Last night, Boris decided to drop quite the festive gift on the Country – but, how do you feel about it?
Some people are focused on the key message of protecting the country amidst the news of the new Corona strain
However, some cannot help but be cross at such a last minute change to their Christmas period plans, and many people in Bristol are in that mind frame!
With just 4 days to go until the big day, the Country has once again be thrown into last minute chaos, now trying to understand what the new rules even mean!
Just as Bristol gets the good news of moving down to tier 2, comes more heartache for small Business owners, more so those caught in the new Tier 4 restrictions, including:
- Kent, Buckinghamshire, Berkshire, Surrey (excluding Waverley), Gosport, Havant, Portsmouth, Rother and Hastings
- London (all 32 boroughs and the City of London)
- the East of England (Bedford, Central Bedford, Milton Keynes, Luton, Peterborough, Hertfordshire, Essex excluding Colchester, Uttlesford and Tendring).
What does tier 4 mean?
In Tier 4 the ‘Stay At Home’ message will be put in law, from Sunday 20th Dec (today).
As previously, there will be exemptions – including travelling for work or education, for childcare purposes, and for exercise.
People should not enter or leave Tier 4 areas, and Tier 4 residents must not stay overnight away from home.
Where people cannot work from home, they should still travel to work, for example in the construction and manufacturing sectors.
Non-essential retail, indoor leisure [such as swimming pools and gyms], indoor entertainment [such as cinemas, bowling alleys and casinos], and personal care sectors [such as nail bars, barbers and hairdressers] must all close.
Tighter social contact restrictions will also be introduced, meaning one person can meet with one other person in an outside public space.
Rules on support bubbles and childcare bubbles will remain as currently, and communal worship can continue to take place.
What about tiers 1, 2 and 3?
For Tiers 1, 2 and 3, Christmas bubbles can continue with up to three households able to meet, but for one day only on Christmas Day.
The government is also issuing new travel advice. Although the new variant is concentrated in Tier 4 areas, it is present at lower levels around the country.
People under Tier 1, 2, and 3 restrictions should stay local.
People should not travel into or out of Tier 4 areas and those in Tier 4 areas will not be permitted to travel abroad, apart from limited exceptions including work and education.
Tier 4 rules will be reviewed on 30 December, as part of the wider review of all restrictions.
Small Business owners – what can you do?
With less than 24 hours notice, businesses will have to close. Bookings will have to be cancelled. Employees will have to be furloughed.
Quite frankly, this is s*** for the small businesses in tier 4.
So what can you do? Don’t forget to explore the following assistance in place if you haven’t already:
- Furlough scheme – more to come on this below
- CBILS and BBL – don’t forget you can still apply for this until 31st March 21
- Local Gov Grants – check your local council website for current grants available, including those grants for businesses forced to close
Now is the time to ensure your business has a plan and forecast in place.
PLEASE follow this advice – it can be so simple to put together but will give you HUGE clarity to move forwards with.
It will also be necessary if applying for most finance/loans.
Furlough Extension – April 2021
Rishi has now announced that the furlough/retention scheme will be extended until 30th April 2021.
This will continue at the 80% as is currently offered – with employers covering NI and Pension.
Don’t forget, if making use of flexi-furlough, you must still pay employees 100% of their pay for ACTUAL hours worked.
80% can then be offered for hours not worked.
Eligibility for this scheme remain the same.
The aim of this is to provide a small level of certainty to business owners when planning for the New Year.
Loan Extensions – CBILS and Bounce Back Loan
The Government have now also announced that the main Loan assistance schemes will allow applications up to 31st March 2021 for those who haven’t yet made use.
Focusing on recover in the New Year will be top of the list for small businesses, and so financial assistance may play a part in that.
PLEASE REMEMBER – if you take out a Bounce Back Loan, this cash belongs to your business, not you.
If you take the money, be prepared for a large tax bill coming your way!
We have warned you before, but sadly in the last couple of months have been completing client tax returns with large dividends, essentially covering the money taken.
With that comes large tax bills!
Please everybody, be sensible and get your businesses secure to start the new year, this is MUCH more beneficial in the long run.
SEISS Claims – be careful!
We have already started seeing cases of HMRC writing to clients and asking for these grants back.
If you have claimed, and haven’t checked the eligibility rules VERY carefully, you could find a letter landing through your door too.
If in doubt, check the HMRC website. If you are still confused, get in touch as I am sure we can guide you!
A fourth Self Employment Income Support Scheme grant (SEISS) will be made available from February to April 2021.
As always, we are here to help you, even if this weeks email feels pretty bleak!
On the plus side….next week is CHRISTMAS!!
Regardless of how this year has been for you and your business (believe me I know more than anyone what a rubbish year this has been) – CELEBRATE!
Have fun, drink, be merry, sing, exchange gifts, get some relaxation time in etc.
It is on ourselves to have a Merry Christmas. So do it! For you, your family, your friends.
Myself and the whole team here at Steele Financial wish you all the Merriest of Christmas’s, and an even HAPPIER New Year! Here’s to 2021!