spite of this, there are a small number of ways in which the government is still offering its support:

Recovery Loans Scheme 

Designed as a direct replacement of the CBILS and Bounce Back Loan schemes, Recovery Loans are currently available for small and medium-sized businesses until the end of June 2022. Up to £2m can be accessed by those companies who qualify, with the government providing security to the lending banks worth 70% of the value of the loan. While the terms of a Recovery Loan are not quite as generous as those given with a Bounce Back Loan, this may still be a very useful option for those with the ability to afford the monthly repayments.

Business Rates Reduction 

Companies operating within the retail, leisure, and hospitality industries, may be entitled to a 66% reduction on their business rates for the period encompassing 1 July 2021 - 31 March 2022. Those who feel they may qualify should contact their local council directly.

VAT Reduction

Qualifying businesses within the hospitality industry may be entitled to a reduced VAT rate of just 12.5% until 31 March 2022. This discount also applies to those operating hotel or other travel accomodation, as well as those providing public attractions. 

If you would like further information on the above, please speak to your usual Begbies Traynor contact, or fill in the form below to request a call back