Businesses that are required to shut due to local lockdowns could be entitled to claim up to £1,500 in grant funding every three weeks for each premises that is closed.

The new grant funding has been created to support those businesses that are adversely affected by local restrictions, which are being imposed in areas with high incidences of the Coronavirus.

Under the new scheme:

• If a business occupies premises with a rateable value less than £51,000 or occupies property or part of a property subject to an annual rent or mortgage payment of less than £51,000, it will receive £1,000.
• If a business occupies premises with a rateable value of exactly £51,000 or above or occupies property or part of a property subject to an annual rent or mortgage payment of exactly £51,000 or above, it will receive £1,500.

Unfortunately, any businesses still closed at a national level, such as nightclubs, will not be eligible for this funding.

The new grants will be delivered by local authorities, who will be responsible for distributing the grants to businesses in circumstances where they are closed due to local interventions. Local authorities are being given the discretion to determine additional eligibility criteria should it be deemed necessary.

These new grants can be used alongside other support, but as with other COVID grants funding from this new initiative will be treated as taxable income.

Further details of this new grant are yet to be published by either the Government or local authorities. We will try and bring you updates on this new scheme as and when they emerge.

Companies House has changed its bank details with effect from 1 September 2020 following a technical change to the way it is funded.

Letters sent by Companies House from 1 September 2020 onwards include the new bank details, which businesses will need to use to pay any fees due.

The previous bank details will remain in operation until the end of February 2021.

According to the latest official figures from HM Revenue & Customs (HMRC), a total of £1.1 billion was paid out in tax reliefs for the creative sector during 2019/20.

The figure represents a rise of more than £30 million on the previous year.

Creative sector tax reliefs aim to increase the level of investment in cultural activity throughout the UK. The sector includes TV, film, animation, video games, theatre, orchestras and museums.

The data has revealed that film tax relief (FTR) accounted for just under half of the total amount paid out, with high-end TV (HETV) the next highest, accounting for 30 per cent.

A total of £522 million worth of FTR was paid in response to 785 claims, representing 740 films.

There were also 110 British programmes completed in 2019/20 which claimed HETV tax relief, with UK expenditure of £1.5 billion, and £324 million was paid in respect of 290 claims.

Each film, programme, animation or video game can make several claims during the production process. One claim can also be used to cover several productions.

The majority of claims made are for smaller amounts, with two-thirds of all claims being for £100,000 or less. However, despite only two per cent of the claims being for more than £5 million, they accounted for 66 per cent of the total amount paid.

The year also saw £71 million of theatre tax relief paid out relating to 1,115 claims, £18 million of orchestra tax relief, and £16 million of museum and galleries exhibition tax relief.

Experts believe that the film and television sector has a vital role to play in the recovery of the UK’s economy post-COVID-19 and are encouraging all companies and charities in these fields to consider claiming, or even revisiting existing claims, as there is often scope for significantly increasing original claims.

Link: Over £1 billion of tax reliefs for the creative sector

A new set of Advisory Fuel Rates for the next financial quarter are now in effect as of 1 September 2020. These rates apply to any employee who uses a company car.

The rates can be used in circumstances where you are reimbursing employees for business travel in their company car or in requiring employees to repay the cost of fuel used for private journeys. If you use these rates, you will not need to seek a dispensation to cover the payments.

The new rates are:

Please be aware that you can use the previous rates for up to one month from the date the new rates apply. Details of the previous fuel rates can be found by clicking here.

Hybrid cars are treated as either petrol or diesel cars for the purposes of Advisory Fuel Rates.

Meanwhile, the Advisory Electricity Rate for fully electric cars is four pence per mile, although electricity is not considered a fuel for car fuel benefit purposes.

Link: Advisory Fuel Rates

As the Coronavirus Job Retention Scheme (CJRS) is slowly wound down by the Government, businesses must adapt their PAYE reporting and payroll function to reflect the required funding contributions.

To help, we have provided a list of key dates for September and the following months to ensure you are prepared for the changes ahead:

• 1 September 2020 – Grants from the Coronavirus Job Retention Scheme (CJRS) tapered down to 70 per cent of a furloughed employee’s usual wages, capped at £2,187.50 a month, with employers required to contribute another 10 per cent, so that furloughed employees continue to receive 80 per cent of their usual wages.
• 1 October 2020 – Grants from the CJRS taper down to 60 per cent of a furloughed employee’s usual wages, capped at £1,875 a month, with employers required to contribute another 20 per cent, so that furloughed employees continue to receive 80 per cent of their usual wages.
• 31 October 2020 – The CJRS closes. Employees can no longer be furloughed after this date.
• 30 November 2020 – The last date for making claims for the CJRS.

The closure of the CJRS is likely to have a significant impact on the employment costs of businesses and so it is important to plan for this now.

Businesses should also remain aware of the Job Retention Bonus, which offers employers £1,000 for every furloughed employee who is brought back, continuously employed and paid at least £520 a month on average from the end of October 2020 to 31 January 2021.

Link: Coronavirus Job Retention Scheme and Claim for wages through the Coronavirus Job Retention Scheme