Much of the government Covid-19 support for businesses available during the pandemic is coming to an end over the coming months. Contributions are required to the furlough (CJRS) scheme from July, repayments for deferred tax and loans fall due and there are changes to business and VAT rates. It is important to be aware of the timelines involved to manage cashflow.
June 2021
- First CBILS repayments fall due for those who borrowed at the beginning of the pandemic. The first 12 months of interest payments were covered by the government
- Similarly, BBLS repayments fall due. Look at Pay as You Grow scheme if you are unable to afford repayments
- VAT deferral ended 20 June 2021, and VAT Deferral New Payment Scheme closed on 21 June 2021
- Ban on commercial evictions extended, but businesses that can open should start to pay rent
July 2021
- Employers CJRS contributions start at 10% of the cost of unworked hours plus total costs of all employers NIC and auto-enrolled pension contributions
- Business rates relief for retail, hospitality and leisure is reduced to two-thirds discount
- Consider the need for Time To Pay arrangements
August 2021
- CJRS contributions increase to 20% of the cost of unworked hours plus total costs of all employers NIC and auto-enrolled pension contributions
September 2021
- CJRS scheme ends 30 September 2021
- Hospitality VAT rate moves from 5% to 12.5% on 30 September 2021
We are on hand to help you with cashflow forecasts and to assess your options as the government’s Covid-19 support packages are scaled back. If you need our help, please do get in touch.